As we seek to extend Achieving Operational Excellence systemically throughout the supply chain, beginning in 2024, all of our Electronic Systems suppliers will be eligible to receive a performance scorecard.

The following changes to the Quality scoring factors will take effect starting in January 2024:
  • Defects Per Parts Million (DPPM) (replaces Defects We Buy)
  • SCAR Issuance
  • SCAR Responsiveness (against a target of 90  days to corrective action implementation)
  • Supplier Quality-Induced Factory Disruptions (impacts our ability to deliver to our customers)

 

2023 Supplier Performance   2024 Supplier Performance   Why the Change?

Defects We Buy (DWB)

(Pieces Inspected – Pieces Rejected) * 100 
Pieces Inspected

  

Defects Per Parts Million (DPPM)

Total # of Defects *1,000,000
Total # of Pieces Received

  
  • DPPM is an industry recognized standard measure of supplier quality performance
  • Event level penalties have been added to better align with industry peer supplier scorecard programs
  • BAE Electronic Systems is focused on developing meaningful and actionable metrics that drive improvements in processes and behaviors to positively influence our business performance 

Disruption Levels

   Quality Penalty Events Penalty
  1. Quality issue shop floor purge       
  2. Quality issue stop ship                     
  3. Quality issue customer escape     
  4. Cyber Security CUI impact             
  1. -0.25%
  2. -0.5%
  3. -1.0%
  4. -2.0%
   SCAR issued
Overdue SCAR
Quality Factory Disruption
Customer Escape
Customer MRB
Cyber Security CUI impact
Counterfeit Part impact		 One Tier
Two Tiers
Three Tiers
Three Tiers
Three Tiers
Four Tiers
Four Tiers

 

Highlights
  • No changes to Delivery Score at this time
  • Rolling 6 month scoring remains
  • Penalties are cumulative and carry for the rolling score period
  • DPPM not retroactive
  • SCAR Penalties effective January 2024 regardless of creation date within the rolling period
  • Other penalties effective January 2024
  • Quality Factory Disruption is a Supplier Quality issue that causes a Stop Ship/Work event or a Late Work Order issuance due to lack of conforming material availability

 

2023 Supplier Performance Scoring
Tier Quality Score Delivery Score

Gold

 100% 100%
Silver 99.85% 98%
Bronze 99.55% 96%
Yellow 98% 90%
Red <98% <90%
2024 Supplier Performance Scoring
Tier Quality Score Delivery Score

Gold

 ≤233 100%
Silver 234-6210 98%
Bronze 6211-66807 96%
Yellow 66808-308538 90%
Red >308538 <90%