Supplier Quality Score Card MANUAL

YEL - Supplier Development \ Supply Management

Content: Classification of Key Performance Indicators (KPIs) Definition of KPIs Severity of KPIs Calculation of KPIs (charts and tables) Score table Supplier ranking Additional information and analysis FAQ

Manual prepared by Hanxiu Lei 2012 by YEL-SD

| YAZAKI | YEL-Supplier Development | Supplier Score Card | Manual version 2

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1. Introduction
In order to drive supplier improvement towards excellence, Yazaki measures the performance of all suppliers continuously. This evaluation is reflected in the `Supplier Score card and is applicable to suppliers who deliver production material to Yazaki Europe (YEL) managed affiliates, including India and North-Africa affiliates. This manual explains the new Score Card model which was updated to align with the Yazaki Global Supplier Development program.

2. Definition of KPIs
Score Card KPIs now exist out Yazaki global harmonized and European specific KPIs.

Type
Global Global Global Global Europe Europe Europe Europe Europe

KPIs
PPM Performance 3D Reactivity Performance 8D Reactivity Performance Rejection Performance Number of Rejections Documentation Performance No of Line Stops 3D Reactivity of Customer Concerns Delivery Performance

Definition
Defective parts per million parts delivered * Percentage of 3D reply given within 24 hours, Concerns without answer (in pending) are counted as not on time Percentage of 8D reply given within agreed time without answer (in pending) are counted as not on time Ratio of Rejections per million parts delivered (RPM) ** Total No of Rejections (NOR) Percentage of submitted documents(drawings, parts Specification and PSWs) in relation to this of requested Number of the Line Stops in YEL-Plant caused by suppliers No of end customer concerns and 3D reply not on time *** Percentage of Shipments on time

Please be noticed that KPIs are based on rolling 12 months data. * All materials entering YEL managed affiliates are considered.

** Rejections are quality, logistics and warranty concerns/ incidents in GQRSC. *** Customer concerns are those concerns originated by customers/OEMs and Yazaki Resident Engineers.

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3. Weight of KPIs

4. Explanation of the Charts and Tables

A: PPM Performance Calculation of PPM on 2 levels Monthly: displaying monthly trend Rolling 12 months: displaying PPM 12 months average

Defective quantities are shown in the table and the received quantities in the chart.

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Ranking of PPM (Score Table)

PPM
0 1-9 11-20 21-30 31-40 41-50 51-60 61-70 71-80 81-100 >100

POINTS
10 9 8 7 6 5 4 3 2 1 0

RANK
A A B B C C D D D D D

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B: Rejection Performance (RPM and NOR) Both RPM and NOR belong to rejection performance, while RPM belongs to globally harmonized KPIs and NOR (Number of Rejections) to European specific KPIs.

All the complaints are divided into 2 groups according to their Status: Open: concern still in open GQRSC status, 3D/ 8D and/ or Cost Agreement open Closed: concern in closed status, 8D and Cost Agreement closed RPM ranking is based on the rolling 12 months value. NOR: No of the rejections rolling 12 months. Note: For this KPI we have no additional charts.

Ranking of NOR(Score Table)

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Ranking of RPM (Score Table)

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C: 3D/8D Reactivity Performance Calculation of both, 3D (to be answered within 24 hours after receiving the complaint) and 8D (to be answered within 14 days) response time and status. Evaluation of 3D RP with max. achievable 30 points and 8D RP max. 10 points. Note: Concerns with `pending` status are considered as NOT on time.

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and 8D to be answered within 14 days or within Target date agreed.

Remark: 8D responses of the last month reported and in pending status are considered as on time. Some concerns might be still within the target date at the time of GQRSC data download (shown grey shaded).

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Ranking of 3D and 8D reactivity performance

D: Documentation performance Calculation of responses to Yazaki documentation requests (Drawings, PSW/ PPAP, Specifications, Handling manuals, etc.). Responsiveness percentage of documents submitted on time (10 working days or confirmed and agreed target date). Calculation of accumulated rolling 12 months.

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Ranking of the Documentation Performance (Score Table)

DOC [30 POINTS]

Doc Perf (%) 0% 50% 51- 52 53 - 54 55 - 56 57 - 58 59 - 60 61 - 62 63 - 64 65 - 66 67- 68 69 - 70 71 - 72 73 - 74 75 - 76 77 - 78 Points 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Rank D D D D D D D D D D D C C C C C Doc Perf (%) 79 - 80 81 - 82 83 - 84 85 -86 87 - 88 89 - 90 91 92 93 94 95 96 97 98 99 100 Points 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 30 Rank C C C B B B B B B A A A A A A A

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E: Delivery performance

The delivery performance of the suppliers are calculated based on the ratio of on time delivered shipments to the total number of the shipments.

F: Line stop Line stops, caused by supplier in the YEL Plant are counted and reflected in the Score card. A calculation example: Supplier A supplies 2 plastic components to one of our European Yazaki affiliates. As a result of delayed deliveries caused by the supplier (confirmed delivery date was not met), the affected Yazaki affiliate has a stop of its production for 2 days. Consequently, the supplier has caused 4 Line Stops. The Number of Line Stops is defined by the number of delayed components multiplied with the number of days our production is stopped.

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G: 3D Reactivity Performance of Customer Concern As end customer concerns have a major impact to Yazaki, a new KPI has been established. Number of end customers concerns not on time are displayed. For example: Supplier ABC has caused 10 end customer concerns in rolling 12 months, 2 of them with 3D answered after 24 hours. The value of this KPI is 2. Refer to the score table below, resulting in 13 points for this KPI.

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Ranking of this KPI

3D Customer Concern [20 P]
3D RP 0 1 2 3 4 >=5 POINTS 20 15 13 10 5 0 RANK A B C D D D

H: Score summery (all KPIs) This summary of all 8 KPIs shows the achievement per KPI and the total ranking level.

The Score history shows yearly data about the development trend of the total performance. Note: The score before August 2012 is calculated by the old evaluation method, these scores are frozen and will not be changed.

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I: Supplier Certification performance It is the aim of Yazaki to cooperate with suppliers who are fully certified in accordance to automotive, environmental, safety and social accountability standards. Therefore, supplier certification status of all active supplier sites (including Manufacturing locations, Sales offices & Logistic/Warehouses) are being tracked. Suppliers having no valid ISO/TS 16949 and ISO14001 certificates can achieve a maximum B level score, having none ISO9001 certification, max. C level. J: Overall Ranking (A, B, C, D level) The achieved overall performance score in percentage defines the overall supplier ranking.

5. Additional Information and analysis

1) Concern Class Total number of Quality, Warranty and Logistic concerns per month.

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2) Number of concern per YEL plant Total number of supplier concerns per YEL-plant.

3) Defect Pareto Shows the pareto of the defect types per Yazaki Part Number rolling 12 months.

In case of any specific questions, please contact your responsible SQE or the Business Analyst.

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6. FAQ
QUESTION: What do global harmonized KPIs mean? ANSWER: The KPIs are globally defined, but the data are only from European Affiliates. QUESTION: Where can I find the rolling 12 months data of Rejection? ANSWER: There is no data in tabular form. The monthly data of No of Rejection are shown in the charts. You find the ranking of this KPI in the summary area. See below.

QUESTION: Are open concerns penalized? ANSWER: No. Open concerns are marked in red, but there is no penalty for concerns in open status. QUESTION: Why do we need to evaluate the 3D reactivity of Customer Concern? What is a Customer Concern? ANSWER: There are many Customer Concerns in the last months, to which we should pay great attention. We can only response to our customer timely if the supplier answers within 24 hours. A concern is a Customer Concern if its defect is found by Customer themselves OR by our Resident Engineer.

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QUESTION: I cant find the name of my supplier in the Defect Pareto menu, why? ANSWER: It means your supplier has no concern in the last 12 months. In this case just choose Blank like below.

QUESTION: Where can I input the Target Data, which I have agreed with my HiImpact suppliers? ANSWER: If you have signed an individual quality agreement with your Hi-Impact supplier, this will be automatically shown in the charts. Otherwise there are standard defined Targets like following: PPM: 5 RPM: 0.150 3D Reactivity: 100% 8D Reactivity: 95% QUESTION: Can I have a separate Scorecard for a single location of my supplier? | YAZAKI | YEL-Supplier Development | Supplier Score Card | Manual version 2 Page: 17

ANSWER: YES, please contact our Business Analyst, who prepares the scorecard to modify your location grouping QUESTION: Is it possible to merge or split the scorecard for my supplier? ANSWER: YES, please contact our Business Analyst, who prepares the scorecard to modify your location grouping QUESTION: The data are not correct, what can I do? ANSWER: The data of the last 2-3 months are always changing. During this time concerns may have been canceled, new due date agreed or defective modified, etc. The changes will automatically be updated in the Scorecard of upcoming month. If there is any calculation error, please contact our Business Analyst.

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