Basic Tool that meets ISO, TS and most customer requirements

1. A Basic but effective model that meets most
ISO, TS and Customer requirements if
properly documented and acted upon.
Bill Kohnen

2.  Quick Measure to evaluate risk for key
suppliers
 Presumption is will focus on top 20% of
suppliers as a maximum number
 Does not capture possible small supplier that
has key item. A separate analysis materials of
should be done to cover that
 Measure to be updated and published annually
with action plan to occur during year and
documented.

3.  Value is assigned to how important supplier or
item is to organization
 Value is assigned to potential for disruption
 1 is lowest level of importance or potential for
disruption
 10 is highest level of importance and potential
of disruption
 Multiply each score
 Importance X Potential for Disruption = Risk

4.  1- 25 = Low risk No Action
 26-50 = Moderate Risk Buyer Level
Action Plan
 51-70 = Risk Site Executive
Plan with Time Scaled Roadmap to Reduce risk
 71 and above Urgent Action
 Cross Functional Group with Executive
Sponsor and reporting until risk below 70

5.  Quarter 1:
 Conduct analysis for suppliers to be reviewed.
 Complete initial soring
 Send reviews to operational stakeholders for
adjustment and comment
 Quarter 2
 Publish Review
 Conduct formal Meetings with Management
 Agree on action plans

6.  Quarter 3
 Action plans on going
 Supply leaders monitor for mid term changes
 Discuss in Quarterly Supplier reviews
 Quarter 4
 Action plans on going
 Obtain Financial Data for any supplier rated above
26
 Initial discussion about next round of formal ratings
 Executive Management Summary report