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