Raytheon Supplier Rating System (SRS) · Two years worth of historical data is loaded twice monthly Reports are availablein 1 month, 3 month, and 12 month views, utilizing a 12 month

Raytheon Supplier Rating System (SRS)

Overview and Ratings Guide

Dated 01/17/2018

Copyright, 2003 - 2018, Raytheon Company. All rights reserved.1

Raytheon Supplier Rating System

2Copyright, 2003 - 2018, Raytheon Company. All rights reserved.

• This guide provides an overview of the Raytheon Supplier Rating System(SRS). It is designed to describe the system, it’s elements, and howperformance ratings are determined.

• All ratings are based on a rolling 12 month window of data. Ratings arebased on data provided every two weeks by individual Raytheon businessunits. Reports are available on approximately the beginning and middle ofeach month.

• A key feature of SRS is the Supplier Performance Relationship Report(SPRR). The SPRR represents the Quality and Delivery performance ofRaytheon suppliers. Reports are posted internally at Raytheon and on theexternal SRS website for access by suppliers. Suppliers only have accessto their reports and data regarding their company’s performance.

• The rating algorithms are the same across all Raytheon business.

• On Time Delivery is based on Raytheon business days.

• Internally, if you require assistance beyond this document, please contactyour Raytheon SRS Business POC. If suppliers need assistance, contactyour cognizant Raytheon buyer.

• What is the Supplier Rating System (SRS)?


SRS is Raytheon’s company wide system integrating procurement, receiving, quality,inspection and qualitative information across Raytheon.

SRS provides Raytheon with a consistent method of rating suppliers to determinesupplier performance and support the supplier selection process.

SRS provides Raytheon and suppliers visibility into critical performance data andpresents one Raytheon face to our supplier base.

• Why is SRS Important? SRS provides a consistent method of rating suppliers and allows Raytheon to present

one face to our suppliers. Sharing SRS performance ratings with our suppliers opens lines of communication,

leading to improved relationships and healthy competitive supplier behavior. Use of SRS supports the supplier selection process, which can reduce program risks

and operating costs.

Raytheon Supplier Rating System

Supplier Rating Elements


• There are two types of ratings a supplier may receive as part of the Supplier Rating System (SRS):

Rating Type Applicability Criteria Weight

Quantitative Rating SPRR(Supplier Performance RelationshipReport)

All suppliers Quality 60%

Delivery 40%

Qualitative Rating QDI(Qualitative Data Input)

Completed AsRequired by each

Business or Program

Price/Cost Weightings Assigned by

Lead Evaluator with Key Criteria Weightings

Totaling 100%

Schedule/Delivery

Technical

Quality/Mission Assurance

Business/Management

Qualitative Data Input (QDI) Ratings

Roadmap to Excellence• Stratifying the Supply Base based on supplier performance:

Supplier Performance Relationship Report (SPRR) Ratings


Quantitative Rating Element Details


Supplier Performance Relationship Report (SPRR)

Quantitative Rating - SPRR


• Ratings Details Two years worth of historical data is loaded twice monthly Reports are available in 1 month, 3 month, and 12 month views, utilizing a 12 month

rolling data source Although all deliveries and quality events are listed, only those POs with direct,

receivable, production and engineering procurements are rated. These are indicated with an “E/L” rating inclusion designation.

• The following reports are available Supplier Ratings For All Businesses: Global - All Supplier Locations For All Raytheon Business Units Individual - Single Supplier Location for All Raytheon Business Units

Supplier Ratings By Business: IDS - Integrated Defense Systems IIS - Intelligence, Information and Services MS - Missile Systems SAS - Space and Airborne Systems

Quantitative Criteria and Weights


For additional information on the SRS algorithm and the ability to calculate ratings for different scenarios, refer to SRS Rating calculator found on the SPRR landing page

• Overall Quantitative Ratings include Quality and Delivery Performanceweighted as follows:

Criteria Weight Sub Criteria Sub Criteria Weight

Source, Incoming and Floor Failures - PPM 54.5%Incoming - Lot Acceptance Rate % 27.3%Supplier Corrective Action Request -SCAR 18.2%

Sub Criteria Total 100%

On-Time Delivery 100%Sub Criteria Total 100%

100%

Major Criteria

Quality

Delivery

Qua

ntita

tive

Ratin

gs

Total Quantitative Rating

60%

40%

Quality Rating

Copyright, 2003 - 2018, Raytheon Company. All rights reserved.

• The Quality Rating is based on the weighted average of 3 components:

1. Parts Per Million (PPM) Score2. Lot Acceptance Rate (LAR)3. Supplier Corrective Action Requests (SCAR) Impact

𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐𝐐 𝐑𝐑𝐐𝐐𝐐𝐐𝐐𝐐𝐑𝐑𝐑𝐑 = 𝟓𝟓𝟓𝟓.𝟓𝟓% ∗ 𝐏𝐏𝐏𝐏𝐏𝐏 𝐒𝐒𝐒𝐒𝐒𝐒𝐒𝐒𝐒𝐒 + 𝟐𝟐𝟐𝟐.𝟑𝟑% ∗ 𝐋𝐋𝐋𝐋𝐑𝐑 + (𝟏𝟏𝟏𝟏.𝟐𝟐% − 𝟎𝟎.𝟎𝟎𝟏𝟏 ∗ 𝐒𝐒𝐒𝐒𝐋𝐋𝐑𝐑 𝐈𝐈𝐈𝐈𝐈𝐈𝐐𝐐𝐒𝐒𝐐𝐐)

9

Quality Rating


• The PPM Score

The PPM score is based on three linear equations and the calculated PPM value.

10

Quality Rating


• The PPM Score - continued

11

Where to find this information in the SPRR

Quality Rating


• The Lot Acceptance Rate (LAR)

12

Quality Rating


• The Lot Acceptance Rate (LAR) - continued

13


Quality Rating


• The SCAR Impact

14

Quality Rating


• The SCAR Impact - continued

15


The “SCAR Detail” report indicates how many SCARs are impactingthe rating and what the impact is for each.

Delivery Rating


• The SRS Delivery rating is based on 3 components:

1. Lots Received on Time2. Lots Due3. Lots Past Due

16

Delivery Rating


• Lots Received on Time

17

Delivery Rating


• Lots Received on Time - continued

18


The “Receipt Detail” report indicates lots delivered on timewithin the 1, 3 and 12 month measurement windows.

Delivery Rating


• Lots Due

19

Delivery Rating


• Lots Due - continued

20


The “Receipt Detail” report indicates lots due that were received, the“PO Details” report indicates lots due not yet received.

Delivery Rating


• Lots Past Due

21

Delivery Rating


• Lots Past Due - continued

22


The “PO Details” report indicates lots due that have not yet beenreceived which are prior to the measurement window (Past Due).

Supplier PerformanceRelationship Reports (SPRR)• Suppliers must log on to Exostar to access the reports (contact your

Raytheon Buyer for more information regarding access). RTN users can access SPRR reports from the SRS home page.

• For more information on system access or navigation, refer to the “SPRRNavigation Guide” link on the SPRR home page.

• The SPRR is the most convenient way for a supplier to determine how they are performing for Raytheon.


Qualitative Rating Element Details


Qualitative Data Input (QDI)

24

Qualitative Ratings


• Suppliers may be qualitatively assessed in 5 Key Rating Criteria: Price/Cost Schedule/Delivery Technical Quality/Mission Assurance Business/Management

• Resulting qualitative ratings may be Unsatisfactory (Red), Marginal(Yellow), Satisfactory (Green), Very Good (Purple), or Exceptional (Blue) for Each Key Rating Criteria as Shown in the Final Report Qualitative scores are not factored into the quantitative SRS rating QDI is used for all suppliers and the applicable rating criteria is selected from a listing

of 40 sub-criteria, embedded in the 5 key rating criteria

• The Sub-Criteria within the Key Rating Criteria must total to 100% and all of the Key Rating Criteria must total to 100%

• Qualitative Ratings are assessed through the QDI Tool within SRS25

Glossary

• LAR = Lot Acceptance Rate• OTD = On Time Delivery• PPM = Parts Per Million• SCAR = Supplier Corrective Action Request• SPRR = Supplier Performance Relationship Report• SRS = Supplier Rating System


Documents

Raytheon Supplier Rating System (SRS) · Two years worth of historical data is loaded twice monthly Reports are availablein 1 month, 3 month, and 12 month views, utilizing a 12 month