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EGF – Supplier report

Understand and Apply

Supplier Performance Evaluation 1.

EGF Presentation

2.

EGF Composition

3.

Detailed Scoring Tables

4.

Supplier Scorecard

5.

FAQ 2 September 17, 2010

EGF (“

Évaluation Globale Fournisseur

”, comprehensive supplier evaluation)

The EGF system is a monthly scoring system based on many delivery & quality factors. The lower the scoring, the better the performance. The upper acceptable limit is 100 points.

Objectives •

To allow Nova Bus to measure our suppliers and prioritize our actions.

To work with our suppliers with the aim of receiving better quality product and more precise deliveries.

To standardize our performance measures and eliminate subjective elements.

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EGF Composition

 EGF = QPM + DPM  QPM = Quality Performance Measure     PPM (parts per million) Quantity of non-conforming parts Quantity of MCN (Material Complaint Notices) Monetary value ratio of non-conforming parts  DPM = Delivery Performance Measure    Quantity of faulty deliveries Percentage of faulty deliveries Quantity of late deliveries  The QPM and DPM are both based on a rolling 3-month horizon

An action plan is requested when the EGF score exceeds 100 points.

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DPM Scoring Table

0 11 21 51

DPM Livraisons fautives Faulty Deliveries (#) - DA Livraisons fautives Faulty deliveries (%)

DB

De À Pts De (%) À (%) Pts De Livraisons en retard Late deliveries (#)

DC

À Pts

10 20 50 100

0 5 10 20

0 11 21 41 10 20 40 60

0 10 15 20

0 6 11 21 5 10 20 30

0 5 10 15

101 200

30

61

25

31 50

20

201 401 400

40 50

51

25

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Statut DPM Status >90 55-90 35-50 <35 Alarme / Alarm Action Surveillance / Monitor Pas d'action / No action

QPM Scoring Table

De

0 101 501 2001 5001

>90 70-90 50-65 <50

September 17, 2010

PPM -QA À

100 500 2000 5000

Pts 0 5 10 15 20 Pièces rejetées Rejected Parts (#)-QB De À Pts QPM

0 0

0 De

0 1 5

5

2 6 26 251 25 250

10 15 20

3 5 9

MCN (#)-QC À

1 2 4 8 12

Pts 0 5 10 20 30

13

40 Statuts QPM Status Alarme / Alarm Action Surveillance / Monitor Pas d'action / No action

6

Volume rejeté Rejected volume (%)-QD De À Pts

0 0

0

0,01 0,15

5

0,16 0,41 1,01 0,4 1

10 15 20

Supplier Scorecard

Objective  To inform suppliers rapidly and effectively of the evolution of their performance.

Results  Highly visual scorecard with graphic elements  EGF results as well as 5 other important factors  More detailed data available on other sheets  Blue columns = Rolling data (cumulative EGF for the last 3 months)  Black columns = monthly data only September 17, 2010 7

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FAQ 1.

What is the utility of this system?

2.

How to read the Scoring Tables

3.

How is the EGF calculated?

4.

What is the difference between a faulty delivery and a late delivery?

5.

How can we improve our score?

6.

Who should we contact for more details regarding our EGF score?

7.

How often is the EGF Scorecard issued?

8.

Are previous results revised?

9.

What should we do if we want to challenge a MCN?

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