1. SUPPLIER APPROVAL AND QUALIFICATION
1.1. Supplier Status
Loran divides its suppliers into three main classes:
1.1.1. Approved Supplier: Suppliers with a score depending on on-time delivery and product quality, with a minimum of 70 or a maximum of 3 product rejections within a year.
1.1.2. Conditionally Approved Supplier: The suppliers who can supply the products hard-to-find or the suppliers who is specially requested by the customer and is not listed in the Loran supplier list, or the suppliers who are a new suppliers for Loran. The score of the conditionally approved supplier is between 50 and 69.
1.1.3. Canceled Supplier: Suppliers whose scores are below 50. The canceled supplier term covers all companies that provide counterfeit products and or forge traceability documents and or cannot provide adequate technical support and warranty.
1.2. Approbation of the Supplier Status
1.2.1. The approved status of a supplier may be revised following a surveillance process audit or linked to the following major events:
1.2.1.1. Quality performance is insufficient in a recurrent manner,
1.2.1.2. Findings noted during the process audit without associated corrective actions,
1.2.1.3. Delivery performance is inadequate in a recurrent manner,
1.2.1.4. Recurrent failure of the supplier to respond correctly to complaints,
1.2.1.5. Third-party certification not achieved or not maintained,
1.2.1.6. Information from Customers or Regulatory authorities about quality-related risks.
1.2.2. In these cases, a letter should be sent to the supplier by the Purchasing Department of LORAN indicating the reason(s) for the change in approval status.
1.2.3. LORAN performs surveillance process audits at the frequencies adapted to the risk level of each supplier. This frequency can range from 12 to 36 months.
1.3. Supplier Score
1.3.1. Loran carries out all purchasing processes through the ERP system. In this context, there is a Risk Assessment section for both suppliers and products. If necessary, risk factors for the supplier or product are stated in these fields.
1.3.2. The purchasing department evaluates suppliers before purchasing a product or service to determine their ability to meet the LORAN's requirements. The main criterion of this evaluation process is the supplier's historical success for LORAN projects.
1.3.3. LORAN is used the criteria are described in the SAE ARP9134 Rev.A document while supplier qualification evaluation performing.
1.3.4. While conducting supplier qualification evaluation by LORAN, it also published the Supplier Code of Conduct document (see #683494 - Supplier Code of Conduct) for these companies. In this document, LORAN determined the general rules that its suppliers must comply with and requested that these rules be implemented.
1.3.5. LORAN monitors its suppliers on a project basis, according to the criteria specified in the Supplier Risk Assessment Table, and scores them based on the main criteria.
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SUPPLIER RISK ASSESSMENT TABLE AND SCORING |
PROJECT |
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RISK CRITERIA |
PROJECT SCORE FOR THE SUPPLIER |
SCORE FOR LORAN |
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Criteria |
Description |
Criteria Class |
Scoring (Success) |
Scoring (Failure) |
Scoring (Success) |
Scoring (Failure) |
|
PRODUCT QUALITY |
Capability to deliver products and/or services to the customers quality requirements. |
MAIN CRITERIA |
100 |
-10 |
100 |
-10 |
|
TRACEABILITY AND CUSTOMER SATISFACTION |
Documentation from the manufacturer to the final end-user, includes test reports and CofC documents for the product. |
MAIN CRITERIA |
100 |
-10 |
100 |
-10 |
|
ON-TIME DELIVERY |
Capability to deliver products and/or services to the customers scheduled requirement. |
MAIN CRITERIA |
100 |
-1 (per day) |
100 |
-1 (per day) |
|
Quality Management System |
AS9100 Rev.D, AS9120 Rev.B, ISO 9001:2018, ISO-EN 17025, NADCAP etc… |
Criterion that provides priority but is not mandatory |
Selection Criteria |
Not Applicable |
Not Applicable |
Not Applicable |
|
Technical Support Capabilities and Timely Communication |
If requirements are not completely clear, or where special assistance is needed, The customer may need additional information and, if required, the supplier must provide technical personnel to clear all issues. |
Criterion that provides priority but is not mandatory |
Selection Criteria |
Not Applicable |
Not Applicable |
Not Applicable |
|
Training Capabilities and Continuous Improvement |
Constantly evolving and regularly updated specifications and standards are applied in the aviation industry. All companies must always be open to and encouraging training in these criteria. |
Criterion that provides priority but is not mandatory |
Selection Criteria |
Not Applicable |
Not Applicable |
Not Applicable |
|
Manufacturing Capability and Capacity |
Capability to provide manufacturing services in accordance with the contract requirements |
Criterion that provides priority but is not mandatory |
Selection Criteria |
Not Applicable |
Not Applicable |
Not Applicable |
|
Design Capability and Capacity |
Capability to provide design services in accordance with the contract requirements |
Criterion that provides priority but is not mandatory |
Selection Criteria |
Not Applicable |
Not Applicable |
Not Applicable |
|
Geographical, Political & Ethical |
Capability to manage social, geographical, political, economic and ethical factors which may affect the project / program. |
Criterion that provides priority but is not mandatory |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
|
Environment & Safety |
Capability to manage environmental, health and safety factors which may affect the project / program. |
Factors that may considered but cannot be directly controlled due to geographical distance. |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
|
Work Environment |
Capability to manage work environment factors such as temperature, humidity, lighting, cleanliness, protection from electrostatic discharge. etc. according to JISQ; EN/AS 9100:2001 that may affect the conformity of the product. |
Factors that may considered but cannot be directly controlled due to geographical distance. |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
|
Sub-tier Chain Control |
Capability to manage and control all sub-tier suppliers in the supply chain |
Factors that may considered but cannot be directly controlled due to geographical distance. |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
|
Human Resources |
Human resources factors which affect the quality and confidence of the customer |
Factors that may considered but cannot be directly controlled due to geographical distance. |
Not Applicable |
Not Applicable |
Not Applicable |
Not Applicable |
1.4. Supplier Order Acknowledgement and Supplier Performance
1.4.1. The supplier shall acknowledge receipt of the LORAN order within 72 hours. After this period, the date requested in the LORAN order becomes the date accepted by the supplier.
1.4.2. In case of a discrepancy between the delivery date requested in the order and the date indicated in the acknowledgment of receipt of the order, the date of reference for the calculation of the on-time-delivery rate remains the date indicated in the order except in case of agreement between LORAN and the supplier on a new delivery date. In this case, LORAN will have to modify the date of reception in its systems.
1.4.3. Targets of quality performance & on-time-delivery rate are defined before the start of each fiscal year. These annual targets are shown on each supplier's scorecard via the Loran ERP System portal.
1.4.4. Supplier performance reviews will be organized at the level of top management and the performance status of the suppliers is discussed at the management review meeting.
1.4.5. With regards to the suppliers have critical level, an action plan will be defined to converge as soon as possible towards the performance objectives set by Loran. The suppliers will be observed by management representative, and the final status of the supplier will be reported to top management.