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Original Date: 04/28/1995
Revision Date: 01/18/2007
Information : Certified Supplier Program
Lockheed Martin developed a system of metrics to help achieve improved quality, cost competitive prices, and responsive suppliers. The company began implementing a quality rating system for suppliers in 1985 and followed up in 1989 with a more complete supplier performance system. The introduction in 1991of a performance rating factor, which is quantitatively based on a supplier's past performance and product quality, produced a major reduction in procurement costs and aided in the process of reducing the number of suppliers.
The supplier rating criteria is based on scores from Quality Rating (100 points), On-Time Delivery (50 points), Scheduled Quantity (20 points), and Documentation (30 points). Out of the total of 200 points, a supplier must achieve a rating of 170 or better with a 99 point quality rating to be retained on a bidders list. Lower ratings cause an automatic lock-out of that supplier. The improvement that has been achieved to date has been impressive.
For more information see the
Point of Contact for this survey.
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