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HBOK 1-375

Title The Way to Engage
Author(s) Kirsten Parks and Timothy Connor
Source Quality Progress
Topic Organizational Culture

Strategic Management

Performance Improvement

Abstract Measuring and monitoring supplier performance is an important tool for Boeing Co. To this end, the company has created an enterprise-wide performance rating system. The system grades delivery, business management performance and product or service quality, measured at the delivery site, business group, and composite level. Several different scoring methods may apply to any single supplier, so Boeing uses a weighting system based on dollars paid at each Boeing site at which a supplier does business. The company allows users and suppliers to view performance reports, including both the raw data and explanations of how it was used in assessing a specific supplier’s performance. Boeing generates an overall performance score based on the average of all a supplier’s ratings, with caps if any individual rating was particularly low. Every month the data is fed into the Boeing Enterprise Supplier Tool. The data is used to make supplier decisions and monitor the effects of supplier performance. Supplier General Electric Aviation used Boeing’s data to drive a lean initiative within its organization, resulting in significantly improved delivery performance.
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