Complex Parts Performance Information

Complex Parts had achieved a quality rating of 666 for the past year, and a delivery rating of 8650. Blake Roberts, the strategic member of the evaluation team with eight years experience as a Deere buyer, thought some of Complex Parts subjective category performances were showing signs of weakness. For instance, he thought they should be making more suggestions for cost reductions and eliminating more of the problems that had resulted in a number of late deliveries over the past year. Some requested price quotes had also not reached Deere on time. They had been doing a good job, though, of following through on suggestions for quality improvement offered by Deere. He con- sidered their business approach with Deere to be very proactive.

Hayley Marie, a manufacturing planner for 23 years with Deere, was in charge of the teams technical evaluation. Hayley noted that Complex Parts had taken an active role in

Case 5 John Deere and Complex Parts, Inc. 25

Exhibit 1

Supplier Classification Criteria

Partner Key Approved Conditional

Quality

<1000 <2500 <5000 5000+

Delivery

<30,000

<80,000 <150,000 150,000+

Wavelength Technical

>4.6 >4.6 >4.0 >4.0 >3.0 >3.0 <3.0 <3.0

Cost Mgt.

>4.6 >4.0 >3.0 <3.0

keeping up with Deeres required specification changes, but was very concerned with their frequent inability to return phone calls to Complex Parts customer service group. An increasing number of deliveries had to be expedited over the past year, costing Deere in the process. It seemed as though expediting had recently become a weekly require- ment. Over the past quarter, their delivery rating was a dismal 155,000.

Stan Eakins, the teams quality advisor, had been a quality engineer for Deere for over 20 years. He thought Complex Parts had done an excellent job internalizing the Deere Quality Plan elements, and took a lead role in getting the elements implemented. Their quality performance had improved significantly over the past year. Recently, they had also become ISO certified. The one area of concern noted by Greg was that they had fallen behind in implementing the Deere Quality Plan at their new facility, which had been operational since June. This was beginning to concern him.

John Pearson was the assessment teams design/engineering advisor and had been an engineer at Deere for 12 years. He was impressed with Complex Parts R&D department, noting that several suggestions from them had resulted in successful Deere, new product programs. Unfortunately, though, a number of the items supplied by Complex Parts for these products had not met Deeres cost targets, effectively reducing Deeres projected profits on these products. There had also been a troubling problem over this past quar- ter, getting quotes for some of these new parts in a timely fashion.

Do you think Complex Parts has performed adequately over the past year? Why or why not? Which of the Deere supplier assessment classifications should be assigned to Complex Parts?