Module 3 Q1 Requirements

Q1 Requirements
Module 3

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 Module 3 Q1 Requirements

 The Purpose of this module is to provide insight to

the Ford Q1 designation, including eligibility,
requirements and the endorsement process. In
addition, the presentation will explain the impact of
Supplier PPM and Delivery Performance on the
Q1 score.

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 Module 3 Q1 Requirements

 Define Q1 and its benefits

 Summary of changes to 3rd Edition
 Explain Q1 eligibility and requirements
 Know what it takes to achieve Q1
 Know what it takes to maintain Q1
 Detail the process to obtain Q1
 Understand how a supplier can lose Q1
 Provide detailed explanation of the impact of PPM
on the Q1 score

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 Module 3 Q1 Requirements

 Set of quality and manufacturing disciplines for the

purpose of driving continuous improvement within
the Ford Supply Base

 Joint effort between Ford Motor Company and its

Supplier Partners

 Performance based award

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 Module 3 Q1 Requirements

 “Best in class” status among the world’s

automotive suppliers
 Preferred Ford Supplier designation
◦ New product development
◦ Sourcing
 Self-Certifying PPAP privileges
◦ Upon Supplier Technical Assistant’s (STA) approval
 Eligible for the World Excellence Award
 Publicity and advertising privileges

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1. Q1 Scoring and Performance Categories
The Q1 scoring method and metric grouping have been revised.Q1 will now be scored
from 0 to 100 Q1 points. Sites start with 0 points and earn points in 4 Performance
Categories. A site must maintain a total score of 80 Q1 points and maintain / attain
certain Metric scores to remain in good standing. Suppliers will no longer receive
negative points or bonus points applied to a base score.
2. Q1 Status Stratification
In order to reward higher performing supplier sites, Q1 Status will now be stratified per
demonstrated performance over a 6 month period into 4 levels:
- Q1 Gold (greater than 95 Q1 points)

- Q1 Silver (91 to 95 Q1 points)

- Q1 (80 to 90 Q1 points)

- Q1 sites recommended for revocation if overall Q1 score less than 80 Q1 points or

zero Metric score for PPM, Q1MSA, Stop Ship, FSA, Certifications or delivery
3. New Q1 Metrics for Q13rd Edition
QR Rate for both production and service, APQP Launch Performance, and Warranty
R/1000 Performance are new Metrics in Q1 3rd Edition.

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4. Q1 Metric Threshold Limits
Q1 2nd Edition included all commodities at the site in Q1 attainment PPM scoring. Q1
3rd Edition limits the PPM scoring for Q1 attainment to the base PPM score for those
commodities used for Q1. Q1 3rd Edition also limits the QR Rate scoring for suppliers
with low receipts to prevent excessively low QR Rate scores for low volume suppliers
and QR incidents.
5. "Violation Of Trust" Removal
The Violation of Trust has been eliminated from Q1 scoring and revocation governance.
Q1 Manufacturing Site Assessment is now used to identify and address this type of
issue.
6. Streamlined Endorsements
- Plant endorsement removed
- MP&L Mandatory Document Pre-Screening
- MP&L Lead Region Endorsement
- FCSD Lead Region Endorsement

- Additional details can be found in the Q1 3 rd Edition Manual in

Appendix F

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 Module 3 Q1 Requirements

 Any external supplier manufacturing facility which

currently supplies production or service product to Ford
and its Joint Ventures is eligible for Q1 consideration.
This includes Packager and Bulk suppliers.
Subcontractors are not eligible for Q1 status.

 Q1 means that the supplier facility achieves excellence

in these key areas: Quality Performance, Capable
Systems, Warranty Performance, and Delivery
Performance.

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 Module 3 Q1 Requirements

Q1 3rd Edition includes 4 Categories with 12 metrics

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 Module 3 Q1 Requirements

I. Quality Performance
Q1 uses five key Metrics in determining a supplier’s Quality
Performance Category score:
 Production and Service PPM: Does a supplier consistently
deliver high quality products when compared against the
industry standards?
 Production and Service QR Rate: Does the supplier provide
high quality parts to Ford and JV plants and service depots,
minimizing disruptions?
 Stop Shipments: Is vehicle rework, modification or re-
inspection necessary due to poor product availability or
supplier quality?

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 Module 3 Q1 Requirements

II. Capable Systems

Q1 uses 3 key Metrics to define the capable systems
Category:
 Industry Standards:
◦ IATF 16949 or ISO/TS 16949 quality management
◦ ISO14001 environmental standard
◦ MMOG / LE, achieving level A.
 Q1 Manufacturing Site Assessment (Q1 MSA)
 APQP Launch Performance

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 Module 3 Q1 Requirements

III. Warranty Performance

 Field Service Actions:
◦ Has Ford had to intervene for the end customer because
of a supplier failure?
 Warranty R/1000 Performance (Production only):
◦ Does the supplier show reduction in repairs / 1000 and
continuously

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 Module 3 Q1 Requirements

IV. Delivery Performance

 Do products arrive on time, at the correct location,
in the proper quantity and with the correct
information?
 Delivery rating maintained at 81 points or higher
for all ship points associated with the
manufacturing location (reported in SUPER-G)

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 Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Quality Performance Commodity PPM for both Production and 6 month Commodity PPM less
Service than 1.5x Industry Commodity PPM (that is
used for Q1) for both Production and Service
QR Rate (6 months) For both Production and Service, QR Rate
Metric score ≥ 8points.
Stop Ship None in most recent 6 months with any supplier
responsibility (Stop Shipment Metric score = 20
points)
Capable Systems Q1 Manufacturing Site Assessment (Q1 Acceptable current Q1 Manufacturing Site
MSA) Assessment or acceptable Corrective Action
Plan. (Q1MSA Metric score = 15 points)
APQP Launch Performance “Acceptable” or better APQP Launch
Performance Rating (Metric score ≥3
points) or not applicable
Industry Standards (IATF 16949 or ISO/TS Certifications / assessment requirements met
16949, ISO 14001, MMOG/LE) and not expired, also MMOG/LE level
A (Industry Standards Metric score = 10 points)

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 Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Warranty Performance Field Service Actions None in most recent 6 months with any supplier
responsibility
(FSA Metric score = 10 points)
Warranty R/1000 (production only) Warranty R/1000 Performance Metric shows
improving trends (Warranty R/1000
Performance Metric score ≥3 points)
Delivery Performance For both Production and Service all For every delivery rating, (except those identified
regions which report delivery ratings to in SIM as “not considered for Q1”) the 6 month
SIM via MP&L’s “SUPER G” system weighted average and the 3 most recent
available monthly ratings from the last 7 calendar
months (may include the immature month) must
all be 81 points or higher. The site must have at
least 1 delivery rating 6 or more months old.
Active Site Status Receipts Receipts are required for at least 3 of the most
recent available 6 mature months,
and delivery ratings exist for at least 3 of the
most recent available 7 calendar months
for the supplier to be eligible for Q1.
Overall Q1 score Must be 80 points or higher

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 Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Quality Performance Commodity PPM for both Production and Service 6 month worst commodity PPM less than 2x Industry
Commodity PPM and no more than 2 out of 6
individual months at or above 2x Individual month
commodity PPM (that is used for Q1) for both
Production and Service Commodity PPM Metric score
>0 points) Q1 Action Recommended
QR Rate (6 months) For both Production and Service, any QR Rate Metric
score >0 points.
Stop Ship Not more than one in the most recent 6 months with
any supplier responsibility
(Stop Shipment Metric score > 0 points) Q1 Action
Recommended
Capable Systems Q1 Manufacturing Site Assessment (Q1 MSA) Q1MSA Metric score ≥ 0 points [no delinquent second
action or ineffective corrective action plan (second
action) status assigned by the STA site engineer] Q1
Action Recommended
APQP Launch Performance For production and service, Q1 maintained with any
Metric score. Gold and Silver levels not permitted with
0 score.
Industry Standards (IATF 16949 or ISO/TS Certifications / assessment requirements met and not
16949, ISO 14001, MMOG/LE) expired > 31 days for IATF or ISO/TS 16949 and ISO
14001 (Industry Standards Metric score >0 points)
Q1 Action Recommended

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 Module 3 Q1 Requirements

Q1 Category Requirement Threshold to achieve Q1

Warranty Performance Field Service Actions None in most recent 6 months with any supplier
responsibility (FSA Metric score = 10 points) Q1
Action Recommended
Warranty R/1000 Q1 maintained with any Metric score > 2 points
or no warranty reported
Delivery Performance For both Production and Service all Delivery Performance Metric score > 0 points
regions which report delivery ratings to [Either 6 month weighted average, or
SIM via MP&L’s “SUPER G” system any of the 3 most recent available monthly
ratings from the last 7 calendar months
(including the immature month) 81 points
or higher] Q1 Action Recommended
Active Site Status Receipts Supplier Sites with no receipts for the last 13
consecutive calendar months are subject to
inactivation and loss of Q1status unless future
business is confirmed by the buyer.
Overall Q1 score Must be 80 points or higher AND have no 0 point
Metric scores as noted above. Q1 Action
Recommended

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 Module 3 Q1 Requirements

Customer Endorsement
 Once the Supplier Site has satisfied Q1 requirements in
Quality Performance, Capable Systems, Warranty
Performance, and Delivery Performance the Supplier Site
is required to obtain customer endorsements from:
◦ MP&L (Material Planning & Logistics),
◦ FCSD (Ford Customer Service Department) for service
parts
◦ Supplier Technical Assistance (STA).
 Valid for 6 months
◦ If Q1 isn’t achieved within 6 months of the customer
endorsement request, it must be requested again
 Form PP-S-F047 Request for Customer Endorsement
◦ Provided by STA
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 Module 3 Q1 Requirements

Service Unique Sites Q1 Endorsement

Supplier sites that are only active for service are
considered Service Unique.
 Endorsements obtained from FCSD will cover all
regions that the supplier site ships to
 Submit Form PP-S-F047. Must be submitted to
the Quality Coordinator for the supplier’s region.
 Contact your FCSD STA prior to submission and
if you have any questions.

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 Module 3 Q1 Requirements

How can I lose Q1?

 6 month commodity PPM performance  Industry Standards
◦ Worse than -100% with “0” point ◦ MMOG/LE missing/expired or not
criteria satisfied – 3 or more months at level A
at the “worse than -100%” level. ◦ ISO 14001 Expired over 31 days
 QR Rate – 3 month vs. 6 month ◦ IATF 16949 or ISO/TS 16949
◦ An Unacceptable score result in a 0 Expired over 31 days
metric score  Field Service Actions (FSA)
 Stop Ship ◦ Any Field Service Action within 6
◦ Two or more stops ships in most most recent calendar months
recent 6 months  Delivery – based off the lead region
 Q1 MSA ◦ 6 month weighted average less
◦ Site assessment delinquent twice than 81 and ALL of the 3 most
◦ Corrective Action Plan ineffective recent available monthly ratings
twice less than 81, including the
immature month

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 Module 3 Q1 Requirements

IMPACT OF PPM ON Q1 SCORE

Commodity PPM for Production 6 Month Commodity PPM Performance Table
and Service Performance vs. Q1 Industry Metric points
Commodity PPM (Towards Q1
(Performance vs. Q1 Level in SIM) score in SIM)
A supplier gains Q1 points by 100% 10 points
outperforming the industry
75% to 99.99% 9 points
commodity PPM (rated on the
25% to 74.99% 8 points
percentage above or below the
industry commodity PPM). If a site 0 to 24.99% 7 points
provides multiple commodities, it will -.01% to -24.99% 6 points
only receive points for the worst -25% to -49.99% 5 points
performing commodity for production -50% to -74.99% 4 points
and for service, respectively. See the -75% to -99.99% 3 points
Table on the right for the Worse than -100% 2 points
corresponding Metric point criteria. Worse than -100% with “0 point”
0 points
Criteria Satisfied *(see next page)

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 Module 3 Q1 Requirements

IMPACT OF PPM ON Q1 SCORE

Commodity PPM for Production and Service
6 Month Commodity PPM Performance Table continued.
Worse than -100% with “0 point” Criteria Satisfied
The “0 point” criteria are based on the 6 month Commodity PPM and the number of
individual months out of the 6 mature months in which the commodity performance
exceeds the Q1 industry commodity level as defined below.

Currently the “0 point” Criteria are:

For Production and Service: the worst 6 month Commodity PPM for the site “used for Q1”
> 2x Q1 Industry Commodity PPM and 3 or more months at the “Worse than -100%” level
(1 point) results in a score of 0.
The number of months at the “Worse than -100%” level (1 point) is displayed in SIM with
the note “2X Industry Threshold”.

Note that the number of months and multiple of the Q1 industry commodity level can be
altered for all production suppliers and/or all service suppliers based on performance.
Notice will be provided prior to implementing any such change.

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 Module 3 Q1 Requirements

IMPACT OF PPM ON Q1 SCORE

Individual Commodity Q1 Phase-In Metrics
Individual Commodity Q1
Phase In Metric (Completed per Effective Range (Same Q1 Metric score
Phase-In Metrics (Lowest Individual
Commodity)
for Service
and Production)
Limit (Low est
score Allow ed)

score Allowed Limits): 115.1 to 120 2

110.1 to 115 3

Commodity PPM 105.1 to 110 4

A Limit strategy has been developed to
100.1 to 105 5
protect “Low Volume” suppliers from 0 to 100 7
excessively low Q1 PPM scoring. 12.1 to 15 3
These Limits are applied to the base 10.1 to 12 4

Q1 score to limit / cap scoring for lower Percentage of Site 8.1 to 10 4

Volume
levels of PPM, percent volume, and 6.1 to 8 5

number of rejects. This results in an 0 to 6 Not Used for Q1

Applied PPM score for each 6 to 7 4

Commodity. The explanation of these Total Pieces 5 to 5 5

Rejected
limits are in the Individual Commodity 4 to 4 5

0 to 3 7
Q1 Phase-In Metrics table to the right.
115.1 to 120 2

110.1 to 115 3

Site Overall PPM 105.1 to 110 4

110.1 to 105 5

0 to 100 7 23
 Module 3 Q1 Requirements

IMPACT OF PPM ON Q1 SCORE

QR Rate for Production and Service QR Rate Scoring Thresholds

QR Rate Status QR Rate Trend (3 Month Metric Score

 QR (Quality Reject) Rate is a normalized (6 Month) vs. 6 Month)
measure of unique QR incidents per 100 Outstanding <3 N/A 10
opportunities for both Production and (Raw Materials
Service. Both Production and Service QR <1.5)
Rate Metrics contribute 10 Metric points to Trending 3 < Rate < 10 Improving 8
the total Quality Performance Q1 Category (Raw Materials
Level 6
score. Q1 1.5 <
Rate < 7) Degrading 4

Unacceptable >10 N/A 0

 QR Rate Metric score is determined by the (Raw Materials
QR Rate per 100 Opportunities Value, and >7)
the 3 Month vs. 6 Month Trend
Low Volume Limits on QR Rate
 Limit Factor: The QR Rate Metric score
Limits, will limit the QR Rate Metric score if QR Rate Phase-In
Metric
Effective Range (Same
for Service and
QR Rate Metric score
Limits (Low est score
the effective range applies and the Production) Allow ed)
associated QR Rate Metric score Limit is
higher than the base QR Rate score Number of QR
Incidents
1 6
calculated 2 4

≥3 0

Active Months (Months 1 4

w ith Receipts)
2 4

≥3 0

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 Module 3 Q1 Requirements

Impact of Delivery Rating On Q1 Score

Super G 6 Month Weighted Average Metric Points
100 10 points
≥97 to 99 8 points
≥81 to 96 6 points
Less than 81
(BUT ANY of 3 the most recent available monthly 6 points
ratings ≥81, including the immature month)
Less than 81
(AND ALL of the 3 the most recent available monthly 0 points
ratings <81, including the immature month)

Determining Worst Ship point

For all considered ship points, the Supplier Site receives “0 point” Metric score if the following
occurs:
Delivery Rating falls below 81 points for:
• The weighted six-month average AND
• The last 3 available ratings from the past 7 complete months
• This includes the immature month rating if one is available
• These ratings do not need to be in consecutive calendar months
• Ship sites with ≤ 2 ratings in the past 7 months are not considered

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 Module 3 Q1 Requirements

For further questions, please contact your Production or

FCSD Service STA.
• More information is
available on the Ford
Supplier Portal –
Production and
Service Q1
• The link is available
through Covisint
(https://web.qpr.ford.c
om/sta/Q1.html)

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