Supplier Management
Supplier Quality – Escalation Model
June 2011
A WORLD OF COMFORT
Supplier Quality – Escalation Model
Notice of defects / complaints
Suppliers
Delivery
OEM
Receipt
Production
Other use
Distribution
0 Km
Customer
Sale
Field complaints
Notice of defects to supplier
© Eberspächer
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Supplier Quality – Escalation Model
Strategic issues identified by Eberspächer:
(Complaints Management 1/2)
Preventive Complaints Management
Plan and set up accessibility / information channels
Define and enable precise problem identification and traceability measures
Use insights gained for KVP continuous improvement process
Define and introduce method for identifying repeat problems
Input of insights and knowledge gained into planning and quality control process
Use PDCA control cycle
Implement comprehensive contingency plans
Define and agree on analytical procedures in advance
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Supplier Quality – Escalation Model
Strategic issues identified by Eberspächer:
(Complaints Management 2/2)
Complaints handling / information management
Keep deadlines for feedback (8D) rigorously / shorten response time
Ensure all information has a depth of content commensurate with the problem
Always clarify any unclear points (check back with submitter)
Monitor correction measures (deadline compliance)
Provide full status transparency for complaints in process
Use problem solving methods commensurate with problem level
Use PDCA control cycle
Treat all defects as potential serial defects
Evaluate and track effectiveness of corrective measures
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Supplier Quality – Escalation Model
Aims and objectives of Complaints Management

© Eberspächer
Re-establish
customer satisfaction –
Emphasis on prevention
early warning system
Customer's expectations fulfilled
Relevant for supplier rating
Use of insights gained.
Proactive problem identification

n
o
i
s
s
Initiate improvement
i
Identify defect and cause
M
t
measures
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m
Main cause of problem is reliably identified
e Long-term effectiveness.
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a
Appropriate choice of methods
Prevent repeat complaints
an
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s
int
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l
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m
Ensure maximum containment
o
C
Accessibility
and reduction of problem
Communication and information
channels are defined and set up
and follow-up costs
Measures and resources applied are
appropriate and effective
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Supplier Quality – Escalation Model
Complaints Management and Escalation Process
Preventive
Complaints
Management
Responsive
Complaints
Management
(strategic approach)
(operative process)
Escalation Process
(joint efforts to improve
performance)
Evaluation of the
Complaints Management
Process
(effectiveness of CM process)
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Supplier Quality – Escalation Model
Definition
Escalation (noun: describes the increased and intensified
application of resources – originally military or political.
In business use, the term "escalation" is also used to describe the
rule that certain decisions are referred to the next hierarchy
level in a controlled manner if no solution or agreement is
possible at the lower decision level.
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Supplier Quality – Escalation Model
Escalation – initiation and tracking
Non-conforming suppliers enter the process at the appropriate escalation level
The start of the escalation process is communicated
JE supervises the escalation status of each supplier in the process
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The defined and decided response actions are monitored.
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© Eberspächer
Fehl.Mng.fremd
Anzahl der Vorgänge
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Supplier Quality – Escalation Model
Escalation Model
ESCALATION LEVEL 4
c
es
De
n
io
t
a
al
Cancel order allocation
Re-distribute supply quotas
Initiate change of supplier
STOP
ESCALATION LEVEL 3
Escalation workshop on supplier's
premises
Containment Level II
ESCALATION LEVEL 2
Aims and objectives failed
Joint plan of action
to resolve problem
Containment Level I
ESCALATION LEVEL 1
Aims and objectives at risk
Plan of action for resolving problem
n
io
t
la
a
c
Es
ESCALATION LEVEL 0
Can be handled in the course
of normal business operations
Aims and objectives not at risk
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Supplier Quality – Escalation Model
Definition of escalation level information input
JE - Escalation Levels
Realization Guideline for Containment
The following input is required at each level:
•
•
•
•
•
•
•
Catalyst
Response actions by JE
Response actions by supplier
Consequences for supplier / status
De-escalation criteria
Coordinator at JE
Coordinator at supplier's
© Eberspächer
•
•
•
•
Description of Containment Level I
Description of Containment Level II
Escalation workshop
De-escalation (reversal of action requirements)
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Supplier Quality – Escalation Model
Escalation Model
JE Escalation Model
Corrective measures, consequences and responsibilities intensify
with each escalation to next level
Method and resource requirements for problem solutions mount up
with each escalation to next level
Input requirements per escalation level are clearly defined.
Escalation levels are communicated (official notification)
De-escalation criteria are defined
The escalation of a non-conforming supplier is effectively part of the contract,
as suppliers have contractual obligations to achieve zero defect performance.
The definition of an escalation model supports this.
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