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<section id="main"><div id="title-container"><div class="center clear" style="display:none;"><ul class="vb breadcrumb"><li><a href="/">Home</a><span class="divider">/</span></li><li><a href="/global-supply-chain">Global Supply Chain</a><span class="divider">/</span></li></ul><h1 class="vb">Supplier Performance Management</h1></div><hr style="display:none;" ><div style="height:35px;background-color:white;"></div></div><div id="alerts-container" class="vb center"><noscript><div class="alert"><h4>JavaScript is currently not supported or is disabled by this browser.  Please enable JavaScript for full functionality.</h4></div></noscript></div><div class="clearfix" style="-webkit-font-smoothing: antialiased;"><a href="#sideNav"></a><div class="center"><section id="outlier" class="two-column clearfix vb"><section id="sideNav"><h5>Global Supply Chain</h5><nav><ul><li><a class="" href="/global-supply-chain">Global Supply Chain</a><ul><li><a class="" href="/global-supply-chain/german-supply-chain-act">German Supply Chain Act</a></li><li><a class="" href="/global-supply-chain/types-of-suppliers">Types of Suppliers</a></li><li><a class="" href="/global-supply-chain/onboarding-process">Onboarding Process</a></li><li><a class="" href="/global-supply-chain/request-for-quotes">Request For Quotes (RFQ)</a></li><li><a class="" href="/global-supply-chain/arthrex-sba-supplier-base-program">Arthrex SBA Supplier Base Program</a></li><li><a class="" href="/global-supply-chain/arthrex-global-trade-compliance">Arthrex Global Trade Compliance</a></li><li><a class="selected" href="/global-supply-chain/supplier-performance-management">Supplier Performance Management</a></li><li><a class="" href="/global-supply-chain/sustaining-business-relationships">Sustaining Business Relationships</a></li><li><a class="" href="/global-supply-chain/supplier-sustainability">Sustainability</a></li><li><a class="" href="/global-supply-chain/arthrex-supplier-applications">Arthrex Applications</a></li><li><a class="" href="/global-supply-chain/supplier-contact-page">Become a Prospective Supplier</a></li><li></li></ul></li></ul></nav></section><section><article><div class="contributor-content"><p><strong>Arthrex tracks and evaluates supplier performance across four categories: </strong></p><ol><li>Quality Acceptance Rate (QAR)</li><li>Nonconformance (NCR)</li><li>Corrective and Preventative Actions (CAPA)</li><li>On-Time Delivery (OTD)</li></ol><p>&nbsp;</p><p>Each bucket is worth 25% of the overall score and uses its own logic and point deduction system.</p><p>&nbsp;</p><p>Each supplier category has a target weighted score:</p><ul><li>Category A suppliers: 98% minimum weighted score</li><li>Category B suppliers: 95% minimum weighted score</li><li>Category C suppliers: 90% minimum weighted score</li></ul><p>&nbsp;</p><p>Scores are calculated on a quarterly basis for all supplier categories. Any supplier that is below the minimum score for two consecutive monitoring periods may be put into a probationary status in which no new business may be awarded to the supplier.</p><p>Any supplier that is below the minimum rate for three consecutive monitoring periods is subject to disqualification.</p><p>Suppliers on probation for performance reasons can be reinstated only after demonstrating two consecutive quarters of acceptable performance and, at the end of the two quarters, successfully passing a full quality system audit.</p><p>&nbsp;</p><p><strong>Quality Acceptance Ratings (QAR)</strong></p><p>Arthrex tracks suppliers by QAR. This rate is calculated using the number of rejects related to nonconformances against the number of items/products received. Example: 1000 parts received; 100 parts rejected. Therefore, the acceptance rate is 90%.</p><p>Each supplier category has a target acceptance rating:</p><ul><li>Category A suppliers: 98% minimum acceptance rating</li><li>Category B suppliers: 95% minimum acceptance rating</li><li>Category C suppliers: 90% minimum acceptance rating</li></ul><p><strong>&nbsp;</strong></p><p><strong>Nonconformance (NCR)</strong></p><p>The NCR metric looks at the number of NCRs received by the supplier</p><p>&nbsp;</p><p><strong>Corrective and Preventative Actions (CAPA)</strong></p><p>The CAPA metric is based on CAPA Action Plan Timeliness assigned to a supplier. If an action plan is received late, the supplier will receive a 0% score in this category.</p><p><strong>&nbsp;</strong></p><p><strong>On-Time Delivery (OTD)</strong></p><p>Arthrex allows a minimum OTD score of 90%. Any quarter below this target may result in probation and potential disqualification.</p></div></article></section></section></div></div></section>