Arthrex tracks and evaluates supplier performance across four categories:
- Quality Acceptance Rate (QAR)
- Nonconformance (NCR)
- Corrective and Preventative Actions (CAPA)
- On-Time Delivery (OTD)
Each bucket is worth 25% of the overall score and uses its own logic and point deduction system.
Each supplier category has a target weighted score:
- Category A suppliers: 98% minimum weighted score
- Category B suppliers: 95% minimum weighted score
- Category C suppliers: 90% minimum weighted score
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.
Any supplier that is below the minimum rate for three consecutive monitoring periods is subject to disqualification.
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.
Quality Acceptance Ratings (QAR)
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%.
Each supplier category has a target acceptance rating:
- Category A suppliers: 98% minimum acceptance rating
- Category B suppliers: 95% minimum acceptance rating
- Category C suppliers: 90% minimum acceptance rating
Nonconformance (NCR)
The NCR metric looks at the number of NCRs received by the supplier
Corrective and Preventative Actions (CAPA)
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.
On-Time Delivery (OTD)
Arthrex allows a minimum OTD score of 90%. Any quarter below this target may result in probation and potential disqualification.