OSP Product Analysis

OSP commodities

Site Acquisition

A & E

GeoTech

Construction Management

Construction

Structural Analysis

Site Acquisition

LT: 2 months

Commodity flow chart to build a Cell Site

Cell Site

A&E

LT: 2 weeks

GeoTech

LT: 1 week

Construction Man.

LT: 10 -30 days

Construction

LT: 10 – 30 days

Structural Analysis

LT: 1 – 2 weeks

Construction Bid matrix

2002- Low BidLow Performance

High amounts of Change orders

More work

More decisions.

Higher risk

2004 -Score CardsMotivates suppliers to improve

performance. KPI.

Moves Risk to the Supplier.

Con

trac

tor

Per

form

ance

2003 - NegotiatedDoes not motivate suppliers to

improve performance.

No scores for PM / to review.

hig

hlo

w

2005 - Produces Increased savings per region

Quality Improvements / suppliers.

Higher Competition / leverage.

Improves On Time schedules.

Reduces change orders. / less work.

Reports

• Currently

• Cell Site Listing

• Site Details

• BAR

• Vendor

• Recommended

• Minority Spend

• Score Cards

Recommend 4 measurements

• Price

• Performance

• Customer Satisfaction

• Safety

Common Measurements in Services

• Responsiveness in hours/days.

• Percent rework/job.

• Percent scope changes/job

• Percent of overrun cost.

• Risk and Time.

• Customer satisfaction rating.

• Total cost of project.

Performance Management Process

RESOLVEMEASURE

Monitor

Performance Management for OSP

Measures

•Response Time.

•Percent rework.

•Overrun cost.

• Service rating.

Monitors•Changes over 12 %

•Supplier Survey

•Large Projects

Resolve

•Email Supplier

•Email P M

•Request Supplier Survey

• Poor performance

KPI Data in BM

• Provides the best method for gaining and retaining

cost savings in OSP services.

• Provides KPI data for PM and Purchasing.

• Provides suppliers an opportunity to improve.

• Provides Cingular leverage in renegotiations.

Scoring

Layer

Translation Into Scorecard Values

Budget Master-Based Supplier Scorecard

Budget Master Data

Real-Time

Detection

Agents

Quantitative

Calculations -

KPI

Qualitative

Surveys

Au

tom

ate

d P

roc

es

s

Foundation

Layer

Supplier Scorecard Components

KPI Flow Matrix• PM picks suppliers in BM

• CM grades all suppliers / per site over 100 K

• CM faxes / delivers score cards to Cingular – 2 days

• Admin enters scores into BM – 2 days

• PM uses BM / new site / views updated region scores.

• OPS team communicates score with suppliers / month

KPI Score Card Example:

NO # Indicators Scale Rating

1. Performance 5 - 50 42

2 Customer Service 5 - 50 43

3 Quality 4 - 40 38

Total SCORE FOR Performance Indicators 14 -140

KPI Supplier Score grading system

TOTAL KPI Supplier Score 123

120 -140 Excellent – Reward Supplier

100 -120 Exceeds Goals

90 - 100 Meets Goals

80 - 90 Immediate Improvements required

0 - 80 Remove Supplier from BM / 2

Six Key Supplier Management Recommendations

• Include a clause in the Construction contract.

• Implement Key Performance Indicators in BM

• Gain Visibility To Supplier Performance.

• Rate and Analyze Supplier Performance.

• Communicate scores and violations to suppliers.

• Use scores to improve performance,remove suppliers

or re negotiate.

The reasons to implement KPI

• To leverage the purchasing power with the goal of

creating a smaller pool of quality suppliers.

• To aggressively advance the initiative of equal

economic opportunity through proactive and

innovative measures.

• To hold the supplier accountable in meeting

expectations for higher performance.

Review

• Modify the construction contract.

• Implement supplier performance in BM

• Request the field enter KPI data in BM

• OPS Team will send scores to suppliers.

• Discuss scores / violations with supplier.

• Reduces risk and increase quality of work.

Conclusion

• Are there any questions ?