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Performance Feedback

Performance Feedback - Background

‘Give FPAL Performance feedback at appropriate stages

during the contract to improve mutual performance,

minimise waste, learn from mistakes and best practice,

and report on the extent of Code compliance achieved by

both parties’

UKCS Supply Chain Code of Practice

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Performance Feedback - Background

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Why wouldn’t you do it? If it’s good enough for EBay then it’s good for this industry too!

Drive improvement and raise competitiveness across the industry.Eliminate unnecessary costs & share feedback across the industry.Further develop a meaningful database of supplier performance.Comply with Supply Chain Code of Practice.Suppliers get an industry-standard measure of customer satisfaction.Helps enable ‘continuous improvement’. Use it to evaluate suppliers prior to contract award.Use it to manage your suppliers after contract award.Invite reverse feedback to help you improve your performance as a purchaser.Helps you know whether you are using the best suppliers – something which internal supplier performance management systems cannot do

Criticisms heard

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Performance Feedback is biased and not representative.Suppliers only submit positive reviews.Feedback should be mandatory and automatic like EBay.Reverse feedback is sycophantic

- a servile self-seeker who attempts to win favour by flattering influential people.

The forms don’t cover the right elements.It takes too long. The on-line method is confusing and difficult to use.Purchasers sometimes refuse to participate

Performance Feedback – When?

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Set own internal guidelines

Frequency? At least once per year with all key suppliersMore often if possibleWhen requested by suppliersInvite/insist on reverse feedback at same timeConsider making it a contractual obligation!

PF Targets 2010

Company 2009 2010 Target 2010 Actual – 12th November

Supplier Purchaser Supplier Purchaser Supplier Purchaser

Number % of Target Number% of Target

Talisman 86 30 75 50 108 144 26 52Subsea 7 70 39 60 40 17 28 11 28Apache 93 19 72 36 86 119 33 92Technip 90 55 130 80 57 44 25 31Halliburton 59 51 55 50 43 78 29 58ExxonMobil 19 4 56 56 53 95 32 57Wood Group 142 83 120 120 87 73 30 25Nexen 91 62 90 60 60 67 15 25Shell & NAM 106 46 100 100 109 109 23 23Petrofac 52 50 53 47 52 98 39 83Total 78 34 60 60 95 158 43 72Aker Solutions 70 34 60 60 37 62 19 32Amec 89 43 75 50 89 119 56 112PSN 27 20 50 20 13 26 1 5AGR 5 2 8 8 2 25 0 0Bibby 34 23 30 30 21 70 9 30Centrica 40 40 63 158 35 88WHOLE GROUP 1134 907 992 87 426 47

Note: Above table only shows figures for Purchasers who have opted to participate in target setting; many other Purchasers do in fact participate in Performance Feedback

Supplier Performance Reports

% of annual target at 12th November 2010

Group performance: 87% of annual target

Purchaser Performance Reports

% of annual target at 12th November 2010

Group performance: 47% of annual target

Performance Feedback - process

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Slide 11

Step 1: Assign codes

Describe the work.

Add appropriate product/service code (up to max 3).

Make sure supplier is registered for the correct codes; if not, you may need to do ask them to do a registration update.

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Slide 12

Step 2: Complete work details

Add details of the time period that the feedback covers or provide the delivery date.

Order/contract details are optional but a contract/order value band must be entered.

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Slide 13

Step 3: Add the scores

Jointly agree the scores – preferably in a face to face meeting but can be by phone/e- mail.

Option of a “single sided” submission is available if agreement cannot be reached.

Scoring should be done by those best positioned to make judgements - do not assess an element outside your own detailed knowledge. Not all elements may be applicable. Refer to Guidance Templates in FPAL Document Library

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Score Band Description

1-2 Poor

Supplier standard of performance below that needed for repeat business; severe deficiencies in service performance.

3-4 Mediocre

Supplier performance did not satisfactorily meet all the specified requirements; Purchaser incurred additional support costs to achieve required performance.

5-6 Adequate

Supplier performance generally satisfied expectations and met requirements but needed some support to ensure required performance was achieved; improvement opopportunities identified.

9-10 ExcellentSupplier performance exceeded all expectations and fulfilled all specified.

7-8 GoodSupplier performance fully satisfied all expectations; met requirements without support; no identifiable improvements.

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Scoring Guidance

Slide 15

Step 4: Gain agreement

Contact details of both parties agreeing scores must be provided, including signatures for paper forms.

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Viewing uploaded forms

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Report 3 – View all Reports

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Click to view individual reports

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Click

Slide 19

Step 6: Purchaser Performance

Suppliers should be encouraged to complete a Purchaser Performance Feedback report at the same time.Scores received are a key part of the Tiered Compliance schemeConsider making it a contractual obligation!

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Step 7: Get it on the database

Check all details are complete

Consider keeping copies for your records

Purchaser should ensure paper copies are posted/faxed or pf@fpal.com to FPAL for upload

Monitor database to check report is entered into your record

If necessary contact FPAL

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Supply Chain CoP – Tiered Compliance

Using FPAL Purchaser Performance Reports to measure compliance to the Code of Practice