This letter is to explain the vendor rating system at L-3 Display Systems and your current ratings. The L3 Display Systems Supplier Rating is developed based on results of the inspection and/or use of the material supplied to our facility by your company. The scores are calculated from Quality Assurance rejections, Receipts, (late and on time) and Corrective Action responsiveness, the ratings break down as follows:

For Quality: For Delivery:
Gold Quality Rating of 100% Gold Rating of 100%
Silver Quality Rating of 99.0% thru 99.9% Silver Delivery Rating of 98.0%
Bronze Quality Rating of 98.0% thru 98.9% Bronze Delivery Rating of 96.0% thru 97.9%
Yellow Quality Rating of 95.0% thru 97.9% Yellow Delivery Rating of 90.0% thru 95.9%
Red Quality Rating of less than 95.0% Red Delivery Rating of less than 90.0%

A supplier with a quality or delivery rating below 98% is considered a moderate risk where supplier scores below 95% are considered a significant risk. All suppliers with scores below 98.0% are subject to increased surveillance by L-3 Display Systems Supplier Quality Engineering as well as formal corrective action which may take the form of any or all of the steps outlined below.

  1. Submittal of formal Corrective and Preventive Action Plans
  2. On site quality assessment by L-3 DS Quality Engineering
  3. Imposition of source inspection
  4. Monetary Penalties
  5. Removal from L-3 Communications Display Systems Approved Supplier List

The attached is a summary of your company’s Quality and Delivery performance for the reporting period identified.

Your ongoing efforts to providing quality products on time is appreciated and considered an integral part of L-3 Display Systems commitment to exceeding our customer expectations and one of the reasons we are recognized as a leader in custom visualization products and systems.

In closing, if there are areas of concern, or if you have questions relative to any of the results shown in this letter, please contact L-3 Communications Quality Engineering at L3DS.SupplierQuality@L3Com.com

Respectfully,

Ron Lybarger

Manager Supplier Quality Engineering

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