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January 11, 2017

Kirby Risk Precision Machining Earns John Deere’s Achieving Excellence Partner Level Award

Kirby Risk Precision Machining (KRPM) received John Deere’s Achieving Excellence Partner level award for performance in 2016. At John Deere, Achieving Excellence is a program to develop relationships through a supplier evaluation process promoting communication and continuous improvement throughout the entire product cycle. Involvement, commitment, trust, cooperation, and teamwork are the underlying principles guiding their quest for Achieving Excellence.  John Deere evaluates their suppliers based on five different categories: Quality, Delivery, Cost Management, Technical Support and Wavelength.

Quality:  The Quality Parts Per Million (PPM) calculation evaluates the ability of the supplier to satisfy needs, expectations and requirements of the material provided. It provides a supplier with statistical evidence of their product quality. The calculation is: Non-conforming pieces/Supplied pieces (x) 1,000,000 = Quality PPM.

Delivery:  The Delivery category measures a supplier’s shipping performance, using order quantity and ship date statistics. The delivery rating, expressed in PPM, is derived from early, late or over deliveries.  The calculation is: Non-conforming pieces/Receipt pieces (x) 1,000,000 = Delivery PPM.

Cost Management:  The Cost Management category evaluates the supplier’s ability to be price competitive and to control or continuously improve costs. There is one objective measurement which is John Deere Cost Reduction Opportunity Process, known as JDCROP. JDCROP is a supplier cost reduction process which engages, captures and communicates supplier efforts in cost reduction. It is an online application suppliers use to submit cost savings ideas – long term agreements, freight savings, overhead savings, process improvement savings, etc. Suppliers are required to participate yearly in JDCROP and are encouraged to submit cost reduction opportunities equaling 3% of their projected spend. The calculation to determine percent submitted credit is: Submitted Dollars/Purchase Dollars.

Technical Support: This is where John Deere rates supplier’s expertise in their industry to support development and manufacture of product for John Deere.

Wavelength: This is where John Deere evaluates the supplier’s initiative to support the business relationship. This is the people side (relationship) of the business.

Once all the criteria are rated, the total points then determine the final classification level for each supplier.  The points needed for each classification level for 2016 follows:

Final Classification                 Total Points Earned

Partner                                              480 – 500

Key                                                      430 – 479

Approved                                          380 – 429

Conditional                                     379 or less

In 2016 KRPM’s overall points earned were 490, thus achieving the Partner level classification. Points by category received in 2016 were: Quality (96), Delivery (100), Cost Management (94), Technical Support (100) and Wavelength (100). This is the fifth year over the past ten years KRPM has achieved the prestigious Partner level award, also receiving this award in 2007, 2009, 2010, and 2013. The KRPM team is very proud to be one of a small percentage of worldwide suppliers to receive this award. KRPM is the only machine shop worldwide to receive this award five out of the past ten years.

On January 11, Jim Smith, Plant Manager and Chris Shelton, Business Development Manager attended the 2016 John Deere Achieving Excellence Banquet at the Waterfront Convention Center in Bettendorf, IA. At this Global Supplier Conference attended by suppliers from around the world, a team of John Deere Executive Leadership presented information on John Deere’s Business Outlook, the John Deere Strategy and Supplier’s Connection to the John Deere Strategy. After their presentation, a select group of John Deere leaders then individually acknowledged the 124 Partner Level Award winners, awarding each deserving supplier with a personalized plaque to be displayed at their respective facilities. At the end of the conference, every John Deere employee stood to give a standing ovation to all Partner Level award suppliers showing their respect and appreciation.

To achieve the John Deere Partner level award, every KRPM employee must exemplify the personal pride, hard work, attention to very fine detail and willingness to do whatever it takes to make it happen. In 2016, the KRPM team machined, inspected, packed and shipped 22,191 very tight tolerance parts with stringent quality requirements to John Deere facilities around the world.  In order to receive Partner Level status, the KRPM team could only afford to have 2 or less parts not acceptable to John Deere’s precise blueprint requirements. Thanks to the effort of every KRPM employee this significantly challenging goal was achieved.