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2011 Corporate Citizenship Report

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Performance monitoring

Compliance | Quality and performance | Labor, ethics and human rights | Performance management

TI uses a number of tools to monitor supplier compliance with internal and external standards and laws. We also use our own scorecard, called CETRAQ, to assess supplier performance on cost, environment, technology, responsiveness, assurance of supply and quality. We began using CETRAQ to monitor social responsibility in 2012.

CETRAQ provides a supplier performance dashboard to help us quickly identify potential risks and underperformers. It also helps new suppliers understand our expectations, and shows existing suppliers how they rank and where they need to improve.

For our Education Technology suppliers, we use another process to verify that their products meet our deliverable specifications.

Evaluating and monitoring risks
TI reviews suppliers' CETRAQ standings and conducts internal and external audits as needed to ensure compliance with regulations and our requirements. We also perform the following assessments.

Compliance

Laws and regulations vary depending on where TI operates. Site leadership teams are responsible for monitoring local legislation and ensuring compliance.

From a global perspective, TI's ongoing priority is to make sure that suppliers comply with all applicable local laws and regulations, including:

Quality and performance

TI diligently screens and monitors both raw materials and manufacturing suppliers by:
  • Ensuring that quality systems are in place before a product is ever delivered to us.
  • Examining environmental, safety and health policies and evaluating related performance.
  • Monitoring supplier compliance with TI quality standards and customer requirements through an annual certification process.
  • Offering proof-of-compliance analytical data for six RoHS-banned substances to customers who want more than certification as proof.
Additionally, we scrutinize the financial health of key suppliers to ensure that they can maintain product deliveries. After this assessment, we put contingency plans in place to prevent possible interruptions.

Labor, ethics and human rights

TI performs targeted on-site and/or electronic risk assessments to verify the integrity of suppliers' labor and human rights practices, and to identify whether they have a documented ethics and compliance program in place.

We identify high-risk regions known for inadequate labor practices using the Corruptions Perceptions Index ranking and other assessment tools. Suppliers operating within these areas receive additional scrutiny.

Performance management

Vendors that do not comply with TI standards, laws or regulations are required to put corrective action plans in place within a specified time period or face termination of our relationship.

Conversely, TI recognizes outstanding suppliers each year by giving them a TI Supplier Excellence Award. We select suppliers based on several criteria, including cost, environmental responsibility, technology, responsiveness, assurance of supply and quality.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



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