2.2 Quarterly Business Review (QBR)
A Quarterly Business Review is not a social visit or a grievance session for a single late shipment. It is a strategic calibration event. Its purpose is to synchronize the customer’s 12-month demand roadmap with the factory’s technical and capacity planning. Without a disciplined QBR, the relationship degrades into transactional chaos, reacting to shortages rather than preventing them.
The QBR Logic Structure
Do not present data without context. Every slide must drive a decision or a corrective action.
If the metric is Green (On Target) → Then propose cost optimization or volume increases.
If the metric is Red (Off Target) → Then present the Root Cause Analysis (RCA) and the recovery timeline.
The meeting agenda must follow this hierarchy:
- Performance (Look Back): Cold, hard data on the last 90 days.
- Continuous Improvement (The Fix): Status of CAPAs (Corrective Actions) and engineering initiatives.
- Roadmap (Look Forward): Forecast reconciliation and NPI (New Product Introduction) pipeline.
The KPI Scoreboard (Data Pack)
Subjective feelings ("We feel quality has improved") are irrelevant. Use the following metrics to define the health of the manufacturing system.
Metric Categories | Key Performance Indicator (KPI) | Target / Definition |
Quality | FPY (First Pass Yield) | % of units passing test on the first attempt (Target: >98%). |
DPPM | Defective Parts Per Million at customer line. | |
RMA Turnaround | Average days from receipt to repair/credit (Target: <10 days). | |
Delivery | OTIF | On-Time In-Full. % of lines shipped by the committed date. |
Commit Rate | % of requested dates accepted without push-out. | |
Commercial | Forecast Accuracy | (Actual Orders / Forecasted Demand) for the period. |
E&O Liability | Value of Excess & Obsolete material aging > 90 days. |
Pro-Tip: Always include "Forecast Accuracy" in the KPI pack. When a customer complains about on-time delivery, cross-reference their forecast accuracy. If they ordered 200% of forecast, the delivery failure is a planning failure, not an execution failure.
QBR Deck Template
Standardize the presentation to ensure efficiency.
Slide 1: Executive Summary
- High-level health check (Red/Yellow/Green status).
- Top 3 achievements of the quarter.
- Top 3 critical risks (e.g., Component EOL, Tariff changes).
Slide 2: The KPI Dashboard
- Visualizing the table above.
- Trend lines are mandatory. A single number is useless; the trend (improving vs. degrading) indicates process stability.
Slide 3: Quality Deep Dive (Pareto Analysis)
- If Yield < Target → Then show the Pareto chart of top 3 failure modes.
- Display the specific engineering fix for the #1 failure mode.
Slide 4: Supply Chain & Market Risk
- Lead time trends for critical commodities (Silicon, PCBs, Connectors).
- Action: Highlight components requiring immediate "Bridge Buys" to cover lead time gaps.
Slide 5: The Commercial Roadmap
- Input: Customer provides forecast for Q+1, Q+2, Q+3.
- Output: Factory confirms capacity allocation.
- Review of E&O liability. Request written authorization to scrap or ship to customer.
The Action Register
Discussions vanish; written registers endure. The QBR is incomplete without a signed Action Register. This is the control document for the next 90 days.
Format Requirements:
- ID: Unique identifier (e.g., Q3-01).
- Issue: Technical description (e.g., "Solder bridging on U45").
- Action: Specific task (e.g., "Modify stencil aperture").
- Owner: Name of one individual (Customer or Supplier).
- Due Date: Fixed date. "TBD" is not accepted.
Status States:
- Open: Action defined, not started.
- In Process: Engineering work active.
- Validation: Solution implemented, monitoring results.
- Closed: Effectiveness verified by data.
Mutual Commitments
A partnership requires bidirectional accountability. Conclude the QBR by ratifying the "Give/Get."
Factory Commits To:
- Implementing the specific CAPA for the top quality issue.
- Reserving line capacity for the agreed Q4 forecast volume.
- Holding buffer stock for agreed critical components.
Customer Commits To:
- Providing a firm PO cover for lead-time components (Risk Buy).
- Dispositioning E&O material (Pay or Scrap) within 30 days.
- Freezing the production schedule for the next 4 weeks (No pull-ins/push-outs).
Final Checklist
Control Point | Passing Criteria | State |
Minutes Ratified | Meeting minutes sent within 24 hours of close. | Yes / No |
Forecast Lock | Customer explicitly confirms volume for next quarter. | Locked |
Pricing Update | Adjustments for PPV (Purchase Price Variance) agreed. | $_______ |
Action Owners | Every open item has a named owner and due date. | Verified |
Next QBR Date | Date and time for the next review is set in calendars. | Set |