Supplier quality rating, Supply Chain Management

Assignment Help:

Supplier quality rating

Over a period of time supplier quality rating provides a quantitative summary of supplier quality. This type of rating is useful in deciding how to allocate purchases among suppliers. Rating furnishes both buyer and supplier with common factual information that becomes a key input for identification and tracking of improvement efforts and for allocating future purchases among suppliers.

To create a single numerical quality score is difficult because there are several units of measures, such as:

  • The quality of multiple lots expressed as lots rejected versus lots inspected.
  • The quality of multiple parts expressed as percentage non conforming.
  • The quality of specific characteristics expressed in numerous natural units. e.g.: percentage of active ingredient.

Measures in use:

Supplier quality rating plans are based on one or more of the following measures:

Product percentage nonconforming: It is the measure of the ratio of the amount of defective items received to the total number of items received. On the whole, the formula is the number of lots rejected divided by the number of lots received; on an individual piece basis, the formula is the number of individual  pieces  rejected  divided  by  the  number  of  individual  pieces received.

Overall   production    quality:   the   supplier   performance   at   incoming inspection and later phases of product application are summarised in this plan. Each phase is assigned points; in case of no problems, maximum points are given.

Economic  analysis:  the  comparison  of  suppliers  on  the  total  cost  for specific purposes is done by this plan. The overall cost includes the quoted price plus quality costs for defect prevention, detection, and correction.

Composite plan: Quality is not limited to supplier performance. It includes delivery against schedule, cost, and other performance categories. These multiple  needs  suggest  that  the  supplier  rating  should  include  overall supplier performance rather than just supplied quality performance.

Act on nonconforming product:

Instances of non conformance will arise during the performance of the contract. These may be on the product itself or on process requirements or procedural requirements. If a product is unfit for use, priority effort should go to such cases.

Communications to the supplier on non conformance must contain a precise description of the symptoms of the defects. The sample form is the best description of the symptoms of the defects.


Related Discussions:- Supplier quality rating

Materials requirement planning, what are the draw backs in the adoption of ...

what are the draw backs in the adoption of the materials requirement planning system

Answer, What is the effect of overstocking and under stocking in an organiz...

What is the effect of overstocking and under stocking in an organization?

What is decision support system, What is Decision Support System? Explain i...

What is Decision Support System? Explain its structure and its functions. Decision Support System - meaning - Functions of DSS - Components or Structure of DSS - 1. Mode

Warehousing, why warehousing would considered as a necessary evil

why warehousing would considered as a necessary evil

Supply chain, What are the basic functions of supply chain management?

What are the basic functions of supply chain management?

Discuss the three components of dss, Question 1 Describe the important inv...

Question 1 Describe the important inventory management techniques that are used in business Question 2 Discuss the seven steps that comprise a process to develop and deploy s

Principles and Practices of management, questionHow will you influence peop...

questionHow will you influence people to strive willingly for group objectives in your organization (target based industry)? Apply your interpersonal influence through communicatio

Issues to select new product and service , To set the foundation for your P...

To set the foundation for your Portfolio, please include the following in your report: a description of your new product/service and why you selected it target market and

Green logistics, what is the procedure for greening an enterprise

what is the procedure for greening an enterprise

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd