Hi
Calculation of scores for Quality main criteria will be based on individual scores for sub criterion defined.System calculates the scores for each sub criterion as follows:
<b>1.Goods receipt inspecton:</b>
1.If a material is subject to incoming inspection, part of the delivered material is checked by the quality assurance department when goods are received against a purchase order.
2.An inspection lot is created. After the inspection or testing, the person responsible in Quality Management then enters a result and makes a decision as to whether the material can be used.
3.All the incoming inspection lots are stored in a file with their scores.
4.When you run an automatic re-evaluation for a vendor, the system selects all the incoming inspection lots for the vendor that lie within the validity period and calculates the average of the scores.
The result is the vendor's score for the quality of goods received.
<b>2.Complaint/Rejection level:</b>
1.On the shop-floor, material A supplied by vendor ACME is being processed in the course of production.
2.If the material is OK (that is to say, no quality notifications have been entered for material A during the entire validity period), the vendor is awarded the highest score for the material (100 points).
3.If the material is found to be defective, a quality notification (such as a rejection note or nonconformance complaint sent to the vendor) is entered.
4.During the vendor evaluation process, the system checks whether the costs associated with the faulty delivery exceed the maximum percentage of business volume defined in the Customizing system.
In the above example, your business volume with (value of purchases from) ACME amounts to one million dollars annually. The costs associated with defective deliveries may not exceed 0.1 percent of business volume, i.e. $100,000. The costs associated with a quality notification are estimated at $500.
5.If the costs that your company incurs as a result of the faulty materials are lower than the defined proportion of business volume, the system calculates a score between 1 and 99 points.
To do this, the system multiplies your annual business volume with the vendor ($1,000,000) by the parameter Business volume share (0.1).
The number of accumulated quality notifications (10 in all) multiplied by the cost of each notification ($ 500) is subtracted from this.
The result is divided by the annual business volume multiplied by the proportion of business volume.
The result of this is a factor which, multiplied by a hundred, gives a percentage.
This percentage indicates the quality provided by the vendor in relation to the particular material. The value 95% in the above example means that complaints or rejections involving the vendor ACME only resulted in 5% of the maximum costs allowed, i.e. the quality is very good.
6.If the cost of defective or non-conforming deliveries exceeds the share of business volume defined in Customizing (in this case $100,000), the vendor is awarded the lowest score (1 point).
<b>Quality Audit:</b>
1.A quality audit has taken place in one of your vendor's plants. This means that either your own company has carried out a check to determine how the vendor ensures that his products are of a high quality, or the vendor has carried out the audit himself.
2.An audit lot is created by Quality Management. When the audit has been completed, the person responsible determines a score for this audit lot.
3.All the audit lots are stored in a file with their scores.
4.When you run an automatic re-evaluation of a vendor, the system selects all the audit lots for the vendor within the validity period.
5.The parameter Quality audit is read from Customizing.
If the indicator is set, the system calculates the average score for all the quality audits in the validity period. The result is the vendor's score for the quality audit.
6.If the indicator is not set, only the most recent audit lot is included. This then represents the vendor's score for the subcriterion
Regards
Ramakrishna
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