5/23/2014

Supplier Performance Evaluation | LinkedIn

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Supplier Performance Evaluation

Choong Kah Whai (Terry)
Supplier Quality Engineer at St. Jude Medical
Top Contributor

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In the company where I currently work, we perform a quarterly supplier

performance evaluation. The indicators include the supplier's Lot
Acceptance Rate (LAR) and the Supplier Corrective Action Request
(SCAR) that we issue to suppliers; and that's about it. I am now to
improve that process and I would like to gather some valuable input from
you guys here. What other things can we look at? Please bear in mind
that the evaluation is solely based on quality. Let's put aside the OTD,
customer service, etc.. Would appreciate it so much if you could share
from your experience

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Choong K.
Supplier Quality Engineer at St. Jude Medical
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Getting Started

Charles J. Butchart
Supplier Technical Assistant at Roush Industries
Charles J.

It might be well to include the cost of their defect production. A supplier that provides engine
blocks, for example, will cost you more with each defective block he sends, then a push rod
manufacturer with two dozen defective parts.
Like Reply privately Flag as inappropriate 4 days ago
Michael Moon
Supplier Quality Engineer at Boeing

Michael

To build on Charles' comment, I think he is referring to the cost to your company to identify and
handle rejects from the suppliers, including the cost of downtime in your own processes. This will
also be affected by where in your process the defect is detected. A part that is installed during
initial assembly operations but can't be tested until the assembly is complete, but then is found to
be defective, has a lot greater impact and cost.
Like Reply privately Flag as inappropriate 4 days ago

Latest Activity

Choong Kah Whai (Terry)

Supplier Quality Engineer at St. Jude Medical
Top Contributor
Choong

Drexel Matthews commented on a

Thank you for your comments but how do I go about calculating all these costs? Well the material
cost is straightforward but all the other costs including downtime, manhours, etc. may seem a
little elusive.
Like Reply privately Flag as inappropriate 3 days ago
Bill Alrich
Sales Executive at EMNS Inc.

Bill

Sal Rizvi commented on a discussion

Hi Terry Supplier Scorecards should reflect the unique aspects of your business, as Michael and Charles
observe. The challenge, of course, is can you capture the data (like ttotal costs of a defect)
easily? If you're looking for ideas of what other companies are tracking I'd be happy to send you
some samples from our web-based service, GSQA. Send a request to bill.alrich@gsqa.com.
Bill
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discussion in Supplier Quality, Inc.. pei

hao X. my company has a lot
of small company ,they do not
have quality system and
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to assess these company?
10h ago

in Supplier Quality, Inc..

Choong K. Supplier
Performance Evaluation In
the company where I currently
work, we perform a quarterly supplier
performance evaluation. The indicators
include the supplier's Lot Acceptance
Rate (LAR) and the Supplier Corrective
Action... more
10h ago

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Ragul Pandian
Senior Manager at Ashok Leyland

Advanced

51

Choong, First of all you could change the freq from Quarterly to monthly review.
Luis Monroy and Cynthia Tao joined

Ragul

Feedback

What we are adopting is,

1. Top 20 Suppliers with maximum PPM (Total Supplier rejection / receipt * 10^6) for the month
2. Supplier with > X PPM continuously for 3 months
3. Carrying out process audit at supplier end for all the parts > X PPM
Note: X is based on the supplier's past performance.
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Ragul Pandian
Senior Manager at Ashok Leyland
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Point No. 1 & 2 are review with suppliers at our end by calling them...
Ragul

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Like Reply privately Flag as inappropriate 3 days ago

Hans Hilkes
Supplier Quality Manager at Ardagh Group

Hans

If you perform Quality checks on incoming products you can use the data you get out of this as a
topic in Supplier ratings. Useable are pure data (rate the variance between target and measured
values), or calculate the process capability and set up a rating scale for this. This is a clear way
of comparing, and as a result rating Suppliers. Same goes for number of rejects. Big benefit I see
is that in this way rating is not subjective, but just calculated data.
Like Reply privately Flag as inappropriate 3 days ago
Thomas Luniewski
Supplier Quality Engineer at Graco

Thomas

We perform SQRs for our top 80% spend. Our main quality measure is simply DPPM. I'm not
sure what SCAR data you include in your SQR but we are just starting to measure SCAR
timeliness. Short term containment (both our's and supplier's inventory <3 days) and long term
CAPA (<20 days). We also rate our suppliers, Partner, Key, Approved and Conditional. Any major
warranty claim will lower the supplier rating one step (Example: Key to approved or approved to
conditional). The supplier's overall rating can be no better than the worst rating in all the
categories. The DPPM data is easy to retrieve, the SCAR and warranty data is somewhat manual
and provided to the commodity manager (CM) by the SQEs on a case-by-case basis. Along with
Quality and OTD we measure cost management and technical support. The latter two are
suggestive and based on the CM's interaction with each supplier.
Like Reply privately Flag as inappropriate 3 days ago
Andrew Hopton
Quality & Manufacturing Professional
Suggested discussion

Andrew

We measure incidents, PPM and CoPQ

Myasquestion
mentioned
is ,before
whenbut one simple metric we have going back to the question regarding how
there
to measure
is a MMC
the
forimpact
a
or cost to the business - we
have a weighting score that we apply based
feature
upon
(hole)
where in the chain the defect was detected.
Prior to shipment (concession/deviation request) being the lowest and at the customer or in the
field being the highest. If you have a large mix of supplied product - volume/cost/complexity - this
is a very easy way to normalize and prioritize the issues.
Like Reply privately Flag as inappropriate 3 days ago
Patrick Sin
Snr Corporate Quality Manager at Multi-Fineline Electronix (Singapore) Co; Ltd.

Patrick

You may include some of the followings as part of the KPIs to monitor the suppliers' quality
perofrmance:
1) RMA rate,
2) their key process yield performace,
3) Use trend chart and pareto chart to monitor the effectiveness of the SCAR implemenation,
4) Their COPQ or scrap rate
5) 5S performance
Like Reply privately Flag as inappropriate 3 days ago
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