How to give a score/yield more correctly to my suppliers

#1
Hello Friends

I have a dilemma of how to gave a score/yield more correctly to my suppliers because based on that their work is depending.
Several issues to consider:

1. Each supplier has a different number of supplied orders per quarter
2.Each supplier has a different amount of nonconforming reports per quarter

How should I correctly calculate the yield of each supplier?
Should I use RTY calculation to multiply a monthly yields in order to get the final one?
Should I normalize the calculation let say amount on nonconforming reports per 1000 orders

Please your avice

Thank you

Oleg
 
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Johnny Quality

Quite Involved in Discussions
#2
Oleg,

Why would you want to numerically score your suppliers? What do you mean by "yield"? What defines a "non conforming report"?

If you score your suppliers "per 1000 orders" you will grossly distort your low volume suppliers and run into the exact same problem of using PPM.

Whenever I speak to manufacturing or admin on supplier performance I get responses related to quality but more often than not it's delivery times, delivery performance, lead time, customer service performance (how easy are they to get in contact with, do they have the knowledge to answer our questions on their products, response times)minimum order quantities.

In regards to the calculations I think you are gathering categorical data and I don't think you can manipulate it as you are describing. I hope someone else better versed in statistics can clarify and help you on what to do with your data.
 
#3
First of all
Thank you for you answer
non conforming report - when after an inspection of the shipment we find some deviation from the customer drawing we open the report
Yield - I divide the number of reports/number of shipments
 
#5
After a Yield calculation
if the number is less then 75% it means i need to perform some action with the supplier
Corrective actions
I just want to be sure that my calculation are correct
and i can use RTY method
 

Johnny Quality

Quite Involved in Discussions
#6
Why is 75% a trigger?

If a supplier makes one delivery in a quarter and you produce a non conforming report which for arguments sake costs $3,000 you have to perform action...which is what exactly?

If another supplier makes eight deliveries and you product two non conforming reports which for arguments sake costs $30,000 as their parts are more valuable you let it slide?
 
#7
75% Our corporate request for supplier quality yield
Action from my side might be an audit or requesting of a correct action

The cost that mentioned are not relevant the founds will be retuned after i send the goods back.(RTV)
 

Johnny Quality

Quite Involved in Discussions
#8
And what about the costs to your companies time? Lost production? Downtime due to waiting material? Storage costs for the goods? Inspection time?
 

Cari Spears

Super Moderator
Staff member
Super Moderator
#9
Hello Friends

I have a dilemma of how to gave a score/yield more correctly to my suppliers because based on that their work is depending.
Several issues to consider:

1. Each supplier has a different number of supplied orders per quarter
2.Each supplier has a different amount of nonconforming reports per quarter

How should I correctly calculate the yield of each supplier?
Should I use RTY calculation to multiply a monthly yields in order to get the final one?
Should I normalize the calculation let say amount on nonconforming reports per 1000 orders

Please your avice

Thank you

Oleg
Hi, Oleg - welcome to the cove.

We keep track of performance by line items. Quality performance is reported as the number of line items accepted as a percentage of total line items received. On time delivery is reported as the number of line items on time as a percentage of total line items received.

We use the actual number of line items, rather than "per 1000" or PPM, for the exact reason Johnny referred to - we have lots of low volume suppliers due to the fact that we make one-off tooling.

Do your suppliers provide production quantities of stuff where "per 1000" or PPM would make sense?
 
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