Supplier Quality Management including Supplier performance evaluation methods



suppliers quality management

I am going to take over the resposibility of Supplier Quality dept. by an automotive supplier company.
I would be happy to get documentation, links, infos, good ideas about the following issues:
a) Supplier chain quality management
b) Supplier performance evaluation methods (vendor rating criteria & algorithms)
c) Evaluation methods of suppliers costs of non-quality

Thank you all in advance,


Involved - Posts
Hello, dspinelli...

What we use as performance criteria are similar to automotive OEM:

1. Quality: PPM defective, as detected by our inspection, use, and/or customer
rejections due to supplied component

2. Delivery: Percent dellivery on time. We set a delivery time window, max
3 days early, 0 days late. Some plants calculate by shipments, others by
pieces scheduled.

When you do these rankings it is great if you can tell the supplier how he
compares to his competition in specific product areas. To do this you need
to have enough suppliers in the different product areas. Example: different
PPM expected from supplier of commodity fasteners vs. supplier of electronic

3. If you want to get fancier yet, you could add criteria like:

A. Cost: Baseline expectation: no cost increase; penalty if price goes
up, bonus if price goes down.

B. Timeliness in corrective action replies

C. Use of premium (non-standard) freight



Don Wood - 2011

a and b - if you're able, flip through some of the previous year's Quality Progress magazines (the ASQ's (American Society for Quality's) main publication) - they've been beating SCM and related topics to death lately

c - ASQ's website lists a number of excellent books on quality cost tracking of all sorts - I'm fond of "Guide to Reducing Quality Costs" for it's conciseness, "Principles of Quality Costs" for it's comprehensiveness. I'm told a fellow last name of Campbell has written a good book or two on the subject, but I have no personal experience there. Then, there's always Crosby...:)
Hope this helps,
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