Supplier Quality Rating - What to evaluate

[sowmya]

Experts,

We are in the process of releasing a supplier quality rating. Till now, we are just releasing the rejection PPM alone.

We are thinking to include the following things in the rating.

1. Incoming rejection PPM
2. Lot acceptance ratio
3. Response to corrective actions within response date
4. Repeated complaints
5. Issues in floor - Instances


Please advise your comments. Do anybody has this already?

Sowmya

 

[ScottK]

Re: supplier quality rating

The all look like good measure to me.

I particulary like measuring repeat rejections - that really indicates how and if their preventive actions are working.

In my situation more than 5 measure would bee too much to regularly track for all suppliers so make sure that 5 is good number for you.

 

[Jim Wynne]

Re: supplier quality rating

Experts,

We are in the process of releasing a supplier quality rating. Till now, we are just releasing the rejection PPM alone.

We are thinking to include the following things in the rating.

1. Incoming rejection PPM
2. Lot acceptance ratio
3. Response to corrective actions within response date
4. Repeated complaints
5. Issues in floor - Instances


Please advise your comments. Do anybody has this already?

Sowmya

What about money? What if supplier "A" has a comparatively better rating than supplier "B," but has cost your company more money than supplier "B"? None of the five categories you've listed are meaningful unless you have some idea of what poor supplier quality is costing you.

 

[noboxwine]

Re: supplier quality rating

Experts,

We are in the process of releasing a supplier quality rating. Till now, we are just releasing the rejection PPM alone.

We are thinking to include the following things in the rating.

1. Incoming rejection PPM
2. Lot acceptance ratio
3. Response to corrective actions within response date
4. Repeated complaints
5. Issues in floor - Instances


Please advise your comments. Do anybody has this already?

Sowmya

Those are good. I use the ones listed in ISO/TS 7.4.3.2.

 

[SteelMaiden]

Re: supplier quality rating

Just my , but those all look like measures in product quality, no? What about the service you get from this supplier? Even the speed in which they reply to your enquiries is part of their customer service. What about deliver (on-time)? Isn't that important? Or pricing? What if this customer supplies the very same thing as 3 others, but is always higher, or lower in cost? That is a big deal to your bottom line if this is a big ticket item and all other considerations are equal. You are absolutely right in being particular about the quality of goods, you should be. But don't get so tied up in it that you lose big bucks on the other facets.

 

[sowmya]

Re: supplier quality rating

What about money? What if supplier "A" has a comparatively better rating than supplier "B," but has cost your company more money than supplier "B"? None of the five categories you've listed are meaningful unless you have some idea of what poor supplier quality is costing you.

Jim, Do we need to include cost in Quality rating? It doesn't sound meaningful for me.

 

[Sam4Quality]

Originally Posted by sowmya

Jim, Do we need to include cost in Quality rating? It doesn't sound meaningful for me.

Both Jim and SteeMaiden have put up some critical points for you.

While your current rating system seems to be fine, I think including the cost effectiveness would not only give greater meaning to your rating system, it would definitely bring up some previously ignored points related to costs.

IMO, the idea of putting up a Supplier Quality Rating is to acquire the most feasible set of Suppliers, with the most likeable service at the most viable costs. And including the cost effectiveness is definitely on a higher rung for me.

Ciao.

 

[Jim Wynne]

Re: supplier quality rating

Jim, Do we need to include cost in Quality rating? It doesn't sound meaningful for me.

If supplier problems don't have costs attached to them, (i.e., if they don't result in money lost) what purpose do ratings serve?

 

[Mike S.]

I like to keep it simple on the surface. Monitor OTD and quality (# accepted parts/# shipped parts) as a first pass. Pareto the results and attack the biggest problems. Every rejection costs you money.

 

[blue_cove]

Hello,

Now, I also start to building in my company new suppliers rating system I divide suppliers for two groups:
- production suppliers,
- transport suppliers.

The most important for me is production suppliers group. I choose some criteria:
- PPM (rejected parts),
- quality management systems which have suppliers,
- logistic precision (quantity of delivered parts),
- logistic precision (time)

After I rated my suppliers, the system automatic divide them for levels A, B or C.