Supplier Rating System

Topics: Management, Scores, The Delivery Pages: 12 (2530 words) Published: May 6, 2013
Supplier Rating System

Supplier Rating System
Supplier Manual

Presented by Admiral Tool & Manufacturing Purchasing and Quality

WI-PU-06-002 Rev. Lev. 003 Rev. Date 02/06/2003


Supplier Rating System
Table of Contents

Introduction Scoring Criteria - Rejected Parts Per Million Scoring Criteria - Quality Notices / Written Complaints Scoring Criteria - Delivery Scoring Criteria - Service / Responsiveness Minimum Expectations Corrective Action Process Scorecard Example Trend, Pareto, and Paynter Charts example

3 4 5 7 9 10 11 13 15

WI-PU-06-002 Rev. Lev. 003 Rev. Date 02/06/2003


Supplier Rating System
Admiral Tool & Manufacturing has become an independent supplier of automotive steering column systems by dedication to customer satisfaction through continuous improvement as well as the exceptional support and ingenuity from our valued suppliers. The supplier relationship is our key to success, and continued success will rely on effective communication with suppliers to meet and exceed our customer’s expectations. To improve our communication and performance with suppliers, Admiral Tool & Manufacturing has established the Supplier Rating System using the Report card as a vehicle to provide feedback to our suppliers on their performance. This feedback will focus on quality (rejected parts per million), delivery, service, and quality notices/written complaints. Supplier performance will be evaluated each quarter with a maximum of 100 points available. The distribution and calculations of these points are explained in detail in the pages to follow. The Report cards will be distributed the 2nd week of each quarter evaluating the prior three month’s performance. The Report cards will be printed and distributed from our manufacturing facility located in Livonia, MI. As a current supplier to the automotive industry, Admiral Tool & Manufacturing believes you are well aware of the efforts to improve supplier performance in these areas and reduce the cost of developing and supplying parts/systems to our customers. We hope that the information provided to you will be beneficial and communicate our expectations for continuous improvements.

WI-PU-06-002 Rev. Lev. 003 Rev. Date 02/06/2003


Supplier Rating System
Scoring Criteria - Rejected Parts Per Million (RPPM)
The RPPM category accounts for 30 points of the overall Scorecard rating. Supplier RPPM (rejected parts per million) is calculated on the basis of the amount of non-conforming materials versus the total amount of materials received in a given fiscal month. This calculation is then normalized to reflect a constant basis of one million units received. Example: A Supplier ships 100,000 parts to a plant, of those 7 are found to be nonconforming. The Scorecard calculation will be (7/100,000) x 1,000,000 = 70 RPPM’s. The Supplier’s score for this example will be 12 points. The following table outlines parts per million ranges and their respective scores: RPPM Rating 0 – 25 26 – 30 31 – 35 36 – 40 41 – 45 46 – 50 51 – 55 56 – 60 61 – 65 66 – 70 71 – 75 76 – 80 81 – 85 86 – 90 91 – 95 96 - 100 Score 30 28 26 24 22 20 18 16 14 12 10 8 6 4 2 0

WI-PU-06-002 Rev. Lev. 003 Rev. Date 02/06/2003


Supplier Rating System
Scoring Criteria - Quality Notices/Written Complaints
The Quality Notices/Written Complaint category accounts for 20 points of the overall Scorecard. The system rates Suppliers on the number of formal rejection notices or written complaints and the severity of each complaint with the following formula. (The number of occurrences per classification code) x (severity index) Level 0 Level 1 Level 2 Level 3 Level 4 Engineering issues Minor issues Repeat Minor issues Major issues Severe issues 0.00 0.10 0.25 0.50 1.00 points per occurrence points per occurrence points per occurrence points per occurrence points per occurrence

Example: A Supplier receives one written complaint in Level 1, two written complaints...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Rating Systems for Films Essay
  • Hotel ratings Essay
  • Essay about The Current Rating System in the United States
  • Motion Picture Association of America Film Rating System and Movies Essay
  • Movie Rating System in She's All That Essay
  • Supplier Evaluation System Motorola and Nokia Essay
  • Essay about ESRB’s Rating System for Video Games
  • SYSTEMS Essay

Become a StudyMode Member

Sign Up - It's Free