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Supplier performance metric – low volume mfg

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  • #51137

    Ruddy
    Participant

    Hello,
    Does anyone have any advice concerning supplier performance metrics for a low volume, job shop-like manufacturer?  I am working on developing a supplier rating system and do not believe that the standard PPM, etc applies.
    Thanks in advace

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    #176809

    DLW
    Participant

    Michael,
    Probably there is no need to make it overly complex. I would start
    with whatever parameters are most important to you — most likely
    the same ones that are important to your customers: Quality, Cost,
    Delivery.
    Are deliveries on time? What kind of responsiveness do you
    experience? Do you receive smaller, more frequent deliveries to
    help smooth out your operation? Is the supplier cost-competitive?
    Are order deliveries complete and correct? Are parts and material
    of adequate quality?
    You could develop a simple spreadsheet to provide scoring for
    each supplier relative to each category. And I would suggest also
    rating the relative importance of each category to your business,
    then factoring the two together somehow so you end up with a
    meaningful, weighted score in all cases.
    Good luck.
    DLW = BPEX

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    #176850

    Ed Caldeira
    Participant

    Michael, In low-volume manufacturing, a supplier’s performance can affect multiple stakeholders throughout the production process including production personnel, quality checkers, customers, and other suppliers that depend on their work.  Capturing supplier performance ratings form multiple stakeholders is essential for holding suppliers accountable to the full range of performance expectations.  This is what we have been doing in the construction industry and you might be able to use the same principles.

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    #176852

    GB
    Participant

    Our’s is based on RTY, Line escapes, OTD (5 days early, zero days late).  As the earlier poster stated, keep it simple.   Couch everything on C/Q/D.

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