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Article #89

Re: Supplier metrics

#89
From: Daniel J O'Leary
Date: Fri, 14 Aug 1998 00:00
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John Zavacki, in discussion supplier metrics said, "I don't
understand  the need, or even the desire, for subjectivity in a
supplier management system.  There's quality, cost, and
delivery to consider for a supplier, in terms of rating.  These
are things you can honestly measure and compare with like
suppliers.  If subjectivity enters into the picture, you'll be on
dangerous ground unless you establish operational
definitions (i.e., control plans) for each of the subjective criteria."

In evaluating suppliers, one often wants to measure subjective criteria.
this is done with a survey instrument of some type. Some of the
possible things you may ask about are, "Is the supplier cooperative?"
or "When he material hits the receiving dock is it packed well?"
or "Is the shipping documentation easy to find?".

While one would like to quantify these things they are not always
measurable objectively. The supplier rating system in the software
allows one to use both subjective and objective criteria. One
may assign relative weights to the each type. I expect for our system
that the objective data will carry about 75% of the weight and the
subjective data about 25%.

Dan O'Leary CQA, CQE, CQM, CRE
Business Process Executive for Manufacturing
doleary@qbe.picker.com
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From: "Daniel J O'Leary" <doleary@ntssmtp.picker.com>
Subject: Re: Supplier metrics
Date: 1998/08/14
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