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2.13 The Supplier Scorecard

Supplier quality is not subjective. It is measured by data. This chapter establishes the quarterly quantitative assessment of critical supply partners.

2.1313.1 The SupplierMetrics Scorecard(Weighted)

  • TheQuality Quarterly Report Card:(40%): GradingDPPM key(Defective suppliersParts onPer objectiveMillion) data,+ notSCAR feelings.Responsiveness.
    • Delivery (30%): OTD (On-Time Delivery): % of lines arrived onto the promisedcommit date.
    • Quality: PPMCost (Parts Per Million) defect rate + SCAR responsiveness.
    • Commercial:20%): PPV (Priceperformance Variance)and performance.cost-down proactivity.
    • Service:Service (10%): Responsiveness to shortages.RFQs and flexibility.

    2.13.2 Grading Scale

    • A (90-100): Preferred Partner. First choice for new business.
    • B (80-89): Acceptable. Monitor closely.
    • C (<80): Probation. Corrective Action required.

    Final Checklist

    Metric

    Target

    Calculation Source

    Quality

    < 500 DPPM

    Incoming Inspection / MRB

    Delivery

    > 95% OTD

    ERP Receipt vs. Promise Date

    Responsiveness

    < 24h

    Buyer Feedback

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