Vendor Rating Procedure

Vendor Rating
PURPOSE :
To list out all the Quality Documents available.
SCOPE :
Purchasing Function
DESCRIPTION :
The following are the Quality Documents in Purchasing
Sl Document Name Compiled , Approved & Distribution Document No

No Controlled By
1 Quality Manual – Qd Quality Assurance ----
2 Quality Handbook - HB Purchasing Purchasing ----
Company Purchasing Quality Manual –
3 Purchasing ----
Qd
4 Supplier Quality development Plan Purchasing WP / C / 0001
5 Approved Suppliers List – Domestic Purchasing WP / C / 0002
6 Approved Suppliers List – Overseas Purchasing WP / C / 0003
7 Supplier Audit Plan Purchasing WP / C / 0004
6 Quality Verification Plan Quality Assurance ----
7 List of Forms & Formats Purchasing FF / C / 0026
1. PURPOSE
s
To evaluate the performance of key External Providers
Ensure key external providers are identified and monitored for their performance and award
rating
To constantly move in the direction of continual improvement
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
2. SCOPE
External providers within the scope of QMS
3. DEFINITION
Delivery schedule rating (Dc)

Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
Rating considered to understand the time schedule commitment by external provider
Volume rating (Vc)
Rating considered to understand the Quantity commitment by external provider
Delivery Rating (D)

Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
Weighted average of cumulative delivery schedule rating and volume rating
Quality Rating (Q)

Rating considered to understand the correctness of the products and service supplied as
per company
Rating is provided by quality.
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
Vendor Rating
Overall performance of external provider, cumulative of Delivery rating and
Quality rating
4. PROCEDURE
4.1 Delivery schedule and volume rating.
1. Collect data of purchase order and delivery schedule of items and vendors of interest
from Navision
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
2. Collect data of actual receipt date from GRN.

3. Calculate the difference of schedule date and actual date. Assign weightage to each item
4. For Imports: If delivery schedule is met Target + 15 days assign 1.0.
If delivery schedule is met Target + 30 days assign 0.5
5. For domestic: If delivery schedule is met Target + 3 days assign 1.0.
If delivery schedule is met Target + 7 days assign 0.5
6. Sum of assigned weights (A) is calculated and total no of line items considered is
counted (B).
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
Delivery schedule (Dc) rating is calculated as ratio of A÷B x 100

7. Volume rating (Vc) is calculated as sum of total quantity supplied v/s sum of total
quantity ordered
Expressed in percentage.
4.2 Delivery rating (D)

Weightage to schedule and volume compliance is assigned and calculated cumulatively as
below formula
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
Delivery rating = 0.7 x Dc + 0.3 x Vc

4.3 Quality rating (Q)
Quality rating is provided by QA and calculated as ratio of sum of accepted Qty v/s Sum of
received Qty
{Qty. accepted+(Qty.accepted under deviation x 0.5)+(Qty.accepted after rework x 0.25)
} x 100
Quantity received
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
4.5 Vendor rating

Vendor rating is calculated as cumulative of Delivery rating Quality rating as below
Vendor rating = 0.5 x D + 0.5 x Q
From To Grade
5. Classification of grades.
≥ 96% 100% A Based on the rating each
≥ 90% 95.99% AB vendor is provided with grade
as ≥ 75% 89.99% B defined in table below
≤ 75% C
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
6. Communication and Reaction Plan

1. Ratings are communicated to vendors.
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
2. For grade C VENDORS, reaction plan is discussed and continuous monitoring is done. If no
further
Improvements is found block the vendor and find alternate.
3. For grade B vendors, Specific issues are discussed and actions are taken by vendor.
7. RESPONSIBILITY
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd
8. References
1. Purchase order
2. GRN (goods receipt note)
3. Vendor rating form
Vendor Rating
PURPOSE :
SCOPE :
Purchasing Function
DESCRIPTION :

No Controlled By
3 Purchasing ----
Qd

Vendor Rating Procedure

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Vendor Rating Procedure

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Vendor Rating

Sl Document Name Compiled , Approved & Distribution Document No

Sl Document Name Compiled , Approved & Distribution Document No

External providers within the scope of QMS

Delivery schedule rating (Dc)

Sl Document Name Compiled , Approved & Distribution Document No

Rating considered to understand the time schedule commitment by external provider

Volume rating (Vc)

Rating considered to understand the Quantity commitment by external provider

Delivery Rating (D)

Sl Document Name Compiled , Approved & Distribution Document No

Weighted average of cumulative delivery schedule rating and volume rating

Quality Rating (Q)

Sl Document Name Compiled , Approved & Distribution Document No

Sl Document Name Compiled , Approved & Distribution Document No

2. Collect data of actual receipt date from GRN.

Sl Document Name Compiled , Approved & Distribution Document No

Delivery schedule (Dc) rating is calculated as ratio of A÷B x 100

4.2 Delivery rating (D)

Sl Document Name Compiled , Approved & Distribution Document No

Delivery rating = 0.7 x Dc + 0.3 x Vc

Sl Document Name Compiled , Approved & Distribution Document No

4.5 Vendor rating

Sl Document Name Compiled , Approved & Distribution Document No

6. Communication and Reaction Plan

Sl Document Name Compiled , Approved & Distribution Document No

Sl Document Name Compiled , Approved & Distribution Document No

Sl Document Name Compiled , Approved & Distribution Document No

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