Supplier scorecard
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Weight quality, delivery, cost and service, convert each supplier's results to points, and get a 0 to 100 score, a classification and the follow-up each result calls for.
ON THE EXAM · CMQ/OE VI.A, VI.C, VI.D, VI.F · FREE · NOTHING YOU TYPE LEAVES YOUR BROWSER
Q-BotClick for an explanation of this tool.For educational use. This page is a study aid. The method behind it has far more depth and detail than one page and one tool can cover, and what you see here is not everything the method offers or everything this site offers. For full understanding and application, use the governing standards and texts, and seek further education, training or qualified advice. Results depend on the data you enter, so check them before relying on them.
Selection and approval come first
A scorecard rates suppliers you have already approved. Selection decides who may bid and who wins: capability, capacity, quality system, financial stability and risk, checked by survey, audit and sample approval. Approval is the formal decision to place the supplier on the approved supplier list, often with conditions. ISO 9001:2015 clause 8.4 asks the organization to set criteria for the evaluation, selection, monitoring of performance and re-evaluation of external providers, and to keep records of those evaluations.
How the weighted score works
Each criterion is converted to 0 to 100 points, multiplied by its weight, and summed. Typical metrics:
- Quality: parts per million defective (PPM = defective units ÷ units received × 1,000,000), lot acceptance rate, or the number of corrective action requests.
- Delivery: on-time in full percent, and lead time.
- Cost: total cost of ownership (TCO), meaning purchase price plus freight, inspection, inventory carrying cost, scrap, rework, expediting and administration.
- Service: responsiveness, technical support, documentation and change notification.
A common trap is weights that let one criterion, usually price, decide the outcome. Another is a PPM mistake: 0.1 percent defective is 1,000 PPM, not 100.
Classification and what follows
Classes such as Preferred, Approved, Conditional and Disqualify turn the score into a decision. Preferred suppliers may earn certification (ship-to-stock, reduced or skip-lot inspection) after sustained performance and a process audit. Conditional suppliers get a supplier corrective action request and closer monitoring. A supplier below the last threshold needs an exit strategy: qualify an alternate, protect supply with safety stock, and plan the transfer of tooling, records and open orders before you announce it.
Partnerships and alliances
A partnership or alliance means fewer suppliers, longer agreements, shared data and joint improvement work. Deming's fourth point, to end the practice of awarding business on price tag alone and move toward a single supplier for any one item, is the classic statement of that idea.
On the CMQ/OE exam
Expect to calculate a weighted score or a PPM figure, to choose the right metric for a quality, delivery or cost goal, and to pick the next step for a supplier whose performance has slipped.