Question: Quality is a critical component of evaluating supplier performance for an electronic manufacturing firm. Consequently, it monitors supplier part quality using a variety of measurements,

Quality is a critical component of evaluating supplier performance for an electronic manufacturing firm. Consequently, it monitors supplier part quality using a variety of measurements, two of which are the parts per million (PPM) defect rate and the percent PPM improvement. These measures are entered into a supplier scorecard every quarter. The following measurement criteria are used:

PPM Defect RateScorecard Points
0€“5€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.10
6€“10€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.9
11€“15€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.8
16€“20€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.7
21€“25€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.6
26€“30€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.5
31€“35€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.4
36€“40€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.3
40€“45€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.2
46€“50€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.1
> 50€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.0
Percent PPM ImprovementScorecard Points
80€“100€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.4
60€“79€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.3
40€“59€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.2
20€“39€¦€¦€¦€¦€¦€¦€¦€¦€¦€¦.1
For the most recent reporting period, the number of defects equaled 2, the number of parts received was 200,000, and the PPM defect rate in the prior reporting period was 16. Update the supplier scorecard for these two measurements.

Factors Supplier A Supplier B Supplier C Supplier D Raw Score Raw Score Raw Score Raw Score Technical Design 90 85 85 80 Experience 70 80 75 70 Managament Experience 85 75 90 70 Expertise 80 90 85 80 Quality Defect rate 90 70 85 75 Best practices 65 85 90 70 Delivery Lead time 75 70 60 65 On-time 80 90 70 75 pertomanca Price 85 90 80 75

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