Based on the selection criteria from Learning Activity 6, please choose one criteria and develop the appropriate performance measure along with a minimum of four (4) sub-criteria and weighting. Please discuss why these sub-categories and weightings were chosen. please write 200 words

For example, if Quality was a criteria at 25% your sub-category and weighting would be:

Defect Rate: 10%

Internal Failure Costs: 5%

External Failure Costs: 5%

Process Control Capability: 5%

The tables below describe the more common types of indicators and measures of purchasing performance relating to:

a) the performance of suppliers

b) performance in the operational activities of the Purchasing process (e.g. ordering, receiving, invoicing)

c) performance in the commercial and strategic areas of the Purchasing process

The measures do not always relate solely to activities carried out by purchasing personnel reflecting the interdependence of functions involved in the process.

The measures do not overtly differentiate between the purchase of goods or services.

When deciding which performance measures are worth implementing, the overhead involved in collecting and analysing data on a regular basis will form part of the equation. A large determining factor will be the capability of current or planned MIS. Also part of that decision is the need to be explicit about the reasons (benefits) for the measure - the change it is required to support; the behaviour it is aiming to change; the capability it is intended to develop; the business objectives it is required to support and actions it is designed to trigger.

SUPPLIER PERFORMANCE MEASURES
AREA FOR MEASUREMENT	WHY?	COMMENTS
Delivery timing a) actual delivery date vs due delivery date	Focus on need to improve delivery reliability of supplier Poor reliability will directly affect operational efficiency and result in additional costs (e.g. safety stocks held as buffer against non-performance; lost production/sales; unplanned changeover costs) Important information as a negotiating tactic - unsettle/disturb non-performing suppliers Equally important to support improvement initiatives with suppliers	Various calculation methods can be used to express performance as a score e.g.:- (1-(number of times late/early divided by total number of deliveries)) *100 weighted according to the extent of lateness/earliness late/early deliveries of part quantities weighted according to the proportion delivered late/early Can be monitored at different levels of detail/aggregation: by product by delivery point all products/delivery points Cost of poor delivery can be cost out e.g.:- cost of unscheduled production changeovers due to unavailability cost of lost production/sales due to unavailability