Vendor evaluation - Avrge Variance
when I excuting me6b ranking by material , i m getting individual scores and average variance column also.
please clarify me how this average variance calculation happens ? how it be linked with overall score.
Thanz in Advance.
Kunal Ingale replied
To rate delivery date variances in days, maintain the Std.del.time var. parameter.
If you assign a lower standard value, this means that relatively low date variances produce high percentage variances. If you set a higher standard value, this results in a relatively low percentage variance:
The Std.del.time var. parameter has the value 20. The goods receipt took place on Nov. 27;
the statistical delivery date was Nov. 15. There is thus a difference of 12 days.
The system calculates the percentage variance as follows:
12 / 20 x 100 = 60
If the Std.del.time var. parameter had the value 60, the variance would be 20%
(12 / 60 x 100 = 20).
If you do not maintain this parameter, the system calculates the delivery time variance via the firm zone in the case of scheduling agreements, and via the order date and the
statistics-relevant delivery date in the case of purchase orders.