Vendor Evaluation - Rejection/Complaints Subcriterion

[Former Member]

Hi dear all,

I´m having some doubts in reference with Vendor Evaluation function. I have no previous experience in this topic and my knowledge is based in what I could read from SAP Library or SAP forums, so I will really appreciate your help.

Regarding  “Complaints/Rejection Level” subcriterion (main criterion Quality) I have the following issues:

1. Only complete/closed Q2 origin notifications -determined as "External Cause"- are taken into account?

2. If my first statement is right, for the above mentioned notifications to be taken into account, is it mandatory to refer them to a Purchase Order?

3. I checked several times scoring formula for this subcriterion. At first, I understood that faulty quantities are taken into account in the first step but not reflected in final score.

This is what I understood:

When calculating the score for this subcriterion, rejection or faulty quantities in each notification are summarized and the total value is compared with the acceptable level of business proportion previously defined.  Three possibilities are found:

                - No Q-notifications for the period, maximum score.

                - Faulty material quantity exceed acceptable proportion of business  volume, minimum score.

                - Faulty material quantity fall in an acceptable proportion of business volume, so all the notifications for the period are taken into account. From this moment, the following formula is applied:

Quality score(QSC) = QSC min + (QSC Max- QSC Min) * ( 1-((Nk)/ (FU)))

QScmin = Lower limit for QSc

QKZmax = Upper limit for QSc

N = Number of Q-notifications in the applicability period

K = Estimated nonconformity costs

F = Share of business volume for QSc calculation

U = Sales of the vendor in the applicability period

But recently, I found this:  Quality Score = QSC Min , IF (NK) > (FU)

So, I am confused, because according to this, appears to be that faulty quantities are not at all taken into account! And I think that is not the same if you found a small or a large amount of  defective material and this has to be reflected some way.

Could you please explain how this work?

Once again, any orientation you could give to me would be greatly
appreciated.  I really need your expert
help!

Thanks in advance and regards for all,

Eliana

[Former Member · Accepted solution]

1. Only complete/closed Q2 origin notifications -determined as "External Cause"- are taken into account?

Yes.

2. If my first statement is right, for the above mentioned notifications to be taken into account, is it mandatory to refer them to a Purchase Order?

Yes ( In order to get purchase org reference i Belive)

3.Correct !!

Both formulas are correct,

As I understand formula Quality Score = QSC Min , IF (NK) > (FU) will be applicable if Share of business volume & Sales of the vendor is very less.This can happen when you introduce a vendor with very small turnover etc.

for rest first formula will be applicable.

Also note that this is not depend upon faulty quantities.Its either Material  ok or not Ok.

[Former Member · Accepted solution]

Thank you very much Sujit!

I have to say that I was waiting for your answer

I still have a doubt regarding the impact of faulty quantities in Vendor Evaluation.

You told me that what I wrote is right, but may be I didn´t explain myself correctly, because I can´t understand the last statement in your answer.

I need confirmation about how quantities are taken into account:

• Is it correct that  faulty quantities are considered in the first step to determine if the total value of this amount of material fall in an acceptable business volume proportion?

• Or just the number of Q2 notifications multiplied by the estimated cost per notification is compared with the share of business volumen by sales of the vendor  in the firs step (before the application of the formula)?

My client thinks that faulty quantities must be considered and I´m thinking that this could be a problem.

Thanks again for your answer and thanks in advance for this!

Regards,

Eliana

[Former Member · Accepted solution]

NO...Eliana,

As per my understanding this criteria is not depends upon the "faulty qty".

You can check whether score changes in for a same Q2 notification when qty is changed.I am sure it will not change.

As per my understanding there is no provision of measurement of qty in formula you mentioned.

Only number of Q2 notifications(N)  are considered.

-----------------------------------------------------------------------------

Check std SAP example :

Example of evaluation of 'Complaint' criterion:

QScmin  =    1
QScmax  =  100
Estimated nonconformity costs per quality notification   =  500.00
Factor for relevant turnover share =  0.1

No. of notifications   =  20
Turnover              =  1 000 000.00

                                                  0.1 * 1 000 000.00 - ( 20 * 500.00)
QSccomplaint  =  1 + ( 100 - 1 ) * ---------------------------------
                                                    0.1 * 1 000 000.00

                                       100 000.00  -   10 000.00
                =  1 +    99       * ---------------------------------
                                                 100 000.00

                =  1 +    99       *    0.9

                =  90.1

( here  ( 1-((Nk)/ (FU))) is atcually putted as ((FU-NK)/FU) which are same

[Former Member · Accepted solution]

Tahnk you very much Sujit!