This document presents a framework for supplier management that includes selection, evaluation, and performance management. It discusses the need for companies to regularly track and communicate key supplier metrics to improve relationships and ensure priorities are met. The proposed framework was developed through a literature review of common supplier evaluation criteria used in various industries, as well as input from companies on the metrics they use and challenges they face. It identifies eight main criteria categories (e.g. quality, cost, delivery), 32 specific metrics, and a 4-level ranking system to evaluate and manage supplier performance. The goal of the framework is to help companies standardize and consistently execute their supplier management processes.
Selection of Supplier by Using Saw and Vikor MethodsIJERA Editor
Now a days, Lean manufacturing becomes a key strategy for global competition. In this environment the most important process is the efficient selection of suppliers. In any organization various criteria such as quality, cost, location etc are used for the selection of supplier which plays a vital role in the industry. In the present work multi criteria decision making (MCDM) methods are used such as SAW method and VIKOR method. It is used to select the best supplier for implementing the spring manufacturing industry. Choice of the efficient supplier could be a complicated and is a complex problem and this draw back associate degreed a key success for an organization. In this paper linguistic fuzzy data is used to search out the ratings and weights and also the introduced methodologies employed to pick the efficient supplier
Onicra Credit Rating Agency provides vendor rating and management services to help companies evaluate, monitor, and manage their vendor base. This presentation outlines Onicra's vendor rating methodology which comprehensively assesses vendors across several parameters including promoter profile, group details, managerial dynamics, financial performance, operations, quality, and more. The goal is to help clients identify risks, benchmark vendors, and select the right partners through an objective, data-driven process. Onicra's ratings also benefit vendors by enhancing their acceptability and access to financing.
In recent years, management and, consequently, supply chain performance measurement, has attracted the attention of a large number of managers and researchers in the field of production and operations management. In parallel with the evolution of organizations from a single approach to a network and supply chain approach, performance measurement systems have also changed and moved towards network and supply chain performance measurement. Therefore, in order to face the storm of great change and transformation and not give in to the wave of competitive aggression, organizations have long had one thing in common, and that is to focus approaches and focus efforts towards achieving results. Results that lead to a competitive advantage and are more effective and decisive in the performance indicators of the organization, including earning more. In this study, in order to identify and prioritize the factors affecting the supply chain in manufacturing companies, using indicators such as cost, timely delivery and procurement time to evaluate the supply chain efficiency is considered. And performance evaluation was performed at the manufacturer level. Therefore, in order to evaluate the performance of the supply chain using the AHP integration approach and the DEA method approach in the fuzzy environment, the suppliers and suppliers of the manufacturing company were evaluated and ranked in terms of performance.
This document discusses developing a balanced supplier scorecard. It begins with an introduction to supplier scorecards and balanced scorecards. It then reviews literature on supplier evaluation models and criteria. Two case studies on Honeywell and Tara Aerospace's supplier scorecards are presented. The document proposes a balanced supplier scorecard with four perspectives: financial, customer, internal processes, and innovation/learning. It identifies shortcomings in current scorecards and suggests enhancements like including environmental and social factors. The conclusion emphasizes that effective scorecards should be flexible, updated in real-time, cost-based, and benchmarked.
Vendor development in pharmaceutical industryshikha singh
This document discusses vendor development and evaluation procedures. It explains that vendor development involves identifying, developing, and evaluating prospective suppliers to ensure materials are procured at the right quality, quantity, price, and time. The key steps include vendor evaluation, rating vendors based on quality, delivery, price, and time performance, maintaining an approved vendor list, and certifying vendors. Periodic re-evaluation and monitoring of current suppliers is important for effective vendor management.
This document discusses the importance of supplier selection and outlines the supplier selection process. It begins by explaining that selecting suppliers is now as important as developing new products. It then describes the typical supplier selection process, which includes evaluating needs, gathering a pool of vendors, interviewing vendors, and selecting an evaluation method. Next, it outlines common supplier evaluation criteria like financial health, expertise, and operational performance. Finally, it discusses specific evaluation methods like the categorical method, weighted point method, and cost-ratio method. It concludes that determining clear requirements and communicating them to vendors allows for an objective supplier selection decision.
Analysis of ship to use program stu a case study to investigate the effectiveIAEME Publication
This document analyzes the effectiveness of a supplier certification program called Ship To Use (STU) for a manufacturing company. It first reviews literature on supplier development programs and their benefits. It then describes the STU program and process for the case company. The methodology section proposes collecting supplier data from the SAP system to identify STU parts from previous and current years, and compare parts withdrawn due to quality issues to calculate STU program effectiveness. Analysis of 196 suppliers found the STU program to be 90.22% effective in maintaining supplier quality based on this metric. The study provides a method to evaluate certification program effectiveness.
Selection of Supplier by Using Saw and Vikor MethodsIJERA Editor
Now a days, Lean manufacturing becomes a key strategy for global competition. In this environment the most important process is the efficient selection of suppliers. In any organization various criteria such as quality, cost, location etc are used for the selection of supplier which plays a vital role in the industry. In the present work multi criteria decision making (MCDM) methods are used such as SAW method and VIKOR method. It is used to select the best supplier for implementing the spring manufacturing industry. Choice of the efficient supplier could be a complicated and is a complex problem and this draw back associate degreed a key success for an organization. In this paper linguistic fuzzy data is used to search out the ratings and weights and also the introduced methodologies employed to pick the efficient supplier
Onicra Credit Rating Agency provides vendor rating and management services to help companies evaluate, monitor, and manage their vendor base. This presentation outlines Onicra's vendor rating methodology which comprehensively assesses vendors across several parameters including promoter profile, group details, managerial dynamics, financial performance, operations, quality, and more. The goal is to help clients identify risks, benchmark vendors, and select the right partners through an objective, data-driven process. Onicra's ratings also benefit vendors by enhancing their acceptability and access to financing.
In recent years, management and, consequently, supply chain performance measurement, has attracted the attention of a large number of managers and researchers in the field of production and operations management. In parallel with the evolution of organizations from a single approach to a network and supply chain approach, performance measurement systems have also changed and moved towards network and supply chain performance measurement. Therefore, in order to face the storm of great change and transformation and not give in to the wave of competitive aggression, organizations have long had one thing in common, and that is to focus approaches and focus efforts towards achieving results. Results that lead to a competitive advantage and are more effective and decisive in the performance indicators of the organization, including earning more. In this study, in order to identify and prioritize the factors affecting the supply chain in manufacturing companies, using indicators such as cost, timely delivery and procurement time to evaluate the supply chain efficiency is considered. And performance evaluation was performed at the manufacturer level. Therefore, in order to evaluate the performance of the supply chain using the AHP integration approach and the DEA method approach in the fuzzy environment, the suppliers and suppliers of the manufacturing company were evaluated and ranked in terms of performance.
This document discusses developing a balanced supplier scorecard. It begins with an introduction to supplier scorecards and balanced scorecards. It then reviews literature on supplier evaluation models and criteria. Two case studies on Honeywell and Tara Aerospace's supplier scorecards are presented. The document proposes a balanced supplier scorecard with four perspectives: financial, customer, internal processes, and innovation/learning. It identifies shortcomings in current scorecards and suggests enhancements like including environmental and social factors. The conclusion emphasizes that effective scorecards should be flexible, updated in real-time, cost-based, and benchmarked.
Vendor development in pharmaceutical industryshikha singh
This document discusses vendor development and evaluation procedures. It explains that vendor development involves identifying, developing, and evaluating prospective suppliers to ensure materials are procured at the right quality, quantity, price, and time. The key steps include vendor evaluation, rating vendors based on quality, delivery, price, and time performance, maintaining an approved vendor list, and certifying vendors. Periodic re-evaluation and monitoring of current suppliers is important for effective vendor management.
This document discusses the importance of supplier selection and outlines the supplier selection process. It begins by explaining that selecting suppliers is now as important as developing new products. It then describes the typical supplier selection process, which includes evaluating needs, gathering a pool of vendors, interviewing vendors, and selecting an evaluation method. Next, it outlines common supplier evaluation criteria like financial health, expertise, and operational performance. Finally, it discusses specific evaluation methods like the categorical method, weighted point method, and cost-ratio method. It concludes that determining clear requirements and communicating them to vendors allows for an objective supplier selection decision.
Analysis of ship to use program stu a case study to investigate the effectiveIAEME Publication
This document analyzes the effectiveness of a supplier certification program called Ship To Use (STU) for a manufacturing company. It first reviews literature on supplier development programs and their benefits. It then describes the STU program and process for the case company. The methodology section proposes collecting supplier data from the SAP system to identify STU parts from previous and current years, and compare parts withdrawn due to quality issues to calculate STU program effectiveness. Analysis of 196 suppliers found the STU program to be 90.22% effective in maintaining supplier quality based on this metric. The study provides a method to evaluate certification program effectiveness.
STRATEGIC EVALUATION IN OPTIMIZING THE INTERNAL SUPPLY CHAIN USING TOPSIS: E...Shiva Prasad
This document summarizes a research study that used the TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) method to evaluate and rank the key factors affecting the performance of an internal supply chain for a coil-winding machine manufacturer in India. Six factors were identified: information sharing, supplier relationship, information technology, inventory planning, 5S practices, and labor effectiveness. These factors were scored based on their influence on four criteria: on-time delivery, production flexibility, cost-effectiveness, and additional costs. Using the TOPSIS method, supplier relationship and inventory planning were ranked as the most important factors for positively influencing the supply chain criteria. The study aims to help the manufacturer identify and
Creating an Approved Supplier Program as a Prerequisite for a Successful HACC...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Meeting Description:
Hazards come from two places; we add them or we receive them from our suppliers.
What should we expect from an effective supplier management program? Who is ultimately responsible for the safety of the products & materials received from our suppliers? How confident are we when we justify the control of a hazard as being through our approved supplier program? What percentage of recalls is traced to supplier issues?
HACCP requires that you:
-Identify those suppliers critical to food safety and quality
-Perform a hazard assessment and define the hazards
-Identify the potential risk and significance of the hazard
-Justify our decision based on facts, scientific information and historical data
Learn how to use your existing supplier data to:
-Automatically manage supplier compliance issues
-Continuously improve supplier performance
-Better manage supplier audits
Presenters:
Debby Newslow, President, D.L. Newslow & Associates, Inc.
Presentation: Prerequisite requirement programs for successful supplier management
Gary Nowacki, CEO, TraceGains
Presentation: Automating supplier document, risk, and compliance management
There is an increasing trend in competition on the global market and this has compelled many manufacturing and service companies to revise their understanding of quality. Customers today make informed choices and patronize products and services based on their quality. There are also regulations which are established by government agencies to ensure that products and services are of expected quality that satisfies the needs of the customer. This demand from customers has triggered a need for manufacturing companies to always provide quality products to stay in competition. Provision of quality products has a cost element attached to it. The study was a case study and focused on the assessment of cost of quality and its effect on manufacturing performance. There have been several researches that have shown the relevance of cost of quality assessment in a manufacturing firm. This research looks at cost of quality with specific emphasis on the classical P-A-F (Prevention-Appraisal-Failure) cost model and tries to ascertain its effects on manufacturing performance. The study focused on Special Ice Company Limited as a case study. The study employed three categories namely, cost of prevention, cost of appraisal and cost of failure as a proxy for cost of quality on the manufacturing performance. A sample of 80 participants was randomly selected for this study. Primary data was collected and analyzed. The findings show that the cost of quality element like cost of external failure and cost of appraisal had a statistically significant impact on the manufacturing performance of the company. A semi-structured interview was also conducted with the Manager Director to further understand the posturing of the top management with regards to the study. The study recommended that the organization make a conscious effort to sensitize employees to understand the cost of quality and its implications on the manufacturing performance of the company and also appraise their production processes at all times and ensure their entire staff adhere to accepted procedures. Again, the study also recommended that top management get actively involved and make a conscious effort to incorporate the cost of quality in their decision-making process and get all staff to align and adhere to it and also pay close attention to customer complaints act on it to improve on the products.
Benchmarking internal supply chain performance development of a frame workIAEME Publication
This document presents a framework for benchmarking internal supply chain performance using publicly available financial data. The framework calculates three metrics: total length of supply chain, efficiency of supply chain management, and supply chain working capital productivity. It applies the framework to analyze three fast moving consumer goods companies over four years. The analysis finds that Company C consistently had the best performance on the metrics, with shorter supply chain length, higher efficiency, and higher productivity. The framework provides a way for companies to evaluate their internal supply chain performance and identify areas for improvement by comparing metrics over time and to other companies.
Supplire Partnership Coca Cola Multan TQMgmsmalik1
The document provides information about Coca-Cola's supplier partnership in Multan, Pakistan. It discusses Coca-Cola's history in Pakistan and introduction in Multan in 1964. It also explains key aspects of supplier partnership including sourcing, supplier selection, relationship development, and Coca-Cola Multan's production process. The production process involves purchasing bottles, collecting bottles, washing bottles, inspection, and filling bottles with concentrate and carbonated water.
Total Quality Management involves supplier certification, rating, and performance measurement strategies. [1] Supplier certification requires suppliers to meet certain quality standards over a period of time before being certified. [2] Customer rating of suppliers helps evaluate supplier performance in quality, delivery, and other areas to improve relationships and communication. [3] Performance measurement uses metrics in various areas like human resources, customers, production, and marketing to establish trends, identify improvement needs, and make informed decisions.
operations management(vendor selection and rating)POOJA UDAYAN
The document discusses vendor selection and rating. Vendors are companies that sell goods or services and are part of the supply chain. Vendor selection is an important purchasing decision made based on factors like price, quality, delivery, production facilities, financial position, and performance history. Vendor rating evaluates and approves potential vendors through a quantitative assessment of their performance in areas such as delivery, quality, and price. There are three main methods for vendor rating: the categorical method which uses subjective evaluations, the weighted point method which allocates points based on factors, and the cost ratio method which calculates ratios based on procurement costs.
This document discusses supplier partnerships and performance measurement in total quality management. It emphasizes that strong supplier partnerships built on principles like shared responsibility, communication, and long-term commitment can improve customer satisfaction and organizational performance. Effective partnership processes involve quality management system audits and action plans. Performance should be regularly measured against objectives in both financial and non-financial terms across key areas like quality, cost, customers, and human resources to evaluate whether strategic goals are being met.
1. The document summarizes elements to consider in conducting a companywide quality assessment, including cost of poor quality, quality culture, and operation of the quality system.
2. It provides examples of categorizing quality costs such as internal/external failure costs, appraisal costs, and prevention costs. The largest opportunity for cost reduction is often products that generate internal scrap and rework as well as external problems.
3. Assessing quality costs as a percentage of sales, profits, costs of goods sold, or manufacturing assets can help relate the impact of quality costs to upper management. Understanding quality culture and systematically evaluating current quality activities and systems are also important parts of the assessment.
The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
A STUDY ON THE RELATIONSHIP AMONG SUPPLY CHAIN MANAGEMENT COMPONENTS, SUPPLY ...Dr.Ganeshkumar C
This document outlines a study on the relationship between supply chain management components, supply chain performance, and organizational performance of manufacturing industries in Puducherry, India. The study aims to understand the impact of important supply chain management components on supply chain performance and organizational performance. It reviews literature on related topics and identifies variables and constructs such as supply chain concerns, competence, practices, and performance. The methodology section outlines how data will be collected and analyzed through statistical tools to test hypotheses and relationships between variables. The findings will provide insights on how supply chain management can impact performance.
Supply Chains around the world are witnessing rapid transformation due to many factors including digitization and cybersecurity. Procurement Professionals as a whole seem to be behind the curve with these trends.
You will learn how the following with impact the Procurement Function:
1. Social Responsibility
2. Digitization
3. Supplier Relationship Management
4. Supply Risk Management
Success in supply begins with the right choice of suppliers and in the long run is directly related to how suppliers are managed, because suppliers have a significant impact on the success or failure of a company. Multi-criteria decisions are approaches that deal with ranking and selecting one or more suppliers from a set of suppliers. Multi-criteria decisions provide an effective framework for comparing suppliers based on the evaluation of different criteria. The present research is applied based on the purpose and descriptive-survey based on the nature and method of the research. In the present study, two library and field methods have been used to collect information. According to the objectives of this study, suppliers will be evaluated using two methods of fuzzy hierarchical analysis with D-numbers. In order to better understand these two methods, a case study is presented in which suppliers are ranked using two methods and then the results are compared with each other. For manufacturing companies, 4 categories of parts were considered and based on the classification, the suppliers of the manufacturing company were evaluated and analyzed. In the results of suppliers of type A and B components in hierarchical analysis, D and fuzzy methods have many differences in the evaluation and ranking of suppliers, and this shows the lack of expectations of experts in D and fuzzy analysis. On the other hand, in type C and D components, the classification and ranking of suppliers have been matched in two ways and shows that the opinions in the evaluation of these suppliers are the same.
Determinants of Supply Chain Performance of Indian Manufacturing OrganizationsWaqas Tariq
This paper aims at proposing various determinants of supply chain performance of Indian manufacturing organizations. The determinants are summarized based on extensive literature review of empirical research articles on supply chain management (SCM) and performance measurement approaches. This study is a part of a larger research project exploring SC related practices. A critical analysis is carried out so as to identify research gaps in context of performance measurement of supply chains, as well as to propose directions for future research. A conceptual model is also proposed. Critical investigation of selected articles led to an idea that there can be significant effect of selected variables on SC Performance. It is to be seen that how various parameters, taken from the literature review, affect SC performance and ultimately contributing to its competitiveness. The various parameters like supplier-buyer relations, external supply chain, environmental factors, human metrics, information sharing and performance measurement approaches are taken in a single study in the context of Indian manufacturing organizations. Based on a pilot study with sample size of 100, empirical tests resulted in reduction of items. Based on the obtained results, the organizations can enhance the SCM performance by improving the current practices/strategies through focusing on the determinants that significantly influence SCM performance. Further research can be carried out by using data of various supply chains of other sectors and industries of India to generalize the research.
The webinar covered procurement strategy development. It discussed NLPA's 10 phase approach to world class sourcing, leveraging customer requirements in procurement strategy and customer experience. Attendees learned how to understand the 10 phase approach, leverage customer and supplier matrices, and prioritize future learning. Polling questions gauged experience levels and interests in different procurement strategy topics.
The document discusses vendor rating, which is a formal system used by firms to evaluate the performance of vendors who provide contingent labor or supplies. It describes several factors considered in vendor ratings like pricing, quality, delivery, and various techniques used to rate vendors. These include categorical plans, weighted point methods, cost ratio methods, and checklists. The benefits of vendor rating include providing feedback, facilitating communication, controlling vendors, and building partnerships. Value analysis is also discussed as a method to identify unnecessary costs and achieve functional objectives like durability most economically. It aims to save money while maintaining quality.
The degree to which banks are committed to applying the dimensions of total q...Alexander Decker
This document summarizes a study on the degree to which banks are committed to applying total quality management principles regarding customer service. It introduces total quality management and its importance. It then states the study's main question as examining how banks' commitment to total quality management principles affects customer service levels. It lists several sub-questions and outlines the study's hypotheses. Finally, it provides background information on total quality management philosophies and definitions.
The document discusses supplier performance evaluation methods for SMEs in Macedonia. It covers several key areas:
1. Supplier evaluation methods including categorical, weighted-point, and cost-ratio models. The weighted-point model is most commonly used.
2. Key performance indicators from literature including Dickson and Weber's criteria which focus on quality, delivery, price and other factors.
3. Approaches to evaluate suppliers such as linear weighting, total cost of ownership, and statistical models. Linear weighting is most popular.
4. The study's methodology used grounded theory and questionnaires. Findings showed manufacturing is the largest industry, evaluation processes are common, and key criteria include price, quality and delivery
Benchmarking is an ongoing process involving industries from all walks of life and all categories of production
The principle is that no company is 100% perfect, and if you continuously search for better solutions, you will improve your efficiency and become an exceptional company, which can later form a benchmark for similar companies.
Benchmarking is a legal activity. Because benchmarking has been applied in a formal fashion (following strict rules) to all manner of technical and administrative procedures. There is legal authorities on information exchanges ( major area of antitrust concern applicable to benchmarking )
Relationships among Supplier Selection Criteria using Interpretive Structural...inventionjournals
International Journal of Engineering and Science Invention (IJESI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJESI publishes research articles and reviews within the whole field Engineering Science and Technology, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A MULTI-CRITERIA DECISION FRAMEWORK FOR INVENTORY MANAGEMENTIAEME Publication
The document presents a multi-criteria decision framework for inventory management. It begins with an introduction on the importance of inventory management and classification. It then details the two-stage framework development process of literature review and industry feedback. Five categories of criteria are identified: revenue, customer service, profitability, growth, and risk. Twenty-one metrics are proposed to evaluate inventory across these categories. Formulas for calculating each metric and criteria for ranking items A, B, C or D are also provided. The framework aims to provide a standardized, quantitative, and comprehensive approach to inventory management.
STRATEGIC EVALUATION IN OPTIMIZING THE INTERNAL SUPPLY CHAIN USING TOPSIS: E...Shiva Prasad
This document summarizes a research study that used the TOPSIS (Technique for Order of Preference by Similarity to Ideal Solution) method to evaluate and rank the key factors affecting the performance of an internal supply chain for a coil-winding machine manufacturer in India. Six factors were identified: information sharing, supplier relationship, information technology, inventory planning, 5S practices, and labor effectiveness. These factors were scored based on their influence on four criteria: on-time delivery, production flexibility, cost-effectiveness, and additional costs. Using the TOPSIS method, supplier relationship and inventory planning were ranked as the most important factors for positively influencing the supply chain criteria. The study aims to help the manufacturer identify and
Creating an Approved Supplier Program as a Prerequisite for a Successful HACC...TraceGains
If you have any questions or comments, please send them to connect@tracegains.com. We look forward to hearing from you.
Meeting Description:
Hazards come from two places; we add them or we receive them from our suppliers.
What should we expect from an effective supplier management program? Who is ultimately responsible for the safety of the products & materials received from our suppliers? How confident are we when we justify the control of a hazard as being through our approved supplier program? What percentage of recalls is traced to supplier issues?
HACCP requires that you:
-Identify those suppliers critical to food safety and quality
-Perform a hazard assessment and define the hazards
-Identify the potential risk and significance of the hazard
-Justify our decision based on facts, scientific information and historical data
Learn how to use your existing supplier data to:
-Automatically manage supplier compliance issues
-Continuously improve supplier performance
-Better manage supplier audits
Presenters:
Debby Newslow, President, D.L. Newslow & Associates, Inc.
Presentation: Prerequisite requirement programs for successful supplier management
Gary Nowacki, CEO, TraceGains
Presentation: Automating supplier document, risk, and compliance management
There is an increasing trend in competition on the global market and this has compelled many manufacturing and service companies to revise their understanding of quality. Customers today make informed choices and patronize products and services based on their quality. There are also regulations which are established by government agencies to ensure that products and services are of expected quality that satisfies the needs of the customer. This demand from customers has triggered a need for manufacturing companies to always provide quality products to stay in competition. Provision of quality products has a cost element attached to it. The study was a case study and focused on the assessment of cost of quality and its effect on manufacturing performance. There have been several researches that have shown the relevance of cost of quality assessment in a manufacturing firm. This research looks at cost of quality with specific emphasis on the classical P-A-F (Prevention-Appraisal-Failure) cost model and tries to ascertain its effects on manufacturing performance. The study focused on Special Ice Company Limited as a case study. The study employed three categories namely, cost of prevention, cost of appraisal and cost of failure as a proxy for cost of quality on the manufacturing performance. A sample of 80 participants was randomly selected for this study. Primary data was collected and analyzed. The findings show that the cost of quality element like cost of external failure and cost of appraisal had a statistically significant impact on the manufacturing performance of the company. A semi-structured interview was also conducted with the Manager Director to further understand the posturing of the top management with regards to the study. The study recommended that the organization make a conscious effort to sensitize employees to understand the cost of quality and its implications on the manufacturing performance of the company and also appraise their production processes at all times and ensure their entire staff adhere to accepted procedures. Again, the study also recommended that top management get actively involved and make a conscious effort to incorporate the cost of quality in their decision-making process and get all staff to align and adhere to it and also pay close attention to customer complaints act on it to improve on the products.
Benchmarking internal supply chain performance development of a frame workIAEME Publication
This document presents a framework for benchmarking internal supply chain performance using publicly available financial data. The framework calculates three metrics: total length of supply chain, efficiency of supply chain management, and supply chain working capital productivity. It applies the framework to analyze three fast moving consumer goods companies over four years. The analysis finds that Company C consistently had the best performance on the metrics, with shorter supply chain length, higher efficiency, and higher productivity. The framework provides a way for companies to evaluate their internal supply chain performance and identify areas for improvement by comparing metrics over time and to other companies.
Supplire Partnership Coca Cola Multan TQMgmsmalik1
The document provides information about Coca-Cola's supplier partnership in Multan, Pakistan. It discusses Coca-Cola's history in Pakistan and introduction in Multan in 1964. It also explains key aspects of supplier partnership including sourcing, supplier selection, relationship development, and Coca-Cola Multan's production process. The production process involves purchasing bottles, collecting bottles, washing bottles, inspection, and filling bottles with concentrate and carbonated water.
Total Quality Management involves supplier certification, rating, and performance measurement strategies. [1] Supplier certification requires suppliers to meet certain quality standards over a period of time before being certified. [2] Customer rating of suppliers helps evaluate supplier performance in quality, delivery, and other areas to improve relationships and communication. [3] Performance measurement uses metrics in various areas like human resources, customers, production, and marketing to establish trends, identify improvement needs, and make informed decisions.
operations management(vendor selection and rating)POOJA UDAYAN
The document discusses vendor selection and rating. Vendors are companies that sell goods or services and are part of the supply chain. Vendor selection is an important purchasing decision made based on factors like price, quality, delivery, production facilities, financial position, and performance history. Vendor rating evaluates and approves potential vendors through a quantitative assessment of their performance in areas such as delivery, quality, and price. There are three main methods for vendor rating: the categorical method which uses subjective evaluations, the weighted point method which allocates points based on factors, and the cost ratio method which calculates ratios based on procurement costs.
This document discusses supplier partnerships and performance measurement in total quality management. It emphasizes that strong supplier partnerships built on principles like shared responsibility, communication, and long-term commitment can improve customer satisfaction and organizational performance. Effective partnership processes involve quality management system audits and action plans. Performance should be regularly measured against objectives in both financial and non-financial terms across key areas like quality, cost, customers, and human resources to evaluate whether strategic goals are being met.
1. The document summarizes elements to consider in conducting a companywide quality assessment, including cost of poor quality, quality culture, and operation of the quality system.
2. It provides examples of categorizing quality costs such as internal/external failure costs, appraisal costs, and prevention costs. The largest opportunity for cost reduction is often products that generate internal scrap and rework as well as external problems.
3. Assessing quality costs as a percentage of sales, profits, costs of goods sold, or manufacturing assets can help relate the impact of quality costs to upper management. Understanding quality culture and systematically evaluating current quality activities and systems are also important parts of the assessment.
The document discusses supplier evaluation and selection. It provides an overview of the supplier evaluation and selection process, key criteria for evaluating suppliers, and developing surveys to aid in selection. Critical issues in supplier selection are also addressed. The presentation covers developing a multi-step process for evaluating suppliers on criteria like quality, cost, management capabilities, financial stability, and long-term relationship potential to select suppliers that minimize risk and maximize value.
A STUDY ON THE RELATIONSHIP AMONG SUPPLY CHAIN MANAGEMENT COMPONENTS, SUPPLY ...Dr.Ganeshkumar C
This document outlines a study on the relationship between supply chain management components, supply chain performance, and organizational performance of manufacturing industries in Puducherry, India. The study aims to understand the impact of important supply chain management components on supply chain performance and organizational performance. It reviews literature on related topics and identifies variables and constructs such as supply chain concerns, competence, practices, and performance. The methodology section outlines how data will be collected and analyzed through statistical tools to test hypotheses and relationships between variables. The findings will provide insights on how supply chain management can impact performance.
Supply Chains around the world are witnessing rapid transformation due to many factors including digitization and cybersecurity. Procurement Professionals as a whole seem to be behind the curve with these trends.
You will learn how the following with impact the Procurement Function:
1. Social Responsibility
2. Digitization
3. Supplier Relationship Management
4. Supply Risk Management
Success in supply begins with the right choice of suppliers and in the long run is directly related to how suppliers are managed, because suppliers have a significant impact on the success or failure of a company. Multi-criteria decisions are approaches that deal with ranking and selecting one or more suppliers from a set of suppliers. Multi-criteria decisions provide an effective framework for comparing suppliers based on the evaluation of different criteria. The present research is applied based on the purpose and descriptive-survey based on the nature and method of the research. In the present study, two library and field methods have been used to collect information. According to the objectives of this study, suppliers will be evaluated using two methods of fuzzy hierarchical analysis with D-numbers. In order to better understand these two methods, a case study is presented in which suppliers are ranked using two methods and then the results are compared with each other. For manufacturing companies, 4 categories of parts were considered and based on the classification, the suppliers of the manufacturing company were evaluated and analyzed. In the results of suppliers of type A and B components in hierarchical analysis, D and fuzzy methods have many differences in the evaluation and ranking of suppliers, and this shows the lack of expectations of experts in D and fuzzy analysis. On the other hand, in type C and D components, the classification and ranking of suppliers have been matched in two ways and shows that the opinions in the evaluation of these suppliers are the same.
Determinants of Supply Chain Performance of Indian Manufacturing OrganizationsWaqas Tariq
This paper aims at proposing various determinants of supply chain performance of Indian manufacturing organizations. The determinants are summarized based on extensive literature review of empirical research articles on supply chain management (SCM) and performance measurement approaches. This study is a part of a larger research project exploring SC related practices. A critical analysis is carried out so as to identify research gaps in context of performance measurement of supply chains, as well as to propose directions for future research. A conceptual model is also proposed. Critical investigation of selected articles led to an idea that there can be significant effect of selected variables on SC Performance. It is to be seen that how various parameters, taken from the literature review, affect SC performance and ultimately contributing to its competitiveness. The various parameters like supplier-buyer relations, external supply chain, environmental factors, human metrics, information sharing and performance measurement approaches are taken in a single study in the context of Indian manufacturing organizations. Based on a pilot study with sample size of 100, empirical tests resulted in reduction of items. Based on the obtained results, the organizations can enhance the SCM performance by improving the current practices/strategies through focusing on the determinants that significantly influence SCM performance. Further research can be carried out by using data of various supply chains of other sectors and industries of India to generalize the research.
The webinar covered procurement strategy development. It discussed NLPA's 10 phase approach to world class sourcing, leveraging customer requirements in procurement strategy and customer experience. Attendees learned how to understand the 10 phase approach, leverage customer and supplier matrices, and prioritize future learning. Polling questions gauged experience levels and interests in different procurement strategy topics.
The document discusses vendor rating, which is a formal system used by firms to evaluate the performance of vendors who provide contingent labor or supplies. It describes several factors considered in vendor ratings like pricing, quality, delivery, and various techniques used to rate vendors. These include categorical plans, weighted point methods, cost ratio methods, and checklists. The benefits of vendor rating include providing feedback, facilitating communication, controlling vendors, and building partnerships. Value analysis is also discussed as a method to identify unnecessary costs and achieve functional objectives like durability most economically. It aims to save money while maintaining quality.
The degree to which banks are committed to applying the dimensions of total q...Alexander Decker
This document summarizes a study on the degree to which banks are committed to applying total quality management principles regarding customer service. It introduces total quality management and its importance. It then states the study's main question as examining how banks' commitment to total quality management principles affects customer service levels. It lists several sub-questions and outlines the study's hypotheses. Finally, it provides background information on total quality management philosophies and definitions.
The document discusses supplier performance evaluation methods for SMEs in Macedonia. It covers several key areas:
1. Supplier evaluation methods including categorical, weighted-point, and cost-ratio models. The weighted-point model is most commonly used.
2. Key performance indicators from literature including Dickson and Weber's criteria which focus on quality, delivery, price and other factors.
3. Approaches to evaluate suppliers such as linear weighting, total cost of ownership, and statistical models. Linear weighting is most popular.
4. The study's methodology used grounded theory and questionnaires. Findings showed manufacturing is the largest industry, evaluation processes are common, and key criteria include price, quality and delivery
Benchmarking is an ongoing process involving industries from all walks of life and all categories of production
The principle is that no company is 100% perfect, and if you continuously search for better solutions, you will improve your efficiency and become an exceptional company, which can later form a benchmark for similar companies.
Benchmarking is a legal activity. Because benchmarking has been applied in a formal fashion (following strict rules) to all manner of technical and administrative procedures. There is legal authorities on information exchanges ( major area of antitrust concern applicable to benchmarking )
Relationships among Supplier Selection Criteria using Interpretive Structural...inventionjournals
International Journal of Engineering and Science Invention (IJESI) is an international journal intended for professionals and researchers in all fields of computer science and electronics. IJESI publishes research articles and reviews within the whole field Engineering Science and Technology, new teaching methods, assessment, validation and the impact of new technologies and it will continue to provide information on the latest trends and developments in this ever-expanding subject. The publications of papers are selected through double peer reviewed to ensure originality, relevance, and readability. The articles published in our journal can be accessed online.
A MULTI-CRITERIA DECISION FRAMEWORK FOR INVENTORY MANAGEMENTIAEME Publication
The document presents a multi-criteria decision framework for inventory management. It begins with an introduction on the importance of inventory management and classification. It then details the two-stage framework development process of literature review and industry feedback. Five categories of criteria are identified: revenue, customer service, profitability, growth, and risk. Twenty-one metrics are proposed to evaluate inventory across these categories. Formulas for calculating each metric and criteria for ranking items A, B, C or D are also provided. The framework aims to provide a standardized, quantitative, and comprehensive approach to inventory management.
Designing a Computational tool for Supplier Selection using Analytical Hierar...Dr. Soumendra Kumar Patra
This document discusses the development of a computational tool using analytical hierarchy process (AHP) for supplier selection. It presents a literature review on supplier selection criteria and models. The study aims to identify factors that influence supplier selection for manufacturing industries in Bhubaneswar, India. A questionnaire was used to collect data on important selection criteria from purchasing managers. An AHP model was developed to evaluate and prioritize suppliers based on criteria such as reputation, efficiency, flexibility, growth rate, strength, and responsiveness.
Building a Proposed Model for Suppliers' Selection using Multi-Criteria ApproachIRJET Journal
This document presents a proposed model for supplier selection using the multi-criteria decision making approach of analytic hierarchy process (AHP). The study aims to evaluate the relative importance of supplier selection criteria (quality, cost, delivery, flexibility) from the perspective of construction company managers. A survey was conducted of 50 managers who provided pairwise comparisons of criteria. The AHP approach structures the problem, identifies selection criteria and supplier alternatives, and determines the relative weights of criteria. Preliminary results found that cost has the highest importance as a supplier selection criterion, followed by delivery and flexibility based on manager responses. The proposed model could provide an objective, systematic approach to supplier selection compared to current subjective practices.
Achieving Supply Chain Excellence Through Supplier Management A Case Study O...Wendy Hager
This document summarizes a case study on achieving supply chain excellence through supplier management in a fast moving consumer goods company in Thailand. The study found that implementing a supplier selection and management program improved supplier quality and delivery performance. A key part of the program was measuring supplier performance objectively on quality and delivery metrics before and after the program. Developing clear metrics for evaluating suppliers and sharing those metrics with suppliers is important for continuous improvement. The case study provides an example for practitioners of how strategic supplier management can enhance organizational competitiveness.
This document presents a case study of a supplier performance management framework implemented by the pressure vessel division of an air compressor manufacturer in India. The division purchases over 294 items from 47 suppliers and lacked a structured way to evaluate supplier performance.
The proposed solution categorized suppliers into three areas - customer service, financial, and growth. Within each area, suppliers were ranked on key metrics like on-time delivery, order completeness, spending levels, and number of orders. Weights were assigned to the metrics and rankings to calculate overall scores in each area.
The framework provided a standardized way to assess suppliers based on available data. It allowed the manufacturer to identify top performing suppliers and areas for improvement with other suppliers. Implementing structured supplier evaluations helped
This document summarizes a research paper that developed a new model for supplier selection using structural equation modeling (SEM) and analytic hierarchy process (AHP). The paper aims to select suppliers for a public sector company in India based on important supplier selection criteria. It reviewed previous supplier selection models and developed a generic theoretical model considering criteria like quality, cost, delivery, etc. An empirical study was conducted surveying 151 respondents to evaluate suppliers. The new composite SEM-AHP model was used to calculate supplier selection scores and identify strengths and weaknesses to help suppliers improve.
The document discusses key aspects of developing successful supplier relationships and performance management. It identifies building trust, shared vision, communication, commitment, and metrics as important ingredients. It provides examples of supplier performance metrics in areas like cost, quality, delivery, responsiveness, environment, and business. The document also discusses supplier evaluation, certification, and development to improve performance over time through setting criteria and targets.
One of the most important issues concerning the designing a supply chain is selecting the supplier. Selecting proper suppliers is one of the most crucial activities of an organization towards the gradual improvement and a promotion in performance. This intricacy is because suppliers fulfil a part of customer’s expectancy and selecting among them is multi-criteria decision, which needs a systematic and organized approach without which this decision may lead to failure. The purpose of this research is proposing a new method for assessment and rating the suppliers. We have identified several evaluation criteria and attributes; the selection among them was by the Simple Multi-Attribute Rating Technique (SMART) method, then we have specified the connection and the influence of the criteria on each other by DEMATEL method. After that, suppliers were graded by using the Fuzzy Analytical Network Process (FANP) approach and the most efficient one was selected. The innovation of this research is combining the SMART method, DEMATEL method, and Analytical Network Process in Fuzzy state which lead to more exact and efficient results which is proposed for the first time by the researchers of this study.
IRJET- Total Quality Management and Organizational PerformanceIRJET Journal
This document discusses the relationship between Total Quality Management (TQM) practices and organizational performance. It first defines TQM as a continuous process of improving quality, reducing defects, and satisfying customer demands. It then outlines key elements of TQM like focusing on customers, employee involvement, and using a strategic, systematic approach. The document also discusses how organizational performance encompasses actual outputs compared to intended goals. Finally, it concludes that implementing TQM initiatives like quality processes can enhance customer satisfaction and product/service quality, thereby improving organizational performance.
Benchmarking internal supply chain performance development of a frame workIAEME Publication
In this paper, a frame work is developed for benchmarking internal supply chain performance using financial data as an alternative to traditional approach of use of different models of supply chain performance evaluation. This frame work is demonstrated by using the publicly disclosed financial data compiled and distributed in the PROWESS databases maintained by the Center for Monitoring Indian Economy (CMIE).
Benchmarking : An essential Quality toolShubham Singh
The document describes a case study on benchmarking the manufacturing processes of garment manufacturing companies in Sri Lanka. Key steps included identifying relevant key performance indicators (KPIs) through industry visits, collecting data via questionnaires from 27 factories, developing conceptual performance measurement models, and calculating performance rankings across factories using multi-criteria decision making techniques like TOPSIS and AHP. The final performance rankings identified gaps and weakest areas to target for improvement through action plans. Benchmarking is presented as an essential quality tool for companies to assess performance against competitors and drive continuous improvement.
The document discusses key concepts in performance measurement and strategic information management. It emphasizes that consistent, accurate data across business areas provides real-time information to evaluate processes, products and services to meet objectives and customer needs. It also discusses leading practices like developing performance indicators reflecting customer needs, using comparative data to improve, and involving all employees in measurement activities.
IRJET- The Systematic Procedure to Sort Out Contractor in Construction FieldIRJET Journal
This document describes a study that uses the analytical hierarchy process (AHP) to evaluate criteria for selecting contractors in the construction industry. It outlines the AHP methodology, which involves structuring decision problems into a hierarchy, establishing priorities among decision criteria through pairwise comparisons, and synthesizing priorities to determine overall priority rankings of alternatives. The study applies the AHP to evaluate four contractors based on product features, supplier characteristics, and delivery conditions. It finds that Contractor A has the highest overall score based on relatively better product features and supplier characteristics. The AHP provides a systematic, quantitative approach for evaluating multiple decision criteria in contractor selection.
International Journal of Engineering Research and Development (IJERD)IJERD Editor
This document describes research conducted to develop and validate a tool to measure total quality management (TQM) practices in organizations. Through a literature review, 13 critical factors of TQM were identified. A questionnaire with 85 items measuring these factors was developed and tested on 20 organizations to evaluate reliability and validity. Reliability was high based on Cronbach's alpha scores. Validity was confirmed through factor analysis and a multitrait-multimethod matrix. The validated tool was used to survey 104 manufacturing and service organizations in India and compare their TQM practices using the Mann-Whitney U non-parametric test. Significant differences were found between the sectors.
Metrics can help improve quality, performance, and success when effectively implemented. The document discusses roles and responsibilities of pharmaceutical companies and contract manufacturing organizations in utilizing metrics. It provides examples of common industry metrics and recommends focusing on a few leading metrics to drive continuous improvement, regularly assessing data and taking corrective actions. Effective communication of metrics between sponsors and partners is key to obtaining benefits.
For suppliers that consistently perform to set expectations, you need to put strategies in place to maintain their continued involvement with the organization; most often requiring one-on-one meetings with management personnel from both parties involved.
Submission Deadline: 30th September 2022
Acceptance Notification: Within Three Days’ time period
Online Publication: Within 24 Hrs. time Period
Expected Date of Dispatch of Printed Journal: 5th October 2022
MODELING AND ANALYSIS OF SURFACE ROUGHNESS AND WHITE LATER THICKNESS IN WIRE-...IAEME Publication
White layer thickness (WLT) formed and surface roughness in wire electric discharge turning (WEDT) of tungsten carbide composite has been made to model through response surface methodology (RSM). A Taguchi’s standard Design of experiments involving five input variables with three levels has been employed to establish a mathematical model between input parameters and responses. Percentage of cobalt content, spindle speed, Pulse on-time, wire feed and pulse off-time were changed during the experimental tests based on the Taguchi’s orthogonal array L27 (3^13). Analysis of variance (ANOVA) revealed that the mathematical models obtained can adequately describe performance within the parameters of the factors considered. There was a good agreement between the experimental and predicted values in this study.
A STUDY ON THE REASONS FOR TRANSGENDER TO BECOME ENTREPRENEURSIAEME Publication
The study explores the reasons for a transgender to become entrepreneurs. In this study transgender entrepreneur was taken as independent variable and reasons to become as dependent variable. Data were collected through a structured questionnaire containing a five point Likert Scale. The study examined the data of 30 transgender entrepreneurs in Salem Municipal Corporation of Tamil Nadu State, India. Simple Random sampling technique was used. Garrett Ranking Technique (Percentile Position, Mean Scores) was used as the analysis for the present study to identify the top 13 stimulus factors for establishment of trans entrepreneurial venture. Economic advancement of a nation is governed upon the upshot of a resolute entrepreneurial doings. The conception of entrepreneurship has stretched and materialized to the socially deflated uncharted sections of transgender community. Presently transgenders have smashed their stereotypes and are making recent headlines of achievements in various fields of our Indian society. The trans-community is gradually being observed in a new light and has been trying to achieve prospective growth in entrepreneurship. The findings of the research revealed that the optimistic changes are taking place to change affirmative societal outlook of the transgender for entrepreneurial ventureship. It also laid emphasis on other transgenders to renovate their traditional living. The paper also highlights that legislators, supervisory body should endorse an impartial canons and reforms in Tamil Nadu Transgender Welfare Board Association.
BROAD UNEXPOSED SKILLS OF TRANSGENDER ENTREPRENEURSIAEME Publication
Since ages gender difference is always a debatable theme whether caused by nature, evolution or environment. The birth of a transgender is dreadful not only for the child but also for their parents. The pain of living in the wrong physique and treated as second class victimized citizen is outrageous and fully harboured with vicious baseless negative scruples. For so long, social exclusion had perpetuated inequality and deprivation experiencing ingrained malign stigma and besieged victims of crime or violence across their life spans. They are pushed into the murky way of life with a source of eternal disgust, bereft sexual potency and perennial fear. Although they are highly visible but very little is known about them. The common public needs to comprehend the ravaged arrogance on these insensitive souls and assist in integrating them into the mainstream by offering equal opportunity, treat with humanity and respect their dignity. Entrepreneurship in the current age is endorsing the gender fairness movement. Unstable careers and economic inadequacy had inclined one of the gender variant people called Transgender to become entrepreneurs. These tiny budding entrepreneurs resulted in economic transition by means of employment, free from the clutches of stereotype jobs, raised standard of living and handful of financial empowerment. Besides all these inhibitions, they were able to witness a platform for skill set development that ignited them to enter into entrepreneurial domain. This paper epitomizes skill sets involved in trans-entrepreneurs of Thoothukudi Municipal Corporation of Tamil Nadu State and is a groundbreaking determination to sightsee various skills incorporated and the impact on entrepreneurship.
DETERMINANTS AFFECTING THE USER'S INTENTION TO USE MOBILE BANKING APPLICATIONSIAEME Publication
The banking and financial services industries are experiencing increased technology penetration. Among them, the banking industry has made technological advancements to better serve the general populace. The economy focused on transforming the banking sector's system into a cashless, paperless, and faceless one. The researcher wants to evaluate the user's intention for utilising a mobile banking application. The study also examines the variables affecting the user's behaviour intention when selecting specific applications for financial transactions. The researcher employed a well-structured questionnaire and a descriptive study methodology to gather the respondents' primary data utilising the snowball sampling technique. The study includes variables like performance expectations, effort expectations, social impact, enabling circumstances, and perceived risk. Each of the aforementioned variables has a major impact on how users utilise mobile banking applications. The outcome will assist the service provider in comprehending the user's history with mobile banking applications.
ANALYSE THE USER PREDILECTION ON GPAY AND PHONEPE FOR DIGITAL TRANSACTIONSIAEME Publication
Technology upgradation in banking sector took the economy to view that payment mode towards online transactions using mobile applications. This system enabled connectivity between banks, Merchant and user in a convenient mode. there are various applications used for online transactions such as Google pay, Paytm, freecharge, mobikiwi, oxygen, phonepe and so on and it also includes mobile banking applications. The study aimed at evaluating the predilection of the user in adopting digital transaction. The study is descriptive in nature. The researcher used random sample techniques to collect the data. The findings reveal that mobile applications differ with the quality of service rendered by Gpay and Phonepe. The researcher suggest the Phonepe application should focus on implementing the application should be user friendly interface and Gpay on motivating the users to feel the importance of request for money and modes of payments in the application.
VOICE BASED ATM FOR VISUALLY IMPAIRED USING ARDUINOIAEME Publication
The prototype of a voice-based ATM for visually impaired using Arduino is to help people who are blind. This uses RFID cards which contain users fingerprint encrypted on it and interacts with the users through voice commands. ATM operates when sensor detects the presence of one person in the cabin. After scanning the RFID card, it will ask to select the mode like –normal or blind. User can select the respective mode through voice input, if blind mode is selected the balance check or cash withdraw can be done through voice input. Normal mode procedure is same as the existing ATM.
IMPACT OF EMOTIONAL INTELLIGENCE ON HUMAN RESOURCE MANAGEMENT PRACTICES AMONG...IAEME Publication
There is increasing acceptability of emotional intelligence as a major factor in personality assessment and effective human resource management. Emotional intelligence as the ability to build capacity, empathize, co-operate, motivate and develop others cannot be divorced from both effective performance and human resource management systems. The human person is crucial in defining organizational leadership and fortunes in terms of challenges and opportunities and walking across both multinational and bilateral relationships. The growing complexity of the business world requires a great deal of self-confidence, integrity, communication, conflict and diversity management to keep the global enterprise within the paths of productivity and sustainability. Using the exploratory research design and 255 participants the result of this original study indicates strong positive correlation between emotional intelligence and effective human resource management. The paper offers suggestions on further studies between emotional intelligence and human capital development and recommends for conflict management as an integral part of effective human resource management.
VISUALISING AGING PARENTS & THEIR CLOSE CARERS LIFE JOURNEY IN AGING ECONOMYIAEME Publication
Our life journey, in general, is closely defined by the way we understand the meaning of why we coexist and deal with its challenges. As we develop the "inspiration economy", we could say that nearly all of the challenges we have faced are opportunities that help us to discover the rest of our journey. In this note paper, we explore how being faced with the opportunity of being a close carer for an aging parent with dementia brought intangible discoveries that changed our insight of the meaning of the rest of our life journey.
A STUDY ON THE IMPACT OF ORGANIZATIONAL CULTURE ON THE EFFECTIVENESS OF PERFO...IAEME Publication
The main objective of this study is to analyze the impact of aspects of Organizational Culture on the Effectiveness of the Performance Management System (PMS) in the Health Care Organization at Thanjavur. Organizational Culture and PMS play a crucial role in present-day organizations in achieving their objectives. PMS needs employees’ cooperation to achieve its intended objectives. Employees' cooperation depends upon the organization’s culture. The present study uses exploratory research to examine the relationship between the Organization's culture and the Effectiveness of the Performance Management System. The study uses a Structured Questionnaire to collect the primary data. For this study, Thirty-six non-clinical employees were selected from twelve randomly selected Health Care organizations at Thanjavur. Thirty-two fully completed questionnaires were received.
Living in 21st century in itself reminds all of us the necessity of police and its administration. As more and more we are entering into the modern society and culture, the more we require the services of the so called ‘Khaki Worthy’ men i.e., the police personnel. Whether we talk of Indian police or the other nation’s police, they all have the same recognition as they have in India. But as already mentioned, their services and requirements are different after the like 26th November, 2008 incidents, where they without saving their own lives has sacrificed themselves without any hitch and without caring about their respective family members and wards. In other words, they are like our heroes and mentors who can guide us from the darkness of fear, militancy, corruption and other dark sides of life and so on. Now the question arises, if Gandhi would have been alive today, what would have been his reaction/opinion to the police and its functioning? Would he have some thing different in his mind now what he had been in his mind before the partition or would he be going to start some Satyagraha in the form of some improvement in the functioning of the police administration? Really these questions or rather night mares can come to any one’s mind, when there is too much confusion is prevailing in our minds, when there is too much corruption in the society and when the polices working is also in the questioning because of one or the other case throughout the India. It is matter of great concern that we have to thing over our administration and our practical approach because the police personals are also like us, they are part and parcel of our society and among one of us, so why we all are pin pointing towards them.
A STUDY ON TALENT MANAGEMENT AND ITS IMPACT ON EMPLOYEE RETENTION IN SELECTED...IAEME Publication
The goal of this study was to see how talent management affected employee retention in the selected IT organizations in Chennai. The fundamental issue was the difficulty to attract, hire, and retain talented personnel who perform well and the gap between supply and demand of talent acquisition and retaining them within the firms. The study's main goals were to determine the impact of talent management on employee retention in IT companies in Chennai, investigate talent management strategies that IT companies could use to improve talent acquisition, performance management, career planning and formulate retention strategies that the IT firms could use. The respondents were given a structured close-ended questionnaire with the 5 Point Likert Scale as part of the study's quantitative research design. The target population consisted of 289 IT professionals. The questionnaires were distributed and collected by the researcher directly. The Statistical Package for Social Sciences (SPSS) was used to collect and analyse the questionnaire responses. Hypotheses that were formulated for the various areas of the study were tested using a variety of statistical tests. The key findings of the study suggested that talent management had an impact on employee retention. The studies also found that there is a clear link between the implementation of talent management and retention measures. Management should provide enough training and development for employees, clarify job responsibilities, provide adequate remuneration packages, and recognise employees for exceptional performance.
ATTRITION IN THE IT INDUSTRY DURING COVID-19 PANDEMIC: LINKING EMOTIONAL INTE...IAEME Publication
Globally, Millions of dollars were spent by the organizations for employing skilled Information Technology (IT) professionals. It is costly to replace unskilled employees with IT professionals possessing technical skills and competencies that aid in interconnecting the business processes. The organization’s employment tactics were forced to alter by globalization along with technological innovations as they consistently diminish to remain lean, outsource to concentrate on core competencies along with restructuring/reallocate personnel to gather efficiency. As other jobs, organizations or professions have become reasonably more appropriate in a shifting employment landscape, the above alterations trigger both involuntary as well as voluntary turnover. The employee view on jobs is also afflicted by the COVID-19 pandemic along with the employee-driven labour market. So, having effective strategies is necessary to tackle the withdrawal rate of employees. By associating Emotional Intelligence (EI) along with Talent Management (TM) in the IT industry, the rise in attrition rate was analyzed in this study. Only 303 respondents were collected out of 350 participants to whom questionnaires were distributed. From the employees of IT organizations located in Bangalore (India), the data were congregated. A simple random sampling methodology was employed to congregate data as of the respondents. Generating the hypothesis along with testing is eventuated. The effect of EI and TM along with regression analysis between TM and EI was analyzed. The outcomes indicated that employee and Organizational Performance (OP) were elevated by effective EI along with TM.
INFLUENCE OF TALENT MANAGEMENT PRACTICES ON ORGANIZATIONAL PERFORMANCE A STUD...IAEME Publication
By implementing talent management strategy, organizations would have the option to retain their skilled professionals while additionally working on their overall performance. It is the course of appropriately utilizing the ideal individuals, setting them up for future top positions, exploring and dealing with their performance, and holding them back from leaving the organization. It is employee performance that determines the success of every organization. The firm quickly obtains an upper hand over its rivals in the event that its employees having particular skills that cannot be duplicated by the competitors. Thus, firms are centred on creating successful talent management practices and processes to deal with the unique human resources. Firms are additionally endeavouring to keep their top/key staff since on the off chance that they leave; the whole store of information leaves the firm's hands. The study's objective was to determine the impact of talent management on organizational performance among the selected IT organizations in Chennai. The study recommends that talent management limitedly affects performance. On the off chance that this talent is appropriately management and implemented properly, organizations might benefit as much as possible from their maintained assets to support development and productivity, both monetarily and non-monetarily.
A STUDY OF VARIOUS TYPES OF LOANS OF SELECTED PUBLIC AND PRIVATE SECTOR BANKS...IAEME Publication
Banking regulations act of India, 1949 defines banking as “acceptance of deposits for the purpose of lending or investment from the public, repayment on demand or otherwise and withdrawable through cheques, drafts order or otherwise”, the major participants of the Indian financial system are commercial banks, the financial institution encompassing term lending institutions. Investments institutions, specialized financial institution and the state level development banks, non banking financial companies (NBFC) and other market intermediaries such has the stock brokers and money lenders are among the oldest of the certain variants of NBFC and the oldest market participants. The asset quality of banks is one of the most important indicators of their financial health. The Indian banking sector has been facing severe problems of increasing Non- Performing Assets (NPAs). The NPAs growth directly and indirectly affects the quality of assets and profitability of banks. It also shows the efficiency of banks credit risk management and the recovery effectiveness. NPA do not generate any income, whereas, the bank is required to make provisions for such as assets that why is a double edge weapon. This paper outlines the concept of quality of bank loans of different types like Housing, Agriculture and MSME loans in state Haryana of selected public and private sector banks. This study is highlighting problems associated with the role of commercial bank in financing Small and Medium Scale Enterprises (SME). The overall objective of the research was to assess the effect of the financing provisions existing for the setting up and operations of MSMEs in the country and to generate recommendations for more robust financing mechanisms for successful operation of the MSMEs, in turn understanding the impact of MSME loans on financial institutions due to NPA. There are many research conducted on the topic of Non- Performing Assets (NPA) Management, concerning particular bank, comparative study of public and private banks etc. In this paper the researcher is considering the aggregate data of selected public sector and private sector banks and attempts to compare the NPA of Housing, Agriculture and MSME loans in state Haryana of public and private sector banks. The tools used in the study are average and Anova test and variance. The findings reveal that NPA is common problem for both public and private sector banks and is associated with all types of loans either that is housing loans, agriculture loans and loans to SMES. NPAs of both public and private sector banks show the increasing trend. In 2010-11 GNPA of public and private sector were at same level it was 2% but after 2010-11 it increased in many fold and at present there is GNPA in some more than 15%. It shows the dark area of Indian banking sector.
EXPERIMENTAL STUDY OF MECHANICAL AND TRIBOLOGICAL RELATION OF NYLON/BaSO4 POL...IAEME Publication
An experiment conducted in this study found that BaSO4 changed Nylon 6's mechanical properties. By changing the weight ratios, BaSO4 was used to make Nylon 6. This Researcher looked into how hard Nylon-6/BaSO4 composites are and how well they wear. Experiments were done based on Taguchi design L9. Nylon-6/BaSO4 composites can be tested for their hardness number using a Rockwell hardness testing apparatus. On Nylon/BaSO4, the wear behavior was measured by a wear monitor, pinon-disc friction by varying reinforcement, sliding speed, and sliding distance, and the microstructure of the crack surfaces was observed by SEM. This study provides significant contributions to ultimate strength by increasing BaSO4 content up to 16% in the composites, and sliding speed contributes 72.45% to the wear rate
ROLE OF SOCIAL ENTREPRENEURSHIP IN RURAL DEVELOPMENT OF INDIA - PROBLEMS AND ...IAEME Publication
The majority of the population in India lives in villages. The village is the back bone of the country. Village or rural industries play an important role in the national economy, particularly in the rural development. Developing the rural economy is one of the key indicators towards a country’s success. Whether it be the need to look after the welfare of the farmers or invest in rural infrastructure, Governments have to ensure that rural development isn’t compromised. The economic development of our country largely depends on the progress of rural areas and the standard of living of rural masses. Village or rural industries play an important role in the national economy, particularly in the rural development. Rural entrepreneurship is based on stimulating local entrepreneurial talent and the subsequent growth of indigenous enterprises. It recognizes opportunity in the rural areas and accelerates a unique blend of resources either inside or outside of agriculture. Rural entrepreneurship brings an economic value to the rural sector by creating new methods of production, new markets, new products and generate employment opportunities thereby ensuring continuous rural development. Social Entrepreneurship has the direct and primary objective of serving the society along with the earning profits. So, social entrepreneurship is different from the economic entrepreneurship as its basic objective is not to earn profits but for providing innovative solutions to meet the society needs which are not taken care by majority of the entrepreneurs as they are in the business for profit making as a sole objective. So, the Social Entrepreneurs have the huge growth potential particularly in the developing countries like India where we have huge societal disparities in terms of the financial positions of the population. Still 22 percent of the Indian population is below the poverty line and also there is disparity among the rural & urban population in terms of families living under BPL. 25.7 percent of the rural population & 13.7 percent of the urban population is under BPL which clearly shows the disparity of the poor people in the rural and urban areas. The need to develop social entrepreneurship in agriculture is dictated by a large number of social problems. Such problems include low living standards, unemployment, and social tension. The reasons that led to the emergence of the practice of social entrepreneurship are the above factors. The research problem lays upon disclosing the importance of role of social entrepreneurship in rural development of India. The paper the tendencies of social entrepreneurship in India, to present successful examples of such business for providing recommendations how to improve situation in rural areas in terms of social entrepreneurship development. Indian government has made some steps towards development of social enterprises, social entrepreneurship, and social in- novation, but a lot remains to be improved.
OPTIMAL RECONFIGURATION OF POWER DISTRIBUTION RADIAL NETWORK USING HYBRID MET...IAEME Publication
Distribution system is a critical link between the electric power distributor and the consumers. Most of the distribution networks commonly used by the electric utility is the radial distribution network. However in this type of network, it has technical issues such as enormous power losses which affect the quality of the supply. Nowadays, the introduction of Distributed Generation (DG) units in the system help improve and support the voltage profile of the network as well as the performance of the system components through power loss mitigation. In this study network reconfiguration was done using two meta-heuristic algorithms Particle Swarm Optimization and Gravitational Search Algorithm (PSO-GSA) to enhance power quality and voltage profile in the system when simultaneously applied with the DG units. Backward/Forward Sweep Method was used in the load flow analysis and simulated using the MATLAB program. Five cases were considered in the Reconfiguration based on the contribution of DG units. The proposed method was tested using IEEE 33 bus system. Based on the results, there was a voltage profile improvement in the system from 0.9038 p.u. to 0.9594 p.u.. The integration of DG in the network also reduced power losses from 210.98 kW to 69.3963 kW. Simulated results are drawn to show the performance of each case.
APPLICATION OF FRUGAL APPROACH FOR PRODUCTIVITY IMPROVEMENT - A CASE STUDY OF...IAEME Publication
Manufacturing industries have witnessed an outburst in productivity. For productivity improvement manufacturing industries are taking various initiatives by using lean tools and techniques. However, in different manufacturing industries, frugal approach is applied in product design and services as a tool for improvement. Frugal approach contributed to prove less is more and seems indirectly contributing to improve productivity. Hence, there is need to understand status of frugal approach application in manufacturing industries. All manufacturing industries are trying hard and putting continuous efforts for competitive existence. For productivity improvements, manufacturing industries are coming up with different effective and efficient solutions in manufacturing processes and operations. To overcome current challenges, manufacturing industries have started using frugal approach in product design and services. For this study, methodology adopted with both primary and secondary sources of data. For primary source interview and observation technique is used and for secondary source review has done based on available literatures in website, printed magazines, manual etc. An attempt has made for understanding application of frugal approach with the study of manufacturing industry project. Manufacturing industry selected for this project study is Mahindra and Mahindra Ltd. This paper will help researcher to find the connections between the two concepts productivity improvement and frugal approach. This paper will help to understand significance of frugal approach for productivity improvement in manufacturing industry. This will also help to understand current scenario of frugal approach in manufacturing industry. In manufacturing industries various process are involved to deliver the final product. In the process of converting input in to output through manufacturing process productivity plays very critical role. Hence this study will help to evolve status of frugal approach in productivity improvement programme. The notion of frugal can be viewed as an approach towards productivity improvement in manufacturing industries.
A MULTIPLE – CHANNEL QUEUING MODELS ON FUZZY ENVIRONMENTIAEME Publication
In this paper, we investigated a queuing model of fuzzy environment-based a multiple channel queuing model (M/M/C) ( /FCFS) and study its performance under realistic conditions. It applies a nonagonal fuzzy number to analyse the relevant performance of a multiple channel queuing model (M/M/C) ( /FCFS). Based on the sub interval average ranking method for nonagonal fuzzy number, we convert fuzzy number to crisp one. Numerical results reveal that the efficiency of this method. Intuitively, the fuzzy environment adapts well to a multiple channel queuing models (M/M/C) ( /FCFS) are very well.
ISO/IEC 27001, ISO/IEC 42001, and GDPR: Best Practices for Implementation and...PECB
Denis is a dynamic and results-driven Chief Information Officer (CIO) with a distinguished career spanning information systems analysis and technical project management. With a proven track record of spearheading the design and delivery of cutting-edge Information Management solutions, he has consistently elevated business operations, streamlined reporting functions, and maximized process efficiency.
Certified as an ISO/IEC 27001: Information Security Management Systems (ISMS) Lead Implementer, Data Protection Officer, and Cyber Risks Analyst, Denis brings a heightened focus on data security, privacy, and cyber resilience to every endeavor.
His expertise extends across a diverse spectrum of reporting, database, and web development applications, underpinned by an exceptional grasp of data storage and virtualization technologies. His proficiency in application testing, database administration, and data cleansing ensures seamless execution of complex projects.
What sets Denis apart is his comprehensive understanding of Business and Systems Analysis technologies, honed through involvement in all phases of the Software Development Lifecycle (SDLC). From meticulous requirements gathering to precise analysis, innovative design, rigorous development, thorough testing, and successful implementation, he has consistently delivered exceptional results.
Throughout his career, he has taken on multifaceted roles, from leading technical project management teams to owning solutions that drive operational excellence. His conscientious and proactive approach is unwavering, whether he is working independently or collaboratively within a team. His ability to connect with colleagues on a personal level underscores his commitment to fostering a harmonious and productive workplace environment.
Date: May 29, 2024
Tags: Information Security, ISO/IEC 27001, ISO/IEC 42001, Artificial Intelligence, GDPR
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Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.
LAND USE LAND COVER AND NDVI OF MIRZAPUR DISTRICT, UPRAHUL
This Dissertation explores the particular circumstances of Mirzapur, a region located in the
core of India. Mirzapur, with its varied terrains and abundant biodiversity, offers an optimal
environment for investigating the changes in vegetation cover dynamics. Our study utilizes
advanced technologies such as GIS (Geographic Information Systems) and Remote sensing to
analyze the transformations that have taken place over the course of a decade.
The complex relationship between human activities and the environment has been the focus
of extensive research and worry. As the global community grapples with swift urbanization,
population expansion, and economic progress, the effects on natural ecosystems are becoming
more evident. A crucial element of this impact is the alteration of vegetation cover, which plays a
significant role in maintaining the ecological equilibrium of our planet.Land serves as the foundation for all human activities and provides the necessary materials for
these activities. As the most crucial natural resource, its utilization by humans results in different
'Land uses,' which are determined by both human activities and the physical characteristics of the
land.
The utilization of land is impacted by human needs and environmental factors. In countries
like India, rapid population growth and the emphasis on extensive resource exploitation can lead
to significant land degradation, adversely affecting the region's land cover.
Therefore, human intervention has significantly influenced land use patterns over many
centuries, evolving its structure over time and space. In the present era, these changes have
accelerated due to factors such as agriculture and urbanization. Information regarding land use and
cover is essential for various planning and management tasks related to the Earth's surface,
providing crucial environmental data for scientific, resource management, policy purposes, and
diverse human activities.
Accurate understanding of land use and cover is imperative for the development planning
of any area. Consequently, a wide range of professionals, including earth system scientists, land
and water managers, and urban planners, are interested in obtaining data on land use and cover
changes, conversion trends, and other related patterns. The spatial dimensions of land use and
cover support policymakers and scientists in making well-informed decisions, as alterations in
these patterns indicate shifts in economic and social conditions. Monitoring such changes with the
help of Advanced technologies like Remote Sensing and Geographic Information Systems is
crucial for coordinated efforts across different administrative levels. Advanced technologies like
Remote Sensing and Geographic Information Systems
9
Changes in vegetation cover refer to variations in the distribution, composition, and overall
structure of plant communities across different temporal and spatial scales. These changes can
occur natural.
Chapter wise All Notes of First year Basic Civil Engineering.pptxDenish Jangid
Chapter wise All Notes of First year Basic Civil Engineering
Syllabus
Chapter-1
Introduction to objective, scope and outcome the subject
Chapter 2
Introduction: Scope and Specialization of Civil Engineering, Role of civil Engineer in Society, Impact of infrastructural development on economy of country.
Chapter 3
Surveying: Object Principles & Types of Surveying; Site Plans, Plans & Maps; Scales & Unit of different Measurements.
Linear Measurements: Instruments used. Linear Measurement by Tape, Ranging out Survey Lines and overcoming Obstructions; Measurements on sloping ground; Tape corrections, conventional symbols. Angular Measurements: Instruments used; Introduction to Compass Surveying, Bearings and Longitude & Latitude of a Line, Introduction to total station.
Levelling: Instrument used Object of levelling, Methods of levelling in brief, and Contour maps.
Chapter 4
Buildings: Selection of site for Buildings, Layout of Building Plan, Types of buildings, Plinth area, carpet area, floor space index, Introduction to building byelaws, concept of sun light & ventilation. Components of Buildings & their functions, Basic concept of R.C.C., Introduction to types of foundation
Chapter 5
Transportation: Introduction to Transportation Engineering; Traffic and Road Safety: Types and Characteristics of Various Modes of Transportation; Various Road Traffic Signs, Causes of Accidents and Road Safety Measures.
Chapter 6
Environmental Engineering: Environmental Pollution, Environmental Acts and Regulations, Functional Concepts of Ecology, Basics of Species, Biodiversity, Ecosystem, Hydrological Cycle; Chemical Cycles: Carbon, Nitrogen & Phosphorus; Energy Flow in Ecosystems.
Water Pollution: Water Quality standards, Introduction to Treatment & Disposal of Waste Water. Reuse and Saving of Water, Rain Water Harvesting. Solid Waste Management: Classification of Solid Waste, Collection, Transportation and Disposal of Solid. Recycling of Solid Waste: Energy Recovery, Sanitary Landfill, On-Site Sanitation. Air & Noise Pollution: Primary and Secondary air pollutants, Harmful effects of Air Pollution, Control of Air Pollution. . Noise Pollution Harmful Effects of noise pollution, control of noise pollution, Global warming & Climate Change, Ozone depletion, Greenhouse effect
Text Books:
1. Palancharmy, Basic Civil Engineering, McGraw Hill publishers.
2. Satheesh Gopi, Basic Civil Engineering, Pearson Publishers.
3. Ketki Rangwala Dalal, Essentials of Civil Engineering, Charotar Publishing House.
4. BCP, Surveying volume 1
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
2. Supplier Management: A Framework For Selection, Evaluation And Performance
http://www.iaeme.com/IJM/index.asp 17 editor@iaeme.com
3. Would suppliers respond to scorecards and reports? How to build an effective
supplier scorecard and communicate with suppliers using the results on the
scorecard?
4. How to continually improve the supplier management process?
This paper is an attempt to answer these critical questions and provide a
framework that is develop by bringing together existing literature available
and input/findings from industry executives in the area of supplier
management.
Key words: Supplier, supplier management, scorecard, performance
management, selection, evaluation, relationship management, key
performance metrics, framework.
Cite this Article: Pradip Kumar Krishnadevarajan, Vignesh Ravichandran, S.
Balasubramanian and N. Kannan. Supplier Management: A Framework for
Selection, Evaluation and Performance, International Journal of Management,
6(9), 2015, pp. 16-28.
http://www.iaeme.com/IJM/issues.asp?JTypeIJM&VType=6&IType=9
1. INTRODUCTION
Companies represent suppliers in a market and reach customers through products,
services or a combination of both. Determining the right suppliers/partners is key to
good customer service and business sustainability. Once the relationships are properly
set and developed, suppliers provide companies with successful products and
marketing efforts to help them grow and expand (Lawrence, Gunasekaran,
Krishnadevarajan, 2009). As companies grow and expand into newer markets and
geographies their ability to maintain or elevate supplier relationships is a big
challenge that every company is witnessing. The priorities for both entities (company
and supplier) could be different at any given time. In addition to the annual or once a
year meeting that companies have with their suppliers for negotiation and business
forecasting it is important to have frequent touch points at least every 3 months (each
quarter) to communicate business priorities to their key suppliers. This cannot be just
a meet and greet event every time. The meetings should be more objective and
metrics driven. Companies should track key supplier metrics, create a report and set
goals and objectives for the supplier. The metrics should drive meetings and should be
monitored continuously. For instance, the company’s priority for 2014 could have
been supplier deliveries (receiving products on time and in full) but for 2015 the
priorities could be both deliveries and breadth of products (additional products needed
to serve a new customer or a market segment). The priorities will often change but the
key metrics should be kept consistent year over year for better execution.
2. MOTIVATION AND FRAMEWORK DEVELOPMENT
Companies typically try to measure performance of only their key suppliers that
account for about 80% of their business (Pradip, Balasubramanian, Kannan, 2015).
This is a good approach; however having a well-established framework for all
suppliers would help the company in the long term. Starting with strategic suppliers
(key suppliers) and expanding the process to other suppliers is an optimal approach.
Companies often ponder if suppliers would respond well to scorecard and reports. If
you talk to your key suppliers they should respond well. However, there are suppliers
who may be too large (in size and scale) to even acknowledge the reports. In that case,
3. Pradip Kumar Krishnadevarajan, Vignesh Ravichandran, S. Balasubramanian and N. Kannan
http://www.iaeme.com/IJM/index.asp 18 editor@iaeme.com
what metrics you communicate to the supplier, how often you communicate, nature of
metrics (should always be objective and data driven), and type of conversation (the
scorecards should not be used as complaints during supplier meetings but rather as a
point of discussion for mutual benefit) is critical to the supplier performance
management process being effective. Suppliers may not respond immediately but a
constant reminder in an objective fashion will start producing results. The process of
supplier management actually begins by developing or choosing a supplier framework
that suits the company’s vision and goals. The development process of the proposed
supplier framework process took place in two stages. The first stage was to look at
existing literature to understand the different factors/criteria that are being used for
supplier selection, evaluation of performance management by various
industries/businesses. The second stage was interaction with companies to gather
input, understand metrics used and challenges faced in executing the supplier
management process.
2.1. Literature Review
A survey to over 100 manufacturing companies (AMR Research Survey, 2006) listed
the common indicators that were used to evaluate suppliers – statistical process
control, supplier on-time delivery, KPIs/performance of key production assets, scrap
and rework, average cycle times, inventory levels, variable manufacturing costs,
products/mix profitability, supplier quality (raw materials), finished goods quality,
demand variance, manufacturing line scheduling visibility, transportation schedules
and cost, manufacturing line capacity visibility (Gordon, 2008).
Lead time and lead time variability from suppliers requires companies to adjust
their safety stock and inventory levels in order to protect customer service levels
(Nahmias, 1997). (Araz, Ozkarahan, 2007) describe a supplier evaluation and
management methodology for strategic sourcing, in which suppliers are assessed
considering supplier's co-design capabilities and categorized based on overall
performances, potential reasons for differences in performance of supplier groups are
identified, and performances of the suppliers are improved by applying supplier
development programs.
Determining a supplier's performance involves four key factors: lead time, lead
time variability, on-time delivery, and complete delivery. These four factors can be
combined using a multi-criteria decision model to determine a supplier performance
index – SPI (Lawrence, Gunasekaran, Krishnadevarajan, 2009).
Supplier evaluation considering environmental aspects included – general,
production, quality, logistics, production development, purchasing and environment.
The model is designed for evaluating strategic suppliers and not designed for
evaluation of suppliers of non- strategic importance since the criteria evaluated
concerns strategic aspects. The model consisted of seven criteria categories and 41
categori ed criteria ger d, Nordling, 2010).
(Aksoy, Öztürk, 2011) propose a methodology to select the most appropriate
suppliers in evaluating supplier performance to aid just-in-time (JIT). The
procurement of parts and materials is a very important issue in the successful and
effective implementation of JIT; thus, supplier selection and performance evaluation
in long-term relationships have become more critical in JIT production environments.
The key evaluation criteria are quality, JIT delivery performance, location for
transport and price.
4. Supplier Management: A Framework For Selection, Evaluation And Performance
http://www.iaeme.com/IJM/index.asp 19 editor@iaeme.com
(Chen, 2011) presents a supplier framework based on 5 business strategies – low
cost strategy, differentiation strategy, growth strategy, innovation strategy and
integration strategy, 2 sets of criteria for supplier performance (competition factor –
quality, cost, delivery time and service, and organization factor – technical and
production capability, relation combination and organizational management) and 17
metrics (return rate, discount rate, gross profit rate, quantity discount, lead time, on-
time delivery, delivery flexibility, service standard, responsiveness, improvement
capacity, R&D rate, process capability, technique co-operation, market co-operation,
cooperative time, inventory turnover ratio and operating expense rate).
(Vanteddu, Chinnam, Gushikin, 2011) consider inventory costs and the supply
chain ‘cycle time’ reduction costs, to help supply chain managers make informed
decisions with regard to supplier selection problem at any stage, dependent upon the
priorities attached to supply chain costs and cycle time. Inventory related costs and
responsiveness related costs are the two primary cost elements that are considered in
the model.
According to (Bilişik, Çağlara, Bilişik, 2012) supplier has an important role and in
this situation supplier evaluation and selection has gained more significance for
companies. For that reason, a form is designed to collect data from concerned
company's personnel and performance measuring model which includes scoring
methodology and correlation analysis that is called as “Performance- ffect” analysis.
They propose to divest supplier evaluation from its general evaluation concept by
presenting alternative selection criteria, suppliers and methods for working with
positioning of these in performance maps. The supplier evaluation criteria include –
keeping up with critical situations, meeting the demand, meeting the cost
requirements, process capability and quality, personnel capability, to match the lead
times, to be solution-oriented, accessibility, to keep up with technological
developments, communicating and general efficiency.
(Viswanadhama, Samvediahe, 2013) in their paper identify both performances-
based and risk-based decision criteria, which are important and critical to the supply
chain. (Singh, 2014) presents a hybrid algorithm that prioritizes the suppliers and then
allocates the demand among the suppliers. The objective here is to maximize the total
purchase value of the items taking into consideration budget constraint, demand
condition, delivery lead-time and supplier capacity.
(Dey, Bhattacharya, Ho, 2015) say that supplier performance management can be
performed by having metrics in two categories – performance, and capabilities &
practices. Performance includes – quality performance (defined by six metrics),
delivery performance (five metrics), and costing performance (five metrics).
Capabilities & practices include organizational capability (eight metrics),
environmental practices (three metrics), social practices (three metrics), and risk
management practices (three metrics).
(Rezaei, Wang, Tavasszy, 2015) in their linking supplier development to supplier
segmentation work evaluate suppliers based on two dimensions – capabilities and
willingness. Capabilities include (8 main criteria – technical, product quality,
delivery, intangible, service, financial/cost, sustainable, organizational) and 51 sub-
criteria. Willingness includes (4 main criteria – willingness to improve performance,
willingness to share information, willingness to rely on each other, willingness to get
involved in long-term relationship) and 21 sub-criteria.
(Hosseininasab, Ahmad, 2015) introduce a two-phase supplier selection
procedure. Unlike most supplier selection researches, which are decisive based on
5. Pradip Kumar Krishnadevarajan, Vignesh Ravichandran, S. Balasubramanian and N. Kannan
http://www.iaeme.com/IJM/index.asp 20 editor@iaeme.com
supplier eligibility at the time of the decision making, their proposed method is based
on the long term trend of value, stability, and relationship of potential suppliers. The
model determines a supplier portfolio by maximizing the expected value and
development of suppliers, and minimizing their correlated risk.
(Wu, Chang, 2015) use four dimensions (supplier management, product recycling,
organization involvement, life cycle management) and twenty factors developed by
(Hsu, Hu, 2008) suitable for electrical and electronic industries in Taiwan to identify
the critical dimensions and factors in green supply chain management (GSCM).
Pricing visibility (number of price points available) and pricing variability (deviation
in price points) can be applied to measure the risk level of doing business with a
supplier (Nepal, Naveenan, Krishnadevarajan, Lawrence, 2015).
2.2. Industry Feedback
Interaction with companies was performed through surveys, interviews and focus
groups with several industry owners, supplier (vendor or manufacturer or brand)
managers and business managers. The objective was to get an idea of the metrics
being utilized for supplier management, challenges faced, supplier framework
deployed and the effectiveness of their current supplier performance management
processes. Key findings from the industry interaction were the following:
Lack of a supplier management framework. Understanding where the process
began and where it ended was the key challenge. Who should take ownership of this
process in the company? Often, data was missing or currently not captured in the
system in-order to create various metrics to help with supplier management.
Internally, all companies did not have a goal or objective regarding what they would
like to achieve with the supplier management process. They had annual meetings with
their suppliers thanking them for being a partner and for the business relationship. No
concrete data driven discussions or goal setting took place.
What to track? Companies either tracked too many metrics or did not track
anything. Even if they tracked too many metrics most of them were subjective and
anecdotal. They lacked a significant number of quantitative metrics to act on
something meaningful. Companies wanted a set of metrics they could choose from
and then set a process in place to capture the relevant data to compute those metrics.
If multiple metrics are used to track supplier performance, is there a methodology to
combine various metrics to develop a single rank (ease of decision making) for each
supplier?
Reporting and Scorecards: The next challenge was that even if a few companies
had the required data and were able to compute the metrics they did not have an
effective way of reporting this information back to the supplier. They lacked
reporting tools and templates for the performance metrics.
Continuous Improvement: The steps that need to be established to continually
improve the supplier management process at the company did not exist. Several
companies had gone down the path of implementing a version of the supplier
management process but could not sustain the same due to lack of
accountability/ownership, failing to change the metrics when the industry dynamics
changed, and execution challenges.
The focus of this paper is to propose a simple, yet holistic framework, list of
metrics to track and a multi-criteria ranking method for supplier management.
6. Supplier Management: A Framework For Selection, Evaluation And Performance
http://www.iaeme.com/IJM/index.asp 21 editor@iaeme.com
3. SUPPLIER MANAGEMENT FRAMEWORK
The approach used to layout a supplier framework is bridging the gap between what
was seen in the literature review and the feedback from industry. The key objectives
in the framework development were the following:
Metrics should be quantitative (objective and data driven). There will be only a few
qualitative metrics.
The framework should be holistic and comprehensive at the same time easy
understand.
Scalability and flexibility of the framework is important as companies adopt it into
their supplier management process.
Apply a multi-criteria approach but provide the ability to get one single final rank (A,
B, C or D) for a given supplier so that business strategies can be established at a final
rank level.
Provide a starting point for ranking criteria – what determines an A, B, C or D
supplier for each metric used in the framework.
Most companies measure suppliers based solely on performance (deliveries)
because it is important to customer service and also it is relatively easy to measure.
Supplier performance (customer service) is only one aspect of the supplier
management. The proposed framework provides eight categories based on which
suppliers should be addressed (shown in illustration 1). It varies from ‘customer
service’ to the ‘level of risk’ of doing business with each supplier. These 8 categories
have a set of metrics (32 metrics in total), formula to compute the metric and a
ranking scale that places each supplier in one of 4 ranks – A, B, C or D. Companies
can choose the categories that are most relevant to their current business priority and
then choose a set of factors/metrics under each category to rank their suppliers.
Illustration 1 Supplier Management Categories and Metrics
Convenience Customer Service
Financial
(Profitability)
Growth Innovation Inventory Quality Risk
Online
Ordering
On-Time Index Spend
Product
Penetration
New Product
Contribution
Forecast
Assistance
Inbound
Accuracy
Number of
Customers
Servicesand
Technical Support
Order
Completeness
ReturnPolicy Growth (Spend)
New
Products
InventoryTurns
Inbound
Quality
Warranties
Lead Time GrossProfit %
Growth (Spend
Trend)
InventoryRank and Slow
Move Items
Invoice
Correctness
Price
Visibility
Shipping
Variability
GrossProfit Currency
Reverse Inventory
Potential
Pricing
Variability
Order Visibility
and Tracking
Payment Termsand
Discounts
GrossMargin ReturnOn
InventoryInvestment
Number of
Stock-outs
Quote
Responsiveness
On-Time Invoicing
Index
SUPPLIER MANAGEMENT
7. Pradip Kumar Krishnadevarajan, Vignesh Ravichandran, S. Balasubramanian and N. Kannan
http://www.iaeme.com/IJM/index.asp 22 editor@iaeme.com
3.1. Convenience
Ease of doing business with suppliers is the objective of this category. There are two
metrics under this category – online ordering and services & technical support. The
online ordering metric captures the ability of the supplier to receive orders online
rather than phone or sometimes paper based (fax included). This functionality also
reduces the cost of doing business with the supplier. The second metric is the level of
support. It is important for the supplier to provide post-sales support, technical
expertise and services to the company. This is usually a qualitative metric as various
suppliers have different / multiple services to support their channel partners. This
aspect of measurement is subjective in terms of ranking and varies from ‘High’ good
degree of support and services) to ‘Low’ no support/services or lowest
support/services). The factors, description and ranking for this category are shown in
illustration 2. The framework is scalable and flexible. Additional factors can be added
into this category as required by the company.
Illustration 2 Supplier Management– CONVENIENCE
If the company places more that 30% of their orders to a supplier online then the
supplier receives a rank of ‘A’ for online ordering using the ranking criteria from
illustration 2. The criteria to determine the four ranks (A, B, C and D) should be
changed to suit the company according to their needs. Services and technical support
metrics can also include marketing funds or resources that the supplier provides to the
company for business execution and growth.
3.2. Customer Service
This is the most common and only category used by a number of companies at
present. There are 6 factors in this category. If 50 orders were received from a
supplier and 40 of them were received on or before the requested date, then the on-
time index is 40/50, 80%. The widely used factors are lead time and on-time index. If
quantity ordered is 1000 units and the company received only 950, the order
completeness is 950/1000, 95%. ASN (automatic shipping notification) from
suppliers help the company plan better in terms of customer promised date as well as
order receiving and inspection process. Stock-outs cause immediate customer service
breakdown and should also be tracked at a supplier level. This may not indicate
supplier planning but the company may not have forecasted better to account for the
customer demand. Number of stock-outs is a difficult metric to track and very few
companies track this metric. It is also important to focus on measuring the variability
of lead times. The variability can be measured by the co-efficient of variation (COV),
the ratio of the standard deviation to the average of lead times (Nahmias, 1997). This
measure captures the relative magnitude of a variable with respect to its average.
Another effective combination metric company is supplier performance index or SPI
(Lawrence, Gunasekaran, Krishnadevarajan, 2009). SPI is a combination for the first
four metrics from illustration 3.
A B C D
1 Online Ordering
Percentage or orders that were placed online as
opposed to other modes.
>30% 20-30% 10-20% Others
2
Services and
Technical Support
Level of support (technical and other services)
offered by the supplier.
High Medium Low None
Supplier Rank (A is better)
No Factors / Metrics Definition
8. Supplier Management: A Framework For Selection, Evaluation And Performance
http://www.iaeme.com/IJM/index.asp 23 editor@iaeme.com
Illustration 3 Supplier Management– CUSTOMER SERVICE
If a company tracks their supplier using three metrics – lead time, shipping
variability and on-time index, using illustration 3, they assign ranks to the supplier. If
lead time is 3 days, shipping variability is 47% and on-time index is 96%,
corresponding ranks for the supplier would be B, C and A respectively. The cut-off
values that determine the four ranks (A, B, C and D) should be changed by the
company according to their environment and needs.
3.3. Financial (Profitability)
This is a critical category for every company since it represents profitability. Spend
indicates the total currency invested in each supplier. Spend for a given supplier is
represented as a percentage of the company's entire spend. Returns are driven by
economy, supplier errors, competitors in the market place, industry or business
dynamics that are not caused by the supplier. Return policies are set at an annual
level. Payment terms and discounts are represented in days. An early pay date may
include a percentage discount from spend.
Illustration 4 Supplier Management– FINANCIAL (Profitability)
A B C D
1 On-Time Index
Number of orders received on OR before the
requested date/Total number of orders.
>95% 90-95% 80-90% Others
2
Order
Completeness
Quantity Received / Quantity Ordered. This is for
each order at a supplier level.
>95% 90-95% 80-90% Others
3 Lead Time
Time elapsed between the order date (to supplier)
and the order received date (from supplier).
1 Day 2-3 Days 4-5 Days Others
4
Shipping
Variability
Standard deviation of lead time / Average lead
time (Calculated for a period of 3-6 months).
<25% 25-35% 35-50% Others
5
Order Visibility
and Tracking
Computed as a ratio of Number or orders with
shipping notification / Total number of orders.
>75% 50-75% 25-50% Others
6
Number of Stock-
outs
Number of times this supplier's product stocked
out when the customer requested items. It is
computed over a 6 month period.
2 stockouts
in 6 months
3 - 4 5 - 6 Others
Supplier Rank (A is better)
No Factors / Metrics Definition
A B C D
1 Spend
Percentage of total annual amount of currency
that is spent for procurement with each supplier.
>15% 10-15% 5-10% Others
2 Return Policy Number of returns allowed by the supplier.
12 Returns
per Year
6-12 <6
No
Returns
3 Gross Profit %
Profit percentage from the sale of products
represented by the supplier.
>25% 20-25% 15-20% Others
4
Gross Profit
Currency
Total annual profit currency (percentage of the
total company profit) provided by the supplier.
>15% 10-15% 5-10% Others
5
Payment Terms and
Discounts
The terms that the supplier offers after product is
received by the company.
45 Days
40-45
Days
30-40
Days
Others
6
Quote
Responsiveness
When a price or quote is requested what is the
response time (in hours) from the supplier.
< 3 Hours
3-10
Hours
10-18
Hours
Others
7
On-Time Invoicing
Index
On-time invoices / Total number of invoices.
Represented as a percentage.
>95% 90-95% 80-90% Others
Supplier Rank (A is better)
No Factors / Metrics Definition
9. Pradip Kumar Krishnadevarajan, Vignesh Ravichandran, S. Balasubramanian and N. Kannan
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Illustration 4 provides a list of seven key metrics with their definition, and cut-off
values to determine the financial ranks of the supplier.
3.4. Growth
The metrics listed in this category will help the company understand if their growth
objectives can be met by working with a particular supplier. Also, if the company is
looking to expand into new areas how should they go about setting the expectations
for the supplier from a growth aspect of the business? The three metrics that help
measure growth prospects with the supplier are listed in illustration 5. If the company
is trying to market 9 different product lines to their customers but if a supplier can
support only 5 of those lines then the penetration is 5/9 which is 56%. Growth of
spend (in currency) resulting from the products provided by each supplier is compared
over two consecutive years.
Illustration 5 Supplier Management– GROWTH
3.5. Innovation
Companies cannot survive selling existing products all the time to customers. As
competition in the market place increases, customer needs and expectations change,
suppliers should be able to cater to this change quickly if not the company would lose
revenue and market share (also customers). This shifts the company products more
towards a commodity status making it difficult to raise prices (pro-active or
opportunistic) or sustain profitability in the long term. It is very important for
companies to consider the innovation aspect of every supplier as they set long term
growth goals. Two metrics that are easy to track are listed in illustration 6.
Illustration 6 Supplier Management– INNOVATION
3.6. Inventory
Inventory is one of the largest assets of the company in their balance sheet and it is
important to track at the supplier level in-order to optimize inventory and supplier
management. There are five critical metrics to achieve this objective as shown in
illustration 7. Inventory turns and slow move items are the metrics that are popular.
Suppliers often assist with forecast (usage or demand) for certain items. The level of
increased forecast accuracy due to supplier input is tracked on a monthly basis. A
A B C D
1 Product Penetration
It is defined as the breadth of supplier inventory
or offerings.
>80% 60-80% 40-60% Others
2 Growth (Spend)
Computed as the increase or decrease in revenue
from the previous year / current year revenue.
>15% 10-15% 5-10% Others
3
Growth (Spend
Trend)
The growth trend over multiple years. 3-5 years.
A weighted average trend can also be used.
>15% 10-15% 5-10% Others
Supplier Rank (A is better)
No Factors / Metrics Definition
A B C D
1
New Product
Contribution
Revenue contribution (as percentage of total
revenue for the company) from new products.
>10% 6-10% 2-6% Others
2 New Products
Number of new products that are introduced by
the supplier annually.
12 (approx
1 per
month)
6 3 Others
Supplier Rank (A is better)
No Factors / Metrics Definition
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value of 10% indicates that by incorporating supplier input, forecast accuracy
improved 10% or forecast error declined 10%. Turns are computed at the cost
currency or value of inventory at cost. If number of turns is 4 then the inventory of the
supplier is rotated every 3 months or 90 days. Slow move items can be computed at a
currency level (average inventory currency) or just as number of items and
represented as a percentage. If the forecast error is high on certain products or the
demand is highly inconsistent, suppliers might provide an allowance for returning
inventory when the company is stuck with excess inventory. This metric is called as
reverse inventory potential and is done mainly to ease working capital.
Illustration 7 Supplier Management– INVENTORY
3.7. Quality
As companies adopted lean principles and quality techniques these metrics listed in
illustration 8 became a routine process for companies. There are three metrics that are
related to inbound shipments and invoice. Quality metrics are usually communicated
immediately to suppliers as and when it happens. It is a reactive approach and often
not a standard reporting performed for supplier quality on a proactive basis. Inbound
accuracy is a check on the items requested and the items received. Just to ensure that
only the requested items are shipped. Other quality metrics tracked by companies on a
regular basis could also be added to this category shown in illustration 8.
Illustration 8 Supplier Management– QUALITY
3.8. Risk
These metrics provide an indication of the risk of doing business with the supplier.
Some of the important metrics are number of customers for the supplier products – If
it is a one customer item, the chance of liquidating inventory when the customer
demand drops becomes very limited. Also if the customer goes out of business the
A B C D
1 Forecast Assistance
Level of increased forecast accuracy due to
supplier input.
>15% 10-15% 5-10% Others
2 Inventory Turns Cost of goods sold / average inventory. >6 4-6 2-4 Others
3
Inventory Rank and
Slow Move Items
Number of C or D items of this supplier / Total
items from this supplier.
<10% 10-15% 15-20% Others
4
Reverse Inventory
Potential
Allowance for returning inventory to the supplier.
This is represented as a % of total spend.
5% 4-5% 2-3% Others
5
Gross Margin
Return On
Inventory
Investment
The ratio of profit currency and the average
inventory currency over a specific period of time
(6-12 months). Represented as a percentage.
>200%
100-
200%
50-100% Others
Supplier Rank (A is better)
No Factors / Metrics Definition
A B C D
1 Inbound Accuracy
Number of non-errors orders received / Total
number of orders.
>95% 90-95% 80-90% Others
2 Inbound Quality
Number of orders without quality audits or
inspections / Total orders received.
>95% 90-95% 80-90% Others
3 Invoice Correctness
Number of invoices with no errors / Total number
of invoices. Represented as a percentage.
>95% 90-95% 80-90% Others
Supplier Rank (A is better)
No Factors / Metrics Definition
11. Pradip Kumar Krishnadevarajan, Vignesh Ravichandran, S. Balasubramanian and N. Kannan
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company is stuck with this customer-specific inventory. Warranties also constitute a
significant portion of the company’s cost – If the company is wholly responsible for
warranty, it becomes time consuming and an expensive process. Companies prefer to
process fewer warranties. The other metrics include price visibility (assists with sales
projections and inventory investments) and price variability (price consistency) as
shown in illustration 9.
Illustration 9 Supplier Management– RISK
3.9. Final Supplier Rank
Various metrics that could be applied to determine supplier ranks (across 8 categories)
were addressed in the previous sections. Decision-making process becomes
challenging when there are multiple ranks (while using multiple metrics across the 8
categories) pointing in different directions. In this situation, a weighted stratification
matrix helps determine a final rank for each supplier (Lawrence, Krishnadevarajan,
Gunasekaran, 2011). The final supplier rank depends on three factors:
Weights given for each factor: This input captures the importance of each factor.
Weights may vary depending on your environment, but an example when a company
applies 5 metrics to rank their suppliers could be: Supply Variability = 25%; Price
Variability = 20%; Growth (Spend) = 20%, New Products = 20%; and Gross Profit
Percentage = 15%. If a company chooses to include additional factors, the weights
may be distributed accordingly.
The relative importance of A, B, C, and D ranks: Example: A=40; B=30; C=20; and
D=10
Score the range for the final score: The above weights are converted to a scale of 10
to 40, resulting in a best score of 40 (ranked A in all categories) and a least score of
10 (ranked D in all categories). The 30 points in the range of 10 to 40 is divided into
four groups. Example: A=32.6 to 40; B=25.1 to 32.5; C=17.6 to 25; and D=10 to
17.5.
With these parameters, a final rank can be determined for a given supplier. If a
supplier is ranked as B, C, A, B and D according to supply variability, price
variability, growth in spend currency, new products and gross profit percentage
respectively; this supplier’s final performance score is computed as follows:
Final supplier score = [(25% x 30) + (20% x 20) + (20% x 40) + (20% x 30) +
(15% x 10)] = 27
This score falls between the ranges of 25.1 to 32.5, so this supplier gets a final
rank of “B”.
A B C D
1
Number of
Customers
Numbers of customers for the suppliers' products
indicates the risk associated with the supplier.
>60
Customers
40-60 20-40 Others
2 Warranties
Number of warranties processed is in indicator of
product quality and also the level of support.
<10 per
year
6-10 per
year
2-6 per
year
Others
3 Price Visibility
Number of different price data points available
for price forecasting froma supplier.
>12 points
over 2 years
8-12 4-8 Others
4 Pricing Variability
Similar to shipping variability this is the ratio of
standard deviation of supplier price points to the
average of the price points.
<25% 25-35% 35-50% Others
Supplier Rank (A is better)
No Factors / Metrics Definition
12. Supplier Management: A Framework For Selection, Evaluation And Performance
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3.10. Summary of Supplier Ranking
The various steps that are involved in the ranking of suppliers can be summarized as
follows:
Step 1: Customi e the framework according to the company’s requirement. This
includes both the categories as well as the metrics under each category.
Step 2: Determine the cut-off values for each metric – the criteria that ranks the
supplier as A, B, C or D. This is a very important step.
Step 3: Choose key metrics that will determine supplier ranks.
Step 4: Rank the suppliers for each metric using company-specific cut-off values.
Step 5: Assign weights to each factor.
Step 6: Compute final rank for each supplier.
Step 7: Using a cross-functional team to determine strategies and reporting for each
supplier based on the supplier rank (final rank and/or the individual metrics rank).
4. CONCLUSION
The proposed supplier framework provides a guideline for companies with their
supplier management process. Determining the right suppliers/partners and managing
them effectively is key to good customer service and business sustainability. Once the
relationships are properly set and developed, suppliers provide companies with
successful products and marketing efforts to help them grow and expand. Measuring
suppliers on data driven objective criteria is critical to maintaining profitable-
sustainable business relationships with suppliers.
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