COMPUTATION OF OVERALL SUPPIER RATING (Sr)

Initially, supplier rating (Sr) is calculated for each purchase order placed on a vendor as
per the formula given below:
Sr = 0. !r " 0.# $r
%here Sr = Supplier&s rating for a '(.
$r = $elivery rating.
!r = !uality rating.
$elivery rating ($r) is computed for each '( as under:
!t" )!d(*+,-.d/.)
$r= ++++++++++++++++++++++++
!
%here ! = !ty ordered.
. = 'romised delivery time
!t = !ty supplied in time
!d = !ty delayed
.d = time delay for 0uantity delayed.
, = 1onstant with value as 2.
!uality rating (!r) is computed for each '( as under:
!a
!r = +++
!s
%here !s= .otal 0uantity supplied/ offered for inspection = (!a"!rr"!cr)
!a = !uantity accepted
!rr = !uantity re3ected during 4I.5S inspection
!cr = !uantity re3ected during consignee inspection
OTHER PARAMETERS GOVERNING THE SUPPLIER RATINGS
1. %hen a lot is re3ected during an in+coming inspection, sometimes segregation of
the lot is ordered, for identifying useable material, re0uired for sustaining the
immediate production. In such cases, material so accepted in distress, is treated
as re3ected for the purpose of !uality 4ating (!r=0).
2. %hen 614 is raised by a user shop and it is confirmed by !1, !uality rating for
the lot is determined based on the 0uantity finally gets re3ected.
3. If 0uantity accepted is 7 809 of the '( 0ty and original $' has e-pired, then
!uality 4ating (!r) is ta:en as ;<ero= for that '(.
4. %hen a lot is accepted with improvement advice to the vendor, !r for that lot is
considered as >89 only.
5. '(s cancelled on administrative grounds are not ta:en into account while
calculating Supplier 4ating of vendors.
6. %hen delivery period ($') for a '( is re+fi-ed due to administrative reasons by
41? or $' is e-tended without @i0uidated $amages (@$), the revised $' shall
be treated as original delivery period ($') for the purpose of Supplier 4ating (Sr).
7. %hen a re3ected lot is used in distress, the use is condoned by the competent
authority, but such a lot is assigned <ero 0uality rating (!r).
8. 5n+route detachment of a coach from a train due to failure of a component/
assembly is a serious failure. If it happens within the warranty period, a severe
penalty is imposed by way of reduction in 0uality rating of the vendor for that
group of items. .he overall supplier rating (S4) is reduced by *89 for every
instance reported during the period of review. ?ailure of 4ly.Aoard or 4$S(
controlled items leading to en+route coach detachments is reported to
4ly.Aoard /4$S( by 1!B under advice to 1$5/15$5.
9. Cendors are supposed to e-ecute the warranty claims in a reasonable time (*0
days). In case of delays, reduction in 0uality rating for that '( is done in the
following mannerD
$ays ta:en to
attend the failure
**+20 2*+E0 E*+#0 #*+80 8*+0 F0
4eduction in
!uality 4ating (9)
8 *0 20 #0 0 *00
10. In case of more than one warranty claim are lodged for the same '(, cumulative
reduction is made in the !uality 4ating for the delays in each case.
11. Gn officer from !uality $epartment is nominated by 1!B, for ensuring collection
of re3ection records, for the 4I.5S inspected items, from 4I.5S offices on
monthly basis and feeding them in the BBIS database.
12. If repeated 0uality problems are observed in a particular component /sub+
assembly/assembly at any stage, an e-isting vendor or group of vendors can be
reassessed based on the Schedule of .echnical 4e0uirements (S.4) defined by
1$5/15$5 for that group. If any deficiencies are found at vendors& end, which
may be a cause for 0uality problem, the vendor is given a notice to upgrade his
facilities or remove the deficiencies within a reasonable time. If the same is not
done, the vendor can be considered for down+grading or delisting.
13. ?or two consecutive re3ections of the same item at consignee&s end, a vendor is
delisted for that item/group of items. However in case there are three or less
approved vendors left ('art+I and 'art+II combined), for that item/ group of items,
he can be considered for retention as a 'art+II vendor only.