Vendor Evaluation

@JSW Steel
30/03/2015
 Vendor Evaluation Overview

Overall rating of vendor

OSHAS ISO
ISO 14000
14000
Vendor Price Quality Delivery Cert.
18000 Cert. Cert.

On-time delivery OSHAS

Price level GR Inspection ISO 14000
18000 Cert.
Certificate
Quantity reliability

2 © 2011 Accenture. All rights reserved.

 Vendor Rating
Overall Score          

= Price * 30 % + Quality * 30 % + Delivery * 30 % + OSHAS 18000 Cert * 5 % + ISO14000

  Certificat * 5 %
Main Criteria
1Vendor Price        
Subcriteria Price Level ( 100 %)     
= 100 - ( PO Price - L1 Price)/ PO Price * 100      
i. PO Without Quotation will have score = 100      
ii. PO with Ref to (Quote= L1 Price) score = 100      

iii. PO with Ref to Quote L2 Price ( apply above

formulae)      

iv. If the Difference b/w L1 & Other vendors Price

variance with in 10 % and PO is placed to L2 Vendor
  then Max score for that PO = 90      
 
2Quality        
Sub Criteria GR Inspection ( 100 %)      
=Qty accepted/Total GRN Qty * 100    

Total GRN Inspection Score = Average of all

Inspection Lots      
  Material Master -QM View to change      

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 3Delivery        
Sub Criteria 1 Ontime Delivery ( 50 % )      
= ( GRN Date - PO Del Date)/Std Del variance Time      
No. of Days Delay --> % Score variance      
Std delivery Variance = 100 Days      
  Smoothing Factor On-time delivery Variance = 0.3      
Sub Criteria 2 Quantity Reliability ( 50 % )      
(GR quantity - order quantity) / order quantity x 100      

Delivery Completed Indicator in PO ( Either Fully Delivered/Marked

Manually)      
  Smoothing Factor = 0.3      
= Previous score x (1 – Smoothing Factor) + new score x Smoothing
New Score Factor      
 
4OSHAS 18000 Cert.        

Sub Criteria 1 OSHAS 18000 Certificate ( 100 % )

If Vendor master has OSHAS Certificate and Valid on the PO Creation

date, then assign score 100.
  Average of all individual PO Scores = OSHAS Score      
 
5ISO14000 Certificat        
Sub Criteria 1 ISO 14000 Certificate ( 100 %)

If Vendor master has ISO14000 Certificate and Valid on the PO Creation

date, then assign score 100.
    Average of all individual PO Scores = OSHAS Score      
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 Weightage of Scores- Sub Criteria( Delivery)
The overall score of the vendor is calculated based on the importance given to each main
criteria, in the form of weightage.

Sub Criteria Weightages SC Score Score

On time = 50 % 90
Delivery 85

Reliability = 50 % 80

5 © 2011 Accenture. All rights reserved.

 General Parameters:

The scores for the sub criteria are calculated by the system based on
the transactions performed.

1. Best Score = 100

2. Applicability Period = 365 Days

3. Calender = JSW Manufacturing Plants

4. On-time Delivery : Std Delivery Variance = 100 Days

5. Smoothing Factors:
A. On-time Delivery = 0.30
B. Quantity Reliability = 0.30

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 = Price * 30 % + Quality * 30 % + Delivery * 30 % + OSHAS 18000 Cert * 5 % + ISO14000 Certificat * 5 %

= 100 * 30 % + 87 * 30 % + 71 * 30 % + 100 * 5% + 100 * 5 % = ( 87 )

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 1.1 Quality Inspection
Sub Criteria : GR Inspection

GR Inspection Lot Score : ( 100+ 65 + 70 +100+100)/5 = 87

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 Inspection Lot : Usage Decision

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 2.1 On-time Delivery

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 PO Del Date GRN Date Difference % Variance Score
26.11.2014 30.03.2015 124 124% 1 
26.12.2014 30.03.2015 94 94% 5 
26.01.2015 30.03.2015 63 63% 35 
26.02.2015 30.03.2015 32 32% 65 
26.04.2015 30.03.2015 -27 -27% 100 

Average 41

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 On-Time Delivery

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 2.2 Quantity Reliability

Quantity Reliability
SCORE 1  100
 SCORE 2 100
 SCORE 3 100
Average 100

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 R

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 Qty Reliability % Variance Score

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 Manual Delivery Completed Indicator in PO (short
Closed)

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 New Delivery Score

Reliability

Score 1 100

Score 2 100

Score 3 100

Score 4 50

Average 87.5

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 3. Vendor Price

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 4. OSHAS Certificate

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 5. ISO Certificate

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 Scores Derived after Smoothing Factor

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 New PO

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 New On-Time Delivery

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 New On-Time Delivery
4100060353 3300005634 30-Oct-14 30-Mar-15 151 1
4100060353 2100387899 30-Nov-14 30-Mar-15 120 1
4100060353 2200115403 30-Dec-14 30-Mar-15 90 10
4100060353 4200025894 30-Mar-15 30-Mar-15 0 100
4100060353 4200025895 30-Apr-15 30-Mar-15 -31 100
    Average 42.4

=(1-0.3)*41.2+0.3*42.4 = 41.56
= 42

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 Qty Reliability-Old Score

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 New Score after PO# 4100060353
with Smoothing
Material Variance % Factor New score
2100387899 0 =(1-0.3)*50+100*0.3 65
2200115403 0  100
3300005634 0  100
4200025894 -70 No previous score 30
4200025895 0  100
    Average 79

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 Vendor Price after New PO is created

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 THANK YOU

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