Performance Based Evaluation Systems Under Total Quality Management

摘要: INTRODUCTION Supplier evaluation systems provide a check on initial selection decisions. Many progressive buying organizations monitor their major suppliers' performances at both the contract and aggregate levels.|1~ This information is used to control performance, as guide subsequent purchases, means ensure that satisfactory performers are selected.|2~ Evaluation generally involve three considerations of quality, delivery service, price, weighted in accordance with requirements each purchase.|3~ Most formal plans tailored particular need within using organization. Since many firms now moving toward closer relationships key suppliers support total quality management (TQM) just-in-time (JIT) systems, will role these change? If do change, what factors new encompass? TQM/JIT|4~ more proactive operating system which much time spent supplier prequalification activities. The source decision critical. Figure 1 shows simplified version flow As shown, efforts under TQM/JIT intensive; an format some type needed follow evaluate progress suppliers. Once activities completed, emphasis placed further improvement process. research presented this article suggests evaluations be broader scope oriented problem solving. A case analysis based data obtained from Fortune 500 firm successfully implemented program highlight significant changes. To understand impact rating design, it was necessary to: * Review previous Propose framework for performance measurement Provide details practices one program. LITERATURE REVIEW use tend unique modifications basic types systems: (1) categorical approach, (2) point plan, (3) cost ratio approach. Categorical require user rate supplier's levels--significantly above average (+), (0), or below (-). Such conducted any number finds useful. Individual factor ratings then aggregated obtain overall supplier. plan easy can performed relatively inexpensively. However, tends influenced by recent events typically involves high degree subjective assessment. Weighted quantify being evaluated extent possible, thereby providing quantitative assessment performance. approach consuming somewhat costly than method, but also objective. Typically, however, method does not consider other beyond price may affect doing business given cost-ratio attempts capture all costs associated internal external, relate purchase dollar expenditures Costs poor delivery, such expediting, manufacturing downtime, rework, warranty, failure costs, factored into developed. compared expenditures, calculated. most comprehensive three, usually additionally requires computerized standard accounting system. …