Cost-Effectiveness Based Performance Evaluation for Suppliers and Operations

Topics:
Supplier Evaluation
Tags:
American Society For Quality,
Team Management,
Supplier,
Performance Management,
Performance Evaluation,
Performance,
Marketing,
Management,
Human Resources,
Channel Management,
...
Source:
American Society for Quality

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Overview: This research establishes a cost-effectiveness based performance evaluation system for suppliers and operations. The purpose is to provide a methodology for “integrating supplier and manufacturer capabilities through a common goal, profitability improvement, based on lowering the cost of purchased materials.” The merits of measuring supplier quality performance using total involved quality cost (TIQC) include: 1) a common measurement language—money, and 2) very simple and visible numbers along with direct and indirect loss ratios to help management and employees understand the importance of doing things right the first time. This study investigated the interactions and mutual movements among the three groups in the supply chain, (supplier, manufacturer, and customer), and integrated the results from different stages.

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Format: HTML | Date: Oct 2002 | Pages: 1

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