Recently a supplier quality manager asked me about a dilemma he was having with the way his manufacturing facility was measuring in-process supplier quality. If they found defects in supplier parts during the manufacturing process, each defective item was tallied as part of the total. That is, each defective part counted against the total quality performance [...]
|
||||||
|
I’ve discussed previously how supplier performance metrics work best when they are aligned with and support overall corporate goals and strategies and reasons why they can fail. But the challenge remains of how to tell whether you’ve come up with a good metric. There are many ways to look at a metric to judge how [...] You’ve heard of supplier rationalization and “rightsizing” the supply base. What about too many KPIs on the supplier scorecard? I’ve mentioned the problem of measuring too many KPIs in previous posts. In 11 Reasons Why Supplier Scorecards Fail, I list measuring too many KPIs as a reason for failure. In Supplier Scorecard Metrics: Easy vs [...] Recently I wrote about suppliers who charge their customers to conduct an on-site audit. The desire to charge stems from the fact that site visits are time-consuming and resource-intense for suppliers. Many suppliers have to host multiple site visits and particularly the smaller suppliers, find them disruptive to their [...] My previous post about why supplier scorecards fail generated a lot of interest. So today I’m going to write about one of the biggest reasons for failed supplier scorecards: There is little or no action or follow through that results from the scorecards. Supply managers get so focused on the idea of having a [...] The failures at Peanut Corporation of America are tragedy in every way. This supplier failed to meet both regulatory and customer requirements. Its customers failed either to uncover or report the failures, and people died as a result. Now a healthy, everyday product is suspect, and faith in the U.S. food processing industry has [...] I was recently interviewed by Nick Zubko, Purchasing Editor at IndustryWeek magazine, for an article on supplier scorecards. The resulting article, “Who’s Keeping Score?”, summarizes the actions needed to ensure supplier scorecards that are meaningful and actionable and is available online and in the February 2009 issue. To summarize the key points, the article explains that companies need [...] As the saying goes, statistics can be made to prove anything – even the truth. Or, everything is vague to a degree you do not realize till you have tried to make it precise (Bertrand Russell). The customer sends the supplier its monthly scorecard. Wait, the calculations seem completely wrong. We did better than [...] In the benchmarking world, one of the axioms is to “steal shamelessly” from other companies, meaning: don’t be afraid to borrow ideas from others (not steal proprietary information). When it comes to supplier performance metrics, one of the first questions firms ask is: What metrics do others use? The idea is the borrow supplier [...] In my last post, I listed 11 reasons why supplier scorecards fail. I’d like to write about the first reason – measuring what is easily measured instead of measuring what is meaningful or important. This assumes that you already know what is important for your company to measure, but that’s a future topic. Let’s look [...] |
||||||
|
Copyright © 2012 Value Chain - All Rights Reserved Bad Behavior has blocked 169 access attempts in the last 7 days. |
||||||
Recent Comments