Calculating ratings for objective criteria (step 2)
The second step that LN carries out in the calculate objective criteria ratings process, is the conversion of the objective values to ratings.
LN rates the objective values according to the settings of these check boxes in the Maintain Scoring Schemes group box of the Vendor Rating Parameters (tdpur0100m800) session:
- Delivery Time
- Delivery Quantity
- Delivery Quality
- Order Confirmation
- Cost Performance
If these check boxes are selected, LN rates the calculated objective values based on an objective scoring scheme, as specified in the Vendor Rating Objective Scoring Scheme (tdpur8195m000) session.
If these check boxes are cleared, LN rates the objective values on a linear basis.
Objective scoring scheme
You can assign scoring values to an objective criterion in the Vendor Rating Objective Scoring Scheme (tdpur8195m000) session. You can link rating percentages to the scoring values.
LN searches for an objective scoring scheme, which is used for the conversion of scoring values to rating percentages, in this sequence:
- LN searches for an objective scoring scheme for the business partner/item combination.
- If no scheme is present for the business partner/item combination, LN searches for an objective scoring scheme for the business partner.
- If no scheme is present for the business partner, LN searches for an objective scheme for the item.
- If no scheme is present for the item, LN gets the default objective scoring scheme of the objective criterion.
Example 1
| Criterion Type | Delivery | |
|---|---|---|
| Unit | Days | |
| Value | Percentage | Values for which the percentage applies |
| -5 | 10% | <= -5 |
| -1 | 50% | -4 to -1 |
| 0 | 100% | 0 |
| 5 | 40% | 1 to 5 |
| 100 | 30% | 6 to 100 |
If the order is 6 days late, the business partner receives a rating of 30% for the purchase order line.
Example 2
| Criterion Type | Quality | |
|---|---|---|
| Value | Percentage | Values for which the percentage applies |
| 20% | 0% | 0% - 20% |
| 80% | 50% | 21% - 80% |
| 90% | 75% | 81% - 90% |
| 100% | 100% | 91% - 100% |
If 25% of the delivered items is rejected and 75% is approved, the business partner receives a rating of 50% for the purchase order line.
After this conversion, LN carries out the third step in the calculate-objective-criteria-ratings procedure: the creation of a rating record per purchase order line in the Objective Ratings (tdpur8106m000) session.
Linear basis
If the check boxes in the Maintain Scoring Schemes group box of the Vendor Rating Parameters (tdpur0100m800) session are cleared, which means the objective scoring schemes are not used to convert objective values to rating percentages, a linear relationship exists between value and rating. Therefore, LN calculates the rating for each objective criteria as stated below.
-
Delivery Time
((Receipt date - current planned delivery date) / item lead time) * 100 -
Delivery Quantity
(Approved quantity / ordered quantity) * 100 -
Delivery Quality
((Approved quantity + rejected quantity for which the own company is responsible) / (approved quantity + rejected quantity)) * 100 -
Order Confirmation
100 - ((Order confirmation date - order date) / (planned delivery date - order date)) * 100 -
Cost Performance
(Purchase price / average purchase price) * 100
- If the Responsibility field in the Quarantine Inventory Disposition (whwmd2172m000) session is set to Own Company, the delivery quality rating is not negatively affected.
- If the average purchase price is 0, the cost performance rating will be 0.
- If any of the ratings above is greater than 100, the rating = 200 - rating.
- If any of the ratings above is smaller than 0, the rating = 0.