This section explains how the system calculates the score for the automatic subcriterion Complaints/Rejection Level.

The score for the subcriterion Complaints/Rejection Level is computed by the SAP component QM Quality Management and passed on to the MM Vendor Evaluation component.

If the scale for the key quality data in the QM system does correspond to the scoring range in Vendor Evaluation, the Vendor Evaluation system converts the QM data for use in the Vendor Evaluation scoring system.

The score is calculated as follows:

1. On the shop-floor, material A supplied by vendor ACME is being processed in the course of production.
2. If the material is OK (that is to say, no quality notifications have been entered for material A during the entire validity period), the vendor is awarded the highest score for the material (100 points).
3. If the material is found to be defective, a quality notification (such as a rejection note or nonconformance complaint sent to the vendor) is entered.
4. During the vendor evaluation process, the system checks whether the costs associated with the faulty delivery exceed the maximum percentage of business volume defined in the Customizing system.

In the above example, your business volume with (value of purchases from) ACME amounts to one million dollars annually. The costs associated with defective deliveries may not exceed 0.1 percent of business volume, i.e. $100,000. The costs associated with a quality notification are estimated at $500.

5. If the costs that your company incurs as a result of the faulty materials are lower than the defined proportion of business volume, the system calculates a score between 1 and 99 points.

To do this, the system multiplies your annual business volume with the vendor ($1,000,000) by the parameter Business volume share (0.1).

The number of accumulated quality notifications (10 in all) multiplied by the cost of each notification ($ 500) is subtracted from this.

The result is divided by the annual business volume multiplied by the proportion of business volume.

The result of this is a factor which, multiplied by a hundred, gives a percentage.

This percentage indicates the quality provided by the vendor in relation to the particular material. The value 95% in the above example means that complaints or rejections involving the vendor ACME only resulted in 5% of the maximum costs allowed, i.e. the quality is very good.

Note on Scoring Range and Conversion QM - MM:
Since the minimum points score that can be obtained is not 0 (0 means "not evaluated") but 1, only 99 points are available in the range 1 to 100.

This is why the system works out how many points out of 99 the value 95% corresponds to.
The result is 94 points.

Since the bottom of the scoring range has been moved up by one point (1 point is the worst score not 0), the system adds on 1 point.

ACME therefore achieves a score of 95 points for the subcriterion Complaints/Rejection Level for material A.

6. If the cost of defective or non-conforming deliveries exceeds the share of business volume defined in Customizing (in this case $100,000), the vendor is awarded the lowest score (1 point).