Question : 1) The first step in the process of designing and : 2065975

1) The first step in the process of designing and implementing a supplier scorecard is to develop the performance measures.

2) The final step in the process of designing and implementing a supplier scorecard is to educate the supplier on performance measures and implications.

3) A supplier scorecard is used for price negotiations with the supplier.

Use the information below to answer the following question(s).

An automotive manufacturer procures an important engine part. The tool that the manufacturer uses to monitor the part supplier is a supplier scorecard. With respect to part quality, two primary performance metrics monitored are parts per million (PPM) defects and percent PPM improvement. The following measures are used for the scoring criteria:

 

PPM Defect Rate	Scorecard Points
0-100	30
100-200	20
200-300	10
>300	0

 

Percent PPM improvement	Scorecard Points
75-100	15
50-74	10
25-49	5
<25	0

 

Data collected on the supplied part over the present quarter indicated 15 defects with 325,000 parts received. The PPM defect rate in the prior quarter was 73.

4) What is the PPM defect rate for this quarter?

A) 15

B) 30

C) 46

D) 75

5) What are the scorecard points received by this supplier for the PPM defect rate in this quarter?

A) 0

B) 10

C) 20

D) 30