Formulae for calculating Vendor Rating

1. For calculating Quality based rating

Quality Rating for a Purchase Order = Qa/Qs

Where:  Qa= Quantity Accepted
               Qs= Total Quantity Accepted + Total Quantity Rejected by RITES or other 
                        Inspecting Official + Total Quantity Rejected at Depot

2. For calculating Delivery based rating

Delivery Rating for a Purchase Order = ( Qt + ?Qd(1-K * (Td/Tg)) / Qo

Where:  Qo  = Quantity Ordered
               Tg  = Time given (Original Delivery Period – Purchase Order Date)
               Td  = Time Delay (Material receipt date - Original Delivery Period)
               Qt   = Quantity supplied in time
               Qd  = Quantity Delayed
               K    = Constant = 2

3. The following is the criteria for a Purchase Order to qualify for Vendor Rating

i.   The original Delivery Period of the Purchase Order has expired or
ii.   If the original Delivery Period is live , then 95% of the ordered quantity has been supplied
iii.  Purchase Orders cancelled on administrative grounds are not considered for Vendor Rating.

4. The following criteria are also taken into account while calculating Vendor Rating.

i.    If the Quality rating for a Purchase Order is below 50%, then the total rating for that Purchase
      Order is taken as zero.
ii.   For Purchase Orders where accepted quantity is less than 50% of ordered quantity , quality
      ratingfor such Purchase Order is zero.
iii.  For material accepted on improvement advice the accepted quantity is taken as 75% of the
      accepted quantity.
iv.  Material accepted on condonation will be treated as rejected.
v.   Material which has been reoffered after rejection and thereafter passed through segregation will
      be treated as rejected.
vi.  If material after issue to shop is returned to depots with Non Conformity Report and depot issues
      a rejection advice, the originally accepted quantity is treated as rejected.