Smoothing factor in Vendor evaluation

Hi,
I'm not able to understand the math underneath the "smoothing factor" used in vendor evaluation. Could someone throw some light in this?
thanks!

Hi
A score for a new goods receipt or the scores for a new service will change the existing scores for the current month.
The new individual score does not have the same significance as the previous composite score, because the latter was calculated from a number of individual scores. For this reason, the new individual score is given a lower weighting (that is to say, it is smoothed).
In carrying out this process, the system applies the relevant smoothing factors that you have defined for each individual score in Customising.
OMGL is the transaction to configure smoothing factor.
hope it helps.
regards
Srinivas

Similar Messages

Config Smoothing factor in vendor evaluation

Dear MM experts,
Please let me know where I can config smoothing factor of score in vendor evaluation!
Thanks!

Hi,
what do you mean by smoothing factor. Normally the primary criteria used for vendor evaluation is
1. Price
2. Quality
3. Delivery norms
4. Service
based on 4 above points the evaluation is reveiwed.

Smoothing factors for Vendor Evaluation for Services

Hi Team,
How to apply smoothing factors for Quality and Timeliness of services in External Services. Any help is appreciated.
Thanks
ANita.

Hi ,
I will try to explain with one example
Actually in vendor evaluation , we are going to get only one percentage say for a material A for example Qty reliability - smoothing factor is 0.20
Material A is ordered by so many purchase orders and many goods receipts are done in many times. Goods receipt is done 6 times till now and the score is 80% . Now GR is done for 7th time . If the qty reliability is 100 % for this GR
the score is calculated in the following way
80%0.8+100%0.2 --- this the score after the 7th goods receipt....
Hope now u understand .... If u still have queries please post your feedback...
If u are satisfied , please reward points
Regrads
Mani

Weighting factor for Vendor evaluation

Hi gurus
we have configured evaluation like Quality-50%, Delivery-25%, quantity-25%
for all vendors it is picking the same criteria but donno for one vendor calculation criteria is picking like Quality-66.7% and Delivery-33.3% and Quantity-0%
What would be the reason and why this is happening for only one vendor.and how to come out of this
Thanks in Advance.

and the note said:
1. Question:
Why is my purchase order not considered when calculating a score for quantity reliability?
Answer:
Only closed purchase orders will be considered, as long as they fall within your given time range.
A purchase order is closed if:
the goods receipt quantity is greater than or equal the po quantity.
the delivery complete flag is set in the purchase order.

Vendor Evaluation Smoothing Factor an average

Hi,
We are setting up Vendor Evaluation and would like the Delivery scores to be closer to a true average of all of the scores. We are having difficulty getting to that number. Is there a way to do it in SAP?
Thanks.
Beverly

Hi Beverly
Have a look at the following notes
459516 FAQ: Vendor evaluation
806834 Calculation of score for Quantity Reliability
and also the following documentation
Determining Scores - MM Vendor Evaluation - SAP Library

Performance in Vendor Evaluation (ME61)

Hi, I configured a new subcriteria (Complaints) in the Quality criteria, and after my job of Vendor Evaluation decreased the performance.
Is there any procedure to increase the performance?
Regards,
Anna Pinheiro

Dear Sachin,
You can go to SPROMM-Purchasing-Vendor evaluationMaintain P.Organization data .
Then select the P.Org , then go to point score for automatic criteria.
You also can maintain the smoothing factor , min delv.var,etc, Just double click(go to detail) when you select the p.org.
The percentage score is define as per business req.
Regards,
w1n

Delivery rating in vendor evaluation

Can I know on what logic system calculates the delivery rating, for schedule agreement which has more than one schedule lines.
Regards,
M.M

Dear Magesh,
This is for On time delivery:
===========================================================
At the time of a goods receipt against a purchase order, the system checks whether the delivery was on time or late:
GR date - delivery date = date variance
If the delivery was on time, the system checks whether a minimum delivery quantity is to be taken into account.
It checks the Minimum delivery quantity/standardizing value for delivery time variance from material indicator.
If the indicator has been selected, it checks whether a value has been maintained in the material master record.
If a value exists, it is used. If no value exists, the value from the Minimum delivery percentage field is used. If there no such value in this case either, goods receipts of fractions of the order quantity are included in the calculation of the score.
If the indicator has not been selected, the value from the Minimum delivery percentage field is used. If no value exists, goods receipts of fractions of the order quantity are included in the calculation of the score.
If the minimum delivery quantity is not reached, the system does not determine a score for the goods receipt.
If the minimum delivery quantity is reached and the delivery date adhered to, the variance is zero and the system awards the highest points score for the relevant goods receipt.
If the delivery is not on time, the system calculates the date variance in days and converts it into a percentage variance.
In the process, the system searches for the standardizing value as follows:
It checks the Minimum delivery quantity/standardizing value for delivery time variance from material indicator.
If the indicator has been selected, it checks whether a value has been maintained in the material master record.
If a value exists, it is used. If not, the value from the Standardizing value for delivery time variance field is used. If there is no such value in this case either, one of the following values is used:
in the case of goods receipts against scheduling agreement releases: the firm zone
in the case of goods receipts against purchase orders: the difference between the statistical delivery date and the order date
If the indicator has not been selected, the value from the Standardizing value for delivery time variance field is used. If there is no such value, one of the following values is used
in the case of goods receipts against scheduling agreement releases: the firm zone
in the case of goods receipts against purchase orders: the difference between the statistical delivery date and the order date
The system then awards the score you defined in Customizing for this percentage variance.
The new score is then included in the vendor's previous score for the subcriterion. To calculate the new score for the subcriterion from the already existing composite score and this new individual score, the system applies the smoothing factor Date variance defined in Customizing.
When you run a new evaluation, the system calculates the average of the individual scores for all materials. The result is the vendor's score for "On-Time Delivery Performance".
If a goods receipt covers several schedule lines, MM Vendor Evaluation performs this calculation for each schedule line.
This results in more than one score for the single goods receipt. Each of these scores is multiplied by the quantity delivered against the relevant schedule line and is thus weighted by quantity.
The sum of the weighted points scores is divided by the total goods receipt quantity. The result is the score for this one goods receipt.
The score for the goods receipt is smoothed and included in the existing score for on-time delivery performance for the vendor
Adherence to Conf. Date :
===========================================================
1. When a goods receipt is posted for an order item, the system checks whether open inbound deliveries exist for the order item, i.e. inbound deliveries for which no goods receipts have yet been recorded.
If open inbound deliveries exist, the system checks whether the date previously notified by the vendor has been adhered to or whether the goods receipt date differs from the date thus confirmed:
GR date - date confirmed by vendor in shipping notification = date variance
2. If the delivery was on time, the system checks whether a minimum delivery quantity has been defined in Customizing.
a. If you have not set a minimum delivery quantity, goods receipts representing partial deliveries will also be included in the calculation of the score.
b. If the minimum delivery quantity is not reached, the system does not determine a score for the goods receipt.
c. If the minimum delivery quantity is reached and the delivery is on time, the variance is zero. This means that the system awards the maximum score for the goods receipt.
3. If the delivery date is not in accordance with the notified one, the system calculates the date variance in days and converts it into a percentage variance.
4. The system then awards the score you defined in Customizing for this percentage variance.
5. The new score is then merged with the vendor's previous score for the subcriterion. To calculate the new score for the subcriterion from the already existing composite score and this new individual score, the system applies the smoothing factor On-time delivery performance/Timeliness of service provision (defined in Customizing for Vendor Evaluation under Purchasing organization data for Vendor Evaluation).
6. When you run a new evaluation, the system calculates the average of the individual scores for all materials. The result is the vendors score for adherence to the confirmation date.
If a goods receipt covers several schedule lines, MM Vendor Evaluation performs this calculation for each schedule line.
This results in more than one score for the single goods receipt. Each of these scores is multiplied by the quantity delivered against the relevant schedule line and is thus weighted by quantity.
The sum of the weighted points scores is divided by the total goods receipt quantity. The result is the score for this one goods receipt.
The score for the goods receipt is smoothed and merged with the existing score for adherence to the confirmation date for the vendor.
Regards,
w1n

Vendor evaluation - main criterion : Delivery ; Sub criterion : On time del

hi
We have following requirement related to Vendor evaluation - main criterion : Delivery ; Sub criterion : On time delivery
The requirement is:
Deliveries late by 7 days should be considered as on time.
pl suggest

Hi Chintu,
Thanks for ur reply.
scores i have configured for qty.variance as,
2     Qty. reliability                      100
2     Qty. reliability     5.0-              90
2     Qty. reliability     10.0-      80
2     Qty. reliability     20.0-      75
2     Qty. reliability     40.0-      50
2     Qty. reliability     50.0-      40
2     Qty. reliability     75.0-      20
2     Qty. reliability     80.0-        1
My dought is, For on on-time delivery we are not maintaining any smoothing factor right?
So, Which smoothing factor we should consider for on-time delivery?
I have maintained smoothing factor for
Timeliness service - .20
Quantity Reliability - .30
Shipping Instructions - .25.
Thanks in Advance.
Edited by: SAPr3.HELP on Nov 19, 2009 4:43 AM
Edited by: SAPr3.HELP on Nov 19, 2009 8:25 AM
Edited by: SAPr3.HELP on Dec 1, 2009 6:30 AM

Vendor Evaluation Parameters

Hi MM Experts,
How to calculate vendor evaluation score. and how to deside the persentage % of the purchasing organization parameters.
General Parameters , Parameters for Subcriteria. smoothing Factors.
can you
Thanks in Advance,
Anthyodaya.

Hi,
is it possible to do Vendor Evaluation for this case.. my client requirement is below.....
First, there are suppliers able to score (those having more that 20 order/year) and unable to score (less than 20 order lines per year)
Criterias :-
Leadtime      :       if delivery delayed or advanced more that 7 days
        Qty      :       10% or more variation in agreed qty
Reference     :       If the vendor sent a wrong material reference
   Quality      :        problem that leads to delay end customer agreed condition
   Various     :        other incident disturbing production
is it possibele to do this. can u pls explain me clear.
Regards,
Anthyodaya.
Edited by: anthyodaya Reddy Nagaram on Sep 6, 2010 3:45 PM

Vendor Evaluation formula

Dear All,
Kindly give me the vendor evaluation formula.
I have configured the vendor evaluation with the following weighting factors:
Price : 30%
Quality: 50%
Delivery : 20%
i want to know how it is calculating internally in SAP .i want the formula for thes
Regards
Kumar.

Hi,
please go through the following link. there is a document given by SAP.
COIN error during MB1A transaction code
this document explains all the formulae you are asking.
agian there are many threads which discuss about the various problems faced in this functionality and there you may find the explainations related to it with the formulaes.
regards,
Adwait Bachuwar

Vendor Evaluation in Background

Dear Gurus,
For vendor evaluation in Back ground, Do i need to maintain weight keys? then where can i see the output report once after running vendor evaluation in background.
Please advice
Thanks
RS

Dear,
Weighting Key is an identifier under which weighting factors for a number of main criteria can be grouped together and saved. If you know that you want to carry out an evaluation with certain main criteria and certain weighting factors, you can save this combination under a weighting key.
When you carry out the next vendor evaluation, just enter the relevant weighting key instead of entering a weighting factor for each individual criterion. The stardard two keys available are 01, 02.
If you do not have the weighting key, use the possible entries facility.
Next, in the background processing, usually evaluate vendors belonging to the same group (that is, vendors who have the weighting key). However, it is possible that you have selected an interval that contains different groups of vendors. For this reason, you may not enter a Weighting Key.
However the evaluation with weighting keys are preferred (basing on your organizations requirements and client performance, these may not be required). If you have enough time and interested to review the subject please have a look at: http://help.sap.com/printdocu/core/Print46c/EN/data/pdf/MMISVE/MMISVE.pdf?bcsi_scan_DAD819A53026B58E=0&bcsi_scan_filename=MMISVE.pdf
Regards,
Syed Hussain.

Weight Key in Vendor Evaluation

Hi all,
How the Weighting key in Vendor Evaluation is updating for Each Vendor?
If it is automatically Updating why ME6E is required?
regardds
Gibi Philip

hi,
Weighting Keys
A weighting key is an identifier under which the weighting factors for a number of main criteria can be grouped together and saved.
If you know that you will want to carry out an evaluation repeatedly with certain main criteria and certain weighting factors, you can save this combination under a weighting key.
When you carry out the next vendor evaluation, just enter the relevant weighting key instead of entering a weighting factor for each individual criterion. The system then automatically sets all the weighting factors.
There are two possible types of weighting key in the standard system:
Key 01
Key 02
Key 01 permits the equal weighting of all criteria.
Key 02 enables you to evaluate vendors supplying small parts, for example.
The weighting factors under this key are distributed as follows:
Price 5
Quality 3
Delivery 2
Gen. service/support 1
External service provision 2
Hope it explains you the importance ...
Regards
Priyanka.P
AWARD IF HELPFULL

Vendor Evaluation implementation

Dear Buddies
This has reference to the subject matter, we needs to implement the Vendor Evaluation in SAP, being an Audit Requirement.
We needs to fix the following parameters for the same:
"QUOTE"
CRITERIA FOR VENDOR RATING
                    W1xQr + W2xDr + W3xSr + W4xAr
Vendor Rating (VRML) =     -
                              100
     Where      Rating          Weightage          To be rated by
     Quality (Qr)          W1 = 50          Unit Mat Deptt/ Stores
     Delivery (Dr)          W2 = 30          Unit Mat Deptt/Stores
     Service (Sr)          W3 = 10          Purchase Department
     Adaptability (Ar)          W4 = 10          Purchase Department
     1)      QUALITY RATING (Qr)      =     (Q1 + Q2 x 0.8 + Q3 x 0.5 + Q4 x 0)
                                             Q
          Where   Q =      Q1 + Q2 + Q3 + Q4
               Q1 =     Quantity Accepted
               Q2 =     Quantity accepted with Deviation (Demerit Factor = 0.8)
               Q3 =     Quantity accepted after rework (Demerit Factor = 0.5)
               Q4 =     Quantity Rejected
     2)     DELIVERY RATING (Dr)      =      Q1 x 100
                                         Q
          Where   Q =      Total consignments delivered
                          Q1 =     Consignments delivered in Time
3)     SERVICE RATING (Sr)
           To be given on a scale of 1 to 10 (10 being the Very Good Service,
           Response Time, both Pre- Sales and After-Sales. e.g. 7 point = 70%).
4)     ADAPTABILITY TO CHANGES & IMPROVEMENT (Ar)
           To be given on a scale of 1 to 10 (10 being the Proactive in Improving the      Product &   Service, Very much Adaptable to Changes. e.g. 7 point = 70%).
VENDOR RATING GRADES
          A     100 u2013 80 %
          B     79 u2013 70 %
          C     69 u2013 60 %
          D     < 60 %
I just aware where we can do the configurations. But not understanding how to put the scores, weight ?

Dear Friends
Can you explain how to calculate this things thro VE implementation ? Where i can mention in configurations to calculate the these ratings?
QUALITY RATING (Qr)      =     (Q1 + Q2 x 0.8 + Q3 x 0.5 + Q4 x 0)/ Q
Where   Q =      Q1 + Q2 + Q3 + Q4
               Q1 =     Quantity Accepted
               Q2 =     Quantity accepted with Deviation (Demerit Factor = 0.8)
               Q3 =     Quantity accepted after rework (Demerit Factor = 0.5)
               Q4 =     Quantity Rejected
DELIVERY RATING (Dr)      =      Q1 x 100 /    Q
          Where   Q =      Total consignments delivered
                          Q1 =     Consignments delivered in Time
There after only I can do the these ratings weighing %. Please help me out

Vendor Evaluation With Non Standard Main and Sub Criteria

Hi Gurus
I have a requirement wherein I have to evaluate a vendor on non stanadard Main Criterias like
1. Productivity with sub criteria as Receipt / Excepected Yield, for which I have used Scoring method 2
2.Quality Standards with Sub Criteria,- Germination (%),Genitic Purity % , Field level flags, for which i have used scoring method 7 by activating user exit- MM06L001
3.Raw Seed to Clean Seed ratio, with the same sub criteria and with the above scoring method and user exit.
The weightages given to the above three are 40 , 35 and 25 respectively.
Can you please tell me how to calculate the values for subcriterias( for example for my main criteria 2. i want to assign the weightaghes for sub criterias - Germination - 50 , Genitic Purity %- 30, & Field level flags - 20, . along with smoothin factors.
I want to automise the whole process and run the evaluation in the background.
An early reply will be very helpful to me.
thanks and regards
Ashok Kumar Pitla

T147 - Control table for vendor evaluation
T147A - Definition for main criteria
T147B - Text for main criteria
T147C - Definition for sub-criteria
T147D - Text for sub-criteria
T147E - Definition of weighting keys
T147F - Description of weighting keys
T147G - Main criteria
T147H - Interval for delivery time statistics
T147I - Definition of sub-criteria for the main criteria
T147J - Weighting keys
T147K - Assignment: Percentage X Score
T147L - Intervals for quantity reliability
T147M - Definition of scope of list
T147N - Text for scope of list
T147O - Scope of List
T027A - is the table for defining shipping instructions
T027C - specifies the points scores for compliance

Vendor Evaluation-- Points and Scores

Dear Gurus,
On what basis are the scores assigned for the percentage that is assigned. For Eg. what do you mean by the following:
Percentage   Score
20.0-        10
10.0-        65
2.0-       100
2.0        100
10.0         50
what does 20.0- mean and how is a score of 10 assigned to the same.same is the case for all the entries.
Kindly explain me the entire process as to what does this percentage mean. Assume that we are evaluating the vendor based on Price.

Hi,
The system calculates the scores for vendor evaluation as follows.
Calculating the Overall Score
The system derives the overall score from the scores for the various main criteria, taking the
weighting factors assigned by Purchasing in the system settings for each main criterion into
account.
The following example explains this process:
Example
The table below shows the scores for a vendor and their weighting factors:
Main criterion Score Weighting factor
Price 70 40
Quality 85 25
Delivery 50 10
General service/support 50 5
Converting Weighting Factors into Percentages
To make the weighting factors clearer to the user, the system converts them into percentages.
1. The system adds the factors together and equates the total with 100 %:
40 + 25 + 10 + 5 = 80 equals 100 %
2. To express the individual weighting factors as percentages of 100%, the system first divides
100% by the sum of the weighting factors:
100 / 80 = 1.25 %
3. Then the system multiplies the weighting factors the buyer assigned to the main criteria by
this figure:
40 x 1.25 = 50.00 %
25 x 1.25 = 31.25 %
10 x 1.25 = 12.50 %
5 x 1.25 = 6.25 %
4. The following are the results of percentage of overall score
Main criterion Score Percentage of overall score
Price 70 50.00 %
Quality 85 31.25 %
Delivery 50 12.50 %
General service/support 50 6.25 %
However, internally, the system uses the weighting factors to compute the overall score.
1. The scores for the main criteria are multiplied by their weighting factors.
70 x 40 = 2800 points
85 x 25 = 2125 points
50 x 10 = 500 points
50 x 5 = 250 points
2. Total points = 5675.
3. This total is divided by the sum of the weighting factors:
5675 / 80 = 70.94 points
The vendor is awarded an overall score of 71 points
Please go though this link for clear understanding.
http://help.sap.com/printdocu/core/Print46c/en/data/pdf/MMISVE/MMISVE.pdf
Regards,
Manik

Smoothing factor in Vendor evaluation

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