Question

Construct a vendor qualification matrix with concerns for the following new product. For measures and qualification characteristics for this matrix: Add a weight to each section.

1.) You are sourcing a part for auto parts vendor to a major automobile manufacturer. The part you are supplying are the automobile wheels, which come in standard sizes, and are from the US so use the English System of measurement in inches (17,18,19,20) However the vendors use the metric system. The sourcing has been decided to be in the EU for market facing directions.

2.) The wheels are made of aluminum and are a special lightweight alloy, so particular attention has to be given to the control and quality procedures surrounding the metal itself. The metal casting process has to have controls over any kind of defect and traceability in detecting defects by the vendor.

3.) When the wheel is machined after casting the aluminum alloy, the tolerances for machining are very high and require a one hundred percent finished wheel inspection process

4.) The volume for this product is low at first with an expected increase in volume by 25% per year over the next five years. There will be several setups for the wheels. There are three different styles and 4 different sizes (17-20).  

5.) The distribution of the product will have six auto assembly plants in Europe, and one in Japan. The plant in Japan will require container shipments every 4-6 weeks depending on shipping schedules and the freight forwarder used.  

6.) The ability to ship to these locations will require the vendor to have export compliance and experience in shipping regulations to Europe, and Japan.

7.) Packaging Specifications are modified depending on the transport and special care and handling will be needed to transport overseas.

You should have Categories and Sub categories:

Quality, Reliability, Delivery, Cost, Reliability, Risk, Capability, Financial, Sustainability, Desirable (Nice to Have) qualities, Transportation, Labor/Human Resources, Inventory, Security and Information Technology.

Under those you can have sub categories:

Which have Measures/Metrics or procedures to verify the vendor has in place. But make sure the measures or procedures fit in the categories! You can get creative with this as long as the measures apply , and are relative.

Answer 1

Vendor Qualification Matrix:

Categories	Measures/Metrics	Weightage
Quality	NO. of defects in 1 Milion wheels of aluminum and the special lightweight alloy used	4
NO. of defects in 1 Milion of Finished Goods	3
NO. of defects in 1 Milion of Packaging Material	3
Reliability	Trade Agreements with Top 10 Automobile Manufacturers	10
Delivery	No of Years of experience in Delevring in Europe and Japan Markets and export compliance as desired	10
Cost	Cost Per Product	10
Risk	100% Inspection and Zero Tollorance	10
Capability	Production Capscity to deliver the order of three different styles and 4 different sizes (17-20) and expected increase in volume by 25% per year over the next five years.	10
Financials (Audited)	Revenues (50 times the consignment value /Year for the last 5 Years)	3
10% Profitability	3
Positive New Worth	4
Sustainability	Long Term Business Plan and Financial Plan of the Company certified by authorized agency	5
Transportation	Ability of deliver in 4-6 weeks to Japan and as required by plants in Europe	5
Labour/Human Resources	10 Years of Average Experience in handling similar orders	5
Inventory	5 Times the inventory carrying capasity of order size	5
Security	Less than 10 incidents of security lapses for the last five years & their reasons	5
Information Technology	Usage of advanced Technology in all process	5
	Total	100