By Kevin R. Maromonte
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Extra resources for Corporate Strategic Business Sourcing
ASSESSING THE PERFORMANCE OF PRODUCTION SOURCES The next step in establishing a Strategic Business Source for production would require making on-site visits to assess performance of external sources, as well as conducting a review of performance levels of internal sources. The guidance in this section on assessing the performance levels of sources under consideration applies equally to internal departments and external suppliers of production services. The results obtained will be compared in the next step of the process.
The weighted scores for each of the potential production sources are then summed. 8 as entered at the base of the matrix. 96 multiplied by nine for the internal source). The weighted scores for the delivered product yield improvement trend, warranty expense, and warranty improvement trend are determined using the same approach. 5). The source with the highest summed weighted score is the best-performing production source for the quality performance criteria. 6, respectively. Since the selection of the optimal source needs to be based on performance levels for the criteria of delivery, cost, customer service, and product advancements, as well as quality, two additional SBS Performance Matrixes need to be prepared before selecting the Strategic Business Source.
At this point in developing a Strategic Business Source for production services, the products of the sources have been defined. Performance measurements for quality, delivery, cost, customer service, and product advancements have been determined. With these two steps completed, the sourcing company can proceed with performing an assessment of each source being considered for production services, and quantifying their individual performance in these five criteria. ASSESSING THE PERFORMANCE OF PRODUCTION SOURCES The next step in establishing a Strategic Business Source for production would require making on-site visits to assess performance of external sources, as well as conducting a review of performance levels of internal sources.
Corporate Strategic Business Sourcing by Kevin R. Maromonte