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Calculation of Vendor's score for On-time Delivery

Updated May 18, 2018

When calculating a vendor's score for on-time delivery, a score is calculated for each Goods Receipt, and saved in table S013. The scores for on-time delivery are filled in PWTT1 and PWTT2.

PWTT1: score for on-time delivery current period
PWTT2: score for on-time delivery cumulated & smoothed from all periods.

PWTT1 is based on calendar days, which means non-working days could also be included in the calculation. This score is determined based on the difference between the goods receipt posting date, and the statistical delivery date of the schedule line for the purchasing document item.

Please note that it is also possible to use a self-defined calendar for this process. In order to achieve this, you will need to maintain it in customizing for the Purchasing Organization Data for Vendor Evaluation - transaction OMGL.

EKBE-BUDAT - posting date from material document.
EKET-SLFDT - statistics-relevant delivery date.

When you are dealing with multiple schedule lines, the goods receipt is distributed among the schedule lines. You get one score per schedule line, based on the statistical delivery date. For more information about this process please check note 615456.

When the goods receipt is on-time, meaning that the posting date is equal to the statistical delivery date, the minimum quantity defined in customizing or in the material master will be checked. Whether this value for minimum quantity is taken from the material master or from customizing, depends on your settings for the Purchasing Organization in Table T147(transaction OMGL).

If the vendor has not delivered the minimum quantity, no score will be calculated for this delivery. This is so that a vendor doesn't get a good score, when they haven't delivered the required quantity. The system checks if each individual Goods Receipt reaches the minimum delivery quantity. If not, the system does NOT calculate a score for its on-time delivery performance.

We will, however, always calculate points  for the subcriteria on-time delivery when a goods receipt is not 'on-time'.

Partial Goods Receipts are calculated individually, even though they are posted against the same PO item. The quantities aren't cumulated for the comparison against the value in customizing. This is because the partial GRs would most likely have different posting dates, which need to be compared with the statistical delivery date in the PO individually.

The system selects the entry from the previous period in S013 when calculating PWTT2. This is a cumulative value.


PWTT1 is calculated as follows:

First the system checks if EKBE-BUDAT equals EKET-SLFDT. If yes, the minimum delivered quantity must be compared with the delivered quantity. If the quantity delivered is greater than or equal to this value, a score will be determined. Otherwise, no score will be determined.

To calculate a score, the system checks the difference between the statistical delivery date and the GR posting date in days.

Depending on customizing settings, this value for the difference in days between statistical delivery date and GR posting date, will be compared to one of the following values:


T405-WELFZ
Standardizing value for delivery time variance
Only when material number and when T147-WEKPZ(Indicator for min. deliv. qty./std. value del. time variance) are set.


T147-WELFZ
Standardizing value for delivery time variance


EKPO-ETFZ1
Firm zone (go-ahead for production)


When none of these, the difference between EKET-SLFDT and EKET-BEDAT will be used.

The value will be assigned to f2, and (unless this value is zero or less than zero), it will be used in the following formula to calculate a percentage:


f1 =  difference in days between posting date and statistical delivery date / f2 * 100.

The system looks in the customizing table T147K, finds the score assigned to this percentage, and assigns to PWTT1.
This is the score that will be smoothed on S013.

The period being updated is based on the Goods Receipt entry date. If there is already an entry in S013-PWTT1 for the same period, this value is included in the calculation, along with the smoothing factor defined in customizing for quantity deviation. The following formula is used forthe calculation, in the case that a value already exists in S013-PWTT1:

        s013-pwtt1 = s013-pwtt1 +
                    t147-LFABW * ( pwtt1 - s013-pwtt1 ).

S013-PWTT1 = existing score for the period
T147-LFABW = smoothing factor from the customizing
PWTT1 = Current goods receipt score

The system then selects the previous entry from S013 for the calculation of PWTT2. Again, this is a cumulative value, so we select from the period previous to the one we are updating.

The following formula is used to calculate PWTT2:
     PWTT2  = PWTT2 from previous period  +
              smoothing factor   *  (PWTT1 - PWTT2 from previous period)

If there exists a value in S013-PWTT2, there is no need to check the last period. It is already included in S013-PWTT2. In this case, the following formula will be used:

       s013-pwtt2 = s013-pwtt2 +
                    t147-lfabw * ( pwtt - s013-pwtt2 ).

If you try to run OLI3 for a new version, you have to remember that PWTT2 is a cumulative value. Therefore, if you have no last record, PWTT2 will be overwritten with what's calculated for PWTT1.


Comments

  • 29 Jan 2014 7:47 pm Beverly S. Dust

    What is the process for deciding what the Standard Delivery variance should be?  What is a real-world example of what that number in days means?


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