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General Description |
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Purchasing consists of :Process EffectivenessProcess ComformityProcess Productivity |
| Index vs Target Reference Table |
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| Indexes are used in order to compare with target set | Calculations |
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Process Effectiveness - Payment On Time Index
| Using ponderation as 75% for payment on time and late posting as 25%, the Aug 2019:Payment on Time (Volume) - 89%
Late Posting - 4.5%
We can see that 89% Payment on Time will fall under the score of 2 and 4.5% late posting will have score of 3. With that, the result will be (2 x 75%) + (3 x 25%) = 1.5 + 0.75 = 2.25 |
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