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General Description

Purchasing consists of :
Process Effectiveness
Process Comformity
Process Productivity


Index vs Target Reference Table


Indexes are used in order to compare with target setCalculations
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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