Supplier Rework Rate
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Category:  
Operational

Measures the percentage of goods received from a supplier that require rework or corrections due to quality issues.

What it Measures ?

Measures how many supplier materials need fixing.

Relevant StakeHolders 

Quality Assurance, Vendor Teams

In-depth Use Case / Real-world Example

A company manufacturing HVAC systems calculates Supplier Rework Rate by tracking how many parts from a supplier require rework due to defects or non-compliance with quality standards. For example, if the company receives 1000 components and 50 need rework, the Supplier Rework Rate is 5%. This metric helps identify suppliers with quality issues and ensures that defective parts do not disrupt production.

KPI Definition

Business Value

Movement Direction

Sample Formula

Defective Materials / Total Delivered Materials

Should Aim For
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