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Decision Matrix — Machined Housing Supplier Selection

A second-source decision for machined gearbox housings: quality PPM, on-time delivery and piece price measured from trailing data, with must-haves of at most 500 PPM and at least 92% on time. Suppliers C and D each fail one; Supplier B ranks first at 4.33 of 5, 1.48 ahead of the incumbent, and only raising the logistics-risk weight from 10% to 63.8% would reverse it. Illustrative values.

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Template previewDecision matrix (weighted / Pugh)
Supplier selection — machined aluminium gearbox housingsSupplier selection — machined aluminium gearbox housingsSecond-source decision after 12 months of incumbent data and three trial batchesWeighted scoringScale 1–57 criteria4 optionsBaseline: Supplier A · incumbentCRITERIONWEIGHTSupplier A ·incumbentBASELINESupplier BRECOMMENDEDSupplier CEXCLUDEDSupplier DEXCLUDEDQuality (defective PPM)measured, ppm · lower is better ·must ≤ 500 ppm25%420 ppmscore 2.9180 ppmscore 5+640 ppmscore 1−260 ppmscore 4.3+On-time deliverymeasured, % · must ≥ 92%20%93.5%score 2.697.2%score 5+95%score 3.6+91%score 1−Piece pricemeasured, £ · lower is better20%£38.4score 1£35.9score 2.9+£33.2score 5+£36.1score 2.8+Capacity headroom10%34+5+4+Engineering & PPAP support10%45+3−4Logistics risk (1 = low)lower is better10%12−4−3−Financial health5%443−5+Weighted scoreΣ weight × score, of 52.8557% of max4.3386.7% of max3.1262.3% of max3.1863.6% of maxvs baselinechange in weighted scorebaseline+1.485 better · 1 worse+0.273 better · 4 worse+0.334 better · 2 worseRankhighest score first2nd1stexcludedexcludedWeighted totalsEach bar is split into its criteria's weighted contributions (colours match the dots in the table); ranked best first.012345Supplier B4.3386.7%Supplier A · incumbent2.8557%Supplier C3.1262.3%excluded — fails a must-haveSupplier D3.1863.6%excluded — fails a must-havebaselineFINDINGS & SENSITIVITYROBUSTSupplier B ranks first at 4.33 of 5 (86.7%), 1.48 ahead of Supplier A · incumbent.Sensitivity (robust): Supplier A · incumbent draws level with Supplier B if the weight on “Logistics risk (1 = low)” rises from 10% to63.8% (+53.8 points), the other weights rescaled in proportion — the smallest single-weight change that changes the winner.No single score change within the 1–5 scale lets another option draw level with Supplier B.Against the baseline “Supplier A · incumbent”: Supplier B adds 1.48 points, better on 5 criteria and worse on 1 criterion.Supplier C is excluded — it fails a must-have (“Quality (defective PPM)” is 640 ppm, must be ≤ 500 ppm), so its total of 3.12 is notranked.Supplier D is excluded — it fails a must-have (“On-time delivery” is 91%, must be ≥ 92%), so its total of 3.18 is not ranked.“Financial health” does not separate the options — every option scores the same, so 5% of the weight changes no ranking.Illustrative data for fictional suppliers; PPM and on-time delivery are trailing 12-month figures.

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title "Supplier selection — machined aluminium gearbox housings"
subtitle "Second-source decision after 12 months of incumbent data and three trial batches"
baseline "Supplier A · incumbent"
note "Illustrative data for fictional suppliers; PPM and on-time delivery are trailing 12-month figures."

options "Supplier A · incumbent" | "Supplier B" | "Supplier C" | "Supplier D"

"Quality (defective PPM)"      weight 25 unit "ppm" lower must <= 500 : 420 180 640 260
"On-time delivery"             weight 20 unit "%" must >= 92          : 93.5 97.2 95.0 91.0
"Piece price"                  weight 20 unit "£" lower               : 38.40 35.90 33.20 36.10
"Capacity headroom"            weight 10                              : 3 4 5 4
"Engineering & PPAP support"   weight 10                              : 4 5 3 4
"Logistics risk (1 = low)"     weight 10 lower                        : 1 2 4 3
"Financial health"             weight 5                               : 4 4 3 5