Metric Measurement Types

Use the Contract Agreement Definition Page to define agreement codes with metrics. You select to measure the performance against a contract agreement using a metric-based result type. When you select this type, the Metric ID field becomes available on the Update Agreement Statuses Page and you can select the type of metric to which you want to measure performance against negotiated terms of a contract at the header level.

Note:

You cannot set up line-level agreements for use with metrics.

The example below describes how on-time quality performance measurement is calculated. All other metrics use the same concept.

Example: On-Time Quantity Performance Measurement

This measurement measures the percentage and actual number of shipments that are on time, early, and late for all items within a period, which is captured in PeopleSoft Purchasing when items are received. The system displays the percentage on-time metric, supplier name, and target percentages by period.

Note:

The Warning Performance check box is on the Details tab of the Agreement Notification Page and the Verification Method is defined on the Contract Agreement Definition Page.

To calculate the performance, the system:

  1. Retrieves the actual on-time quantity percentage from procurement history.

  2. Calculates the on-time warning-performance percentage by subtracting the tolerance-performance percentage from the negotiated on-time percentage.

    For example, if the negotiated on-time percentage is 90 percent and the performance-tolerance percentage is five percent, then the on-time warning performance percentage is 85 percent. Other calculations include:

    • If the actual on-time quantity percentage is greater than or equal to the on-time warning performance percentage and less than or equal to the negotiated on-time percentage, then the warning-performance notification condition is met for the contract agreement.

    • If the actual on-time quantity percentage is less than the on-time warning performance percentage, then the unacceptable-performance condition is met for the contract agreement.

    • If the warning-performance notification condition is met for the contract agreement and the Warning Performance check box is selected for the verification step with System as the verification method, then the system issues a warning notification.

    • If the unacceptable-performance notification condition is met for the contract agreement and the Unacceptable Performance check box is selected for the verification step with System as the verification method, then the system issues an unacceptable notification.