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Supplier Quality Management - Coggle Diagram
Supplier Quality
Management
Key Principles of TQM
Define quality in terms of customers
and their requirements
Nonconforming supplier quality
Reason:
inconsistent communication
resultant misunderstanding
specifications, expectations, and
requirements within supply chain.
Solution:
Develop Clarity
Need for clear specifications and unambiguous performance requirements
Buyer’s effectively
communicate these requirements
Sharing of final product requirements Purchasing & Supply Chain Management,
Clearly define, quantify, or specify its technical and sourcing
requirements
Deming’s 14 Points
Summary
Variation - primary source of quality nonconformance
to reduce: search for improved quality
a never-ending cycle
Design
Production
Delivery
all by survey customers.
=> Starting all over again
Ultimate responsibility for quality
improvement
senior management
Interacting parts of system
managed together as a whole
Psychology
helps manager understand
employees
customers
interactions between people
Intrinsic motivation
more powerful
Predictions ( grounded in theory)
Understand cause-andeffect relationships
14 things:
Create a vision and demonstrate
commitment
Learn the new philosophy
Understand inspection
Stop making decisions purely on the
basis of price
Improve constantly and forever
Institute training
Institute leadership
Drive out fear
Optimize the efforts of teams
Eliminate exhortations
Eliminate numerical quotas and
measurement by objective
Remover barriers to pride in
workmanship
Encourage education and selfimprovement
Take action
Pursue quality at the source
Evaluate key value-adding points in
process (e defects could occur,)
Early supplier design involvement (ESDI)
chất lượng và thiết kế sản phẩm tốt hơn vì kiến thức và kinh nghiệm của nhà cung cấp được tham gia vào quá trình phát triển ban đầu của dự án.
Issue of sharing proprietary
information
Stress objective rather than subjective
analysis
Objective Measurement
Make decisions on facts, not feelings
Rigorous supplier measurement system
Develop a preferred supplier list
Award future business
Identify continuous improvement
opportunities
Provide feedback
support corrective
action
future development
Emphasize prevention rather than
detection of defects
Prevention of Defects
Need for predictable consistency
Reduce reliance on appraisal,
inspection, and detection activities
Non-value-adding activities
Supplier certification program
Use of corrective action requests
Focus on process rather than output
Move from
product orientation
process orientation
Quality process
quality output
Supplier
provide ongoing
evidence
process capability
Structured, companywide
supplier
evaluation
selection system
Focusing on Sample Inspections
What supplier would knowingly submit
a poor sample?
How many parts did supplier produce
to get an acceptable sample?
Are samples representative of process
operating under normal conditions?
Did supplier use same process,methods, personnel, and materials that will be used in normal production?
Did supplier or subcontractor actually
produce the sample?
Do samples give enough evidence of
real capacity or process capability?
Basics of Process Capability
process
generate outputs
that meet engineering specifications
customer requirements
Output
fall between stated
upper/lower specification limits
No special causes of variation present
99.7% of all output
falls between ± 3
standard deviations
process mean
Stable process, in statistical control
be expected to produce virtually all
Process’s natural limits
must fall within
specification limits to be capable
Process Capability Study Information
Determine
operating baseline of a
process
Prioritize potential quality improvement
projects
Provide evidence of process
performance to a customer
Strive for zero defects
Conformance to requirements (Crosby)
Key performance metrics to identify
improvement opportunities
Supply base rationalization and
optimization
Cost of Quality
Really
cost of “poor” quality
Often aggregated
into overhead
accounts
Impact
Costs of nonconformance
Costs of improvement and avoidance of poor quality
Highly complex issue
Appraisal costs
Direct costs of measuring quality
Failure costs
Internal – occur before product or service
is provided to customer
External – occur following production or
after customer takes possession
Prevention costs
Keep defects from occurring
Appraisal Cost Examples
Laboratory testing
prototypes and
samples
Production inspection activities
Supplier quality audits
Incoming material inspections
Other forms of product monitoring
Internal Failure Cost Examples
Process troubleshooting
Re-inspection following detection
defects
Production downtime
caused by
defects, scrap, and process waste
External Failure Cost Examples
Warranty costs
Replacement of defective products
Product liability lawsuits
Loss of customer goodwill
The Seven Wastes
Establish continuous improvement as
way of life
Value analysis/value engineering
(VA/VE)
Supplier development
Supply base rationalization
and optimization
Supplier incentive and reward systems
Make quality everyone’s responsibility
Aligned vision and goals
Physical co-location
suppliers
Executive-level buyer-supplier councils
Shared technologies
Joint projects
More collaborative buyer-supplier
relationships
Pursuing Six Sigma Quality
Proven
quality principles
techniques
Virtually error-free performance
Increasing customer expectations
Focus on
defect prevention
cycle time
reduction
cost savings
Use of Six Sigma Black Belts
Using ISO and MBNQA Criteria
ISO 9000:2008
Originally developed in European
Common Market in 1987
Updated in 1994, 2000, and 2008
Third-party registration process
Quality management system (QMS)
ISO 14000:2004
Established in 1993 to promote
environmental awareness
protection as well as pollution
prevention
Used to analyze supplier’s ability
proactively manage its environmental impact, sustainability, and carbon
Helps develop firm’s environmental
management system (EMS)
The Malcolm Baldrige National
Quality Award
Competition established in 1987
May take 8 – 10 years to adequately
prepare competitive quality system
be awarded
