Supplier Quality Management
(Chapter 8)
Over view of supplier quality manageent
What is Supplier Quality ?
Ability to meet or exceed
Current and future expectation or requirements
Critical performance on a consistent basis
Why be concerned with Suplier Quality ?
Supplier impact on quality
Continuos improvement requirements
Outsourcing of purchase requirements
Factors afecting supply management role in managing supplier quality
Ability of supplier to affect buyer’s total
quality
Internal resources available to support supplier
Ability of buyer to practice world- class quality
Supplier’s willingness to work jointly to improve quality
Supplier’s current quality levels
Buyer’s ability to collect and analyze quality-related data
Supplier quality management using a total quality management perspective
Define quality in terms of customers and their requirements
Pursue quality at the source
Stress objective rather than subjective analysis
Emphasize prevention rather than detection of defects
Focus on process rather than output
Strive for zero defects
Establish continuous improvement as way of life
Make quality everyone’s responsibility
14 Points
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
Evaluate key value-adding points in process where defects could occur,
Product and process design
Issue of sharing proprietary information
Make decisions on facts, not feelings
Rigorous supplier measurement system
Develop a preferred supplier list
Need for predictable consistency and reduced process variation
Reduce reliance on appraisal, inspection, and detection activities
Supplier certification program
Use of corrective action requests
Move from product orientation to process orientation
Quality process -> quality output
Supplier must provide ongoing evidence of process capability
Structured, companywide supplier evaluation and selection system
Conformance to requirements
Key performance metrics to identify improvement opportunities
Supply base rationalization and optimization
Cost of quality
The Seven Wastes
Appraisal costs
Failure costs
Prevention costs
Direct costs of measuring quality
Internal – occur before product or service is provided to customer
External – occur following production or after customer takes possession
Keep defects from occurring
Idle time
Delivery
Inventory
Wasted operator motion
Waste from rejected parts
Over-production
Waste in the work itself
Value analysis/value engineering
Supplier development
Supply base rationalization and optimization
Supplier incentive and reward systems
Aligned vision and goals
Physical co-location with suppliers
Executive-level buyer-supplier councils
Shared technologies
Joint projects
More collaborative buyer-supplier
relationships
Pursuing Six Sigma supplier quality
Proven quality principles and techniques
Virtually error-free performance
Increasing customer expectations
Focus on defect prevention, cycle time reduction, and cost savings
Use of Six Sigma Black Belts
The DMAIC Model
Define
Measure
Analyze
Improve
Control
Improvement activity and goals
Existing system, establish metrics, and identify performance baseline
System and develop causal hypotheses
Develop ideas, test solutions, and implement new process, structure, and system
Establish standard measures and procedures to ensure new system stays in control
Using ISO standards and MBNQA criterria to asess supplier quality systems
ISO 9000:2008
ISO 14000:2004
Malcolm Baldrige National Quality Award
Originally developed in European Common Market in 1987
Third-party registration process
Internationally accepted and recognized process quality standards, not product standards
Main Sections of ISO 9000:2008
Quality management system
Management responsibility
Resource management
Product realization
Measurement, analysis, and improvement
Eight Principles of ISO 9000:2008
Customer focus
Leadership
Involvement of people
Process approach
Systems approach to management
Continual improvement
Factual approachnto decision making
Mutually beneficial supplier relationships
Benefits of ISO 9000:2008
Buyers have immediate confirmation of supplier’s registration
May substitute for variety of individual buyer certification programs
Included on master list of certified firms and may garner additional business
Helps address ANSI standards
Established in 1993 to promote environmental awareness and protection
Benefits of ISO 14000:2004
Fewer pollutants generated
Reduced liability
Improved regulatory compliance
Better public and community relations
Lowered insurance premiums
Enhanced profitability through
Improved resource management
Reduced waste generation
Leadership
Strategic planning
Customer focus
Measurement, analysis, and knowledge management
Workforce focus
Operations focus
Results
Basic contents of a supplier quality manual
Quality control and process management procedures
Metrics and measurement protocols
Testing and acceptance procedures, definitions, and documentation control
Basic responsibilities of both buyer and supplier
Minimum process required for supplier regarding …
Inspections
Use of statistical process control
Continuous improvement
Testing
Sample evaluations
Performance improvement
Description of supplier selection and evaluation process
Conduct of buyer audits
Description of buyer’s quality improvement programs and activities
Copies of relevant forms along with instructions
Description of process capability study process
How to handle and/or store nonconforming products
Description of claims process
How to develop and submit corrective action plans
Supplier certification process
click to edit