Chapter 8: Supplier Quality Management

Factors Affecting Supply
Management’s Role

Ability of buyer to practice world-class quality

Supplier's willingness to work jointly to improve quality

Internal resources available to support ongoing supplier quality management and improve

Supplier's current quality level

Ability of supplier to affect buyer’s total quality

Buyer's ability to collect and analyze quality-related data

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Key principles of TQM

Make quality everyone's responsibility

Establish continuous improvement as way of life

Strive for zero defects

Focus on proces rather than out put

Emphasize prevention rather than detection of defects

Define quality in term of customers and their requirement

Stress objective rather than subjective analysis

Pursue quality at the source

6 sigma quality

1 sigma

2 sigma

3 sigma

4 sigma

5 sigma

6 sigma (3.4 defected per million opportunities)

The seven waste

Waste from rejected parts

Wasted operator motion

Delivery

Idle time

Waste in work itself

Over-production

Inventory

The DMAIC Model

Define

Measure

Analyze

Improve

Control

The Cost of Quality

Appraisal costs

Direct costs of measuring quality

Failure costs

Internal

Occur before product or service is provided to customer

External

Occur following production of after customer takes possession

Prevention cost

Keep defects from occuring