Class 16 - Supplier Quality Management Flashcards
(23 cards)
What makes a bad supplier?
Product defects;
Lacking communication;
Poor customer service;
Late deliveries
Quality can focus on:
- Output (a good part);
- WIP (scrap cost, rework cost, latent defects);
- Quality system (TQM: monitoring and controlling the escape process);
- Business processes and systems: manufacturing, logistics, engineering, services
Why concern over supplier quality?
Suppliers account for about 50% of quality issues;
Continuous improvement is critical to going-forward entities (goodwill);
Growing outsourcing requirements place greater emphasis on suppliers:
- Increasing number of parts (moving from make to buy)
- Black box design
- Entire products
- Latent defects: deeper and more complex
*Buyers pay in both higher prices and total cost; are only as strong as their weakest link.
Quality Definition
- Understanding and assisting in customer objectives;
- Ability to meet current and future customers expectations or requirements:
- Give what I mean (in addition to what I say)
- Durability;
- Future Orders; - Consistently within critical performance areas:
- Deliveries;
- Conformance (specification)
- After-sale service
- Technology and features
- Total cost management
Critical to Quality (CTQ)
An attribute of a product or process that has a significant impact on its actual or perceived quality
Turnback Pareto Analysis
- Problem identification, prioritization, and selection;
- Collect turnback/escape data (welcome every turnback as a Treasure) - not blaming the issue on one person, but rather approaching it collaboratively to fix the issue together;
- With data that can be internally and externally generated, you can analyze and prioritize mistake proofing initiatives
Three Basic Degrees of Escapes
Class 1: Detected entering Buyer Facility;
Class 2: Detected in Facility WIP;
Class 3: Detected at Customer;
Financial Impact of Poor Quality 10x Cost of Escapes
As defects are found later in process, the cost grows 10x at each step: $1 > Own process $10 > Next process $100 > End-of-line $1000 > Final Inspection $10,000 > Final Customer
Total Quality Management
Total: Everyone; Quality: Definition (in the customer's eyes); Management: Function - Plan - Organize - Control - Lead - Staff
8 Key Principles of TQM
- Define quality in terms of customers and their requirements;
- Pursue quality at the source, where value-add occurs;
- Stress objective rather than subjective analysis;
- Emphasize prevention rather than detection of defects;
- Focus on process rather than output (does not work on one-time customized items);
- Strive for zero defects;
- Establish continuous improvement as a way of life;
- Make quality everyone’s responsibility
Supplier Quality Escapes
If a supplier is at fault, there are three different options based on situation:
- Return to supplier for new part (if schedule permits);
- Repair yourself;
- Accept-as-Is: Special approval required,
- Quality
- Engineering
- Potentially customer too;
Quality Escape Process
General process when “bad parts” detected to Buyer’s Facility:
- Parts moved and secured in quality area;
- Greater population evaluated to determine total extent of exposure: supplier/raw material/WIP/FG/shipped to customer;
- Quality Assurance determines who is responsible (buyer does not determine):
- Supplier
- Assembly floor/materials
- Engineering - Root Cause and Corrective Action (RCCA) Plan required and tracked to completion by QA;
ROOT CAUSE and Corrective Action (RCCA)
Rapid and persistent pursuit of the fundamental breakdown or failure of the process that, when resolved, prevents a recurrence of the problem.
Root Cause and CORRECTIVE ACTION (RCCA)
Corrective Actions (Mistake Proofing):
- Level 1: Prevent an error from occurring at the source; ultimate fix
- Level 2: Detected error as it is being made;
- Level 3: Prevent defect from reaching the next operation
- Level 2 & 3 are still waste
- Cannot blame human error, need to eliminate it.
- Training and labels are not mistake proofing
5 Why’s for Determining Root Cause
A questioning technique for getting beyond symptoms and uncovering root causes.
E.g.
Problem: Flat Tire in Garage
1. Why > Nails on the floor, swept up nails;
2. Why > Box on shelf split;
3. Why > Box got wet;
4. Why > Rain through hole on roof;
5. Why > Roof 30-years old (rain happens)
6-Sigma
A quality system
Core is data-driven statistical analysis concerning variation
Combines Lean Tools with power of quantitative analysis
Focuses on:
- Defect prevention;
- Cycle time reduction;
- Cost savings
3 to 4 sigma was a performance norm that creates between 6200 to 67000 problems per million opportunities > 15-40% of revenue is spent fixing problems
6-sigma performance:
- 3.4 defects per million (allows drifts)
- Less than 5% of revenue spent to fix problems
International Standards Organization (ISO) 9000
A family of standards for QMS:
- Process oriented;
- Set procedures for key areas;
- Monitor processes;
- Adequate record keeping;
- Defect monitoring and corrective action;
- Review of processes and quality system for effectiveness;
- Continual improvement;
ISO Certification
Auditing is both internal and external based:
- Tell me what you do;
- Show me where it says that;
- Prove that is what happens;
ISO will write a procedure for anyone and anything:
- ISO10006 > Quality Management in Projects
- ISO19011 > Auditing
- ISO/TS16949 > Quality management system for auto-related suppliers
- ISO 13485 > Quality management system for Medical Device Industry
ISO Certification (Standards Classification)
Continually changing:
- ISO9000 > Quality:
- Generic
- Non-certifiable level - ISO9001:
- 3rd party certification
- Now includes 9002, 9003 - ISO9004:
- Performance improvement
- Self assessments
- ISO9004 Compliant - ISO14001:
- Environmental management
- 3rd party certification
Must re-certify every 3 years.
Pros of ISO9000
- Marketing
- Standardization
- Sound practices (not best)
- Some efficiency gains
- Internal company pays for quality audit: not buyer expense for you to send someone to review
Cons of ISO9000
- Is it worth the certification/documentation?
- There is already a better process (alternative)
- Get certification before quality
- Influencing 3rd party audits
Customer/Buyer can cause poor supplier quality
- Poor communication to supplier:
- None
- Wrong message/direction (Delivery is #1) - Poor specifications
- Late requirements (schedules/prints)
- Unreasonable expectations: supplier begins to cut corners
What can Purchasing do to minimize supplier quality issues?
- Rigorous screening process for new suppliers
- Require quality certification review
- Quality is king (not delivery, not price)
- Preferred supplier lists
- Supplier certification programs (bronze/silver/gold)
- Supply base rationalization (manageable level)
- Supplier awards
- Measurement and feedback to suppliers
- Correct internal turn-backs that cause supplier issues
