customer-supplier division supplier selection & qualification a podcast presentation for members...

Customer-Supplier Division

Supplier Selection & Qualification

A Podcast presentation for members of the Customer-Supplier Division and ASQ

Presented by Betty Rose ASQ-CQESr. Supplier EngineerGlobal Supply ChainTektronix, Inc. ( a Danaher company)[email protected]

Jan. 9, 2009 Betty Rose ([email protected]) 2

How to Find a Supplier that matches your technology requirements

• Previous experience/knowledge of the supplier– You have worked with the supplier in a previous life (you

do take your business cards with you, don’t you?!!)

• Your network, including ASQ meetings– ASK : ”do you know of a company that….”

• Searches– Internet– Search firms


First Contact

• Introductory letter & inquiry to determine if there is interest in working with your company

• Include survey form to be filled out– Technology mix (does it mesh with your business)– Who are current customers

• RFQ– For NPI or sensitive parts, use a similar part for

quoting– Otherwise, send actual drawing (2-D or model) – Ask for a cost model


The primary purpose of the audit is to determine if the potential supplier’s capabilities match your requirements

• Pre-audit work• The most important question you can ask : How do you know ?• Form teams to cover the technical/quality audit and the various business

audits (financials, business & purchasing systems, etc.) to allow for stronger focus

• Plant tour– General appearance – Process documentation– Operator demeanor/attitude (ask questions regarding handling of

defective material)– WIP– Postings (charts, graphs, reminders) that are on display– Safety

The Audit


• Quality Department– Staff & org chart– Relationship to the Manufacturing Department– SOPs and processes specific to QA– Their suppliers : qualification, incoming material, discrepant

material– Metrology : MSV, gage R&R, calibration certificates, etc

• Pareto of yield losses and quality targets

– MRB

The Audit continued


• Customer returns

– Pareto of common causes

– What processes exist to handle and which departments are involved

– CLCA : is there a written process

– Are there targets

• For current customers, what data currently precedes or accompanies shipments

– You want to know if your data requirements are unusual

• Do they use

– Cost models

– Cost reduction goals

The Audit continued


• It will take longer to qualify a potential supplier

• The data becomes your eyes

– Examples of data they request of their suppliers

– Data collected on the factory floor

– QA release data

– Data sent with a shipment to a customer

– Other data relevant to your parts/material

• Remember to ask the most important question “how do you know”. The next most important question is “can you demonstrate it”

How do you perform an Audit when travel is not an option ???

The Audit continued


Making a Decision

• Unique technology vs. common or commodity

• Decide how the various criteria are to be weighted based on your company’s objectives

Example of a scoring used : 6 categories

– General category (maintenance, housekeeping, ethics, environmental policies, openess) 6%

– Quality 37%

– Cost 16%

– Availability (delivery & flexibility, risk management) 19%

– Technology (fit has already been ascertained; this category looks at technology management & the design process) 12%

– Customer satisfaction (account support & communication) 10%


• Evaluation based on a 500 point scoring system. 1-5 points available for each of the 100 questions

• Minimum acceptable score of ≥ 60% is required in each category for “Approved” status

• Suppliers who do not meet the minimum acceptable evaluation score will either be rejected or put on a corrective action plan to improve performance before business is placed with them

Approved status clears a supplier for business

Conditional status requires follow-up, corrective action and improvement

Not Approved indicates supplier is too risky/costly to fix. Business with this supplier is not recommended.

Making a Decision continued


Execution

• Production trials : how do you define “production trial”, how many, size, data to be reported

• What goes into inventory & what gets scrapped

• Perform measurement correlation, MSV, gage R&R, etc

• Checklist with sign offs may be necessary to ascertain all steps were taken

Now that the supplier has been selected, it’s time for the supplier to PERFORM


Monitoring & Improvement

• Change control for permanent & temporary changes

• How are out of spec parts/material to be handled

• Are you getting the VOE you required and are you looking at it

• Are you getting CLCA when needed and are you responding

• Set up periodical business and technical reviews

• Supplier performance evaluations based on meeting targets such as price, quality delivery, etc.

Important : For continuous improvement by your supplier, do what you said you would do during the audit & approval process !!

customer-supplier division supplier selection & qualification a podcast presentation for members...

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