Presentation on

Supplier quality improvement

Presented by :Ashutosh S ChandorkarDate : 25.11.14

On the ocassion of Quality month 2014

NEED FOR OUTSOURCING• Capacity constraints• Optimize labour resources• Drive cost down • Focus on core competency• Company/Government Policy

STATUS OF OUTSOURCING IN AMD ,NASIK

No of detail parts outsourced : 11600

Percentage Outsourcing : 42.75 (by no of parts)

Percentage SMH outsourced : 33.15

SUPPLIER QUALITY ASSURANCE Evaluation of supplier during supplier

selection (Vendor evaluation committee) Interaction with HAL personnel during first off

proving Interaction with HAL quality personnel during

pre dispatch inspection Feedback of snags and mistakes Quality audits carried out at supplier

premises Vendor rating feedback (once a year)

QUANTITATIVE MEASURE What can be measured can be improved Most of our Quality assurance tools are

subjective There is a need to provide quantitative feel

(metric) to the supplier about quality aspects.

The metric should be indicative of specific quality parameters

The metric should give insight to the supplier in improvement areas and scope

DEFINITION OF DEFECT Any deviation observed in the part which

prevents the inspector from accepting the part. Rework has to be classified as defect. Each rework has to be identified as separate

case The part offered for inspection has to be

completed in all respects before offering to the inspector.

DEFECT RATE Number of defects per consignment is a

quantitative measure of the completeness and quality of parts made by the supplier.

In order to compare it with a previous consignment we have to introduce a ratio.

Defect rate: Number of defects in a consignmentNumber of parts offered for inspection

CLASSIFICATION OF DEFECTSSr no Type of defect Sub type Instances Total

1 Dimensional variation Bore size variation    

    Slot size variation    

    Diameter variation    

    Thickness variation    

    Size variation    

2 Tool marks      

3 Unsatisfactory polish      

4Misunderstanding/skipping of technology

     

5 Miscellaneous      

METHODOLOGY TO USE DEFECT RATE ANALYSIS Suppliers need be briefed about the defect rate

analysis activity prior to implementation Inspection personnel will have to record defects

during the course of PDI Supplier’s inspector /supervisor needs to be

present during the course of recording the observation and the defect rate document will be signed by both sides

Since all are parts are inspected, we will randomly carry out the defect rate analysis for 30% of the PDI.

Quarterly review of defect rate for all suppliers

METHODOLOGY TO USE DEFECT RATE ANALYSIS

Establish benchmark after initial quarter of defect rate analysis

Set targets to suppliers on improvements in defect rate and defect types

Monitor/review performance of supplier Include defect rate and defect type as a

vendor rating parameter Rewards/appreciation to supplier with least

defect rate

PROS AND CONS OF THE METHODOLOGY Supplier become aware of their quality

related performance Can get specific feedback in areas of

improvement. Identify weaknesses Customer becomes aware of the kind of

assistance to be extended to the supplier Should provide a motivation for improvement Should serve the purpose for fulfilling

certification related documentation

PROS AND CONS OF THE METHODOLOGY Person dependant (bias because of personal

relations) Subjectivity due to perceptions Cumbersome method possibility of mistakes

cannot be ruled out May become ritualistic if not followed in the

proper spirit

Thank you