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Future Trends in Supply ChainQuality Management

Jeffery L. Cawley

Northwest Analytical, Inc.

IFT 2002

Session 5 - Supply Chain Process and QualityManagement in the Food Industry

June 16, 2002

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Supply Chain - Benchmarks

Process Literacy & Process Analytics

Making it Work

Topics

Supply Chain as Quality Reporting Driver

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Supply ChainQuality Reporting

Enterprise

Within

Plant

Within

Supply Chain Customer

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Evolution of Supply ChainQuality Role

Trend from inspection to processmanagement

Quality Deliverable now part of product

Fundamental to success of integratedenterprise and supply chain

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Enterprise Quality Reporting

Support Process Management Support Process Improvement

Enabling Technology =

Manufacturing Quality System

Extend Use of Data Beyond Quality Dept

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Benchmarking

Boeing Preferred Supplier Program

Boeings own benchmarks - Auto, Motorola

Models

Within Own Industry,

Supply Chain

Other Industry

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BoeingPreferred Supplier Certification

Leadership

Technology Product Delivery

Quality

Cost Support

Supplier

Business

ProcessesSupplier

Performance

Statistical

Process

Control

Mgmt. Commitment

SPC Plans Documentation

Employee Involvement

Key Characteristics

Process Stabilization Capability

Flowdown

Quality Acceptance

On-time Delivery

Affordability

Customer Satisfaction

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Boeing

Preferred Supplier Certification ProcessSPC Requirements

Bronze Level Documented

Implementation Plan withMilestones

Verification of Initial

Implementation

Silver Level Critical Processes &

Control CharacteristicsIdentified

Evidence of Process

Control

Cpk > 1.33

Monitoring Non-capableProcesses

Plan to reduce Variationof Non-capable

Processes

Philosophy ofContinuousImprovement

Gold Level SPC used in

Manufacturing andBusiness Operations

Evidence of Process

Control

Min. Cpk of 1.50 onCritical Processes

Monitoring of Non-Capable (Non Critical)Processes

Plan to Reduce Variationof Non-CapableProcesses

Philosophy ofContinuousImprovement

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Boeing SupplierPerformance Maintenance

Process

MonthlyPerformanceEvaluation

EvaluateDisengagement

Continued PoorPerformance

SustainedPerformance

ContinuedBenefits

2 Months

6 Months

9 Months

Poor Performance

Probation

Downgrade / Decertify

Corrective Action Plan 2 consecutive months

good performance

NotificationDuration

Performance Recovery - Reinstate

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Process Analytics

Process Visibility

Process Literacy Fundamental to Success of Integrated

Enterprise and Supply Chain

Quality Data Systems + Process Analytics =Competitive Advantage

TheFuture Trend

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Visualization

Analysis

SPC EDA

Stats

Process Analytics

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Process

Information

Collaboration

Process Analytics

Manufacturing&

ManagementDatabases

MESHMI/SCADA LIMSQuality

InformationSystem

CustomersSuppliers

Integration Services

Exchange Services Portals - WePMS

Process Analytics

Process Analytics

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Integrated Management Systems

Technology critical mass

Networks / Web

Manufacturing Data Systems

LIMS Role with MES, ERP, SCM

Strong Trend

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Making It WorkEnabling Technology

Databases

Process Analytics

Reporting

Network

Web

Data Collection

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SCADA

NWA Data SetODBC Connectivity - Data Definition - SQC Configuration

SPC WebServer

Customer

Enterprise

Management Operations QA/QC Engineering Laboratory Plant Floor

SPC Software

MES LIMS ERPCorporateDatabases

Plant-floorData Collection

Quality Data Flow

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User Needs

Usability

Modular - Incremental Build

Scalability

Making It WorkPlanning

Standards

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Reduce Barriers

Time

Distance

Making It WorkWeb Technology

Reduce Overhead

System cost

Installation/maintenance

Training/support

Integrate different generation systems

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Web-based Quality Reporting

Where are the works in progress?

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Supply Chain - Benchmarks

Process Literacy & Process AnalyticsInfrastructure

Supply Chain Integration

Summary

Supply Chain as Quality Reporting Driver

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Jeffery L. CawleyNorthwest Analytical, Inc.

519 S.W. Park Ave.Portland, OR 97205

Tel: 503.224.7727 Fax: 503.224.5236Email: jcawley@nwasoft.com

www.nwasoft.com