Institute For Supply Management

Rethink of Quality Assurance Management

Prepared by: Mr Daniel ChanPresident, ISM-PRDIBM PCB Council ChairmanHonourable Advisor of HKPC & HKPCAIndustrial Training Group, Environmental Protection, IVE

Institute For Supply Management

2

A Holistic View of “Good Quality”….A Recent Paradigm shift

User interface level

-How they feel?

-How reliable?

-values perceived Vs what paid

User Education level

-Advertisement/ Corporate Image

-Customer Service, like recall

-SCSR/Sustainability

Standardization/Reference

-International Standard

ISO 9000, UL, etc.

-Use of International recognized technology

Intel CPU for PC

-Country of Origin

China, good quality??

Institute For Supply Management

3

Trend of “Good Quality” in Holistic View…..

•User appealing technology

•Commoditization & differentiation

•Reliability & failure

•Industrial Design Client subjective feeling

•Finishing feeling of clients

•Values perceived by clients, too much, not good?

•User friendly software

•Sustainability

•Safety, battery explosion

•Corporate Image

•Toyota Vs BMW

•LG Vs Samsumg

•Customer service

•Toyota recall??

•Replacement within 2 wks, Boardways

•Product education/trail

•New Sony SRL digital camera

•Halogen free/Rohs

•ISO 9000

•Safety Specification, UL, DUV

•Use of recognized technology

•MS, Intel

•Country of Origin

•Made in Japan/Germany

•Reference of standards

•Fuel consumption per KM for automobile

•HSPDA/3.5G

User Interface Level User Education International Standard/Reference

Institute For Supply Management

4

CPU trend of Intel….the example of high Quality PC….For both Window and Apple O/S

Year2000-2001, P4, Single core at 1.4 to 3.8GHz at 180 to 65 nm

2002-2005, Pentium D, Due core at 2.66- 3.73GHz at 90/65nm & LGA socket 775

2005- 2008, Core 2/Pentium Dual Core( 1-4 cores) at 1.66- 3.33GHz at 65/45nm & LGA socket 775

Four cores CPU Nehalem

1-2 cores CPU Atom at 1.6 GHzTwo cores CPU One core CPU

Institute For Supply Management

5

Overview of Quality Assurance management Product quality assurance program To support good

quality assurance in a holistic view

– Product concept/marketing segment• Key product attributes, why is I-phone smart phone so good in

quality level sense in people mind?

– Industrial design and concept• Early involvement of design

– Design for manufacturability– Design for quality assurance

> Use of standard component> Minimize the number of components, e.g. Toyota Corolla> Specification with an appropriate or even an very tight tolerance > Sustainability, Toyota Prius > Reliability e.g. Japan Car particular in car electronics> User appealing technology and attributes, e.g. I-phone, BMW car> Finishing Choice, e.g. Benz luxury/cool finish

Institute For Supply Management

6

Overall View of Supplier Quality Assurance

Early Prototype Hardware

– Debug all engineering, quality and manufacturability related problems

• Technology and Qualification process– Process T&Q and P/N Technology and Qualification

– Critical for future quality assurance program

– Specification fine tune process and establishment

– Safety specification Technology and qualification process, UL, FCC, etc.

– Process Capability Index ( CPK )

– Testing strategy

• To minimize defect leakage, how much??

Institute For Supply Management

7

Overall View of Supplier Quality Assurance Manufacturing

– Manufacturing process setup

• Technology and Qualification process• System and process audit by procurement engineering

– Supplier Quality Education program• DMAIC ( Define, Measurement, Analyze, Improve, Control )• DMADV ( Define, Measurement, Analyze, Define, Verify )

– Critical control gates• IQC, critical process with thin marginal manufacturability • Technology and qualification of critical components• AVL

– Use of SPC, feedback and feed forward control mechanism

Institute For Supply Management

8

Overall View of Supplier Quality Assurance Manufacturing

Communication process, on line QC/SPC system, QCC, Pareto charts, fish bone diagram, checklist, etc.

– Visibility of quality assurance/control system and discipline management of shop floor

– Testing strategy, very critical for quality assurance program• Final outgoing quality assurance and reliability • Visible inspection for cosmetics • Traceability• Sensitivity of test

– Technology limitation of testing strategy

Institute For Supply Management

9

Overall View of Supplier Quality assurance Client quality feedback process, very critical process

– Detail system of traceability

– Trouble shooting of root cause

– CAR ( Corrective Action Report )

– Execution of CAR

– Continuous track of client side quality performance

– Executive level responsibility at suppliers and Procurement

– Team based decision making in trouble shooting, execution process of change of process and product design if necessary, etc.

– Client perspective at outgoing gate inspection

Institute For Supply Management

10

Key Success factors of supplier quality assurance

TQM ( Total Quality Management )

– Senior management support, down top and total involvement

– Senior management take the total responsibly

– Senior management create a good supplier quality management hygiene • Not Just drive for cost down, but quality up • A holistic view of supplier performance• No supplier without resource to support quality programs• QCD Quality, Cost and delivery

– Quality performance attributes, key consideration for business award process

– Strong procurement engineering and quality supplier assurance team • Professional knowledge of products, quality assurance system and

understand what market want• Certification program

Institute For Supply Management

11

Some critical review in Supplier quality assurance process Supplier, a bad guy, for blame of bad quality

– Always an excuse of procurement team• Easy for explanation, not the procurement team fault

– Need to be very careful• What the role and responsibility of the procurement team• What value adds created to avoid the concerned problem• Any design fault or manufacturability fault• Any commercial case drive poor supplier quality assurance

program hygiene• Any supplier education program on quality assurance?• Wrong selection of incapable supplier?• Any review of testing strategy? Any limitation of current

testing strategy• Any good CAR for quality improvement

Institute For Supply Management

12

Some critical review of supplier quality assurance process

When there is a quality problem, a common CAR: Tighter quality assurance/process control

– It may NOT be wrong, maybe quality problem due to loose of management attention/care of quality assurance program or process control

– But maybe---oversimplify• NOT look at the root cause in detail with professional and

scientific quality assurance engineering skill/process– Maybe due to manufacturability, design margin, not sufficient

control of critical control gating, limitation of testing strategy, etc.

• Then Not reinforce an effective corrective action for re-occurrence

Institute For Supply Management

13

Some critical review of supplier quality assurance process

NDF ( No defect found), but failed No CAR, No action and no quality problem??

– Sometime, swap with other BOM parts, then it works again Is this no problem?? To me, it is a quality marginal case

– Looking into more detail, NDF something wrong with within specification or in statistically sense

– Limitation of quality assurance program and control

• Tighter the spec, then very expensive!

• Better to look at in 3 D SPC sense

• NDF defects found in the allowed and accepted variability per spec or even in SPC sense

• So, QC is very important

• Investigate into root cause and see whether there is the improvement of manufacturing technology with enhanced CPK or inspection technology or improve CPK to minimize NDF problem

Institute For Supply Management

14

Some critical rethink of supplier quality assurance process

Six sigma program

– Firstly introduced by Motorola in process control of 6 sigma CP, with 1.5 sigma shift allowed vs. nominal/median of SPC, implies a 3.4 PPM defective level maximum exceeding spec limit ( upper or lower )

– Easy to apply with SPC in manufacturing process

– Applied in general quality assurance management concept• Outgoing acceptable quality level: 3.4 PPM• Then later on, generally applied to a proactive quality assurance engineering

and application program

– A critical rethink needed• Too general to apply the concerned concept

– Cosmetic inspection process, shipping documentation information accuracy, etc??– Six Sigma can guarantee 100% confidence of quality assurance??

> Definition of specification is very critical > Daily shift of nominal, 3D SPC concept particular in car engineering

manufacturing– A trend monitoring process, NOT just feedback mechanism, but more a FEED

FORWARD mechanism

Institute For Supply Management

15

Japanese Quality Assurance Program—Something to Learn

Quality control Vs Quality assurance engineering– Both is very critical for quality assurance to clients

• Limitation of manufacturing process Need a good quality control program with inspection

• Inspection is NOT Bad, Don’t generalize inspection is bad and resource waste

• Technology of inspection and filtration of defect parts are very critical technology of quality assurance program

– Don’t over simplify the concept below: Quality built in process control, reduce defects at manufacturing, then can minimize inspection or even skip inspection, then clean and good products can be delivered to customer

Proper usage of six sigma or simply use SPC and other quality tools – Correct logic and concept to use– NOT just marketing tool– Use of Pareto, SPC, checklist, AVL, adherence to spec, over spec

during Industrial design, etc.

Institute For Supply Management

16

Japanese Quality assurance program-Something to learn

Lean manufacturing

– Clean and tidy shop floor

– Minimum inventory discover quality problem easier and easier

– Reduce waste

Good relationship with suppliers

– Open system to work toward quality goals as a team

Sustainability

Institute For Supply Management

17

The Conclusion: Supplier Quality Assurance Program

The supplier quality assurance program, under a strong

leadership of senior management, is a joint quality assurance

team effort between the procurement and supplier team to

achieve the overall quality satisfaction of the clients with the

appropriate use of the professional quality tools