SUPPLIER SURVEY

11
A Thorough Application Of The Supplier Selection Process
• EVEN THOUGH LOOKS COMPLICATED & REQUIRING A GREAT DEAL OF EXPERTISE CAN BE EFFECTIVELY ACHIEVED THROUGH WELL PLANNED SUPPLIER SURVEYS
6
A Supplier Is The Lifeline Of A Company And Plays A Vital Role In Its Success … … Or Failure
It Is Therefore Critical For A Company To Select The Right Suppliers And Develop Long Term, Sometimes Even Strategic, Partnership With Them
4
Do We Have A Supplier Or A
5
Why Is A Supplier Important?
• NO BUSINESS IS 100% INTEGRATED, AND MUST RELY ON SUPPLIERS OF PRODUCTS AND/OR SERVICE TO SERVE ITS CUSTOMERS • THE MAIN REASON FOR THE EXISTENCE OF A SUPPLIER IS THAT HE CAN PROVIDE THE PRODUCT/SERVICE IN A MORE COST EFFECTIVE MANNER AND WITH A BETTER QUALITY/DELIVERY PERFORMANCE THAN THE COMPANY ON ITS OWN
Cost/Price Competitive (0.1) Capacity & Flexibility (0.1) JIT Process Evaluation (0.2) Factory Floor Perception (0.1)
Technology Offering (0.1) VES (0.1) Design Engg Capability (0.2) Technology Roadmap (0.1)
21
Purchasing
• IS THE SUPPLIER WILLING TO WORK WITH THE BUYER TO DEVELOP OPERATIONAL DEFINITIONS FOR CRITICAL QUALITY CHARACTERISTICS OF PRODUCTS, PROCESSES OR SPECIFICATIONS • DO SUPPLIERS CONTRACTUAL ARRANGEMENTS STRESS OR HINDER QUALITY • DOES THE SUPPLIER SINGLE SOURCE VENDORS • IS THE VENDOR A SINGLE SOURCE VENDOR FOR ANY CUSTOMER - WHAT IS THE STRUCTURE OF THIS RELATIONSHIP
19
Design
• Is the supplier willing to participate in joint quality (product development and design) planning • Is the supplier willing to discuss & modify product or process design to meet customer needs • Is the supplier committed to the problems of tomorrow and R & D
Key Areas To Cover In A Survey
• • • • • • • • • MANAGEMENT FINANCIAL GEO-POLITICAL PERSONNEL DESIGN MANUFACTURING PROCESSES PURCHASING INSPECTION & TESTING QUALITY CO-ORDINATION
• ENSURE THAT THE SURVEY IS PRE-PLANNED AND THE SUPPLIER’S TOP MANAGEMENT IS INVOLVED • PLAN OUT THE SCOPE OF THE SURVEY, AND THE FUNCTIONAL AREAS TO BE COVERED • ALWAYS CARRY OUT SURVEY A LOGICAL PROCESS ORDER • NEVER COMMUNICATE FEELING OF MISTRUST • ALWAYS ASK QUESTIONS WITH THE INTENT OF UNDERSTANDING THE SUPPLIERS STRENGTHS & WEAKNESSES • ALWAYS BE PREPARED FOR A DRESSED UP PERFORMANCE - TRY TO ASSESS IF THERE ARE ANY “SKELETONS IN THE CUPBOARD” • NEVER TAKE THINGS ON FACE VALUE - ALWAYS TRY TO VERIFY, BUT IN A FRIENDLY AND POLITE MANNER 14
16
Financial
• FINANCIAL STABILITY • ANY PROBLEMS WHICH COULD INTERRUPT SUPPLY? • WILLINGNESS TO INVEST IN NEW TECHNOLOGY, R&D etc.
17
Geo-political
• IS THE LOCATION IN AN AREA PRONE TO POLITICAL UPHEAVALS OR NATURAL DISASTERS • IS THE LOCATION IN AN AREA SUPPORTED BY ADEQUATE INFRASTRUCTURE FOR TRANSPORTATION OF GOODS WITHOUT AFFECTING QUALITY • IS THE LOCATION CLOSE ENOUGH FOR SUPPORTING SI, CQI ETC.
20
Manufacturing
• Are the physical facilities and maintenance adequate to support the quality requirements • Is there evidence to show that processes stable and capable. • Is there emphasis on defect detection or prevention & CQI • Is there adequate production capacity to support our requirements
15
Management
• OPERATING PHILOSOPHY • MISSION STATEMENT & DEGREE OF EMPHASIS ON TOTAL QUALITY • DEFINITION OF QUALITY • HOW DOES THE ORGANISATION STRUCTURE SUPPORT THE QUEST FOR QUALITY • HOW DOES IT INVOLVE VENDORS, EMPLOYEES, CUSTOMERS IN ITS QUALITY EFFORTS
3
…AND WE GET A SUPPLIER WHO..
• PICKS YOU UP IN HIS ROLLS ROYCE & TAKES YOU OUT FOR A NICE LUNCH EVERY TIME YOU VISIT HIM • DEMANDS A PRICE INCREASE WHEN IT IS TIME FOR DESSERT • NEVER DELIVERS ON TIME DUE TO SOME FACTOR OR THE OTHER WHICH IS OUT OF HIS CONTROL • CANNOT AFFORD ANY PC, QC, QA, ISO9000, TQM etc. etc. … AS THE PRICE IS TOO LOW • PAYMENT MUST BE IN ADVANCE SO THAT HE CAN BUY MATERIALS FOR PRODUCTION
10
Main Objectives Of SSP
• To determine what a supplier has rather than what he does not have • Assess whether what he has meets our minimum requirements • Assess whether the top management has a Continuous Improvement Culture
7
Characteristics Of A Good Supplier
• • • • • • • • COMPETITIVE IN PRICE (NEVER GIVES MARGINAL / POLITICAL PRICES) ADEQUATE VERTICAL INTEGRATION HIGH QUALITY OF MANUFACTURE FINANCIAL STRENGTH GOOD MANAGEMENT FLEXIBILITY … EASY TO DO BUSINESS WITH COMMITMENT DESIGN & DEVELOPMENT CAPABILITY
18
Personnel
• Do the suppliers supervision, training and learning programs emphasize quality and use of statistical methods • Does the supplier have a high staff turnover
ETC. ETC
8
Supplier Selection Process
Every Company Must Have A Formal & Thorough Supplier Selection Process. We Have One Too.
Supplier Surveys Form Is An Important Part Of This Process
9
The Formal Supplier SБайду номын сангаасlection Process
SSP 职称 (SQA-055) SSSQ (SQA-031) (50%) SC&D (SQA-053) (25%) SQE (SQA-056) (25%)
Quality System Management (0.2) Calibration (0.1) Documentation (0.1) Quality Information (0.1) Mfg & Material Control (0.1) Procurement (0.1) Final Acceptance (0.1) Statistical Process Control (0.2)
12
Supplier Surveys
Main Purpose Is To Assess:
• • • • • QUALITY SYSTEM MANUFACTURING CAPABILITY TECHNOLOGICAL LEVEL MANAGEMENT COMMITMENT
13
Handling Supplier Surveys
Long Term Partnership
SUPPLIER SURVEY
1
We Always Want To Have An Ideal Supplier
2
The Ideal Supplier
• Price - Close to Zero (-ve is desirable) • Delivery - JIT • Quality - 0 DPPB(illion) • Payment Terms - Pay as you like