Certification Encyclopedia | Methods and Techniques for Effective Supplier Quality Management

Release Date:

2020-08-14 16:00

Source:

Certification Encyclopedia | Methods and Techniques for Effective Supplier Quality Management

Guided Attention

Preface

In the terminal sales of products, besides quality management in production, enterprises also need to manage the quality of suppliers to ensure the integrity of the entire product sales.

- 1 -

Supplier Quality Capability Audit

When selecting a supplier, auditing their quality capability includes the system and processes, and establishing supplier audit files. It is necessary to audit the quality capability of your own suppliers. Audit items include: business policies and organization, quality system, specification and design management, standard management, supplier management, parts management, process management, manufacturing equipment management, final inspection and reliability testing, inspection equipment management, nonconformance countermeasures and quality improvement, internal quality audits, quality education and training, etc.

- 2 -

Complete and Unified Technical Agreement with Suppliers

This is actually an auxiliary part that restricts product quality. When the purchasing department formulates purchase contracts, the relevant technical departments must sign technical agreements with suppliers. The technical agreement should not only specify product material requirements, processing technology requirements, inspection methods, form tests, and packaging requirements, but also include acceptance of first-sample provision, necessary explanations on personnel allocation, and handling of nonconforming products. Enterprises must ensure the completeness of supplier standards and the comprehensiveness of technical contracts. If there are differing standards, the relevant technical departments should communicate well with suppliers during the agreement signing process to reach consensus and establish unified standards. This can promote subsequent work and prevent unnecessary quality incidents caused by differing standards.

- 3 -

Promote Internal Quality Improvement of Suppliers

Including promoting suppliers to establish and improve quality improvement teams; confirmation and control of supplier process changes and material changes; control of new and changed materials; promoting suppliers to introduce common quality systems such as SPC, Six Sigma, and other quality control methods; improvement and review of material quality target achievement; confirmation of improvement actions for nonconforming items; handling of material abnormalities and confirmation of effectiveness.

- 4 -

Select Two Suppliers

Competition drives improvement. It is best to have two or more suppliers for similar products. When managing suppliers, we may encounter problems such as having only one supplier for a part. When issues arise, production cannot be guaranteed. Sometimes, even knowing there are problems, we have to accept them with many excuses for rectification, and the supplier uses non-supply as a shield against penalties. We may not find other suitable suppliers immediately, which is frustrating. If there are two suppliers, we can control the supply ratio and require proper rectification. Of course, we must ensure the interests of suppliers so that they have motivation to improve.

- 5 -

Implement SQM (Supplier Quality Management) System Procedures and Documents

Including supplier evaluation and monitoring, selecting the best suppliers; executing regular and exceptional audits of suppliers; guiding suppliers to improve quality; implementing supplier reward and penalty measures; establishing complete and standardized material operation instructions.

- Top Ten Principles for Supplier Selection -

General Principle — Comprehensive, Specific, and Objective Principle: Establish and use a comprehensive supplier evaluation index system to make a comprehensive, specific, and objective evaluation of suppliers. Consider supplier performance, equipment management, human resource development, quality control, cost control, technology development, user satisfaction, delivery agreements, and other factors that may affect supply chain cooperation.

Systematic Comprehensiveness Principle: Establishment and use of a comprehensive systematic evaluation system.

Conciseness and Scientific Principle: Supplier evaluation and selection steps, transparent, institutionalized, and scientific selection process.

Stability and Comparability Principle: The evaluation system should operate stably with unified standards to reduce subjective factors.

Flexibility and Operability Principle: Supplier evaluation should vary according to different industries, enterprises, product needs, and environments, maintaining certain flexibility and operability.

Matching Principle: The scale and level of suppliers should be comparable to those of purchasers.

Half Proportion Principle: Purchase quantity should not exceed 50% of the supplier's capacity; oppose suppliers providing full supply. If one supplier is responsible for 100% supply and cost sharing, the purchaser faces high risk because any problem with that supplier, following the 'butterfly effect,' will affect the entire supply chain's normal operation. Additionally, when purchasers depend on certain materials or products, regional risks must be considered.

Supplier Quantity Control Principle: The number of suppliers for similar materials should be about 2 to 3, with primary and secondary suppliers. This reduces management costs, improves management effectiveness, and ensures supply stability.

Supply Chain Strategy Principle: Develop strategic supply chain cooperative relationships with important suppliers.

Learning and Updating Principle: Evaluation indicators, benchmarking objects, and evaluation tools and techniques need continuous updating.

- Top Ten Principles of Supplier Quality Management -

Traditional incoming material quality management mainly focuses on IQC internal management and is passive externally. With the pursuit of quality improvement and win-win situations, IQC incoming quality management will transform into supplier source quality management. Enterprises should not passively deal with suppliers but actively guide, change, manage, and maintain the quality relationship between them.

01 - Purchasers can assign dedicated resident staff to important suppliers or frequently conduct quality inspections of suppliers.

02 - Purchasers regularly or irregularly conduct quality testing or on-site inspections of suppliers.

03 - Purchasers reduce excessive dependence on individual major suppliers to diversify procurement risks.

04 - Purchasers establish acceptance standards for each purchased part and acceptance handover procedures with suppliers.

05 - For selected suppliers, the company signs long-term supply cooperation agreements specifying the rights and obligations of both parties and mutual benefit conditions.

06 - Buyers can establish SJQE at suppliers, where SJQE acts as the customer role to promote supplier quality.

07 - Buyers regularly or irregularly conduct supplier grading evaluations and formulate and implement reward and punishment measures.

08 - Suppliers are re-evaluated annually, with those not meeting requirements eliminated and qualified suppliers supplemented from the candidate pool.

09 - Buyers conduct quality monitoring and management of upstream manufacturers of key material suppliers.

10 - Changes in process parameters or design changes of supplier materials require confirmation and approval from the buyer.

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