Class 16 - Supplier Quality Management Flashcards
What makes a bad supplier?
Product defects;
Lacking communication;
Poor customer service;
Late deliveries
Quality can focus on:
- Output (a good part);
- WIP (scrap cost, rework cost, latent defects);
- Quality system (TQM: monitoring and controlling the escape process);
- Business processes and systems: manufacturing, logistics, engineering, services
Why concern over supplier quality?
Suppliers account for about 50% of quality issues;
Continuous improvement is critical to going-forward entities (goodwill);
Growing outsourcing requirements place greater emphasis on suppliers:
- Increasing number of parts (moving from make to buy)
- Black box design
- Entire products
- Latent defects: deeper and more complex
*Buyers pay in both higher prices and total cost; are only as strong as their weakest link.
Quality Definition
- Understanding and assisting in customer objectives;
- Ability to meet current and future customers expectations or requirements:
- Give what I mean (in addition to what I say)
- Durability;
- Future Orders; - Consistently within critical performance areas:
- Deliveries;
- Conformance (specification)
- After-sale service
- Technology and features
- Total cost management
Critical to Quality (CTQ)
An attribute of a product or process that has a significant impact on its actual or perceived quality
Turnback Pareto Analysis
- Problem identification, prioritization, and selection;
- Collect turnback/escape data (welcome every turnback as a Treasure) - not blaming the issue on one person, but rather approaching it collaboratively to fix the issue together;
- With data that can be internally and externally generated, you can analyze and prioritize mistake proofing initiatives
Three Basic Degrees of Escapes
Class 1: Detected entering Buyer Facility;
Class 2: Detected in Facility WIP;
Class 3: Detected at Customer;
Financial Impact of Poor Quality 10x Cost of Escapes
As defects are found later in process, the cost grows 10x at each step: $1 > Own process $10 > Next process $100 > End-of-line $1000 > Final Inspection $10,000 > Final Customer
Total Quality Management
Total: Everyone; Quality: Definition (in the customer's eyes); Management: Function - Plan - Organize - Control - Lead - Staff
8 Key Principles of TQM
- Define quality in terms of customers and their requirements;
- Pursue quality at the source, where value-add occurs;
- Stress objective rather than subjective analysis;
- Emphasize prevention rather than detection of defects;
- Focus on process rather than output (does not work on one-time customized items);
- Strive for zero defects;
- Establish continuous improvement as a way of life;
- Make quality everyone’s responsibility
Supplier Quality Escapes
If a supplier is at fault, there are three different options based on situation:
- Return to supplier for new part (if schedule permits);
- Repair yourself;
- Accept-as-Is: Special approval required,
- Quality
- Engineering
- Potentially customer too;
Quality Escape Process
General process when “bad parts” detected to Buyer’s Facility:
- Parts moved and secured in quality area;
- Greater population evaluated to determine total extent of exposure: supplier/raw material/WIP/FG/shipped to customer;
- Quality Assurance determines who is responsible (buyer does not determine):
- Supplier
- Assembly floor/materials
- Engineering - Root Cause and Corrective Action (RCCA) Plan required and tracked to completion by QA;
ROOT CAUSE and Corrective Action (RCCA)
Rapid and persistent pursuit of the fundamental breakdown or failure of the process that, when resolved, prevents a recurrence of the problem.
Root Cause and CORRECTIVE ACTION (RCCA)
Corrective Actions (Mistake Proofing):
- Level 1: Prevent an error from occurring at the source; ultimate fix
- Level 2: Detected error as it is being made;
- Level 3: Prevent defect from reaching the next operation
- Level 2 & 3 are still waste
- Cannot blame human error, need to eliminate it.
- Training and labels are not mistake proofing
5 Why’s for Determining Root Cause
A questioning technique for getting beyond symptoms and uncovering root causes.
E.g.
Problem: Flat Tire in Garage
1. Why > Nails on the floor, swept up nails;
2. Why > Box on shelf split;
3. Why > Box got wet;
4. Why > Rain through hole on roof;
5. Why > Roof 30-years old (rain happens)
