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Supplier Quality Management: KPIs and Improvement Tools

March 29, 2022 by Renaud Anjoran

If you purchase goods from outside companies, and if you need to ensure that your products are of high quality, reliability, and safety, you need to focus on supplier quality management .

This takes different forms for different companies, of course. Let’s take two examples:

• Companies like Apple spend a lot of resources to qualify the right manufacturers, to ensure new products are developed with a low risk of issues, to monitor productions, etc.
• In contrast, a buyer of gift & premium giveaways will only do a quick check (such as “does the logo look good?” and hopefully also “does the product comply?”).

In spite of the vast differences between companies, and based on my 15+ years of experience on this topic, the general approach tends to be the same when managing regular, key suppliers that are seen somewhat as partners in the business .

1. Have you set supplier quality objectives?

You probably pay attention to several dimensions of your suppliers’ performance. The most common are quality, on-time delivery, cost, and service/responsiveness.

Here are typical objectives.

Tracking the % defectives, the incidents where bad products were returned, the number of serious issues that lead to a supplier corrective action request (or 8D request — more about that later in this article), etc. is quite common.

As a part of supplier quality management, it is also good practice to keep track of the costs of poor quality . Here are the most common sources of those costs:

Note: I shot a couple of videos about this — see How To Manage Chinese Suppliers based on Facts & Data .

2. It all starts when sourcing a new manufacturer

Many companies let their designers and/or buyers select new manufacturers, without input from their quality department. And that can lead to working with the wrong partners.

Here are five common ways to collect information in order to qualify or disqualify a company:

• Initial questions about the product  – for example, “when will this display go ‘end of life’?”, “do we need this plastic to be food grade certified, to avoid paying for lab tests on every batch?”. Asking the right question now may save an enormous amount of work, costs, and time later on.
• Initial questions about the supplier – you need to make sure they are a good fit for you, and you are a good fit for them. It goes both ways. Make sure their capacity is sufficient, business seasonality won’t cause issues, they are motivated to work with you, and so on.
• Desk review of the supplier’s credentials – it can be a quick look at their admin records, or  searching for any negative comments in Google, but it often involves requesting certain information and evaluating/verifying it.
• Factory audits – go on site and assess their  quality system and/or their processes , in order to pinpoint the main risks of working with them. By the way, doing audits  remotely  may be necessary if travels are restricted, and it is better than not doing anything.
• Reliability testing on the supplier’s product – if you purchase a product already developed by the supplier, you want to have an idea of how durable (by applying high stress) and how reliable (by applying stress in a repeated manner) their product is.

Note: I recorded a series of podcast episodes about vetting Chinese suppliers that you may also find useful for learning more about the supplier sourcing and validation process.

3. Help the factory improve its quality system and their processes

When you work closely with a key supplier and have some weight over their decisions, you can push them to improve their operations.

I already wrote about some very commonly used tools to drive improvements:

• Process FMEA (risk analysis & mitigation)
• 11 Steps To Set Up a Process Control Plan
• Two Preventive Maintenance Examples

Now, if they do not want to make efforts to keep your business, or if they don’t want to work on improving their systems & processes, it will be difficult. That’s why, as I wrote above, it all starts with sourcing the right suppliers.

4. Are they developing a new product for you? Help them follow the right process

If a key supplier is developing a new product and if the stakes are high (e.g. high production volume coming up; high exposure to safety incidents…), you need to make sure they take it seriously and they follow the right process.

In simple terms, you want to ensure the new product doesn’t go straight from prototype to production. You want to make sure the product design, as well as the process design, are tested and validated. If you develop new products that are very similar to what the factory is already making, risks are low. If the product is going to be quite new, the risks of quality disasters are very high.

A very good and elaborate approach is the PPAP process in the auto industry. The supplier quality engineers (commonly called SQEs ) ensure that a certain process is followed for every single part that will end up in a vehicle.

Depending on your industry, you might have to be very prescriptive (for medical devices under ISO 13485 + applicable regulations, or working under a PPAP), or you might have a lot more freedom.

You need to make sure the steps that are really needed are not skipped (think compliance and reliability tests, setting up a quality plan, pre-production pilot runs…), and at the same time, you don’t want to require so much work the project never crosses the finish line.

5. Monitor supplier quality performance

Here are two common ways to keep track of supplier quality performance:

1. Product inspections at the supplier’s factory – if some components or products are made in China and sent to you via an intercontinental shipping line, does it make sense to wait for those components or products and discover quality issues at that point? You probably can’t send products back for repair. You have certainly paid the goods in full. That’s not a good situation.

If a lot of money is at stake, you absolutely need to send an inspector to the factory, to detect any issues before shipment.

2. Incoming quality control in your facility – As you receive products, do you do at least a quick check, to confirm there is no problem?

Three years ago, I wrote an article about How to set up a Receiving Inspection: Checklist, Procedure, Reporting form , and I believe it is a solid guide you can follow if you need to set up incoming QC.

6. Feed the data back to the supplier

If your quality personnel only contacts your manufacturers when there is a complaint, they will only get those manufacturers to work in reactive, short-term mode.

If you spend some time once a month or once a quarter to compile the various data you have collected, and you feed that report back to each manufacturer, it is much more likely to drive long-term improvements.

Show that you follow the trends and that you have targets for them to reach. Focus on 1 or 2 key indicators if possible, to give them a very clear message.

Explain how it will impact the amount of business you will give them. When needed, show them that you are talking to direct competitors and that you might decide to reduce the business — that can be a powerful motivator.

7. Drive corrective actions for the most serious issues, so they don’t come back

When an issue has appeared, it is likely to come back again and again if the process is the same. That’s a sad truth. But it also means that, if the hard work of addressing those issues at the root gets done, those issues are not likely to come back.

Here is an example of the steps of a corrective action plan. (A pretty close approach to this is the 8D ).

I should mention two pieces of advice about corrective action plans:

• It does take training, so don’t just send a form for your supplier to fill if you are not sure they have a quality engineer/manager with experience in this exercise.
• It does take some managerial time, so you should make sure the manufacturer understands the gravity of the issue and the importance of preventing it in the future.

I wrote more on this topic in Use a Corrective Action Plan after a Failed Inspection , including some common traps.

8. Make it a system

Everything I wrote above should be related, as part of a supplier quality management system.

I took the good old ‘Juran Trilogy’ and made a few changes to it. Here is a system that lives on a feedback loop.

Depending on your resources, you might do a complete loop every 3 months or every year, for every key supplier. That’s what supplier quality management entails.

To sum up, supplier quality management includes the whole supplier lifecycle, from initial qualification all the way to the end of the relationship. If you don’t keep putting resources into it and engaging factories, not only will quality probably not improve, but it may also drop!

The less mature a manufacturer’s quality management systems are, the more help they need from their customers. If you are serious about the quality of your product, make sure you recognize who needs more or less of that help.

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Supplier Quality Management Presentation Slides

Supplier Quality Management is a strategic approach ensuring suppliers meet stringent quality standards. This isn't merely about product vetting; it integrates supplier quality assurance, rigorous supplier quality control, and robust supplier performance management. By building strong supplier relationships and setting clear benchmarks, businesses can continuously monitor and enhance supplier performance. Especially vital in our globalized economy, where a supplier's lapse can ripple through the supply chain, mastering this approach is essential for operational consistency, brand reputation, and unparalleled customer value. This methodology ensures not just the best product or service, but also a comprehensive system prioritizing supplier relationships. With potential cascading effects in today's global economy due to a supplier's shortfall, it's crucial to ensure operational integrity and protect brand reputation. This combined approach offers an interconnected system that safeguards quality at every step, promoting superior supply chain interactions and lasting business success.

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Supplier strategy powerpoint presentation slides

To maintain a solid relationship with suppliers, businesses must consistently build up a strategy to provide customers with high quality products or services. Suppliers build their reputation based on the materials they provide and implementing strategic sourcing can facilitate solid and long-term relationships with the outsourcers. Here is a professionally designed Supplier Strategy template to justify and identify necessary changes to enhance supply process efficiency. The purpose of this proposal is to create critical strategies for suppliers, work collaboratively with the suppliers, maximize the potential value of relationships with them, and find gaps and fill problems with proposed solutions. Firms can showcase their relationship of current buyer-seller interactions with critical suppliers using bar graphs and statistics. Using stacked column charts and infographics, one can even display the issues companies face with the suppliers and the effect of those gaps on the company. The template lets you present your cracks in supplier relationship, business requirements, competencies, risk factors, issues, etc. to collect all the significant elements that affect supplier strategy. Organizations understand the areas where actions and approaches to correct them are required and prepare a model to re-establish the standards with suppliers. Download the proposal now. Book a free demo with our experts and access our 100 percent editable template based on needs.

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Supplier quality assurance...

Information & current best practice., supplier quality assurance..

Quality Assurance. Quality Management Systems . Information & current Best Practice   >>>

Supplier Quality Assurance encompasses the following key activities:

i) Development of a strategic vision that details the scope and role of suppliers.

ii) Defining a planned approach to supplier quality assurance.

iii) Formalizing supplier risk assessment, risk reduction and risk monitoring.

iv) Implementing a supplier evaluation and rating process.

v) Defining and pursuing supplier “ship to stock” & “ship to line” processes

vi) Having in place an effective and efficient supplier corrective & preventative action process.

Development of a strategic vision that details the scope and role of suppliers .

Defining a planned approach to supplier quality assurance., formalizing supplier risk assessment, risk reduction and risk monitoring., implementing a supplier evaluation and rating process., defining and pursuing supplier “ship to stock” & “ship to line” processes., having in place an effective and efficient supplier corrective & preventative action process., quality assurance. quality management systems..

• The Principles of Quality Management
• The Quality Manual
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• Good Manufacturing Practice (GMP)
• Documentation
• CAPA – Corrective And Preventative Action
• Calibration Certification
• Change Management and Control  
• Quality Management Training
• Product and Process Validation  
• Supplier Quality Assurance
• Audits & Auditing
• Ensuring the Quality Management System is Risk based
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Supplier Quality Presentation

Apr 11, 2013

2.04k likes | 3.07k Views

Supplier Quality Presentation. Goodrich Aerostructures Group. Outline. Expectations and Guidelines 3 Source Inspection Program 25 Certified Supplier Program 30 Supplier Quality Requirements 33 SupplierNet 66

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Presentation Transcript

Supplier Quality Presentation Goodrich Aerostructures Group

Outline Expectations and Guidelines 3 Source Inspection Program 25 Certified Supplier Program 30 Supplier Quality Requirements 33 SupplierNet 66 Engineering Revision Level and Changes 74 Role of Purchase Orders 94 Configuration Control Sheet (CCS) 101 Part Identification per RPS 13.99 105 Documentation Requirements 117 Supplier Certification Report (Q-32 Form) 135 First Article Inspection Report (FAIR) 147 Dimensional Inspection 156 Supplier Rejections and Corrective Action 170 Root Cause Analysis 191

Expectations and Guidelines Outline

Expectations and Guidelines • Outline • FAA and Type Design • Review of Records and Documentation • Inspection of the hardware • Primary Concerns • Goodrich Aerostructures Certified Suppliers Program

Expectations and Guidelines • FAA and Type Design Type Certificate based upon a Type Design Quality Insures Certification testing to substantiate type design Product is manufactured to engineered type design

Expectations and Guidelines • Goodrich’s nacelle components are certified with the aircraft to FAR 25 requirements and some components are also certified with the engine to FAR 33 requirements. • The Type Certificate recognizes that the Type Design complies with the FAA design requirements.

Expectations and Guidelines • The Type Design contains the definition of the design and specifications which must be respected in the production of certified parts.

Expectations and Guidelines • In addition, all parts produced to the Type Design must be under the control of a quality system approved by the FAA. • Goodrich’s quality system is approved by the FAA as complying with FAR Part 21. • The quality system, combined with our production certificates and PMA, enable Goodrich to produce production parts for OEMs and spares for airlines.

Expectations and Guidelines • Each aircraft produced (including the nacelles) is issued its own airworthiness certificate when the FAA is satisfied that all of the components on that aircraft have been produced in accordance with: • the type design and • within an approved quality system.

Expectations and Guidelines • Certification baseline is established at the time of aircraft (or engine) certification • All changes to the certification standard must be approved by the FAA • Change validation procedures are identical to that of the baseline certification process • All changes are classified as either major or minor

Expectations and Guidelines • Key elements in verifying that the Type Design is being met: • Part configuration • Part identification • Process control

Expectations and Guidelines • Part Configuration • DSQR (Delegated Supplier Quality Representative) inspection verifies that hardware has been manufactured in compliance to the requirements of the Purchase Order. • Purchase Order specifies the part number, revision letter, and any applicable exceptions (undersized holes, excess trim, etc) to which the hardware must comply.

Expectations and Guidelines • Part Identification • Should be per the applicable specification (RPS 13.99, BAC 5307, etc) and provides traceability to the certification baseline. • Traceability is achieved through conformance to the requirements of the identification specification and P.O. requirements. • Part identification should be verified to the revision level (ECI) given on the P.O.

Expectations and Guidelines • Process Control • Process certifications should provide evidence to whether or not the parts were manufactured to the proper revision of the applicable specifications.

Expectations and Guidelines Airworthiness Certificate is obtained when parts meet the Type Design & originate from an approved source Quality Insures Product is inspected to requirements of Purchase Order (including Engineering Requirements) Conformance of the products ensure that Type Design has been maintained

Expectations and Guidelines Review of Records and Documentation

Expectations and Guidelines • Review of Records and Documentation • Review the manufacturing plans • Evidence of completion for all operations in accordance w/procedures & quality manual • Corrections/line-outs are initialed and dated • Quality stamps are present when required • Quantities are consistent throughout operations

Expectations and Guidelines • Review of Records and Documentation • Material and Process certifications • Ensure that all parts were found acceptable • Verify processes match w/those on engineering. • Confirm that special processes were performed by approved processors specified in the appropriate approval document (Goodrich QSD, Boeing D1-4426, etc) • Check for traceability of the certifications to the hardware

Expectations and Guidelines • Review of Records and Documentation • First Article Inspection • Review FAI for each part for completeness • Approve FAI if all dimensions meet print • Ensure that FAI is performed per the requirements of AS 9102, Revision A and QA-111 Section II, Addendum H • Affix DSQR stamp to FAI

Expectations and Guidelines • Review of Records and Documentation • Engineering Drawing, Changes, Specs, & P.O. • Familiarity with engineering drawing • Review new changes for effect on hardware • Review P.O. & CCS w/each delivery to ensure parts comply. Check both product identification & configuration

Expectations and Guidelines • Inspection of the Hardware • Visual inspection of every part • Dimension inspection of every feature defined by the type design • 100% review of the certifications

Expectations and Guidelines Concluding Remarks: What is MOST important to the Goodrich Corporation?

Expectations and Guidelines What is MOST important? Safety of our products and the people that use them!

Expectations and Guidelines What is also important? • Business Ethics and Professionalism of our suppliers & quality representatives • “Quality at the Source” - Zero escapes • QA-111 Addendum G – Supplier Quality Performance • Delivering on-time to our customers

Source Inspection Program

Source Inspection Program • Goodrich Aerostructures uses Verify as an approved Third Party company to perform inspection criteria at suppliers who have been designated “Source” as required by Purchase Order requirements. Responsibilities include, but are not limited to: - Hardware review and buyoff - First Article Reviews - Survey and Audits as requested by Goodrich Aerostructures

Source Inspection Program • An integral part of this service delivery is the provision of a web based dispatch system – Verify eLaunch. As an assigned Goodrich Aerostructures supplier, you will need to schedule your source inspection requirements through the Verify eLaunch System.

Source Inspection Program • Source Inspection Standard Work In order to establish your company as an authorized user you will need to sign up via a secure web connection as follows: - Point your browser to www.vscnet.com and click on the SUPPLIER TAB. - Click on the NEW SUPPLIER SIGN-UP BUTTON and enter the Password: quality3180. - Fill in the form providing both customer and authorized user details, review terms and conditions of use, then click SUBMIT. - Verify will then issue you an e-mail providing user name, password, and instructions for use.

Source Inspection Program • Primary Contact • Cynthia Lim, Verify Program Manager • 16775 Von Karman Ave Suite #150 • Irvine, CA 92606 • Tel: (949) 622-1258 • E-mail: [email protected] • Alternate Contact • Natalia Binui, Alternate Verify Program Manager • 16775 Von Karman Ave Suite #150 • Irvine, CA 92606 • Tel: (949) 622-1228 • E-mail: [email protected]

Certified Supplier Program

Certified Supplier Program • Goodrich Aerostructures Group tracks the performance of their suppliers and rewards those companies whose quality performance is exceptional. • These companies become Goodrich Certified Suppliers and are given the authority to buy-off hardware on behalf of Goodrich Aerostructures.

Certified Supplier Program • Certified suppliers must choose qualified internal candidates and submit them for approval as Delegated Supplier Quality Representatives (DSQRs) • These qualifications for DSQRs are specified in QA-111, Section 2, Addendum I. The candidate must successfully pass an on-line DSQR exam and AS9100 exam.

Supplier Quality Requirements QA-111 on the Internet

Supplier Quality Requirements • Goodrich Aerostructures’ Supplier Quality Requirements QA-111 are available only on the Internet • Suppliers are notified of updates via a letter from Materiel Quality • QA-111 is located on the Goodrich Aerostructures’ Materiel website

QA-111 on the Internet • The URL for the website is: materiel.goodrich.com WWW

QA-111 on the Internet Click on “Supply Chain Quality Assurance” link

QA-111 on the Internet • QA-111 is divided • into 2 Sections: • SAE AS9100 • Specifics concerning • doing business • with Aerostructures

QA-111 on the Internet • Section 1 refers to SAE AS9100, Rev. B which describes the Quality Management System Requirements for all direct suppliers. This quality system is shared with the following divisions: • Landing Systems • Aircraft Interiors • Pump & Engine Control Systems • Aerostructures Group

QA-111 on the Internet • Section 2 describes the quality requirements and procedures unique to the Aerostructures Group of the Goodrich Corporation. • It is comprised of several addenda • Addendum 1 - General requirements above the requirements of AS9100 • Addenda A - N as shown in the next figure

QA-111 on the Internet

QA-111 on the Internet • The web page also provides: • Training • Electronic forms • List of revisions to QA-111 • Contact list • Definitions • QSD • A quick summary of changes

Training on Various Subjects • The web page provides: • Training • For DSQR Training go to: http://coursesites.blackboard.com/

Forms Library • The web page provides: • Training • Electronic forms • List of revisions • Contact list • Definitions • QSD • What’s new

Forms Library Click on the form Type on-line or print the form Notice there are 2 file formats used PDF. & Word

QA-111 Revision History • The web page also provides: • Training • Electronic forms • List of revisions • Contact list • Definitions • QSD • What’s new

Revision History Revision Letter & Date

Contacting MQA • The web page also provides: • Training • Electronic forms • List of revisions • Contact list • Definitions • QSD • What’s new

Contacting MQA

Definitions • The web page also provides: • Training • Electronic forms • List of revisions • Contact list • Definitions • QSD • What’s new

QSD On-line • The web page also provides: • Training • Electronic forms • List of revisions • Contact list • Definitions • QSD • What’s new

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As an experienced specialist facade contractor, Mimsa and their group companies today has its headquarters and factory in Istanbul, office and a second factory in Moscow, office and a workshop in London (since 2016) and have expanded with an office in New York (in 2018).

This year share of exports accounts for more than 80% of the total work done. Our ability to adopt ourselves to International Standards & Building Regulations and working together with our clients to satisfy their highest requirements, have given us this opportunity. An example of this was our recently achieved “Secured by Design” Accreditation for the UK Market.

We undertake in house; the detailed design, engineering, fabrication and installation of aluminium windows, doors and curtain walls. As a group today, we have a total of more than 100 technical staff and over 550 workers working in collaboration with the high-end software and machinery. Since 2016, our BIM trained group (consisting of 15 designers and managers) are working for our BIM required projects in different levels worldwide.

Our team is working side by side with our main systems suppliers such as; Schueco, Reynaers, Sapa Group and able to work with most systems companies in Europe, UK and Russia. We also work with the major glass suppliers such as Guardian, Saint Gobain, Pilkington and their processors worldwide to provide a high quality, quick and affordable service to our customers. We as a group company, together with our extensive supply chain, have managed to achieve various levels of BREEAM and LEED Certificates in our international projects.

Our vision is to set up robust relations, through high quality works with the existing Clients and approach to the main players in the glazing market over the next years.

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Metallurgicheskii Zavod Electrostal AO (Russia)

In 1993 "Elektrostal" was transformed into an open joint stock company. The factory occupies a leading position among the manufacturers of high quality steel. The plant is a producer of high-temperature nickel alloys in a wide variety. It has a unique set of metallurgical equipment: open induction and arc furnaces, furnace steel processing unit, vacuum induction, vacuum- arc furnaces and others. The factory has implemented and certified quality management system ISO 9000, received international certificates for all products. Elektrostal today is a major supplier in Russia starting blanks for the production of blades, discs and rolls for gas turbine engines. Among them are companies in the aerospace industry, defense plants, and energy complex, automotive, mechanical engineering and instrument-making plants.

Headquarters Ulitsa Zheleznodorozhnaya, 1 Elektrostal; Moscow Oblast; Postal Code: 144002

Contact Details: Purchase the Metallurgicheskii Zavod Electrostal AO report to view the information.

Website: http://elsteel.ru

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Rosatom Starts Production of Rare-Earth Magnets for Wind Power Generation

TVEL Fuel Company of Rosatom has started gradual localization of rare-earth magnets manufacturing for wind power plants generators. The first sets of magnets have been manufactured and shipped to the customer.

In total, the contract between Elemash Magnit LLC (an enterprise of TVEL Fuel Company of Rosatom in Elektrostal, Moscow region) and Red Wind B.V. (a joint venture of NovaWind JSC and the Dutch company Lagerwey) foresees manufacturing and supply over 200 sets of magnets. One set is designed to produce one power generator.

“The project includes gradual localization of magnets manufacturing in Russia, decreasing dependence on imports. We consider production of magnets as a promising sector for TVEL’s metallurgical business development. In this regard, our company does have the relevant research and technological expertise for creation of Russia’s first large-scale full cycle production of permanent rare-earth magnets,” commented Natalia Nikipelova, President of TVEL JSC.

“NovaWind, as the nuclear industry integrator for wind power projects, not only made-up an efficient supply chain, but also contributed to the development of inter-divisional cooperation and new expertise of Rosatom enterprises. TVEL has mastered a unique technology for the production of magnets for wind turbine generators. These technologies will be undoubtedly in demand in other areas as well,” noted Alexander Korchagin, Director General of NovaWind JSC.

For reference:

TVEL Fuel Company of Rosatom incorporates enterprises for the fabrication of nuclear fuel, conversion and enrichment of uranium, production of gas centrifuges, as well as research and design organizations. It is the only supplier of nuclear fuel for Russian nuclear power plants. TVEL Fuel Company of Rosatom provides nuclear fuel for 73 power reactors in 13 countries worldwide, research reactors in eight countries, as well as transport reactors of the Russian nuclear fleet. Every sixth power reactor in the world operates on fuel manufactured by TVEL. www.tvel.ru

NovaWind JSC is a division of Rosatom; its primary objective is to consolidate the State Corporation's efforts in advanced segments and technological platforms of the electric power sector. The company was founded in 2017. NovaWind consolidates all of the Rosatom’s wind energy assets – from design and construction to power engineering and operation of wind farms.

Overall, by 2023, enterprises operating under the management of NovaWind JSC, will install 1 GW of wind farms. http://novawind.ru

Elemash Magnit LLC is a subsidiary of Kovrov Mechanical Plant (an enterprise of the TVEL Fuel Company of Rosatom) and its main supplier of magnets for production of gas centrifuges. The company also produces magnets for other industries, in particular, for the automotive

industry. The production facilities of Elemash Magnit LLC are located in the city of Elektrostal, Moscow Region, at the site of Elemash Machine-Building Plant (a nuclear fuel fabrication facility of TVEL Fuel Company).

Rosatom is a global actor on the world’s nuclear technology market. Its leading edge stems from a number of competitive strengths, one of which is assets and competences at hand in all nuclear segments. Rosatom incorporates companies from all stages of the technological chain, such as uranium mining and enrichment, nuclear fuel fabrication, equipment manufacture and engineering, operation of nuclear power plants, and management of spent nuclear fuel and nuclear waste. Nowadays, Rosatom brings together about 350 enterprises and organizations with the workforce above 250 K. https://rosatom.ru/en/

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Rosatom Starts Life Tests of Third-Generation VVER-440 Nuclear Fuel

• 16 June, 2020 / 13:00

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