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Taking Control of Supplier Quality

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Taking Control of Supplier Quality

  1. 1. Taking Control of Supplier Quality: 5 Best Practices for Implementing a Successful Supplier Governance Program Gerard J. Pearce Executive Vice President SQA Services, Inc. www.sqaservices.com - "Global Quality on Demand"
  2. 2. TODAY Objectives:• Reiterate the current state and why• Explore five best practices Agenda: 5 10 15 20 25 30overview background best practices overview summary www.sqaservices.com - "Global Quality on Demand"
  3. 3. FORCES ON SUPPLIER QUALITYChallenges inside your supply chain – Moving Target – Distance – Can’t go, shouldn’t go – Mergers, acquisitions, splits and spinoffs – Global Financial Crisis – Cultural and local knowledge factors – CAR Sickness www.sqaservices.com - "Global Quality on Demand"
  4. 4. FORCES ON SUPPLIER QUALITYChallenges inside your company – Resources Vs Requirements – More travel – More detective work/chasing – Connection – Standard Tools – Greater detail, number and frequency www.sqaservices.com - "Global Quality on Demand"
  5. 5. TAKING CONTROL OF SUPPLIER QUALITY5 best practices that support successful control All linked. All there already? www.sqaservices.com - "Global Quality on Demand"
  6. 6. HARNESSING SUPPLIER DATA ANALYTICSIntegrating supplier data: Quality / Performance Are they succeeding? Compliance- Are they set up to succeed? Overall Risk Supplier Scorecard Supplier Dashboard Supplier Quality Profile External …others? factors - Are they Criticality impacted by the - how important are they? environment? www.sqaservices.com - "Global Quality on Demand"
  7. 7. HARNESSING SUPPLIER DATA ANALYTICSPrioritization supplier quality focus – Based on status low medium high – Strategic Partners – Strategic Stinkers high supplier status – Regional Coverage medium low www.sqaservices.com - "Global Quality on Demand"
  8. 8. HARNESSING SUPPLIER DATA ANALYTICSAim to create “Supply Chain Intelligence” www.sqaservices.com - "Global Quality on Demand"
  9. 9. MANAGING SUPPLIER QUALITY PROGRAMSProcess I‘Manufactured’ Supplier Evaluation – Consistency Vs Redundancy – Consider all the moving parts and control them – Map all activity – Free up high-value resources for high-value tasks – Invite self-serve visibility rather than reports – Steal ideas with pride www.sqaservices.com - "Global Quality on Demand"
  10. 10. MANAGING SUPPLIER QUALITY PROGRAMSProcess II‘Bigger Picture’ Supplier Evaluation – View evaluation as part of a larger process – Increase the evaluation scope to add value (counterfeit risk, process capability) – Exploit ‘Administrative Intelligence’ www.sqaservices.com - "Global Quality on Demand"
  11. 11. MANAGING SUPPLIER QUALITY PROGRAMSTools – Consensus on what the tools are and how to use them – More than a checklist (templates, notifications, gold samples, lessons learned) – Feedback loop through review – Share with pride www.sqaservices.com - "Global Quality on Demand"
  12. 12. MANAGING SUPPLIER QUALITY PROGRAMSAutomation – Support the process, not just the results – Align with IT strategy and existing infrastructure – Eliminate manual steps – Monitoring and alerts t! – Facilitate exchanges (beyond Outlook) aler – View towards SC intelligence – ‘Careful what you wish for… www.sqaservices.com - "Global Quality on Demand"
  13. 13. BROADENING SUPPLIER ASSESSMENT• What’s wrong with supplier audits?• Not suitable for every supplier• Objective moves away from supplier ‘selection’• Focus more on continuous improvement• Added elements typically reflect critical industry topics www.sqaservices.com - "Global Quality on Demand"
  14. 14. BROADENING SUPPLIER ASSESSMENTIntegrated Focus in Assessments: Capability of Processes Performance Risk Management Regulation Investigation Compliance ProcessCapability ofMeasurement Systems Quality Systems www.sqaservices.com - "Global Quality on Demand"
  15. 15. STREAMLINING SUPPLIER CORRECTIVE ACTIONSet up for success – Establish or reinforce the process – Identify the stakeholders – Opportunity presented by corrective action – Different levels of corrective action – Avoid ‘CAR sickness’ www.sqaservices.com - "Global Quality on Demand"
  16. 16. STREAMLINING SUPPLIER CORRECTIVE ACTIONClose the loop – Explain the process – Follow-up – Help the supplier – Act on results www.sqaservices.com - "Global Quality on Demand"
  17. 17. COOPERATION AND SUPPLIER IMPROVEMENTShare Responsibility – Obtain commitment up front – Data: do it once, do it fast, do it right – Develop two-way visibility – Buy-in eliminates redundancy, errors – Establish ‘Controlled Connection’ through organizational boundaries – Opportunities beyond simple transactions – Promote a collaborative, time-saving environment www.sqaservices.com - "Global Quality on Demand"
  18. 18. COOPERATION AND SUPPLIER IMPROVEMENTTake the lead – Identify resources – Agree minimum acceptance criteria – Use closure date guidelines for milestones – Have a library of improvement tools – Monitor in line with streamlined Corrective Action – Adjust accordingly www.sqaservices.com - "Global Quality on Demand"
  19. 19. Objectives: SUMMARY• Reiterate the current state and why• Explore five best practices • Recognize challenges of Supply Chain Control • Adopt best practices, starting with a risk-based approach • Look for better ways to use what you have • Look for ways to share the burden with suppliers www.sqaservices.com - "Global Quality on Demand"
  20. 20. THANK YOU!Questions and further information: Gerard Pearce 310-802-4448 gpearce@sqaservices.com www.sqaservices.com - "Global Quality on Demand"

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