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Welcome to the program
Optimize product performance thru’
VMD
Vendor Management Development
by
H K Varma [email protected] 98202 62986 22 426 62986
Managing supplier quality
• Managing supplier quality is a challenge for most organizations, even the ones that do it well.
• In a space where precision is key, slight variations in processes equipment used, or materials sourced by suppliers
• can quickly result in rejects and dissolved relationships.
• These variations really highlight the need for a seamless Vendor quality management system , VMD
Role of Vendor in a seamless SC
• For most organizations, the processes associated with the acquisition of materials and services represent the “front door” of their Supply Chain.
• On average, companies spend more than 60% of total sales on the acquisition and administration of materials and services, +
an additional 10% for logistics and order fulfillment.
• A good Supply Chain helps to reduce
– lengthy cycle times
– Inventory
– ensure the smooth receipt and delivery of material or services to point of use. &
– Reduce acquisition costs
SBU EVA Tree
Mfg Cost Var Output at TP Stores cr. 4000
305 3972 +/- in WIP 178
PBIT Misc Output -206
1255 Input Cost
3667 Dir Malt 2940
NOPAT Dir Lab 31
874 Mktg PBIT Sales/Serv 6000 Malt OH 47
929 Cost of Sales 3972 Shop OH 261
ED on Sales 794 PGOH 36
TAX OD Adj Pers Rel Exp 89 Comm Exp 163
EVA 381 -65 T&C 54 Alloc Exp 189
425 Sales Pr Exp 8
Corp alloc NDC 19
86 ODE 63
WACC Estb 31
12% Other Exp 41
Cap Chg MMI 950
409 Cap Emp WIP 250
3406 Net F Assets FG 53
560 Curr Assets Cust OS 3073
4393 Oth contl A 67
Net WC
2846
Curr Liabilities Vendor Cr 1360
1547 Cust Adv 33
OCL 154
18%
Hence it is important that we develop our suppliers to be more Cost competitive , thru improvement in Quality, Processes , Six Sigma , SPC at their end
Cost of Quality
Cost of Quality
Cost of good quality
Cost of poor quality
=
+
Quality
Assurance thru’
CA PA
Cost of Quality Management vs Cost of servicing defects
Low Quality High
Low
C
ost
H
igh
Total cost of Quality
Minimum cost of Quality
Total cost of Quality
Cost of Service defects
Optimum level of Service uality
Where you want
to be
Cost of Quality
Management
96% 97% 98% 99.99%
The Lean-Six Sigma philosophy Cost of Quality Management vs Cost of servicing defects
Low
C
ost
H
igh
Prevention
and Appraisal
cost
Failure costs
𝟒𝝈
𝟓𝝈
𝟔𝝈
96% 97% 98% 99.99%
Build an Integrated IT Architecture That Extends Deep Into Your Supply Chain
• Disconnected IT – data sources and systems – is one of the biggest roadblocks to performance improvements.
• Develop supplier metrics / dashboards to have more control over supplier-related activities, some of which are highlighted below: – E-Billing , Bill Parking – Sharing of OEE data – Sharing of Stock levels – On-line SPC data thru Web portal – Production status
• Automate the collection of metrics data where possible
Supplier Quality - Visibility
• Supplier Quality Management largely depends on the efficient production of materials while minimizing adverse events.
• A supplier that performs well,
– quickly communicates non-conformances or deviations,
– responds to audit or report requests,
– relays process/equipment changes and, among many other areas,
• meets delivery requirements.
• Not dealing with adverse events and non-conformance related to performance directly translates to supplier risk.
• This is an ideal method of obtaining a real-time performance assessment and greater visibility
Vendor assessment • Traditionally, quality managers send representatives for on-site
audits to view actual production lines. – This, of course, becomes costly with globalization, unless
suppliers have been chosen within close proximity.
• The following elements are key for improving your enterprise risk portfolio for decision-makers working with suppliers
– Compliance Management
– Supplier Quality Management
– Environment, Health, and Safety (EH&S)
– Calibration Management
– Employee Training
Supplier Assessment Scorecard
• With suppliers comes risk, and supplier assessment scorecards are critical to managing, understanding, and mitigating that risk
• Supplier Assessment Scorecards: Scorecards enhance the operational risk management aspects of SQM (Supplier Quality
Management)
• By quantifying supplier performance , we can effectively prioritize issues that require the most attention
• Research has shown that the earlier a defect or nonconformance is caught the less expensive it will be in the long-run
• Companies that rely on many suppliers are developing supplier risk scorecards and processes to evaluate and rank suppliers based on historical and current performance
Vendor Assessment II ( Criticality * Rating )
1 = Not Important 4 = Critical
1 = Poor 4 = High
Vendor rating
Criteria No.
Criteria Importance (A)
Rating(B) A*B
1 2 3 4
1 Work stn condition 3
2 Maintenance of m/cs 3
3 Productivity 4
4 Safety Initiatives 4
..
20 Quality Systems 4
Vendor ::
Min Score = 20 Max Score = 320 Evaluation CFT …….. Score < 100 Rejected
Max
Score Weighted
score
1. GENERAL ORGANIZATION: 4 2.9
2. SAFETY 4 2.3
3. INSPECTION 4 3.4
4. DRAWING & REVISION CONTROL 4 2.8
5. PROCUREMENT: INCOMING R M CONTROL 4 2.4
6. MANUFACTURING PROCESSES 4 2.1
7. TOOLINGS & MEASURING INSTRUMENTS 4 3.7
8. QUALITY : QUALITY INDICATORS 4 2.6
9. M/C & TOOLING MAINTENANCE SYSTEM 4 2.5
10. ENVIRONMENT 4 3.2
40 27.9
Supplier Assessment (Summary)
Gr 3
1. GENERAL ORGANIZATION: Weightage Rating at the time of Visit Weighted
Score Capability Score 1-4
1.1 - Work Station Condition 40% Medium
1.2 - Customer Documentation 60% Low
2. SAFETY
2.1 -Availability of safety equipment: 30% Medium
2.2 - Workmen wearing safety shoes , gloves etc: 70% Low
3. INSPECTION
3.1 -First Piece & In-Process Inspection: 60% Medium
3.2 - End Product Inspection: 40% High
4. DRAWING & REVISION CONTROL
4.1 - Availability of Drawing & Inspection Checklist 40% High
4.2 - Ability to Understand Part Drawings: 60% Low
5. PROCUREMENT: INCOMING RAW MATERIAL CONTROL
5.1 - Material Procurement: 40% Low
5.2 - Component & Raw Material Storage: 60% Medium
6. MANUFACTURING PROCESSES
6.1 - Competence over Manufacturing Processes: 40% Medium
6.2 - Work Instructions: 60% Low
7. TOOLINGS & MEASURING INSTRUMENTS
7.1 - Measurement Calibration System: 70% High
7.2 - Tooling Storage & Protection: 30% Medium
8. QUALITY : QUALITY INDICATORS
8.1 - Quality Management System 40% Medium
8.2 - Supplier Quality & Delivery Indicators: 60% Medium
9. M/C & TOOLING MAINTENANCE SYSTEM
9.1 - Machine maintenance system: 50% Low
9.1 - Tool maintenance system: 50% Medium
10. ENVIRONMENT
10.1 - Energy conservation : 40% Low
10.2 - Re-cycling of process wastes : 60% High
Supplier Assessment score
Overall
Score
Acceptable > 30 Green
Conditional 20 - 30 Orange
Poor
Performer
12 - 20 Yellow
Rejected < 12 Red
Vendors with low scores are asked to overcome the shortcomings with focus on time-bound improvements
Establish Processes for Managing Supplier Compliance and Audits
• Supplier audits can support meeting compliance requirements,
but not every organization has the resources required or the processes in place to conduct them.
• It’s crucial to establish a collaborative relationship in conjunction with formal audit management plan, which outlines
– the frequency of on-site visits,
– reporting requirements for suppliers, and
– the depth into the supply chain to which you’ll go for auditing suppliers.
• Supplier Audits – A team from Focal Organization visits the Vendor and allocates points against a number of queries in a questionnaire.
• Important factors to be used as criteria for vendor evaluation are determined. These are usually variables that add value to the process through increased service or decreased cost.
• Actual working of the various departments is audited by examining records, analysis of the system and talking to people on the spot.
• Need to be repeated at regular intervals to monitor improvements.
• After determining which factors are critical, a method is devised that allows the vendor to be judged or rated on each individual factor.
• Rating should be converted to numeric values to assess the Risk and rank the vendors in descending order.
Zero
Rejection
Guide in Investing in
latest technology
Develop new
products fast
Small lots
ISO9000/ TS16949/ ISO14001-E /18001-HS
Impln.of Lean & six sigma initiatives
Reduce costs thru’ VE Loaning of
tools, gauges , testing equip etc
Vendor Training
Negotiation with supplier’s supplier
Support in crucial areas to enhance Quality and
Service
On-time Delivery
Environmental and Health & safety measures
Benefits
• ISO 14001 - International Organization for Standardization
– By reducing waste and using fewer raw materials, costs are reduced.
– Fewer costs give companies a competitive advantage.
– By managing environmental issues before a problem arises, companies benefit from reduced liability.
• OHSAS 18001 - Occupational Health & Safety Advisory Services
– Identifies health hazards and evaluates risks
– Provides a safer, healthier work environment. This should help reduce lost time due to illness and injury.
– Fewer accidents and injuries lead to reductions in liability claims and lower insurance premiums.
Training subcontractors • Training constitutes one of the most important stages in
supplier development.
• Its purpose is to overcome deficiencies in different areas of operation , quality etc
• It can be arranged on a group basis or on an individual basis.
• The vendor’s staff chosen for the training then cascades down to the remainder of the workforce.
• The training may be organized by the main contractor :—
– from among its own personnel, experts or
– from among bodies such as a chamber of commerce and industry, professional association, university etc.
ISO 9000 / TS 16949 certification ----
• ISO 9000 certification stresses the importance of compliance
on technical specifications and the quality requirements .
• In fact , some procuring enterprises agree to work with
suppliers only if they are ISO 9000 certified.
• To help subcontractors acquire such certification, main contractor should assist them with regard to system & procedures to be adopted for
• documentation control
• product purchasing
………………..
Organization of work within the enterprise
• Internal functioning of an enterprise is important from a quality
viewpoint.
• Thus to gain a better appreciation of overall coordination the
organization would need:
– No barriers between different departments / Sections
(Homogeneity between departments)
– Encourage teamwork
– Organize discussions on working practices and investigate
solutions to problems
Improving Quality by improving Processes
1. KPIs should help in identifying areas for improvement and determining which areas require more resources or some type of change.
2. Ensure higher OTD while maintaining Cost and Quality (Higher Sigma levels) .
3. Approach – Make Vendor’s existing processes better
– Focus on training and developing skills of Vendor workforce
4. Monitor Cp , Cpk (Higher Cp , Cpk :: less scrap / wastes)
5. Accordingly Vendors are rated on their performance ( Called External factors) ie , Quality , OTD , Service , Flexibility to develop and retain a healthy vendor base
6. Review KPIs monthly , quarterly , yearly
Vendor
Total receipts
% Accepted
Quality
Rating
%*35
Actual
price
Std Cost
Std/ Actu
al price
Price Ratin
g
Ratio * 30
As per
Schedule
Delivery
Rating % * 20
Service
No. of
Suggestions…
% of
total suggestions…..
Service
Rating
% * 15
A 100 90 31.5 40 40 1.0 80 16 2 33 5
B 60 80 28 50 48 0.96 55 18.3 1 17 2.4
C 50 70 24.5 60 53 0.9 45 18 3 50 7.5
Total Vendor Composite Rating III ( with weight ages for Quality , Price , Delivery & Service)
Hold Suppliers More Accountable For the Quality of their Products
Drive performance improvement thru’ CFTs to manage quality across entire spectrum of suppliers
⁻ Non-Conformances / Corrective and Preventive Action (NC/CAPA)
⁻ Complaint Handling
⁻ Statistical Process Control (SPC) – to get Real-time visibility of supplier quality metrics through web-based portal
• It also eliminates surprises on the receiving nonconforming materials.
Receipt data
a. Vendor ‘A’ receipts Dec’13 80
b. FTR (First time right) 72
c. FPY 90.00%
d. Accepted with TCN 1
e. Accepted after Sorting/Re-work 6
f. Rejection returned back 1
g. Ultimate Yield (80-1)/80 98.75%
h. Hidden Factory 8.75%
Role of SPC is to monitor process on regular basis there by
eliminate / minimize the Hidden factory
Group 1 2 3 4
Lots In (Nos) 120 120 120 120
Accepted after change note 13 9 6 1
Reworked 12 7 4 1
Scrapped 5 2 1 -
Calculate Hidden factory
First Time Yield (%) 75% 85% 91% 98%
Ultimate yield (%) 96% 98% 99% 100%
Hidden factory (%) 21% 13% 8% 2%
Exercise
Hidden Factory - Answers
Focus should be at improving the FTY & reducing the
Hidden factory
}
Why Six Sigma Quality 1. The sigma scale is a universal
measure of how well a critical characteristic performs
2. The higher the sigma score, the more capable the process.
3. Products with more characteristics (CTQs),need Six sigma quality standards to ensure final product performance
4. Even if the milestone of Six Sigma may take time to reach, the act of working toward that goal drives breakthrough changes.
Sig
ma
Percent
defective
Defects
per
million
1
69%
691,462
2 31% 308,538
3 6.7% 66,807
4 0.62% 6,210
5 0.023% 233
6 0.00034% 3.4
7 0.0000019% 0.019
Note the difference 1. Conventional quality 3 % d , 2. Under Six Sigma it is 3 out of a
million
Conventional quality 3 % d
3.4 3.0% d 30,000
Higher Sigma >>> Lower defects
Six Sigma • Every mistake an organization or person makes ultimately has
a cost,
– the need to do a certain task over again,
– the part that has to be replaced,
– time or material wasted
• Six Sigma is a scientific problem solving tool for
– meeting your customer's needs (Time , speed , Quality )
– minimizing wasted resources (Errors , rework , Hidden factory , variations +/-)
– maximizing profit in the process ,thru’ disciplined data
collection and analysis to determine best solutions
Mean = 12gm
USL=12.2
LSL=11.8
Filling of an oil bottle ( 𝟏𝟐𝐠𝐦+𝟎.𝟐
−𝟎.𝟐 )
VOC
VOC
𝜎 = 0.17
Is the process under statistical control ?
Rejections = 1.8𝜎
Rejections = 1.8𝜎
VOP
VOP
12 +
− 1𝝈 = 12
+𝟎.𝟏𝟕
−𝟎.𝟏𝟕=
𝟏𝟐.𝟏𝟕
𝟏𝟏.𝟖𝟑
VOP = 12+
− 3𝝈 = 12
+0.51
−0.51=
12.51
11.49
2.4
Process Sigma
2 .4
VOP = 6
For a process to be under 6 𝐒𝐢𝐠𝐦𝐚 , value of std.dev should be
minimum 𝟏
𝟔 (USL-LSL) , ie 6𝝈 should fit the Spec. width (VOC).
What is ideal Std dev. (𝝈) ………
How do we ensure a
6𝝈 performance
𝐗 Chart For variables like Dimensions , weight , Temperature , hardness , viscosity etc
9
9.2
9.4
9.6
9.8
10
10.2
10.4
10.6
10.8
11
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
𝑋 chart also shows all values within UCL & LCL , which indicates process is in control
𝐔𝐂𝐋 = 𝐗 + 𝐀𝟐 𝐑 = 10.61
𝐋𝐂𝐋 = 𝐗 − 𝐀𝟐 𝐑 = 9.33
𝐗 = 9.97
Control Charts
Background
• Dr Shewhart in1920 observed that every process exhibits some degree of variation
• Since no two things can be produced exactly alike , variation is natural and should be expected
• He defined that if a measurement falls within plus or minus three standard deviations of its average, it is considered “expected” behavior for the process.
• This is known as common cause variation
• He observed two types of variations in any process
Control Charts
Chance cause variation
• Inherent (Common cause) in the process . It is random & cannot be controlled ...............
• Hence a process which operates with only chance variation is within statistical control .
– Limits are generally +/-3σ ( Value of σ may vary from case to case)
– (99.7% within and 0.3% above UCL or below LCL)
• Once the process is within control , adjustments can be made to minimize random variations to further improve the process
Variable Control Charts
• Variable Control charts are used to monitor measurable quality characteristics of a process eg Temperature , dimension , weight , viscosity etc
• Variable charts can monitor only one quality characteristic at a time .
• Variable Control charts help to monitor both process mean X and process variability R or σ
• Hence it becomes necessary to use minimum 2 control charts to study the process. Ie
– Range or Std Deviation
– Process mean , with UCL & LCL
R Chart out of limits
0.00
0.50
1.00
1.50
2.00
2.50
3.00
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
A process is not in statistical control if any point falls outside the control limits.
First , control the process before going for X or S chart
S Chart
Sample Sample observations 𝐗 Std Dev
1 9.26 10.44 10.39 9.87 10.26 10.04 0.49
2 10.92 10.08 9.97 10.16 9.30 10.09 0.58
3 10.10 10.61 8.62 10.24 10.17 9.95 0.77
4 10.17 9.24 10.60 10.08 10.51 10.12 0.54
5 10.29 10.36 10.39 10.58 9.96 10.32 0.23
6 9.84 9.52 10.11 9.65 10.18 9.86 0.29
7 9.84 9.77 10.47 10.25 10.28 10.12 0.30
…25
B4 and B3 from Control limit chart
To ascertains deviation between the sample For sample size > 10
𝐒 = 0.45
UCL = 𝐁𝟒 ∗ 𝐒 = 2.089*0.45 = 0.94
LCL = 𝐁𝟑 ∗ 𝐒 = 0 * 0.45 = 0
Control Limit factors dev. by Statistical Quality Control and Management Institute
Samp Size
Factors for 𝐗 charts Factors for R Charts Factors for S charts Samp
size
n A A2 A3 D1 D2 D3 D4 d3 B3 B4 B5 B6 n
2 2.121 1.880 2.659 0.000 3.686 0.000 3.267 0.853 0.000 3.267 0.000 2.606 2
3 1.732 1.023 1.954 0.000 4.358 0.000 2.574 0.880 0.000 2.568 0.000 2.276 3
4 1.500 0.729 1.628 0.000 4.698 0.000 2.282 0.880 0.000 2.266 0.000 2.088 4
5 1.342 0.577 1.427 0.000 4.918 0.000 2.114 0.864 0.00 2.089 0.000 1.964 5
6 1.225 0.483 1.287 0.000 5.078 0.000 2.004 0.848 0.030 1.970 0.029 1.874 6
7 1.134 0.419 1.182 0.204 5.204 0.076 1.924 0.833 0.118 1.882 0.113 1.806 7
Observations
VOC = 10” +/- 0.60
Cp = VOC/VOP
= (10.6−9.4)
6∗0.45
𝐶𝑝 = 0.44
USL = 10.60
LSL = 9.40
Conclusion
Though the process is under control (All points within UCL & LCL), the process capability Cp = 0.44
If , however the σ is reduced to ∶ 0.20 , 𝐂𝐩 = 𝟏. 𝟎𝟎 and
If , the σ is further improved to ∶ 0.15 , 𝐂𝐩 = 𝟏. 𝟑𝟑
Hence it important that SPC is under control and 𝐶𝑝 𝑖𝑠 > 1
VOP = 6𝝈
Variable ( Continuous) data Control chart Summary
Control Chart Sub-group size (n)
Control limits
Average and Standard deviation X , R
2-10 UCL = X + A2 R
LCL = X - A2 R
Range R 2-10 UCL = D4 * R
LCL = D3 * R
Average and Standard deviation X , S
>10 UCL = B4 S
LCL = B3 S
Individuals and moving range MR - Range - X
1 UCL = D4 ∗ MR
LCL = D3 ∗ MR
UCL = X + 3MR
d2
LCL = X − 3MR
d2
MR Chart Tensile Strength of Bridge bolt (Ksi)
0
5
10
15
20
25
30
35
40
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25
As there are no out-of-control conditions , the process is operating in-control. Moving range within normal
UCL = 𝐃𝟒 ∗ 𝐌𝐑 = 3.267*11.47 = 37.47
LCL = 𝐃𝟑 ∗ 𝐌𝐑 = 0*11.47 = 0
𝐌𝐑 = 11.47
100% Within +/- 3 std Dev
95% Within +/- 2 std Dev
Apprx. 69% Within +/- 1 std Dev
Interpreting Control Charts :: Test Zones :: Each control limit represents
1 std deviation
UCL
LCL
Centerline
Rarely a point would fall outside the control limits
Control Charts for Attributes
• Whenever it is difficult to take numerical measurement the quality is judged either conforming / non-conforming - Defectives based on attributes( Np and p charts) :
– Leaks / does not leak , No. of counts scratches , holes , dents etc .
• Attribute data can have two values , such as pass/fail present/absent etc ie data which can be counted.
• The inspection doesn’t require spl trained people as no measurements are involved .
F-Flexibility measures
• Volume flexibility (Fv ) : measures the proportion of demand that can be met profitably by the supply chain system
• Delivery flexibility (Fd ) :
– The ability to move planned delivery dates forward .
– Delivery flexibility is expressed as the percentage of slack time by which the delivery time can be reduced
• Mix flexibility (Fm ) : the response time between product mix changes.
• New product flexibility (Fn): is defined as the ease with which new products are introduced , the time or cost required to add new products to existing production operations
Delivery flexibility (Fd)
• Delivery dates change regularly and costs are associated with not meeting the delivery dates
• The ability to move planned delivery dates forward may be important in supply chain management.
• This ability allows the supply chain to accommodate rush orders and special orders, and is described as delivery flexibility.
• Delivery flexibility is expressed as the percentage of slack time by which the delivery time can be reduced/advanced
Vendor Performance dashboard
• Real-time information is put on supplier dashboard giving internal and external supplier metrics and Key Performance Indicators
• The Vendors are judged on their performance the way we judge the performance of our employees.
• The goal is to develop a world-class supplier quality system
• Steps to build a world class Vendor base
– Standardized Vendor audit process
– Building Vendor risk management scorecard
• It helps to actually know which suppliers are more risk-prone and therefore require more attention v/s auditing suppliers arbitrarily or because a certain amount of time has passed.
Vendor Performance dashboard
• Some vendors need to be audited in 6 months , some in 12 months.
• Helps in strategic use of resources
• One of the most notable advantages is of connecting what were traditionally individual silos, now putting all of that information in a central location
• Focused approach on the suppliers who might need the most help in improving processes
• Efforts are put where they matter most.
VQMS dashboard – (Each Vendor)
Vendor : Ms Everest Enterprise – EV078
3. KPI- System output (Higher the
better)
Flexibility – Volume (Scale 0 to 1.50)
1.3
Flexibility – Timeline (Scale 0 to 40)
32
4. KPI-Estimated
Service ( Bill Parking , Test Certificate , VE , Innovative , SPC & data :: scale 1 to 40)
26 Supports Six Sigma , VE , Lean , IT networking
JIT Implementation (doc reduction 10% - 40% wrt previous year)
20 %
YOY reduction in Lot qty (80/20
principle)
2. KPI- System output - Quality and OTD (Higher
the better)
Quality Rating (Scale 1 to 100) 89
OTD - Time (scale 1 – 100) 93
OTD - Qty (scale 1 – 100) 89
Vendor Assessment Score (CFT : JHK , RTD , VSH , ARD)
Score :: 29 ( 0 - 40 )
…. and many more
Dash Board – Entire Vendor base (141)
Assessment Score (0 – 40)
> 30 20-30 12-20 < 12
66 32 26 17
Quality and OTD Performance
60-70 70-80 80-90 > 90
Quality 29 41 34 37
OTD - Qty 18 32 45 46
OTD - Time 14 36 49 42
Dash Board – Vendors ( 141 vendors)
Improvement Initiatives penetration
YOY Performance
(Vendors covered) 2010 2011 2012 2013
IT Integrated 14 56 89 117
Vendors under Six
Sigma (SPC accompanies
deliveries)
27 43 59 88
Vendors trained in
Lean Six Sigma 45 87 112 141
Vendors under ISO 59 73 94 136
Lean/JIT
Implementation 35 49 78 132
Plant Inventory
(Rs-Lacs)
Sep’13 Oct’13 Nov’13 Dec’13
646.0 624.0 589.0 563.0
Supplier reward program
• There are two sides of performance improvement
motivation:
– Rewarding the suppliers who perform well so they
will aspire to continue performing well , and
– Correcting Poor Performance : taking corrective
action with those suppliers whose performance
does not meet our expectations.
• It would never be safe to assume that switching
supplier eliminates problems
Establish (KPIs) of all related processes and actions to Accelerate Operational Excellence
• It's crucial to identify a specific set of KPIs that will
help you measure progress and identify areas for
adjustment.
• Equally important to having these measures, however,
is a related system of communication procedures,
processes around the KPIs to ensure that they are
being accurately measured, interpreted,
communicated, and acted upon.
Advice
• Last but not least :
• You’ve got to make sure your suppliers understand how you
define a quality part.
– Avoiding this step appears negatively in your cost of poor
quality metric, and second
The success mantra for getting quality products and maximizing
cost reductions is by working harmoniously with suppliers as if
they’re a trusted partner
They were in business before your relationship and will most likely
be in business after your relationship. That means they do something
well and you’ve got to respect that.
Our other Training Programs In-company as well as Open prog.
• Enhance Productivity & Inventory turns thru Principles and Applications of Lean Manufacturing – 2days
• Vendor Quality Management Systems - 2days
• Operational Excellence - 1day
• Lean Six Sigma - 2 days
• SCM – 1day
• 5S & Visual Control Management - 1day
• Lean and Value Stream Mapping – 2days
• Materials – A profit centre - 2days
