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Supplier Selection


Supplier Selection & Qualification Presented by Betty Rose ASQ-CQE Sr. Supplier Quality Engineer Pacific Scientific OECO Division (a Danaher company) – PowerPoint PPT presentation

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Title: Supplier Selection

Supplier Selection Qualification Presented
by Betty Rose ASQ-CQE Sr. Supplier Quality
Engineer Pacific Scientific OECO Division (a
Danaher company)
What Will Be Covered
  • New suppliers
  • First contact
  • Pre-audit
  • Making a decision
  • The audit
  • Execution
  • Continuous improvement

New Suppliers
  • Objective purchased parts consistently meet all
    requirements (specifications, cost, delivery,
  • Why add a new supplier ?
  • Newly designed part/assembly
  • New or different technology requirements
  • Replace current supplier
  • Outsourcing
  • Additional capacity
  • Where do new suppliers come from ?
  • Commodity Manager/Buyer recommendation
  • Prior business relationship
  • Referral
  • Searches

First Contact
  • Introductory email/letter inquiry to determine
    if there is interest in working with your company
  • Include survey form to be filled out
  • Technology mix (does it mesh with your business)
  • Who are current customers
  • RFQ
  • For NPI or sensitive parts, use a similar part
    for quoting
  • Otherwise, send actual drawing (2-D or model)
  • Ask for a cost model

The Pre-Audit
  • Form the audit team
  • Select the leader for the audit
  • Establish roles responsibilities
  • Quality
  • Financial health
  • Purchasing systems
  • Tooling design
  • Etc.
  • Discuss agree on how a decision will be made
  • Keep the objective in front of the team
  • Obtain signed NDA

Making a Decision
  • Establish criteria
  • Decide how the various criteria are to be
    weighted (basis varies depending on application
    of purchased material unique technology vs.
    common or commodity)
  • Example of a scoring used 6 categories
  • General category (maintenance, housekeeping,
    ethics, environmental policies, openess) 10
  • Quality 30
  • Cost 20
  • Availability (delivery flexibility, risk
    management) 20
  • Technology (fit has already been ascertained
    this category looks at technology management
    the design process) 10
  • Customer satisfaction (account support
    communication) 10

Making a Decision continued
  • Continuing with above example
  • 100 evaluation areas/questions
  • 1-5 points available for each
  • 500 point scoring system
  • Minimum acceptable score of 60 is required in
    each of the 6 categories for Approved status
  • Suppliers who do not meet the minimum acceptable
    evaluation score will either be rejected or put
    on a corrective action plan to improve
    performance before business is placed with them

Making a Decision continued
Example of scorecard, Quality section
Making a Decision continued
Two additional examples of audit questionnaires
downloaded from the net
  • ABBs audit workbook
  • Boschs Supplier quality questionnaire

The primary purpose of the audit is to determine
if the potential suppliers capabilities match
your requirements
The Audit
  • Opening Meeting
  • Introduce your company
  • Suppliers presentation
  • Set the tone for on-going relationship
  • Your expectations purpose of the audit
  • What the supplier can expect today (audit day)
  • Plant tour
  • General appearance
  • Process documentation
  • Operator demeanor/attitude (ask questions
    regarding handling of defective material)
  • WIP
  • Postings (charts, graphs, reminders) that are on
  • Safety

The Audit continued
  • Quality Department
  • Staff org chart
  • What kind of data are collected
  • Defect prevention
  • Record retention
  • Relationship to the Manufacturing Department
  • SOPs and processes
  • Supply base management qualification, incoming
    material, discrepant material
  • Metrology MSV, gage RR, calibration schedules
    certificates, etc
  • Pareto of yield losses and quality targets
  • MRB
  • CLCA process

The Audit continued
  • Customer returns
  • Pareto of common causes
  • What processes exist to handle and which
    departments are involved
  • CLCA is there a written process
  • Are there targets
  • For current customers, what data currently
    precedes or accompanies shipments
  • You want to know if your data requirements are
  • Format of the data (hard copy, e-copy, graph,
  • Do they use
  • Cost models
  • Cost reduction goals

The Audit continued
  • Closing meeting
  • Express appreciation for suppliers time
  • Ask for questions, concerns, feedback
  • Be specific on any discrepancies
  • Indicate good points
  • Time table for any corrective actions
  • Inform supplier when a decision will be
  • Team debrief (back at home)
  • Tabulate results and make a decision
  • What went well what worked
  • How can we improve on future audits

The Audit continued
How do you perform an Audit when travel is not an
option ???
  • It will take longer to qualify a potential
  • The data becomes your eyes
  • Examples of data they request of their suppliers
  • Data collected on the factory floor
  • QA release data
  • Data sent with a shipment to a customer
  • Other data relevant to your parts/material
  • Remember to ask the most important question how
    do you know. The next most important question is
    can you demonstrate it

Now that the supplier has been selected, its
time for the supplier to PERFORM
  • Production trials how do you define production
    trial, how many, size, data to be reported
  • What goes into inventory what gets scrapped
  • Perform measurement correlation, MSV, gage RR,
  • Checklist with sign offs may be necessary to
    ascertain all steps were taken

Monitoring Improvement
Important For continuous improvement by your
supplier, do what you said you would do during
the audit approval process !!
  • Change control for permanent temporary changes
  • How are out of spec parts/material to be handled
  • Are you getting the VOE you required and are you
    looking at it
  • Are you getting CLCA when needed and are you
  • Set up periodical business and technical reviews
  • Per your company requirements, schedule ongoing
  • Supplier performance evaluations based on meeting
    targets such as price, quality, delivery, etc.

Thank you for the pleasure of speaking with you
  • Questions ?
  • Comments ?
  • Feedback ?