Taking Control of Supplier Quality

www.sqaservices.com - "Global Quality on Demand"

Taking Control of Supplier Quality:

5 Best Practices for Implementing a Successful Supplier Governance

Program

Gerard J. PearceExecutive Vice President

SQA Services, Inc.


TODAYObjectives:

• Reiterate the current state and why• Explore five best practices

overview backgrou

nd

summary

Agenda:5 10 15 20 25 30

best practices overview


FORCES ON SUPPLIER QUALITY

Challenges 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


FORCES ON SUPPLIER QUALITY

Challenges inside your company– Resources Vs Requirements–More travel–More detective work/chasing– Connection– Standard Tools– Greater detail, number and

frequency


TAKING CONTROL OF SUPPLIER QUALITY

All linked.

All there already?

5 best practices

that support successful

control


HARNESSING SUPPLIER DATA ANALYTICS

Quality / PerformanceAre they succeeding?

External factors- Are they

impacted by the

environment?

Compliance- Are they set up

to succeed?

Criticality - how important are

they?

Overall RiskSupplier ScorecardSupplier Dashboard

Supplier Quality Profile

…others?

Integrating supplier data:



Prioritization– Based on status– Strategic Partners– Strategic Stinkers– Regional Coverage

lowmediu

mhigh

high

medium

low

supplier quality focus

supp

lier

statu

s



Aim to create “Supply Chain Intelligence”


MANAGING SUPPLIER QUALITY PROGRAMS

Process 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



Process 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’



Tools– 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



Automation– Support the process, not just the results– Align with IT strategy and existing

infrastructure– Eliminate manual steps–Monitoring and alerts– Facilitate exchanges (beyond Outlook)– View towards SC intelligence– ‘Careful what you wish for…

alert!


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"www.sqaservices.com - "Global Quality on Demand"

BROADENING SUPPLIER ASSESSMENT

PerformanceCapability

of Processes

Quality Systems

Risk Managem

ent Regulation Compliance

Investigation

ProcessCapability of

Measurement

Systems

Integrated Focus in

Assessments:


STREAMLINING SUPPLIER CORRECTIVE ACTION

Set up for success– Establish or reinforce the process– Identify the stakeholders– Opportunity presented by corrective

action– Different levels of corrective action– Avoid ‘CAR sickness’


STREAMLINING SUPPLIER CORRECTIVE ACTION

Close the loop– Explain the process– Follow-up– Help the supplier– Act on results


COOPERATION AND SUPPLIER IMPROVEMENT

Share 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



COOPERATION AND SUPPLIER IMPROVEMENT

Take 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



SUMMARY

• 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

Objectives: • Reiterate the current state and why• Explore five best practices

www.sqaservices.com - "Global Quality on Demand"www.sqaservices.com - "Global Quality on Demand"

Questions and further information:

Gerard Pearce310-802-4448

[email protected]

THANK YOU!

Date post:	31-May-2015
Category:	Business
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Taking Control of Supplier Quality

Business