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Supplier Assessment Program

 

Supplier Assessment Program Introduction

How many times were your shipment held up or delayed because of the poor or unstable quality of your subcontracted parts?

How many times did your perfect Lean Manufacturing process have to be stopped because your suppliers could not ship subcontracted parts on time or the parts did not meet the quality standards that you required?

How many times did you have to increase your incoming inspection staff in order to ensure the quality of your subcontracted parts?

 

You are not alone! In today’s competitive and fast changing business environment, these problems are the common problems that any manufacturer may face from time to time.

The most popular solution to such problems is to establish a supplier assessment program to assess supplier’s the quality system to ensure the quality of the outsourcing parts. Unfortunately, this solution often fails because businesses only focus on auditing paperwork but fail to help the suppliers establish pragmatic quality systems to respond to the fast changing business environment. The Ford-Firestone case was a classic example of this type of problem.

  QIT's Supplier Assessment Program

Different from a traditional supplier assessment program, QIT’s Supplier Assessment Program concentrates on establishing quick response channels and building up long-term mutual trust relationships between you and your suppliers.

  • Establish fast feedback process to handle non-conforming information by using up-to-date information technology (Try QIT's Supply Chain Management System).
  • Establish quality system standards that both you and your supplier concur, so no misunderstanding or disagreement will exist between you and you supplier regarding your quality requirements.
  • Train your auditors and your suppliers how to apply the quality standards set up in Phase two.
  • Audit your suppliers, and then rate your suppliers accordingly (Audit Database).
  • Implement corrective action and make plans for continuous improvement.

A Completely Distinguished Advantage of QIT's Program

  • Cutting-edge information technology to help you establish a knowledge base of your supplier performances.

  • Giving you a clear picture of your suppliers’ performances, their problem areas and their historic problem patterns.

  • Helping you easily track all corrective actions from each of your supplier, and verify the effectiveness of corrective actions by reviewing historic audit results.

Key Benefits of QIT's Supplier Assessment Program

  • Quick and effective results - based on our experiences, for a 200-employee factory that has no ISO9000 type of quality system in place, within three months applying our program, the suppliers started Just-In-Time delivery (requiring the supplier to supply zero defect shipment) for their customers.

  • You will have more negotiation power on pricing - your suppliers reduced the in-process defect rate, cycle time and inventory, it will be easier to achieve a better price that your suppliers will agree on.

  • Positive quality attitude and a better relationship with your suppliers - our program targets cultivating problem solving and continuous learning environment based on mutual trust, by applying our program, you will establish a long-term mutual trust relationship with your suppliers.

Sample Case

This is a real case of four suppliers of a mid-size manufacturer. Within three moths, these supplier confirmed zero defect deliveries and started JIT delivery. Overall rejection rate for all suppliers was reduced from 11% to 2% in six months. Details...

 

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