Professional Documents
Culture Documents
SCM
SCM
Introduction
Quality Management Principles
Importance of Supply Chain
Supplier Evaluation and Selection Process
Methods of Supplier Part Approval Process
QMS Development for Supplier
Supplier Performance Monitoring Process
Case Study
Open Session-Discussions with the
participants on Supplier QMS Development
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Introduction
Definitions: Quality is...
Quality is fitness for use (J. Juran)
Quality is the most profitable product line we have
(H. Geneen)
Quality is free (P. Crosby)
Quality is compliance to a standard (W.E. Perry)
• Ensuring no Defects.
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Quality Management Principles
• Customer Focus
• Leadership
• Involvement of People
• Process Approach
• System Approach to Management
• Continual Improvement
• Factual Approach to Decision Making
• Mutually Beneficial Supplier Relationships
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Quality Management Principles
Mutually Beneficial Supplier Relationships
Applying the principle of Mutually Beneficial
Supplier Relationships leads to :
• Identifying and selecting key suppliers.
• Clear and open communication
• Sharing information and future plans
• Establish joint development and improvement activities.
• Establish relationship that balance short term gains with long
term considerations.
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Supply Chain Management in its ‘broadest’ context deals
with the flow of material and information from the
natural resource stage all the way through to the ultimate
CUSTOMER
• MATERIAL FLOWS
• INFORMATION
FLOWS
• FINANCIAL FLOWS
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Importance of Supply Chain
Customer
Organization or a person that receives a product
Organization
Supplier
This means that a manufacturer will include both its suppliers and
customers in the supply chain with the intent of minimizing constrains and
addressing all major business objectives.
These objectives include, but not limited to, issues such as:
◦ Inventory reductions,
◦ Reductions in lead times and cycle time,
◦ Development of Internet communications,
◦ Improvement in the order fulfillment process
◦ Improved customer satisfaction.
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Importance of Supply Chain
• Value Chain
• Supply side- raw materials, inbound logistics and
production processes
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Importance of Supply Chain
In recent past, there has been accelerated effort to move product
manufacturing to the lowest-cost location, which often (in case of
complex products & supply chains) lead to sub-optimization of
supply chain system.
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Importance of Supply Chain
Processes
Mechanisms
Achieve rapid delivery
Using and tools
Speed to market
that optimize
SCM supply chain performance
Importance of Supply Chain
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Importance of Supply Chain
Product
Place
Quantity
Condition
RIGHT
Time
Source
Service
Price
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Importance of Supply Chain
TOOLS
The most common tool used to address the supplier performance is
plan for every part. Also the supply chain wastes collectively cause for
poor supplier performance , leading to a weak supply chain
management
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Importance of Supply Chain
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Importance of Supply Chain
Raw Materials
Finished Goods
Information Flow
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Importance of Supply Chain
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Importance of Supply Chain
HISTORY
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Importance of Supply Chain
Organizations must
focus on key indicators and optimize
performance levels
must define quality as it relates to
customers
modify quality to achieve and sustain
quality levels that maximizes supply chain
performance and quality management
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Importance of Supply Chain
This can be achieved by:
• Sound processes and systems – Quality in product production
obtained by having flexible system to create, organize, release and
document manufacturing details, processes and work instructions.
• Speed – Rapid response to attaining and retaining customers by
proper planning and employees’ utilizing tools which assist in making
quick decisions.
• Maximized internal productivity – TPM combined with Lean
processes and techniques
• Error-free shipping - trained employees, clear instructions on
packaging
• Right product at right time with right documentation – accuracy of
product & information
• Establishing and maintaining collaboration – Establish team of
internal and external experts to help improve products, refine
processes and cut costs
• Alignment with customer requirements
SCM • Regulatory compliance
Importance of Supply Chain
Supply Chain Elements
• Supply Chain Design
Strategic • Resource Acquisition
• Long Term Planning (1 Year ++)
• Shipment Scheduling
Operational • Resource Scheduling
• Short Term Planning (Weekly,Daily)
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Importance of Supply Chain
• Supply Chain Goals
Cost reduction.
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Importance of Supply Chain
Changing Paradigm
Functional v/s Process
Products v/s Customers
Revenues v/s Performance
Inventory v/s Information
Transactions v/s Relationships
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Importance of Supply Chain
Critical Success Factors Today
Cross functional management and planning skills
Information systems
Relationship management
and
win win orientation
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Importance of Supply Chain
Implementation: Points to keep in mind
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Importance of Supply Chain
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Importance of Supply Chain
The New Model of Relationships
• Adversarial vs partnerships
• Short term vs long term contracts
• Large vs small order quantity
• Full truck load vs small parcels
• Inspection vs no inspection
• Written order v/s understanding
• Many v/s few suppliers
• Design and then invite quote from supplier v/s
involving supplier in development
• Bargaining, holding cards close to chest v/s Shared
destiny, transparency
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Importance of Supply Chain
Summary
Segmentation of customers based on service needs
Customization of logistics network
Listen to signals of market demand and plan accordingly.
Differentiate product close to the customer
Source strategically
Develop a supply chain wide technology strategy
Accept channel spanning performance measures
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Uncertainty exists in a normal manufacturing set-up
like late deliveries, machine break-downs, order
cancellations, etc.
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Customer
An ERP system that encompasses not only the company's internal
operations, but the operations of supply chain business partners and
suppliers in the production of goods from raw materials, inventory and
supplies gives companies much-needed visibility into their
manufacturing processes.
Conduct initial
Reduced
assessment /
Supplier List
Risk assessment
Conduct detailed
Audit
• Details on Infrastructure
• Capacity Plan
• Client List
Method:
Evaluation of Documents submitted
On-site Visit
System Audit - Follow ISO 9001:2008 / ISO /TS 16949:2009
requirements
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Methods of Supplier Part Approval Process
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Methods of Supplier Part48Approval Process
CUSTOMER CUSTOMER
PPAP Process Flowchart Example
Customer P.O./ Record of
Customer – Approved PSW
Spec.
Requirements
ORGANISATION
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Methods of Supplier Part Approval Process
Comparison of PPAP with Traditional approach
Submission of - Submission of –
-Samples, dimensional report, 18 documents /items along with
material test report, any qualification samples as applicable, which
record (spl. Processes). provides the evidence of controls
exercised on production/process
environment.
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Methods of Supplier Part Approval Process
Customer approval for bulk production Customer approval based on sample &
based on evaluation of sample & evaluation of documents & items which
documents submitted. provides confidence to customer that
supplier has understood his
requirements & demonstrated his
capability to meet the same in bulk
production.
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Methods of Supplier Part Approval Process
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Methods of Supplier Part Approval Process
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Methods of Supplier Part Approval Process
# Requirements
01 A new part or product (Ex: a specific part, material, or colour not
previously supplied to Customer)
02 Correction of a discrepancy on a previously submitted part
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Methods of Supplier Part Approval Process
Situations where Notification to Customer and Submission is Required
(Unless waived by the Customer)
# Requirements
01 Use of construction or material other than what was used in the
previously approved part or product (e.g. under deviation permit
cases)
02 Production from new or modified tools , dies, moulds patterns,etc.
# Requirements
06 Product produced after the tooling has been inactive for volume
production for 12 months or more
07 Product and Process related changes to components of the
production product manufactured internally or by Suppliers
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Methods of Supplier Part Approval Process
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Methods of Supplier Part Approval Process
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Methods of Supplier Part Approval Process
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QMS Development for Suppliers
ISO/TS 16949:2009-QMS Requirements
7.4.1.2 Supplier quality management system development
The organization shall perform supplier quality management
system development with the goal of supplier conformity
with this Technical Specification. Conformity with ISO
9001:2008 is the first step in achieving this goal.
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QMS Development for Suppliers
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Suppliers Performance Monitoring Process
Objective:
To ensure that the selected vendor performs and identify the area for
improvement
Methods: As per Performance Monitoring Indicators
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Suppliers Performance Monitoring Process
Supplier Classification
Classification of Vendor based on performance rating
Objective:
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