Dedicated to all supplier/ quality engineers, managers and would be quality engineers who are passionate about consistent good quality product.
The Dance of Quality: Unveiling the Thrilling Collaboration Behind Your Favorite Products
In today's fast-paced world, the journey from raw materials to the finished products we love is no longer a one-person show. It's a thrilling collaboration that involves a network of manufacturing facilities, forming what we call the product supply chain. This chain links the suppliers of raw materials to the eager hands of consumers, passing through various tiers of suppliers along the way.
Imagine this: every manufacturer depends on their upstream suppliers for essential parts. It's like a well-choreographed dance, where the quality of those parts determines the quality of the final product. Nobody wants to turn shoddy materials into a masterpiece, right? That's why manufacturers must ensure they receive consistently top-notch parts from their suppliers. It's a crucial step because, once the product reaches the expert hands of the original equipment manufacturer (OEM) or original design manufacturer (ODM), there's little room for adjustments.
To master this intricate dance, OEMs must establish robust supplier chain management programs. These programs are the secret sauce that ensures their primary and subsequent suppliers produce parts with precision and adhere to the required specifications. We're talking about minimizing any variations that might compromise the quality of the end product.
Within this supplier chain management realm, there are three essential components: supplier performance management, supplier quality management, and supplier chain risk management. But let's focus on one superhero today: supplier quality management. It's the unsung hero that ensures you, the consumer, get consistently exceptional products.
So, the next time you hold a high-quality product in your hands, remember the thrilling collaboration behind its creation, powered by the magic of supplier quality management.
Achieving Quality through Effective Sourcing Strategy
Quality is an essential aspect of any organization's success. It is attained through meticulous design, careful planning, and meticulous execution throughout the product development process, with contributions from every individual within the organization. This principle holds true even for the procurement process and the sourcing strategy employed by an organization, as it significantly impacts the quality of the materials supplied by suppliers.
The sourcing strategy should be initiated before selecting suppliers to provide materials or parts for the manufacturing line. The procurement department should take the lead in steering the sourcing strategy, involving a cross-functional team comprising members from quality, process, engineering, development, and finance. The procurement lead within the organization must establish a robust supplier sourcing strategy, encompassing a step-by-step approach from understanding the business requirements to analyzing market segments, selecting suppliers, and monitoring their performance.
Before finalizing a supplier, it is crucial for a company to review its internal material requests and gather relevant information, including:
📑Categorization of the desired products (mechanical, electrical, etc.).
💲Total expenditure in the market for the materials, spend analysis for the specific product category, identification of competitors, and potential suppliers.
🎯Specification requirements for the materials in question.
Considering these points provides an overview of the supplier market, aiding in the establishment of future partnerships with suppliers. It is vital to understand one's own organization before seeking to understand potential suppliers.
The subsequent step involves conducting a supply market analysis to identify the key players in the market and comprehend the overall economics, business dynamics, and industry trends influencing the market and supplier profiling.
Once the key players are identified, a sourcing strategy can be developed, encompassing various aspects such as supplier development programs for product and process improvement, and the allocation of volume based on the total cost of ownership. Total cost of ownership goes beyond the direct material cost and incorporates the potential costs associated with poor quality, such as servicing and customer dissatisfaction. Unfortunately, many organizations fail to grasp this concept and merely award business to the supplier with the lowest price.
After formulating the sourcing strategy, the organization moves on to supplier selection. While various factors, including the supplier's financial status, technology roadmap, and cost efficiency, should be considered during supplier selection, this article focuses primarily on assessing supplier quality, as it directly impacts the overall quality of the parts.
The significance of the sourcing strategy lies in its ability to determine an organization's capacity to source the highest quality parts from the market at the best total cost of ownership. A well-crafted sourcing strategy serves as an example of quality planning, highlighting the procurement department's impact on ensuring quality. In the absence of a sound sourcing strategy or when poor sourcing decisions are made, managing supplier quality downstream becomes an immensely challenging task.
By recognizing the importance of a comprehensive sourcing strategy, organizations can enhance their ability to source high-quality parts while considering the overall cost implications. Sourcing strategy serves as a critical link between procurement and quality, ensuring a seamless flow of quality throughout the supply chain.
What does supplier quality engineer do?
Supplier quality engineers or managers (SQE/SQM) are in a powerful position to drive supplier quality to the highest level possible and this authority is even higher than the organization internal quality department. Remember the customer is always right. They should learn on how to manage the whole supplier organization to deliver a consistent defect-free product with the support from their organization such as procurement leaders.
Supplier or manufacturer will perceived supplier quality engineer job is to make life difficult for them, others will think supplier quality engineer always enjoy life at supplier site. Refer to the below video which will walk you through exactly what a supplier quality engineer do, and what are the skill set required.
Why supplier quality management is important to prevent disruption of supply chain in 2021?
In today world, there is no one entity that is able to transform raw materials from natural resources completely too finished goods for the mass consumer market or end users. The transformation of raw material to semi-finished goods and finally finished goods took place in several manufacturing facilities which form a supply chain. Material supply chain links upstream raw material suppliers to downstream consumer market through multitier supplier.
For example, smartphone manufacturer will
assemble parts from memory card modules, PCBA, battery pack, mechanical part
assembly, frame which are procure from various tier one suppliers. Tier one suppliers in turn will either have capability
to assemble lower level semi-finished goods to a module assembly or fabricate
parts from semi processed raw materials.
An example would a battery module manufacturer will procure battery
cells from supplier and assembled into battery module or they would also have
tier 2 capability to produce their own battery cells.
Most of the worlds manufacturing hubs are
concentrated in Asia mainly China and
majority of the consumer are outside of Asia such as US. This means we will have a long chain from
manufacturing of the parts to the consumer.
According to a Bloomberg article by Anjani Trivedi
the world is marred by disruption in supply
which impact the global market.
This is cause by lack of trust along supply chain and the consumer will
feel the pain of price increase with limited supply. This happen due to the lack of trust. Therefore the next question would be how to
cultivate trust a long the supply chain.
Most of the company who are suffering from lacking of supplier trust are
due no or poor supplier quality management program.
A good supplier quality management program must
in place to gain trust and resulted in
- Supplier is able to deliver consistent good quality part
- On time delivery
- At best price for both parties
1.The criteria for a good supplier quality management are
- Systematic approach in Essential areas such as supplier qualification, product qualification etc
- Well supplier quality management professional to execute the program
To learn about systematic approach in supplier
quality management do refer to this link
or click on the photo below
Supplier Quality Audit Plan for New Suppliers
The purpose of the onsite audit is to assess the supplier capability to produce consistently good quality parts.
You will need to work with your procurement team on the supplier's selection process for a project. Brief them importance of SQE early involvement for you to understand each supplier better and then establish an audit plan. There is no such thing as supplier is going to ship the part tomorrow and you are ask to audit them today. Supplier and SQE engagement should be 4-6 months ahead before they can supply the 1st part shipment according to the development schedule. You will also need to prepare for the supplier audit plan.
The SQE supplier audit plan should consist of:-
- Supplier contact details
- Audit ground rules
- SQE audit schedule
- Establish quality audit checklist
- Set Audit date
- Audit notification
|
|
Items |
Details |
|
1 |
Supplier contact details |
Who are the main contact point. Get supplier organization chart to understand who are the key person in key dept quality, process, |
|
2 |
Audit
ground rules |
Establish
a set of audit ground rules where supplier must ready to procedures,
objective evidence and records during SQE onsite audit, etc. |
|
3 |
Audit schedule |
SQE should establish a schedule which covers end to end of the process start from material receiving, manufacturing process till shipment. All sub process must be audited as well. |
|
4 |
Establish
quality audit checklist |
SQE
should establish the audit checklist for quality system and process base on their
expertise in commodity process and quality engineering. You can down load a copy of how to develop audit checklist on the resource page of this website |
|
5 |
Set the audit date |
The audit date had to match supplier
production schedule to produce the similar part of interest |
|
6 |
Audit
notification |
Once
all the above items are ready, send audit notification to suppliers |
Audit plan is part of audit preparation process in supplier audit phase. Supplier audit phase is consist of audit preparation, performing audit, reporting result and audit closure. It does not matter whether it is an onsite or remote audit, the process is still the same.
You can enroll in my course @ Udemy for more detail supplier quality audit which explains
1. Different types of supplier audit with quality system and quality process audit checklist for download
2. The four supplier audit phases
3. Auditing techniques which will enable you to become an expert in quality audits
What is the difference between lean and six sigma - Part 2
- customer is willing to pay for activity which involve in transforming the raw material to final product.
- Activity must transform the part (inspection is not counted as there is no transformation work involve, there is no difference in physical aspect of the part before and after inspection)
- Do it right the first time
Six sigma
|
Lean
|
|
Purpose
|
To reduce a critical to quality metric
data variation
|
Bring value to customer through
elimination of waste by striving for continuous improvement
|
What it is
|
Tool
|
Culture
|
Approach
|
Phase by phase with data collection
|
Overall value stream mapping through
gemba walk of observing the activity
|
Application area
|
Point to point improvement
|
Throughout supply chain
|
Expertise requirement
|
Statistic
|
People management
|
Zero defect a Myth or a reality - Organization accountability
What is the difference between lean and six sigma - Part 1
Proactive leadership in Quality management
Saying no to such work pattern requires a lot of leadership,
planning, courage and communications.
Sometimes we are overwhelmed with so many issues that we
are lost and unable to lead ourselves out of those situations. Therefore we
continued to firefight for the rest of our working lives and hated our work.
The situation is aggravated if you working for management
does not have a clear understanding of what is going on and no objective how to
minimize even prevent problems.
We must treat all
problems as our enemy, lead ourselves
and our team to go to war to conquer this enemy.
Know yourself well, know your enemy even
better, a hundred battles fought a hundred battles win.
This is a famous quote by Sun Tzu, a military strategist
found in the Art of War, an ancient Chinese military treatise. It starts with taking the lead to understand
the problem very well, such as asking questions of what, where, when, who and
how and gathering accurate data. This
seems to be a simple step; however, many had failed due to lack of knowledge
and perspective to look at the problem differently. Once the problem is well defined, we should have some insights if the problem
is within our capability to solve or there is no immediate solution. Learn to acknowledge that the problem cannot
be prevented with current resources is essential for us to manage the problem.
This is where the problem gets bigger as everyone is only
thinking of solving it instead of managing it.
I will discuss more about it in the future.
Once you know the problem, then planning is needed to
establish a solution to prevent or manage the problem. A problem that is well defined will make
planning for action is more straightforward.
This will require knowledge gain from learning and experience. Our knowledge is will help us to search for
the eureka moment in planning for a solution.
We must have the courage to plan for a solution which could go beyond
the four walls of the manufacturing facility.
Improvement in minimizing or prevent problem will not
happen by just planning. We need to put
the problem and action plan into the right perspective so that we can
communicate clearly to the management and team member.
Communication to the management is very important to
influence the management to support and invest in resources to make the plan
into reality.
We must eliminate the victim’s mentality and be proactive
in leading ourselves towards a better work-life as the first step towards in
being control. If you are in a
leadership position, ensure that you are part of the solution to the problem.
Supplier Quality Management Course @ Udemy
For those who seek or want to advance their #career in #supplier #quality #management, Would like to share this course on seven essentials on supplier quality management in Udemy . I have put in more than 20 years of knowledge and experience into creating this course. I am an authority in this area where I have wrote books on this subject.
This course will help to prepare for
interview which you will outshine your competitor supplier quality manager or
engineer post.
You will have life access to this course where you can take your time to finish the course. This is an investment you must make to get ahead in your career as supplier quality management professional.
Click on the image below or scan the QR code to find out more details
#career #interview #supplier #quality #management
Which quality cost should be the primary focus of your company? Part 1
Most companies had failed to look into #prevention cost due to quality problem is seldom a pain point during the development stage as the biggest challenge to launch a new product would be time to market. The development and marketing team would prefer less interaction with other groups to shorten the design cycle, and less work involves to plan in quality in this silo over the wall approach where I design it and you build it. Sad to say this is still practice in some company till today. Typically, the quality problem will only show up during mass production or worst during customer integration. Every organization who are serious about their profitability should understand the cost of correcting a problem at the customer end is more than thousands times more than rectifying problem during design stage. The table below an example of how quality cost grows in the different product life cycle. Therefore, preventive cost should be the primary focus, especially product with the short product life as product development happens almost every quarter. These types of companies should adopt advance quality planning approach to plan quality into every stage of product life. All quality #engineers should show this table to your management if quality planning is not yet the primary focus of the company. This is also the best proactive approach to adopt.
|
Product Life |
Cost of correcting problem |
|
Design phase |
$ 35 |
|
Before buying the parts |
$177 |
|
Before start of mass production |
$368 |
|
During Mass production |
$5900 |
|
After shipped to customers |
$590000 (many parts could have shipped) |
In my next article, I shall share on which cost should be a primary focus where in situation that prevention cost cannot be the primary focus anymore.
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