supplier performance management webinar

SUPPLIER M

ANAGEMENT

O P T I MI S I N G S U S T A I N A B L E S U P P L I E R M

A N A G E ME N T

Robert OakleyCommercial Director

Mike BendallServices Director

OBJECTIVES

1. Pro-Actively Manage Your Suppliers

2. Drive Continuous Quality Improvements

3. Improve Supplier Performance Visibility

4. Eliminate Recurring Supplier Issues

5. Additional Information and Resources

AGENDA

1. Supplier Quality Assurance 5 Minutes• A Definition• Why Supplier Quality is Critical To Your Business.

2. ISO 9001:2015 and Beyond 15 Minutes• The New Requirements of ISO 9001: 2015• Record Keeping – Compliance and a Basis for Effective Management

3. Best Practices: 25 Minutes• Supplier Assessment.• Addressing Supplier Issues.• Supplier Performance Management.• Collaboration

4. Questions. 15 Minutes

SUPPLIER QUALIT

Y ASSURANCE

What Does it

Mean to

your Busin

ess ?

SUPPLIER QUALITY ASSURANCE

Juran’s definition of the processes…

1. Definition of the product’s quality requirements.

2. Evaluation of alternative suppliers.

3. Selection of the most appropriate supplier.

4. Conduction of joint quality planning.

5. Co-operation during relationship period.

6. Validation of conformance to requirements.

7. Certification of qualified suppliers.

8. Conduction of quality improvement plans.

9. Creation and use of supplier ratings.

Joseph M Juran: 1904 - 2008

WHY IS SUPPLIER QUALITY CRITICAL?

• Increasing global competition

• Global purchasing

• Longer supply chains

• Lean inventory and ‘just-in-time’ supply

• Performance

• Regulatory and standards compliance

• Buyer access to and demand for information

ISO 9001:2015

The implica

tions for y

our Processe

s.

ISO 9001: 20158.4 Control of externally provided processes, products and services

8.4.1 General

• Processes, Products and Services that conform to requirements.

• Products and Services incorporated into own Products and Services.

• Products and Services provided by external providers on our behalf.

• Processes or part-processes provided by external providers as a result of our decision.

• Determine and apply criteria:• Evaluation• Selection• Monitoring• Re-evaluation

ISO 9001:20158.4 Control of externally provided processes, products and

services

• 8.4.2 Type and extent of Control

• Controls to ensure no adverse impact to our products and services• Controlled by QMS • Controls for external provider and the output• Consider regulatory compliance and external provider controls

effectiveness

• Verification activities

ISO 9001:20158.4 Control of externally provided processes, products and

services

• 8.4.3 Information for External Providers

• Adequacy requirements prior to communication

• Processes, products or service requirements

• Approval of products/services, methods/processes/equipment, release

• Competence

• Interaction

• Control and monitoring of performance

• Verification or validation at external provider’s premises

SURVEY RESULTS

Pre-Webinar S

urvey of Particip

ants

SURVEY RESULTS – YOUR PROCESSES

Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

Do you have a defined process for supplier evaluation?

Do you follow a defined process for supplier selection?

Do you follow a defined process for supplier monitoring?

Do you follow a defined process for supplier re-evaluation?

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Yes No

TOOLS TO MANAGE SUPPLIERS?

Issues:

• Speed

• Analysis

• Decisions

Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

HOW DO SENIOR MANAGEMENT VIEW SUPPLIER PERFORMANCE REPORTS?

No Reports are Produced Writes Reports for regular meetings Monthly Spreadsheet ReportingReal Time Reporting

Issues:

• Performance Analysis?

• Risk Analysis?

• Cost of Poor Quality?

• ISO 9001:2015 compliance

Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

HOW EFFECTIVE IS YOUR MANAGEMENT OF…

Supplier R

ecords

New Supplier A

ssessm

ent

Supplier A

pproval

Supplier M

onitorin

g

Supplier R

eassessm

ent

Supplier In

cidents

/ Erro

rs0

10

20

30

40

50

60

70

80

90

100

Highly Effective Effective Average Ineffective Completely Ineffective

Is average good enough?

47% highly effective or effective at dealing with errors but…

35% ineffective or completely ineffective at supplier reassessment

Based on feedback from 93 participants: Supplier Management Pre-Webinar Survey 2016

REACTIVE, COSTLY AND SILOED

“There are several different managers who use different systems to purchase supplies and often do not follow procedure as they need to act fast in response to an urgent request.” Energy and utilities company with 20-100 employees

“Consistency across all suppliers.” Technology company with 10-19 employees

Your main challenges:

“Strictly supplier and customer relationships, no true and open partnerships.” - Manufacturer with 100-499 employees

“Supplier’s don’t have adequate competency to achieve what they have previously promised, resulting in a number of issues for us.” – Professional services company with 10-20 employees

“Ensuring supplier’s have an understanding of Quality and OTD requirements.” – Small manufacturing company

“Establishing metrics for monitoring.” Professional services company with over 1,000 employees

“Escalate issues before they become major problems.” – Professional services company with 100-499 employees

“Forced to use a client approved vendor list.” – Professional Services Company with 5,000 to 9,999 employees

“Keeping records.”- Manufacturer with over 1,000 employees

POLL 1

Do you believe your existing Supplier Management processes satisfy the requirements of ISO 9001: 2015?

POLL 2

Do you believe your existing Supplier Management processes satisfy the requirements of your business?

RECORD KEEPING

For E

ffective Supplie

r Management a

nd Compliance

PRO-ACTIVE SUPPLIER MANAGEMENTRecord Keeping

• Contract

• Specifications

• Warranties

• Evaluation Criteria

• Assessment Record

• Re-evaluation Criteria

• Regular Audit Records

• Expenditure

• Cost of Poor Quality

• Realtime Dashboard and Reporting

• Record retention

RECORD KEEPING

PRO-ACTIVE SUPPLIER MANAGEMENTSupplier Assessment

• Planning

• Design• Customer Input, Design Goals, Standards, Quality Goals, Feasibility, Pricing• Drawings, Specifications, BOM, Process Flowcharts, Control Plans, Work

Instructions• Design Verification, Management Review

• Risk Analysis• Design• Process

PRO-ACTIVE SUPPLIER MANAGEMENTSupplier Assessment

• Supplier Evaluation• Financial Viability• Capability / Capacity• EHS• Social Responsibility• Process Control• Sub Contractor Control• Change Control

PRO-ACTIVE SUPPLIER MANAGEMENTSupplier Assessment

• Supplier Selection• ITT (Including Specifications and Standards) and Supplier Response• Contract Agreement• Volumes & Pricing• Delivery (JIT)• Change Control• Production Part approval• Traceability• Competency• Supplier In Process Monitoring, Self Audit• Non Conformance Management• Monitoring, Score Card, Cost Recovery, Bonus• Low Performance / Termination Process

PRO-ACTIVE SUPPLIER MANAGEMENTSupplier Monitoring• Accounting Aware• Warranty, Recall and Complaints• Scrap and Rework• Inspection Failures

• Hidden• Additional Quality Administration, Inspection, Invoicing• Additional stock/inventory• Delays and Overload• Lost Sales• Additional Transport and Logistics

PRO-ACTIVE SUPPLIER MANAGEMENTClosed Loop processing• Monitoring Processes• Complaints, Warranty, Recall• Inspections• Non-conformances, Deviations, OOS• Operational Delays and Additional Costs

• Review and Improvement• Real Time Reporting• Regular Management Review• Supplier Response• Joint Improvement Projects• Supplier Re-Assessment, Re-Audit

COLLABORATION

Supplier InformationCompany Name Qualsys LtdAddress Line 1 Aizlewood’s MillAddress Line 2 Nursery StreetCity SheffieldPost Code S3 8GGCountry UKCompany Registration Number 3022323

Date of Incorporation March 1995VAT Registration Number 646512047 D-U-N-S® number: 77-774-7601VAT Certificate Qualsys VAT CertificatePublic Liability Insurance CertificateProfessional Indemnity Insurance Certificate

ISO 9001

Qualsys ISO 9001 Certificate

ISOQAR Audit Report – Qualsys Ltd 2016

ISO 27001 Cloud Hosting Option (if applicable) Node 4 Datacentre, Derby, UK

Node 4 Public Information Security PolicyNode 4 Accreditations

Payment Currency £GBP

Key Contact InformationName Michael Ord

Title New Business & Marketing Director

Telephone Number 0114 282 3338

Mobile Number 07720 678 141

Email Address michael.ord@qualsys.co.uk

Website http://www.eqms.co.uk

Blog http://quality.eqms.co.uk/blog

Accounts Payable Contact Information

Name Sarah Bentley

Title Office Manager

Telephone Number 0114 282 3338

Email Address Sarah.bentley@qualsys.co.uk

Remittance Email Address

Qualsys Ltd, Aizlewood’s Mill, Nursery Street, Sheffield, United Kingdom, S3 8GG

Bank DetailsBank Name: Barclays Bank PLCAddress: South Yorkshire Corporate Banking

CentrePO Box 1385, 2 Arena CourtSheffield, S9 2WU

Account Name: Qualsys LtdAccount Number: 20-76-89 / 60583332Swift Code: BARCGB22IBAN Number: GB68BARC 2076 8960 5833 32

Qualsys Ltd PoliciesQuality Policy Policy

Environmental Policy Policy

Health and Safety Policy Policy

Information Security Policy Policy

Risk Management Policy Policy

Equal Opportunities Policy Policy

Ethical Statement Statement

Standard Terms & ConditionsEQMS Software Licence - Perpetual EQMS Software Licence - PerpetualEQMS Subscription Agreement - Annual EQMS Subscription Agreement - AnnualSupport & Maintenance Agreement Support & Maintenance Agreement

Payment Terms

Software Licences - In advance of installation, on receipt of Qualsys’ invoice Support and Maintenance Services - Annually in advance, on receipt of Qualsys’

invoice Subscription and Hosting Services - Monthly in advance, on receipt of Qualsys’

invoice Software Development Services - 50% in advance, 50% on delivery All other services - 14 days from receipt of Qualsys’ invoice (professional services

will be invoiced weekly, all services must be called off within 12 months of the date of order.)

IT – Technical RequirementsServer & Technical Requirements Customer Site Survey FormBuying Tools – including Datasheets, Buy vs Build etc. EQMS Buying Toolkit

Signed for and on behalf of Qualsys Ltd

Signature

Print Name Michael Ord

Date 15/02/16 Position New Business & Marketing Director

SUMMARY• Suppliers are an extension of your

business.• Senior management must understand

supplier risk. • Reassessment is just as important as

supplier on-boarding.• Transparency, visibility and

traceability are essential.

Quality

Culture

Enablers

Supporting Systems

•Tr

ust

•Co

mm

unica

tion

•Pa

rticip

ation

Hierarchy for a Robust and Intuitive Supplier Management System

QMS Processes Technology Tools

CompetencyCommitment

Understanding

Values

QUESTIONS?

FURTHER INFORMATION

• EQMS Datasheets for • Supplier Manager• Audit & Inspection Manager• Issue Manager• Document Manager• Risk Manager

• Qualsys Supplier Information Form• Survey Results Analysis.• Replay Webinar.• Supplier Buying Form• Library of Articles on Supplier Performance Management.

FURTHER HELP & SUPPORTQualsys Limited

Aizlewoods Mill,

Nursery Street,

Sheffield,

S3 8GG

emily.hill@qualsys.co.uk

+44 (0)114 282 3338

robert.oakley@qualsys.co.uk

+44 (0)7919 005538

mike.bendall@qualsys.co.uk

+44 (0)7770 866268