Contents

Supplier Selection Supplier Certification Relationship Development

Supplier SelectionMR. Adnan Ali

What is the Supplier

The definition of a supplier is a person or entity that is the source for goods or services. A company that provides microprocessors to a major computer business is an example of a supplier.

Why Supplier Selection Is Important?The need to identify and select a new supplier can arise from a number of reasons.

A source used in the past may have gone out of business. Its price may have risen unreasonably or its quality slipped to unacceptable levels. Its technology may be outdated.

Before Start the Supplier Selection.

3 Questions should be Answered Before Supplier Selection.

How Critical is the Item, Product or Service?

Does the Organization have the Technical Knowledge to Produce this Item Internally?

Are there Suppliers who Specialize in producing items?

Conditions for Selection and Evaluating of Suppliers.

Supplier Understand the management policy of the organization.

The supplier maintains high technical standards and has the capability of dealing with feature technological innovations

The supplier maintains high technical standards and has the capability of dealing with feature technological innovations

supplier has the capability to produce the amount of production needed.

There is no danger of the supplier breaching corporate secrets.

The price is right and delivery dates can be meet. The Supplier is easily accessible in terms of Transportation and Communication, there must be a system to trace the product from receipt and all changes of production delivery.

The supplier is sincere in implementing the contract provisions.

The supplier has an effective quality system and improvement program such as ISO/QS 9000.

The supplier has a track record of customer satisfaction and organization credibility.

Supplier Certification

MR. AHSAN KHAN

What is Supplier certification?

After supplier selection and approval, the next step is certification process, which starts after the suppliers begin shipment of the product.

This process has been described by customer/supplier technical committee of ASQ, which developed the following eight certification criteria:

Why certify

I. Way to determine which suppliers meet the company’s needs

II. Develop supplier capabilitiesIII. Build stronger and open relationshipsIV. Better communication and sharing of

informationV. Better serve our customersVI. Meet corporate improvement objectives through

collaboration

Certification process

The customer and supplier shall have agreed on specifications

The supplier shall have no product-related lot rejection for a significant period of time or significant number of lots.

The supplier shall have no nonproduct-related rejections for a stated period of a time or number of lots.

The supplier shall have no negative non-product-related incidents for a stated period or number of lots.

The supplier shall have a fully-documented quality system.

The supplier shall have successfully passed an on-site system evaluation.

The supplier must conduct inspections and tests.

The supplier shall have the ability to provide timely inspection and test data.

Benefits of Supplier Certification

it eliminates receiving inspection

a customer/supplier partnership is created, with each partner being responsible for its own appropriate quality

the number of suppliers is reduced to manageable level,

Mr. Moshin KhanRelationship Development

Relationship Development

Following are the points of relationship development.

Inspection

Training

Team Approach

Recognition

Inspection

The goal of inspection is to eliminate good and bad parts .There are three phases of inspection.

1. 100% inspection

2. Sampling

3. Audit

100% Inspection

In this phase 100% inspection is recommended by both customers and suppliers

Sampling

As the supplier gains confidence in its quality performance , a change to sampling is recommended , provided there is statistical control of the process using control charts and process capability.

Audit

In the 3rd phase , the supplier continues statistical control of process and initiate its own auditing . The customer now has complete confidence in the supplier and initiate identity checks.

Training

In small organizations , the senior managers perform many different functions. Frequently no one has expertise in quality or ability to train work force . Therefore the large organizations may invite the supplier to attend their courses or present the course at the supplier’s end.

Team Approach

Customer/Supplier teams are established in a number of areas , such as product design , process design , and the quality system.

Team meetings should occur at both parties plants so they obtain a greater understanding of the process.

Recognition Creating incentives for suppliers is one way to ensure that they

remain committed to a quality improvement strategy . Incentives may be in the form of a preferred supplier category with its rewards.

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