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Don’t Let Your Project Sink: Achieving Zero Rework through Effective Supplier Quality Practices

Don’t Let Your Project Sink: Achieving Zero Rework through Effective Supplier Quality Practices. Tricia Thibodeaux , Fluor Corporation RT308 – Achieving Zero Rework through Effective Supplier Quality Practices. Essential Question.

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Don’t Let Your Project Sink: Achieving Zero Rework through Effective Supplier Quality Practices

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  1. Don’t Let Your Project Sink: Achieving Zero Rework through Effective Supplier Quality Practices Tricia Thibodeaux, Fluor Corporation RT308 – Achieving Zero Rework through Effective Supplier Quality Practices

  2. Essential Question What are the most effective processes and practices for ensuring that project materials and equipment are produced, manufactured, or fabricated in strict accordance with all applicable specifications, and that they are delivered to the project site without any need for rework?

  3. RT308 – Achieving Zero Rework through Effective Supplier Quality Practices Buck Blum, CB&I Vince Carney, Southern Co. Don Ellis, DuPont Don Holte, Procter & Gamble Phil Klefas, Aramco Services Terry McMillan, Alstom Power Brad Monroe, Dresser-Rand Randy Moreland, Shell Kim Needy, University of Arkansas RufaidahAlMaian, University of Arkansas Gene Nikstad, CH2M HILL Jim Peters, Bechtel Corporation Tricia Thibodeaux, Fluor Ken Walsh, San Diego State University Thais Alves, San Diego State University Shamail Ahmad, San Diego State University YoshuaNeuman, San Diego State University DucHuy Nguyen, San Diego State University Gary Weiler, Leidos Constructors

  4. Methods • Data Collection Sources • Literature • Review • Literature • Review • Supplier Quality Documents • Supplier Quality Documents • Supplier Focus Groups • Supplier Focus Groups • Supplier Quality Practices and Performance Survey • Supplier Quality Practices and Performance Survey • Supplier Quality Data Collection Structured Interviews • Supplier Quality Data Collection Structured Interviews • Inside the Construction Industry • Inside the Construction Industry • Reports • Reports Domestic Suppliers Domestic Suppliers Tagged/Engineered Equipment Tagged/Engineered Equipment Supplier Quality Organization Supplier Quality Organization • Outside the Construction Industry • Outside the Construction Industry • Procedures • Procedures International Suppliers International Suppliers Fabricated Goods(Steel & Pipe) Fabricated Goods(Steel & Pipe) Supplier Quality System Supplier Quality System Manufactured / Bulk Materials Manufactured / Bulk Materials Metrics, Data Assessment, Supporting Documents Supplier Metrics, Data Assessment, Supporting Documents Supplier

  5. Supplier Quality Process Map Post Completion Feedback Project Start • 1. Planning and Selection • 2. Execution • 3.1. Release from Shop • 3.2. Received at site • 3.3. Mechanical Completion Reject packages if they do not meet quality standards

  6. Supplier Quality Process Map Post Completion Feedback Project Start • 1. Planning and Selection • 2. Execution • 3.1. Release from Shop • 3.2. Received at site • 3.3. Mechanical Completion Reject packages if they do not meet quality standards

  7. Key Result #1 Companies who were deemed “more effective” in their application of supplier quality practices found more defects earlier in the product cycle, thus lowering the cost of rework.

  8. 0.99 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 Key Result #2 0.03 0.1 Contours of constant total cost of fNQ 0.01 • Utilize model output • Estimate the cost of non-quality • Make supplier decisions based on total delivered cost • Determine whether applying more inspection is worth the investment 0.3 1.0 Probability the inspection can catch and repair non-conformance (Pinsp) 3.0 8.0 0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 0.99 Probability the item is fabricated correctly (Pfab)

  9. Implementation Session • Boarding Pass • Published IR contents: • Supplier Quality Processes Map and RACI Matrix • Estimating the Impact of the Cost of Non-Quality • Glossary of Terms and Acronyms • Total Delivered Cost Discussion • Handouts

  10. Implementation Session Learning Objectives • Explain the methods used • Explain the supplier quality process map • Demonstrate the impact of identifying non-conformances across several stages of the supply process • Utilize the cost-tradeoff curves to incorporate resource decisions into supplier selection processes

  11. Will your project suffer the same fate?

  12. Come to our Implementation Session Moderator Buck Blum, CB&I Panel Don Ellis, DuPont Brad Monroe, Dresser-Rand Randy Moreland, Shell Kim LaScola Needy, University of Arkansas Ken Walsh, San Diego State University Grand Ballroom 1-2 1:00 and 2:15 p.m. today

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