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Supplier Partnership

Supplier Partnership. Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor of Industrial Engineering and Industrial Management Mercer University. Supplier Partnership Overview. Introduction Changing supplier relations ISO 9000 Principles Partnering

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Supplier Partnership

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  1. Supplier Partnership Presented by Dr. Joan Burtner Certified Quality Engineer Associate Professor of Industrial Engineering and Industrial Management Mercer University

  2. Supplier Partnership Overview • Introduction • Changing supplier relations • ISO 9000 • Principles • Partnering • Long-term commitment • Trust • Shared vision • Sourcing • Sole • Single • Multiple • Selection • Certification • Rating • Maintaining the relationship Dr. Joan Burtner, Associate Professor of Industrial Engineering

  3. Introduction • Supplier quality can substantially affect the cost of a service or product • “Customers and suppliers have the same goal – to satisfy the end user” • Deming’s influence • Stop awarding business based on price alone • Develop long-term relationships by using single suppliers • Other trends after 1980 • Just-in-time philosophy • Continuous process improvement • Acceptance of ISO 9000 Dr. Joan Burtner, Associate Professor of Industrial Engineering

  4. Principles of Customer Supplier Relationships • Text lists ten principles developed by Dr. Kaoru Ishikawa • These ideas are not exclusive to Ishikawa • Note that the customer in this case is NOT the person or organization that will receive the final product or service Dr. Joan Burtner, Associate Professor of Industrial Engineering

  5. Customer and Supplier Partnering • Long-term commitment • Problem solving takes time • Total organizational involvement required • Suppliers may be reluctant to make large investments without long-term commitment • Trust • Non-adversarial relationship required • Open and frequent communication strengthens the relationship • Shared vision • Need to satisfy the final customer • Each partner should understand the other’s business • Mutual strategic planning will benefit both parties Dr. Joan Burtner, Associate Professor of Industrial Engineering

  6. Sourcing • Sole:The organization is “forced” to use only one supplier. • Single:The organization chooses to select one supplier for an item when more than one supplier is available. • Potential advantages: reduced business and production cost, better end product with reduced variability, better accountability, more loyalty • Potential threat: delivery disruption • Multiple:The organization uses two or more suppliers for a specific item. • Competition will result in better quality, better service, lower costs • May eliminate disruption of supply due to strikes, etc. Dr. Joan Burtner, Associate Professor of Industrial Engineering

  7. Selection Decisions • Decision #1: produce in-house or outsource • If decision to outsource is chosen • Develop criteria for selection • Send multifunctional team to assess suppliers before making final choice Dr. Joan Burtner, Associate Professor of Industrial Engineering

  8. Certification • Starts after supplier begins shipment of the product • Based on mutually-developed unambiguous specifications • Relies on a predetermined process for dealing with nonconformities • Requires that the supplier has a fully-documented quality system • Identifies who is responsible for conducting inspections and tests • Suppliers may be decertified as a result of major problems Dr. Joan Burtner, Associate Professor of Industrial Engineering

  9. Supplier Rating System • Supplier rating system is designed to provide • Metric: overall rating of supplier performance • Systematic communications regarding quality, service, and delivery • Factual record of problems for corrective action • Positive relationship between customer and supplier • Successful supplier rating system requires • Internal structure to implement and sustain the rating program • Regular and formal review process • Standard measurement system for all the suppliers • See supplier scorecard on page 161. Dr. Joan Burtner, Associate Professor of Industrial Engineering

  10. Maintaining the Relationship • Inspection phases in chronological order • 100% inspection by both supplier and customer • Supplier maintains statistical process control (SPC) and customer conducts acceptance sampling • Supplier maintains SPC and conducts its own “audit” plan • Inspection relies on identity check because process is controlled and capable (ideally) • Training • Team approach • Recognition Dr. Joan Burtner, Associate Professor of Industrial Engineering

  11. Contact Information • Email: Burtner_J@Mercer.edu • US Mail: Mercer University School of Engineering 1400 Coleman Avenue Macon, GA • Phone: (478) 301- 4127 Dr. Joan Burtner, Associate Professor of Industrial Engineering

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