Hi all,

Recently, my company is undergoing some cost down initiatives, and 1 aspect identified in the cost down initiative is to reduce the overhead costs incurred from conducting IQC of materials by requesting suppliers to provide COAs.

What I am not too sure here is what are the components to be included in the COAs as there is no detail knowledge on the materials which we are using like die attach paste. Is there any guideline on the components to be included in the COAs?

Note: Company is a SME, with limited manpower.

Thanks in advance of the input to be given. :D

Hi all,

Recently, my company is undergoing some cost down initiatives, and 1 aspect identified in the cost down initiative is to reduce the overhead costs incurred from conducting IQC of materials by requesting suppliers to provide COAs.

What I am not too sure here is what are the components to be included in the COAs as there is no detail knowledge on the materials which we are using like die attach paste. Is there any guideline on the components to be included in the COAs?

Note: Company is a SME, with limited manpower.

Thanks in advance of the input to be given. :D
Please elaborate on your abbreviations;IQC,COA,&SME.Your mail is all greek and latin for a layman.
V.J.Brahmaiah:bonk:

Please elaborate on your abbreviations;IQC,COA,&SME.Your mail is all greek and latin for a layman.
V.J.Brahmaiah:bonk:

so sorry about it since it's my first post.

IQC - Incoming Quality Control
COA - Certificate of Acceptance/Analysis
SME - Small and Medium Enterprise

:D

Dear mr.lyregi,
Quality inspector is non-value adding person.Most companies are drastically reducing Quality inspectors.Now coming to your problem,you can reduce inspection work in reciept area by introducing the following method:
1.Make it a contract requirement for your supplier to provide;
a)Material test certificates for all raw materials he has used including ferrus,nonferrus,polymers,Chemicals Etc.
b)Dimensional inspection report for all machined components
c)Hardness testing results for heat treated material.
d)Tensile test,Microstructure for castings and forgings.

If you are a TS 16949 company you insist on a ppap for the item supplied.
Without fail carryout strict process audit at your suppliers plant once every six months.
If you follow the above system you may not need inspectors in your reciept area.A purchase engineer can manage quality also.
V.J.Brahmaiah:agree:

Thanks Mr. Brahmaiah for the suggestions.

It seems that this implementation is going to be a painful process as my company is a relatively small player where the major suppliers are big players in the industry. Most of the time, if the proposed system to be implemented is not within their existing operation mode, they will do little to conform to the requirements set out and it won't hurt them much to lose our business. This is 1 of my biggest problem currently. In addition, carrying out site audit is also an issue since there is no pre-allocated budget to do it since most suppliers are in foreign land.

Nevertheless, what you have mentioned is indeed something which is valuable in my consideration process. Thanks alot once again.

Dear mr.lyregi,
It is true that the system suggested by me is difficult to implement in small companies.Large conpanies are following the system.Because they can dictate terms to their suppliers.

Then is there no solution for small companies?

I think small companies can still maintain quality by doing following things;

1)Select suppliers on the basis of their quality reputation and not on the basis of price.
2)At the stage of assessing a supplier follow strict critaria.
3) If the quality of purchased items are poor, hold the purchaser resposible.This should be the policy of top management.
4)Carry out continuous vendor rating covering each supply and give feed back to suppliers on your findings.
5)It is quite possible that big suppliers donot heed your suggestions.Try convincing them.Keep an eye on alternative possibilities.
6)If your top management cannot bear aditional cost involved, you have to settle for the level of quality that is achievable in the circustances.
7)In such cases you cannot trumpet 'customer delight' in you quality policy.
Well all this is in good spirit!
V.J.Brahmaiah:agree:

Thanks for the suggestions. I will take a good look at each of the suggestions and come up with a framework for these changes to take place. Keep my fingers cross that all these will be smooth sailing.

:biglaugh: