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Supplier Disqualification - High Rejects and not following established Procedures
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Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
Supplier Disqualification - High Rejects and not following established Procedures
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Some Related Topic Tags
supplier control and monitoring, supplier performance, supplier quality, supplier requirements, suppliers (general topics)
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  Post Number #1  
Old 15th March 2011, 08:47 PM
quality1's Avatar
quality1

 
 
Total Posts: 102
Please Help! Supplier Disqualification - High Rejects and not following established Procedures

Hi Cove Experts,

We're currently in a dilema concering one of our contracted manufacturer overseas. We've been doing business with them since 2004, this is way before my time so I do not know how they were qualified. They build 80% of our products, their quality is substandard 25% rejects. Recently they changed a process and materials without letting us know which had major ramification with supplying materials to our end customers. Eventhough we have processes in place that requires our engineering, production and quality to approve changes, they do not follow what was established. It is easy to say "disqualify them" and look for another supplier, but we are so deep in with them it would be very difficult for us to cut ties and ability to provide products. What can do with this supplier at this time?

Thank you for your help & suggestions!

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  Post Number #2  
Old 15th March 2011, 11:23 PM
Ka Pilo

 
 
Total Posts: 609
Re: Supplier Disqualification - High Rejects and not following established Procedures

Is it first or a second supplier? What are your previous experiences with other suppliers? Have you tried to communicate with them re unable to meet your requirement? What was their response/action? Have you sent them result of your evaluation on the basis of their ability to meet your requirements?
  Post Number #3  
Old 16th March 2011, 09:14 AM
Kales Veggie's Avatar
Kales Veggie

 
 
Total Posts: 1,017
Re: Supplier Disqualification - High Rejects and not following established Procedures

Quote:
In Reply to Parent Post by quality1 View Post

Hi Cove Experts,

We're currently in a dilema concering one of our contracted manufacturer overseas. We've been doing business with them since 2004, this is way before my time so I do not know how they were qualified. They build 80% of our products, their quality is substandard 25% rejects. Recently they changed a process and materials without letting us know which had major ramification with supplying materials to our end customers. Eventhough we have processes in place that requires our engineering, production and quality to approve changes, they do not follow what was established. It is easy to say "disqualify them" and look for another supplier, but we are so deep in with them it would be very difficult for us to cut ties and ability to provide products. What can do with this supplier at this time?

Thank you for your help & suggestions!
Time to buy a plane ticket and have someone on site in the foreseeable future. You can not afford not to.

Have a meeting with the owner / company owner. The time for phone calls has past.
  Post Number #4  
Old 16th March 2011, 09:30 AM
harry

 
 
Total Posts: 6,291
Re: Supplier Disqualification - High Rejects and not following established Procedures

Quote:
In Reply to Parent Post by quality1 View Post

............. Thank you for your help & suggestions!
'Put your foot down' so that they know you meant business.
  Post Number #5  
Old 16th March 2011, 09:46 AM
silentrunning's Avatar
silentrunning

 
 
Total Posts: 537
Re: Supplier Disqualification - High Rejects and not following established Procedures

I would do all the above plus begin qualifying a second vendor, TODAY.
  Post Number #6  
Old 16th March 2011, 10:15 AM
AndyN's Avatar
AndyN

 
 
Total Posts: 8,940
Caution Re: Supplier Disqualification - High Rejects and not following established Procedures

Careful! You know the old saying about pointing a finger and having three more pointing right back? Well, it's true!

In my experience of supplier QA, most of the rejects had their source in our requirements. My worst supplier, our sister company made rejects, because we sent them rejects - they just assembled them! Plus, if this has been going on for so long, why is it only now anyone is thinking of doing something about it? It's called supplier development - or, as ISO 9004 refers to it 'mutually beneficial supplier relationships'...go and discover what your organization can do better...before finding another supplier and recreating the same errors!
Thank You to AndyN for your informative Post and/or Attachment!
  Post Number #7  
Old 16th March 2011, 12:17 PM
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jasonb067

 
 
Total Posts: 184
Re: Supplier Disqualification - High Rejects and not following established Procedures

This is why I am an advocate of regular supplier performance scorecard. I know that people have written they are pointless, they do not help and so on. But, at the end of the day if I have a supplier that is not performing and I can give a metric to those people that have the ability to change suppliers it is a more clean and clear conversation. They are supposed to perform at level X which they are well below. Our standards say they need to be replaced because we have tried A B and C to improve but our demands are beyond their ability (for whatever reason). Make the change.

I recommend a supplier rating system for now and in the future if you are so dependant on your suppliers.

As far as current supplier you should understand the culture of that suppliers location before making any rash decisions. I know you are the customer and you want what you want but there are some cultures where the management method will go no where.

Also, list out item by item specific issues to manage. Assign owners at their location and follow up everyday. You may need to send someone to their location frequently or on a short term (few weeks, months) to follow these issues. But you must address specifics and they must be assigned to owners. I suggest that you focus on both product (defects) and system issues (failure to comply with change mamangement requirements). I call this daily closing, just as bank tellers balance or close their drawer everyday this list/supplier should have a daily closing with you and your team at the end of THEIR WORK DAY. At the end of each day you are talking to them and they are talking to you about what progress or actions that were taken. At the end of that meeting you have a Plan for the next day. The supplier and your person at their location Do the plan. The supplier and you person at their location Check the results and at the Daily Closing meeting the team (yours and theirs together) Act on the results. Every day is a short cycle of the PDCA. If you can not have someone at thier location it is more difficult to manage but still have the same expectations and hold a closing meeting with them via web and phone conference. You need to be looking at the same information at the same time. The key is Every Day you need expect action.

Last edited by jasonb067; 16th March 2011 at 12:29 PM. Reason: Added information
Thank You to jasonb067 for your informative Post and/or Attachment!
  Post Number #8  
Old 16th March 2011, 01:09 PM
Quality-Geek's Avatar
Quality-Geek

 
 
Total Posts: 98
Re: Supplier Disqualification - High Rejects and not following established Procedures

Quote:
In Reply to Parent Post by jasonb067 View Post

This is why I am an advocate of regular supplier performance scorecard. I know that people have written they are pointless, they do not help and so on. But, at the end of the day if I have a supplier that is not performing and I can give a metric to those people that have the ability to change suppliers it is a more clean and clear conversation. They are supposed to perform at level X which they are well below. Our standards say they need to be replaced because we have tried A B and C to improve but our demands are beyond their ability (for whatever reason). Make the change.
Preachin' to the choir!!
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