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Risks and opportunities that could be associated with the purchasing department - Page 2

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  Post Number #9  
Old 16th February 2018, 12:00 AM
somashekar's Avatar
somashekar

 
 
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Re: Risks and opportunities that could be associated with the purchasing department

Quote:
In Reply to Parent Post by QAguygoqa View Post

Hello QA Pros:

What would be some of the risks and opportunities that could be associated with the purchasing dept. ? how are other companies addressing this risk based thinking with purchasing?

Can someone share a procedure or document of the approach? thanks
One of such risk that could have serious implications with your outputs and perhaps even as your customer complaints is the supplier 's change control.
The risk that a supplier changes some input / process without your knowledge and consent in making the parts that has to meet your drawing and specification criteria, and that you are not able to detect it in your inspection or use.
Hence the change control agreements and methods to approve any change is vital in purchasing.

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  Post Number #10  
Old 27th February 2018, 01:49 PM
QAguygoqa

 
 
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Re: Risks and opportunities that could be associated with the purchasing department

Can you elaborate on your statement about "lack of demonstrating process ownership?" and "Departmentalization"
Thanks
  Post Number #11  
Old 27th February 2018, 02:29 PM
John Broomfield's Avatar
John Broomfield

 
 
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Yin Yang Re: Risks and opportunities that could be associated with the purchasing department

Quote:
In Reply to Parent Post by QAguygoqa View Post

Hello QA Pros:

What would be some of the risks and opportunities that could be associated with the purchasing dept. ? how are other companies addressing this risk based thinking with purchasing?

Can someone share a procedure or document of the approach? thanks

QAguygoqa,

Why departmental? At the system (organization) level the purchasing opportunities and adverse risks may pale to insignificance.

But purchasing could bring the following opportunities and adverse risks to the system-wide risk assessment:

Opportunities:

Suppliers investing in improvement
Suppliers - innovation and strategy
Suppliers offering better value services and products
Relying less on certification and more on second party auditing
Acquisition targets to deliver better value to customers

Adverse Risks

Paying for nonconforming products
Over-reliance on one supplier
Rewarding bad behaviour
Uncompetitive supplier selection criteria
Chicken shortage

Many of these opportunities and risks may already be addressed by processes owned by Purchasing but some may need the power of the wider organizational management system such as paying for nonconforming products.

John

John
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