Vendor (Supplier) Approval Procedure - Scope of the procedure

[ttwerp65 - 2009]

I am currently working on this procedure. I have added to the scope as stated below:
Scope: This document defines the procedure used to Survey and Evaluate vendors for ISCO unless specified by our customer as a certified vendor. All vendors prior to 10/16/06 have been accepted on the basis of Quality, consistency, and ability to meet ISCO Purchase order specifications in a timely manner.

Will this pass certification?

Can my approved vendor list be in my manufacturing software and not in paper form?

Currently when we approve a vendor it is enter into the part maintanence portion in our system. When we order a outside service it automatically pulls up that vendor on our purchase order. This is also the same for raw materials. Sometimes it will give you multiple vendors to chose from that we have used to recieve material from especially in the case of raw material. Your input would greatly be appreciated!

 

[Jim Wynne]

I am currently working on this procedure. I have added to the scope as stated below:
Scope: This document defines the procedure used to Survey and Evaluate vendors for ISCO unless specified by our customer as a certified vendor. All vendors prior to 10/16/06 have been accepted on the basis of Quality, consistency, and ability to meet ISCO Purchase order specifications in a timely manner.

Will this pass certification?

Yes. "Grandfathering" of existing suppliers is common practice.

Can my approved vendor list be in my manufacturing software and not in paper form?

Yes again.

 

[ttwerp65 - 2009]

jim,
Once again, thanks for your input! I am 2 months out from my registar visit.

 

[Jim Wynne]

jim,
Once again, thanks for your input! I am 2 months out from my registar visit.

You're welcome. Good luck with that.

 

[Rochy]

Please I need a big Help.

I have an existing supplier evaluation process that I initiated 6 years ago for my ISO Audit preparetion. However, my company is out of control in adding new suppliers on the AVL without following the process. I told my supervisor about this and he told me to review the process and prepare a signature sheet so that we formalize the approval process. Something like check list. Please advise

 

[somashekar]

I am currently working on this procedure. I have added to the scope as stated below:
Scope: This document defines the procedure used to Survey and Evaluate vendors for ISCO unless specified by our customer as a certified vendor. All vendors prior to 10/16/06 have been accepted on the basis of Quality, consistency, and ability to meet ISCO Purchase order specifications in a timely manner.

Will this pass certification?

Can my approved vendor list be in my manufacturing software and not in paper form?

Currently when we approve a vendor it is enter into the part maintanence portion in our system. When we order a outside service it automatically pulls up that vendor on our purchase order. This is also the same for raw materials. Sometimes it will give you multiple vendors to chose from that we have used to recieve material from especially in the case of raw material. Your input would greatly be appreciated!

I would like the scope to state that the procedure is applicable to all parts that would directly effect the product or service quality.
Some of the words in your scope like ...
unless specified by our customer as a certified vendor. All vendors prior to 10/16/06 have been accepted on the basis of Quality, consistency, and ability to meet ISCO Purchase order specifications in a timely manner.
could be listed as criteria for selection in the procedure text further to scope, like :
1. Customer authorized vendors
2. Existing vendors on list as on date 10/16/06
along with any other criteria that you want to include.

 

[somashekar]

Please I need a big Help.

I have an existing supplier evaluation process that I initiated 6 years ago for my ISO Audit preparetion. However, my company is out of control in adding new suppliers on the AVL without following the process. I told my supervisor about this and he told me to review the process and prepare a signature sheet so that we formalize the approval process. Something like check list. Please advise

Could you please say what are the selection criteria you have in your current procedure ?
There could be two things why I ask.,
1. Perhaps you have not identified and listed the various criteria, so you tend to say " my company is out of control in adding new suppliers on the AVL without following the process "
2. There is something fishy in your purchasing activity for this carefree adding new suppliers.
Help us to understand better ..

 

[Rochy]

Thanks for your response

The criterias are the following:​

Class I Supplier: A supplier determined by management to warrant special
administration due to risk of significant impact on quality
associated with special manufacturing processes, sole source
supply relationships or other special conditions.
Class II Supplier: A supplier that provides components and/or assemblies
custom fabricated to my company Specifications.
Class III Supplier: A supplier that provides commercial off the shelf components​

and/or assemblies. Also we address the process to evaluate new suppliers: Survey Questionary, On site audit. We can't add suppliers on the list without this riquirements. So I have listed the criteria but people enter new suppliers and quality will know when I audit the AVL and I found new suppliers on the list. So my supervisor wrote this memo to the all head department I like to share this memo with you that way you have an idea what is going on.

"I asked Rochy to take another look at how we approve vendors. We have an approved vendor list but there are some areas in the process we use to put someone on the list that could be improved.

Our process needs to take into account what we are procuring. For example, I don't care if we have a quality plan from a company who is selling us office supplies. I do care if they are selling us a part that is used in a product. I don't care if I have a quality plan or survey from a company selling us commercially available software. I don't care if we have a quality plan or survey from a company who Engineering wants to provide sample parts or parts for some equipment that will not be associated with our product assembly, integration or test. The bottom line is that our selection process for Approved Vendors has to be flexible enough to account for the fact we buy a lot of stuff that doesn't go into products. There needs to be a few different categories allowed in the Approved Vendor list ranging from just a credit check to a full blown quality survey on site. The process must be robust enough to prevent us from buying from disreputable companies or those without any quality controls. The process must be streamlined enough to prevent us from bogging down in paperwork every time we want to purchase bathroom tissue.

For those suppliers who are providing us parts that are used in our products, the final authority to approve the addition of a vendor to the list is Quality Assurance. I've asked Rochy to prepare a signature sheet so that we formalize the approval process. Several parties will be signatories on the approval sheet for the most stringent of vendor categories (companies that sell us parts that go in our products). Engineering must believe the vendor can produce a part that will meet the technical requirements, so they must be a party to the approval. Operations must have believe that the vendor can be responsive and deliver product according to the required schedule so I want them to sign. Financial dept.should run a Dunn and Bradstreet check to make sure they are not in bankruptcy proceedings or their credit history indicates they are having financial trouble so I want financial dept. to sign.

All addressees to this email are requested to coordinate to tighten up the Approved Vendor List addition process and report your results to me before you implement them. Deadline is 1 April."

Yes, I agreed with you in your second question. There is somenthing fishy in my purchasing dept. They knows that we have a procedure that we have to follow.

Please help me to solve this issue.

Thanks again

Rochy

 

[somashekar]

Thanks for your response

The criterias are the following:​

Class I Supplier: A supplier determined by management to warrant special
administration due to risk of significant impact on quality
associated with special manufacturing processes, sole source
supply relationships or other special conditions.
Class II Supplier: A supplier that provides components and/or assemblies
custom fabricated to my company Specifications.
Class III Supplier: A supplier that provides commercial off the shelf components​

and/or assemblies. Also we address the process to evaluate new suppliers: Survey Questionary, On site audit. We can't add suppliers on the list without this riquirements. So I have listed the criteria but people enter new suppliers and quality will know when I audit the AVL and I found new suppliers on the list. So my supervisor wrote this memo to the all head department I like to share this memo with you that way you have an idea what is going on.

"I asked Rochy to take another look at how we approve vendors. We have an approved vendor list but there are some areas in the process we use to put someone on the list that could be improved.

Our process needs to take into account what we are procuring. For example, I don't care if we have a quality plan from a company who is selling us office supplies. I do care if they are selling us a part that is used in a product. I don't care if I have a quality plan or survey from a company selling us commercially available software. I don't care if we have a quality plan or survey from a company who Engineering wants to provide sample parts or parts for some equipment that will not be associated with our product assembly, integration or test. The bottom line is that our selection process for Approved Vendors has to be flexible enough to account for the fact we buy a lot of stuff that doesn't go into products. There needs to be a few different categories allowed in the Approved Vendor list ranging from just a credit check to a full blown quality survey on site. The process must be robust enough to prevent us from buying from disreputable companies or those without any quality controls. The process must be streamlined enough to prevent us from bogging down in paperwork every time we want to purchase bathroom tissue.

For those suppliers who are providing us parts that are used in our products, the final authority to approve the addition of a vendor to the list is Quality Assurance. I've asked Rochy to prepare a signature sheet so that we formalize the approval process. Several parties will be signatories on the approval sheet for the most stringent of vendor categories (companies that sell us parts that go in our products). Engineering must believe the vendor can produce a part that will meet the technical requirements, so they must be a party to the approval. Operations must have believe that the vendor can be responsive and deliver product according to the required schedule so I want them to sign. Financial dept.should run a Dunn and Bradstreet check to make sure they are not in bankruptcy proceedings or their credit history indicates they are having financial trouble so I want financial dept. to sign.

All addressees to this email are requested to coordinate to tighten up the Approved Vendor List addition process and report your results to me before you implement them. Deadline is 1 April."

Yes, I agreed with you in your second question. There is somenthing fishy in my purchasing dept. They knows that we have a procedure that we have to follow.

Please help me to solve this issue.

Thanks again

Rochy

Hii Rochy.
I guess all is well.
I suggest >>>
1. Go to your purchasing procedure scope and address it to purchasing activities of items that directly effect the quality of product and service. The Bathroom tissue and such stuff get free from the procedure. see post # 6 here.
2. The selection criteria can be any one or combination of the following, which you can list in the procedure.
a) Customer authorized vendors
b) Existing vendors on list as on date xx/xx/xxxx
c) Acceptance of sample
d) Acceptance of sample and vendor audit
e) Acceptance of sample and pilot supply
f) Acceptance of sample and pilot supply and Vendor audit
g) Listed source in the Bill of Material
h) Authorized distributors of a), g)
i) Vendors with an ISO 9001 certification.

Do you wish to have any other criteria ... ?
See how this works for you.
Good luck

 

[Rochy]

Thanks for the reply.

My next question is what will be the best way to link a preappoval vendor checklist with the procedure.

Thanks,

Rochy