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Fed up with TS & ISO - For 10 years we've jumped through every hoop

T

TedCambron

#21
Yes

JSW05 said:
The sad fact is that customers sometimes refuse to be broken in, and will keep seeking quotes until they find a supplier who'll do their design work for them. Thus refusing jobs on the basis of ambiguous (or no) specifications is seen by some in the supplier community as anathema because to refuse work (so the reasoning goes) is to invite financial failure. The phenomenon sets up a vicious circle that's only partially remedied by common standards because the same companies who will accept jobs without specifications are likely to be the ones who will take advantage of the standards' powerlessness against fudged data.
...and so the story goes. Tune in next week when Toyota buys GM with there pocket change and subcontacts all the jobs to the company officials freinds and families.
 
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Jim Wynne

Staff member
Admin
#22
Wes Bucey said:
I am reminded of the story of the circus roustabout who got stuck feeding and watering the elephants, plus cleaning up after them.

"All day long, day in, day out, it's always the same thing," he complained. "I have to haul hay and vegetables and water to the elephants and then I have to shovel tons of s---! It's just horrible!"

"Well," his listener replied, "why don't you quit and work someplace else?"

"What! And leave show business?"
The moral of the story is there is sometimes a price to pay to get what we want out of life. In the case of compliance/registration to ISO and TS Standards, it's the price to pay to join the supply chain. The alternate is to "leave show business" and find a different market for your goods and services which has a price you are willing to pay. Often, that price is reduced sales and profits.

Life is all about "choices."
What is it that they say about great minds?
http://elsmar.com/Forums/showthread.php?postid=99384#poststop
 
S

Shaun Daly

#24
I've noticed when dealing with companies such as Toyota, Honda, Nissan, that ISO/TS has helped us out quite a bit. Many times with these companies establishing themselves in the US, the link of the parent company with their direct suppliers is lacking and the third or fourth tier supplier further down the line gets shafted.
I agree with Susan. We are honestly trying our best to get TS becasue our customers have mandated it, and yet getting approvals, concessions & drawings from them is like pulling teeth.

Tier 2 & below suppliers of the world unite! We wont stand for this anymore!!
 
D

D.Scott

#25
Shaun - you say your customers have mandated TS? Do you mean they have mandated registration or have they mandated compliance? If they are mandating registration, ask them why. There is no requirement for a tier 2 or below to be registered. We have had a couple of our customers who have stated registration is mandatory but have since changed that to "comply with". The requirement to be registered is usually imposed by someone who doesn't really understand the standard. This gets us to the point of "The customer is always right", or at least they might think so.

I used to be one of those believers who bowed to the pressure of "if the customer says you have to do it, then you have to do it". I have, over the years questioned this philosophy. We have some fantastic customers. Some, are very large companies supplying the big 3 and some are very small companies just trying to fit into the food trough. Our customers don't normally demand things from us. If they need something, they discuss it with us and if it's beneficial and practical, we try to work it out with them. The customer / supplier relationship has been misused and abused far too long to survive under the old "do it because I say so" mentality. Now, if the relationship isn't a partnership, it is a ship heading for the rocks.

Let's, just for discussion, say one of our customers makes a demand that we can't live with. Do we have the right to say no? Of course we do. First, we had better look at the possible worst case scenario and determine if the battle is worth it. Let's say the customer wanted a 50% discount and we can't take that loss so we do say "no".

That now leaves the customer with the next choice. What does he do about it? He can certainly take away the business which is probably his first thought and the stand-by of the old philosophy. The trouble with that, in the real world, is he may be throwing away 50 years of excellent quality, delivery and business relationship over it. He will now have to resource with an unknown and may not be able to match the price he is getting now. In those terms, he has to ask "is this battle worth it?".

Sure this scenario is a bit far-fetched but it illustrates the point that customer / supplier relationships need to be a two way street. Think of the sequence and choices if it was the supplier who demanded a 50% increase.

Customers today are realizing that although there is benefit in the requirement of a QMS, there is very little advantage in trying to micro-manage their suppliers. They have recognized the benefit of establishing good working partnerships with their supply chain. They look at the results of their purchasing process and draw their conclusions from that. If their supplier is easy to work with, gives them quality product, on time and at a reasonable price, they recognize them as a good supplier. If they are always late and have poor quality, the customer doesn't care what certificate is hanging on the wall - they have a poor supplier.

The point here is, the QMS makes no difference. It's the relationship with the supplier that really counts. In all honesty, it doesn't matter if the supplier doesn't even have a QMS as long as the end result satisfies the needs of the customer. The customer has to ensure the quality before passing it up the supply chain anyway. Sure, the standard says the supplier has to have at least ISO 9001 but that's only because the registrars have forced it into the system as a revenue source.

I agree with you that it is time we unite. More suppliers need to look at the attempts to micro-manage by their customers. I will bet we have 200 "supplier manuals" sitting in my office that demand some really wild things. I have others from our customers that are straight-forward and give us a lot of good information (the intent of a good supplier manual). I read through the wild "demands" and usually send back a letter saying we got the manual but take exception to a number of the requirements and will not agree to supply them under those terms. Some of them may cross us off their supplier list but in the long run we come out ahead. It is not surprising that most of these companies buy from us anyway because we are their best option. They usually make a statement like they are only buying from us temporarily and will be looking to re-source.

We may someday lose a good customer or a big sale, but I doubt it. Good customers and "big sale" customers understand the customer is not always right. They understand their suppliers have to be allowed to run their business and make a profit so they can keep satisfying them as a customer. Even if the worst happened and we did lose something big, it could prove cheaper than bowing to every demand. Sometimes, when the demand makes no sense, we have to learn to JUST SAY NO.

Dave
 
B

Bill Ryan - 2007

#26
:agree:
Excellent post Dave. I haven't reread this entire thread but I think you've captured and presented a superb approach the original post. I know you, Wes, Jim, DB, Stew, and many others have posted on this many times and all seem to be "spouting" the same thing. :applause:
 
Last edited by a moderator:

Helmut Jilling

Auditor / Consultant
#27
D.Scott said:
Shaun - you say your customers have mandated TS? Do you mean they have mandated registration or have they mandated compliance? If they are mandating registration, ask them why. There is no requirement for a tier 2 or below to be registered. We have had a couple of our customers who have stated registration is mandatory but have since changed that to "comply with". The requirement to be registered is usually imposed by someone who doesn't really understand the standard. This gets us to the point of "The customer is always right", or at least they might think so.

I used to be one of those believers who bowed to the pressure of "if the customer says you have to do it, then you have to do it". I have, over the years questioned this philosophy. We have some fantastic customers. Some, are very large companies supplying the big 3 and some are very small companies just trying to fit into the food trough. Our customers don't normally demand things from us. If they need something, they discuss it with us and if it's beneficial and practical, we try to work it out with them. The customer / supplier relationship has been misused and abused far too long to survive under the old "do it because I say so" mentality. Now, if the relationship isn't a partnership, it is a ship heading for the rocks.

Let's, just for discussion, say one of our customers makes a demand that we can't live with. Do we have the right to say no? Of course we do. First, we had better look at the possible worst case scenario and determine if the battle is worth it. Let's say the customer wanted a 50% discount and we can't take that loss so we do say "no".

That now leaves the customer with the next choice. What does he do about it? He can certainly take away the business which is probably his first thought and the stand-by of the old philosophy. The trouble with that, in the real world, is he may be throwing away 50 years of excellent quality, delivery and business relationship over it. He will now have to resource with an unknown and may not be able to match the price he is getting now. In those terms, he has to ask "is this battle worth it?".

Sure this scenario is a bit far-fetched but it illustrates the point that customer / supplier relationships need to be a two way street. Think of the sequence and choices if it was the supplier who demanded a 50% increase.

Customers today are realizing that although there is benefit in the requirement of a QMS, there is very little advantage in trying to micro-manage their suppliers. They have recognized the benefit of establishing good working partnerships with their supply chain. They look at the results of their purchasing process and draw their conclusions from that. If their supplier is easy to work with, gives them quality product, on time and at a reasonable price, they recognize them as a good supplier. If they are always late and have poor quality, the customer doesn't care what certificate is hanging on the wall - they have a poor supplier.

The point here is, the QMS makes no difference. It's the relationship with the supplier that really counts. In all honesty, it doesn't matter if the supplier doesn't even have a QMS as long as the end result satisfies the needs of the customer. The customer has to ensure the quality before passing it up the supply chain anyway. Sure, the standard says the supplier has to have at least ISO 9001 but that's only because the registrars have forced it into the system as a revenue source.

I agree with you that it is time we unite. More suppliers need to look at the attempts to micro-manage by their customers. I will bet we have 200 "supplier manuals" sitting in my office that demand some really wild things. I have others from our customers that are straight-forward and give us a lot of good information (the intent of a good supplier manual). I read through the wild "demands" and usually send back a letter saying we got the manual but take exception to a number of the requirements and will not agree to supply them under those terms. Some of them may cross us off their supplier list but in the long run we come out ahead. It is not surprising that most of these companies buy from us anyway because we are their best option. They usually make a statement like they are only buying from us temporarily and will be looking to re-source.

We may someday lose a good customer or a big sale, but I doubt it. Good customers and "big sale" customers understand the customer is not always right. They understand their suppliers have to be allowed to run their business and make a profit so they can keep satisfying them as a customer. Even if the worst happened and we did lose something big, it could prove cheaper than bowing to every demand. Sometimes, when the demand makes no sense, we have to learn to JUST SAY NO.

Dave
A very intelligent and thoughtful essay. I support your premise, both as a consultant and an auditor. I even saved it to show some clients. Unfortunately, not all customers are astute and thoughtful enough to understand.
 

Caster

An Early Cover
Trusted Information Resource
#28
CR is also your friend

D.Scott said:
...I read through the wild "demands" and usually send back a letter saying we got the manual but take exception to a number of the requirements and will not agree to supply them under those terms. Some of them may cross us off their supplier list but in the long run we come out ahead. It is not surprising that most of these companies buy from us anyway because we are their best option. They usually make a statement like they are only buying from us temporarily and will be looking to re-source.......Sometimes, when the demand makes no sense, we have to learn to JUST SAY NO.Dave
Great advice.

We did something similar by using ISO contract review as a club against the customer.

Every quote was made contingent based on a number of "open issues" such as 200 page quality manuals. We simply had weasal words in the quote that said we reserved the right to requote at any time based on a complete review of their requirements, and that this was just a budget quote.

As it got closer to the final deal, we developed more detailed lists of open issues where we needed more information from them, or where we asked for wider tolerances, etc. The trick is always to reply to anything they send with another request for explanation. Then time works for you. They have to cut a PO, so they do. In effect they accept your ammended contract! The last piece of paper on top wins.

Great fun to use their own system against them. Also great fun when they demand something several years later and you can show you never agreed to do it because you are waiting on them for an answer. Sometimes you even get paid extra to do the work!

It does take a special breed of salesperson to do this. The "customer is always right apologists" will kill your business.
 

Wes Bucey

Prophet of Profit
#29
I like the last few posts in this thread which seem to really understand the spirit of Contract Review. It doesn't make sense to agree to a contract unless you know what it entails and feel you have the capability and capacity to perform and still make a profit.

Sadly, there are still some fools out there who will take a contract from a giant company for the "prestige" it confers and then proceed to lose money on the contract because they didn't factor in the real cost of meeting the minutiae buried in the "supplier quality requirements manual."

Yes. Sometimes you really have to play the oneupsmanship game with the bureaucrats in the purchasing departments of some companies.

Regardless of what some may think, if you penetrate the BS layers [bureaucratic staff;) ], eventually you'll find someone in the organization with a grain of common sense who will listen to and agree to reason.
 

Helmut Jilling

Auditor / Consultant
#30
Shaun Daly said:
I agree with Susan. We are honestly trying our best to get TS becasue our customers have mandated it, and yet getting approvals, concessions & drawings from them is like pulling teeth.

Tier 2 & below suppliers of the world unite! We wont stand for this anymore!!
Let me suggest, this thread of comments actually has two themes. I agree with the comments which suggest a more negotiated approach of dealing with customers. The customer is not always right! However, that requires a deft touch and a lot of wisdom and finesse. Not all companies are skillful enough to do it. You may lose some business at first. There are some good books available about how to do sales and negotiate better.

But the other theme, that you are doing TS, ISO, etc. because the customers require it, is a huge mistake! You need these standards. YOU need them! Not because the customer requires it, but because you need it to help get and maintain control over your processes. Many companies talk about improving their processes, when they don't even have CONTROL over all of them yet! You can't improve what you can't control.

These systems, along with the additional variations (six sigma, 5S, lean, etc.) are to help you get control, so you can steer your ship ahead of your competitors. Debates with Customers frequently can be won when you have control over your processes, and you have accurate data to make your arguments. You still won't win all the time, but the odds improve.

These standards are common principles of good management. To say you don't want to do them doesn't make sense. Short term savings over long term success.
 
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