Supplier Development Approach

N

nskumar50

#1
Hi friends

I just thought of putting this piece to the forum so that the discussion can be useful to many guys. The subject I selected is Supplier Development. Today, all the major auto OEMS have their own system of supplier selection, evaluation, performance monitoring and then the Corrective action loop. Supplier development is the last part of this cycle, wherein the gaps observed from each supplier are attacked and then the system is put in place towards continual improvement. Many SQEs in my past experience, would focus mainly on the system to be in place and they just do not bother to look at the bigger picture to help the supplier as well as the customer in reality.

In my view, the real supplier development need to be drawn by aligning the QMS to the business goals. This would help cascade down to the root and all the efforts spent at the root would aim for the top line aligned to the mission/vision statements.

I can put the following major activities towards real supplier development

1) Decide on the strategic goals (from mission statement, customer surveys and industry analysis) after study & identifying the gaps to the present performance. This would align the goals at the organisation level.

2) Identify targets clearly (SMART)

3) Then identify the processes which are key to achieve these goals (business as well as operation processes) and group the processes

4) Then identify measurable targets for each process

5) As a last step, focus the Kaizen teams' effort to improve the process performance

This way, all the kaizens in the organisation are aimed at the overall business results, customer expectations and benchmark with the industry leaders.

These steps if followed, the benefits can be seen to both supplier as well as the client orgnizations.

I welcome views from the forum with different approaches followed by different OEMs across different geographies.

Please let me know the approach is correct or any tailoring (improvement) is required. May be a few of the links or different concepts as an attachment would help me to fine tune my thinking. Is there any other structured methodology available readily..??

I welcome participation

Suresh
 
Elsmar Forum Sponsor

Wes Bucey

Quite Involved in Discussions
#2
Re: Approach for Supplier Development

Good topic! I'll be interested in seeing the responses.

My first impression is the SQE has little personal or professional incentive to help improve any supplier for a couple of reasons:
  1. generally, an SQE is tasked with short-term solutions whereas true supplier development is a long-term Change Management solution which often entails a major shift in the culture of the target organization
  2. most OEMs are imbued with their own "throw away" philosophy which says "replace with new - don't bother to fix" which is equally applied to products and suppliers
  3. supplier development is a two-way course - even top consultants recognize there are target clients with such internal dysfunction at the upper level of the organization that achieving anoptimum business and quality management system is not cost and time effective.
The solutions you outline are pretty good, but I fear they are way beyond the scope of the pay grade of the average SQE - meaning the OEM would have to substantially revamp its SQE program, adding specialists who would move in once a "fixable" supplier is identified, which depends on someone making a strong business case (versus a philosophical one) to OEM top management that it is more profitable to go to that expense instead of replacing the supplier. Part of replacing the supplier has to be augmented with a much more aggressive "supplier approval" process to winnow out potentially dysfunctional suppliers. A major part of such a process would be deemphasis on initial gross price of goods and focused on "net cost of goods in place" [after deducting the soft costs of incoming inspection, returns, supplier development, SQE activity, defective goods slipping through the cracks and triggering expensive future recalls of products containing defective goods from that supplier, etc., etc.]

Bottom line:
I'm sorry to say supplier development/improvement may be a worthy goal, but more effort should be expended on creating and following criteria for selecting worthy suppliers, ensuring there is wide publicity about the criteria for would-be suppliers to "benchmark" their own operations BEFORE applying for selection as a supplier in that chain. For those who say there IS such a system, I respond the OEM's still buy on initial price, not overall quality.
 
N

nskumar50

#3
Wes

Thanks a lot for your thoughts on the subject. Is there any other structured way to carryout real supplier development? Any other approaches which are proven in the past with suppliers..

I would like to see more debate on the topic from the forum..

Thanks once again

Suresh
 

harry

Super Moderator
#4
The will and interest to develop suppliers are in ones heart or within an organizations culture and corporate strategy. I doubt one can do a good job if they are forced to carry it out by systems such as TS.

The Japanese did a good job over here and in Singapore beginning from the nineteen seventies. Good local subcontractors whom they believed they can work with were given technological support, training, market support (assured purchase of your products) and even financial support in the form of soft loans etc. Many of these companies are now listed in the local stock exchange but they still moved around (loyally) with these MNCs' wherever they moved to provide support. Classic example of a long term relationship.

It was and still is a good win/win strategy.
 
Last edited:
S

Sharon_Noble

#5
Another thread I would like to resurrect...
At our last ISO/TS audit we were given an OFI for 7.4.1.2 Identification of Supplier Development to TS. My question is what documentation would satisfy a CB that we have taken steps to develop our Key Suppliers with the goal of achieving TS certification, when we know they are not going to? They are ISO 9001 we monitor their PPM, OTD, and other factors monthly.
They receive a detailed Supplier Scorecard Monthly, and incoming inspection is based on their overall score for that month....
Supplier audits are one thing, but with our location it can be very expensive, especially in today's market.
Anyone else in this situation and if so how did you resolve this?
thanks;)
 
Thread starter Similar threads Forum Replies Date
P Training department ideas and development for automotive supplier Training - Internal, External, Online and Distance Learning 6
H Supplier Development - Distributors only? The new GM Standards IATF 16949 - Automotive Quality Systems Standard 4
E IATF 16949 Cl. 8.4.2.5 - Supplier Development Type and Extent IATF 16949 - Automotive Quality Systems Standard 2
J IATF 16949 Cl. 8.4.2.3 - Supplier Quality Management System Development IATF 16949 - Automotive Quality Systems Standard 59
T Process Validation, NPD (New Product Development), and Supplier Management Qualification and Validation (including 21 CFR Part 11) 7
V Supplier Service Level Agreements (Supplier Quality Development) APQP and PPAP 2
Manix Supplier Control and Development Presentation for a Job Interview - Input Requested Supplier Quality Assurance and other Supplier Issues 5
optomist1 Definition Supplier Quality Assurance vs. Supplier Development vs. Field Quality Engineering Definitions, Acronyms, Abbreviations and Interpretations Listed Alphabetically 1
C Efficient Supplier Development and Problems with Buyers Supplier Quality Assurance and other Supplier Issues 5
Q Supplier Quality Management Development IATF 16949 - Automotive Quality Systems Standard 10
B Supplier Development - TS 16949 Flow Down Requirements - Tier 2 Supplier IATF 16949 - Automotive Quality Systems Standard 13
B Supplier QMS Development - TS 16949 Clause 7.4.1.2 IATF 16949 - Automotive Quality Systems Standard 12
P Supplier Quality Improvement or Supplier Quality Development? Quality Manager and Management Related Issues 4
C Supplier Quality Development Strategy - How can we convince the supplier? Supplier Quality Assurance and other Supplier Issues 10
A Supplier Development and Management Procedure Supplier Quality Assurance and other Supplier Issues 4
S Supplier Development Process failed - Question regarding sub-suppiler audits IATF 16949 - Automotive Quality Systems Standard 4
M Supplier Development - How to buy off on tooling and material qualification APQP and PPAP 2
A Looking for Supplier Development Presentation Material - Do's and Don'ts Supplier Quality Assurance and other Supplier Issues 3
Sidney Vianna SI 5 06 - ISO/TS 169494:2002 7.4.1.2 Supplier quality management system development IATF 16949 - Automotive Quality Systems Standard 42
B 7.4.1.2 Supplier QMS Development - customer waiver letter IATF 16949 - Automotive Quality Systems Standard 6
P TS16949 vs. AS90001 - 7.4.1.2 Supplier Quality Management System Development IATF 16949 - Automotive Quality Systems Standard 7
O Supplier Development of Small Suppliers - DCX CSR 4.1.5 Supplier Quality Assurance and other Supplier Issues 1
A Supplier Development Requirements - TS 16949 IATF 16949 - Automotive Quality Systems Standard 46
T Non-conformity - Not performing Supplier Development on one specific supplier IATF 16949 - Automotive Quality Systems Standard 25
J Supplier Quality System Development - Control by supplier over subcontractors Supplier Quality Assurance and other Supplier Issues 17
D Supplier QMS Development - Tier 3 integrated circuit supplier to automotive Supplier Quality Assurance and other Supplier Issues 4
C Supplier QMS Development - Clause 7.4.1.2 of TS 16949 Supplier Quality Assurance and other Supplier Issues 14
S What are TS16949 requirements regarding supplier development for tooling suppliers Supplier Quality Assurance and other Supplier Issues 5
S Supplier Development Procedures and Flowcharts Supplier Quality Assurance and other Supplier Issues 1
B Supplier Development - Cited for 'no evidence of subcontractor development' Supplier Quality Assurance and other Supplier Issues 7
D Interpretation for supplier development clause 7.4.1.2? Supplier Quality Assurance and other Supplier Issues 4
B Diversity Supplier Development requirement - Minority Owned Business - How to comply? Supplier Quality Assurance and other Supplier Issues 4
Q Customer's Interpretation vs. TS16949 clause 7.4.1.2 Supplier Development Requirement Supplier Quality Assurance and other Supplier Issues 70
S Supplier development program suggestions wanted Supplier Quality Assurance and other Supplier Issues 1
T 7.4.1.2 Supplier quality management system development Supplier Quality Assurance and other Supplier Issues 3
D 7.4.1.2 Supplier Development Supplier Quality Assurance and other Supplier Issues 7
K TS16949 & Supplier Development - To which suppliers does this requirement apply? Supplier Quality Assurance and other Supplier Issues 11
K TS 16949 Clause 7.4.1.2 - Supplier Development and ISO 9000 Registration Requirement Supplier Quality Assurance and other Supplier Issues 22
A Are You Meeting Subcontractor (Supplier) Development Requirements? Supplier Quality Assurance and other Supplier Issues 10
J Approved Supplier List and Subcontractor Development Supplier Quality Assurance and other Supplier Issues 13
Howard Atkins Is supplier development one way? Supplier Quality Assurance and other Supplier Issues 12
D Complying with TS 16949 and QS-9000 Supplier (Subcontractor) Development Requirements Supplier Quality Assurance and other Supplier Issues 43
A ISO 9001 Clause 4.6.2 - Subcontractor (Supplier) Development Supplier Quality Assurance and other Supplier Issues 48
J Supplier not responding to PPAP request APQP and PPAP 5
D Supplier audit Medical Device and FDA Regulations and Standards News 2
lanley liao Does all of the suppliers need to integrated into the supplier list qualified of the company? Oil and Gas Industry Standards and Regulations 2
S Distinction between a critical supplier and a Virtual manufacturer EU Medical Device Regulations 2
R AS9102 FAI Change in Material / Process Supplier AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 4
John Broomfield Five ways to botch your supplier management program Misc. Quality Assurance and Business Systems Related Topics 7
C Supplier survey - 200 to 250 duppliers Supplier Quality Assurance and other Supplier Issues 3

Similar threads

Top Bottom