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Supplier Quality Standard vs Senior Management Direction

Recently audited a potential new supplier (Tier 1) and upon reviewing scorecard performance found the below issue:

2018 - Supplier A qualified/passed PDR (aka run@rate) for 125k annual volume.
Supplier A showed well and prior to the pdr a control plan audit was performed, very minor issues identified, majority of the issues were clerical with documentation.

2019 - Supplier A scorecard performance for 3 straight quarters status is "New business hold" (failed all 3qtrs for multiple quality defects & broken containment) according to the Tier 1's documented and controlled Supplier Quality Standard.

2019 - Supplier A awarded full volume of the program at 500k annually starting January 2020, despite Supplier Quality Standard.

Direction comes from senior management/ownership. Supplier A is the sister plant to the Tier 1.
If audited by an OEM or IATF Registrar a non conformance would more than likely be issued, for the Tier 1 is not following their Supplier Quality Standard.
How could the Tier 1 protect the company in avoiding a non-conformance?

I believe there is an answer however unsure how it would be documented.

Suggestions welcomed.

Sidney Vianna

Post Responsibly
Staff member
How could the Tier 1 protect the company in avoiding a non-conformance?
Why SHOULD the "protection" even be thought of? Why expect that poor management does not have consequences? If the Tier 1 "leadership" decides to keep and award business, DESPITE supplier's consistent bad performance, they should be written up. Only factual approach to decision making makes sense in terms of management systems; otherwise we have management by gut feeling. In my opinion, the questionable decision should be flagged by an oversight person, 2nd or 3rd party and let them (top management) explain the rationale for and why they made the (apparent) poor decision.


A Sea of Statistics
Hi Antoinette, pls clarify...."audited a potential new supplier (Tier 1)", you are with an OEM, who recently audited a Tier 1 that has another plant here defined as Supplier A??

Cheers - Optomist1
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