Quality in Procurement

In Chapter 3, we discussed the quality methods that are used when products are designed to meet the needs of the customer, and the processes designed to make products according to the design In Chapters 4 and 5, we discussed the methods employed during production to prevent the manufacture of defective products This chapter concerns itself with the methods of assuring quality in materials, parts, and subassemblies purchased from outside vendors The need for procuring parts and materials of required quality cannot be overemphasized-especially in the context of modern productive organizations, which procure ever larger proportions of the assemblies they build from outside vendors Statements such as “you cannot make good product from bad material,” and “you are as strong as your weakest supplier,” which we often hear in production shops, only reinforce the fact that the parts and materials that come into a production facility should be defect free The modern approach to inventory reduction, which employs a just-in-time production philosophy, makes it even more important to receive defect-free supplies, because in the just-in-time environment there is no cushion in inventory to make up for the part or material found to be defective during assembly Several approaches have been adopted by organizations to assure quality in incoming supplies; some involve management methods and some involve statistical tools We will discuss some of these approaches in this chapter These include:• Establishing a good supplier relationship • Choosing and certifying suppliers • Specifying the supplies completely • Auditing the supplier • Supply chain optimization • Statistical sampling plans for acceptance7.2.1 Essentials of a Good Supplier RelationshipThe Customer-Supplier Division of the American Society for Quality (ASQ), a group of professionals in the procuring business, suggest the following as essentials of a good supplier relationship in Chapter 1 of their Supplier Management Handbook (ASQ 2004):• Personal behavior: Professional, personal behavior of parties, with mutual respect for each other • Objectivity: A moral commitment, by both parties, beyond the legal contract requirements, to attain the goal of quality for the end product • Product definition: A clear, unambiguous, and complete definition of the product requirements furnished by the customer in writing, with a willingness to provide further clarification if and when needed • Mutual understanding: Understanding of