SUPPLIER QUALITY MANUAL/HANDBOOK
This document is used to convey all the company's expectations regarding
suppliers to the supplier base. The Supplier Quality Manual/Handbook defines
the requirements for becoming an approved supplier and how suppliers are rated,
as well as how to become a preferred supplier if the company has a Preferred
Supplier Program. The manual sets forth the company's quality philosophy and
defines requirements for the supplier's quality system, including process
controls, inspection systems, gage management and training. The manual contains
a supplier survey form, used to assess the supplier against predetermined
requirements, i.e. ISO 9000, FDA or the company's own requirements. The manual
usually states that the purchasing preference is preferred suppliers and then
approved suppliers.
SUPPLIER PERFORMANCE
The supplier quality assurance program begins with an assessment of present
performance of the supplier base. The company must have some minimal inspection
capability and have defined those characteristics of the supplier's product
that must be controlled. If variable characteristics are being inspected, the
supplier can be rated on process capability, permitting a parts-per-million or
PPM rating, as opposed to the pass/fail system based on Acceptable Quality
Level or AQL from a sampling table. When assessing supplier performance,
delivery issues need to be considered, as well as quality issues.
APPROVED SUPPLIER LIST
When performance levels have been established across the supplier base, the
company must set the minimum performance level (acceptable quality/delivery
record and minimum score on the supplier survey) necessary to be an approved
supplier. The suppliers meeting or exceeding these requirements are placed on
an Approved Supplier List. With very few exceptions, all purchases are made
from the Approved Supplier List. The company may elect to create a Conditional
Supplier category, where the conditional suppliers are motivated, technically
qualified suppliers that presently do not meet the minimum requirements to be
an Approved Supplier. To be considered for purchase orders, the conditional
supplier must provide a plan and timeline to become fully qualified.
PREFERRED SUPPLIERS
A Preferred Supplier program enables the supplier to move to the highest
purchasing level, as far as purchasing preference is concerned. The company
must establish the requirements for preferred suppliers in terms of quality and
delivery history. In addition to receiving purchasing preference, the Preferred
Supplier's shipments are not typically subject to inspection, but are released
by the receiving department to be placed directly in inventory (dock-to-stock).
If your firm is experiencing supplier
problems and seeking to manage and improve supplier quality, contact us using the Interest Form below for
assistance in developing and maintaining a supplier quality assurance program. We can manage the entire supplier quality
assurance process through our Contract Services
Division in the event your firm elects to out-source the process.
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