Proposal for Quality Incoming Inspection Plan by hje17941

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									 The Importance of QA
System in Supply Chain

          Dr. Gavin K Y CHAU
Chairman of Hong Kong Quality Management Association
Widely Accepted QA System
 Six Sigma
 Malcolm Bridge National Quality Award
Basic Supply Chain
Definition of Supply Chain Management
 Supply Chain
   The steps and the firms that perform these
   steps in the transformation of raw inputs into
   finished products bought by customers.
 Inbound Logistics
   The delivery of goods and services that are
   purchased from suppliers and/or their
 Outbound Logistics
   The delivery of goods and services that are
   sold to a firm’s customers and/or distributors.
Ultimate Goals
 Achieve Competitive Advantage by delivering
 value added products/services
 Produce defect-free products/services to
 meet customer requirement
 Reduces costs
Customer Vs Supplier
 Each entity in a supply chain is both a
 supplier and customer relationship

      Supplier     Customer      Customer
     Company A     Company B     Company C
Inbound Logistics
     Supplier Quality Evaluation

1.   Looking for Business              5.   Prepare Proposal
2.   Secure Engineering Requirements   6.   Accept Proposal
3.   Prepare Samples                   7.   Production
4.   Qualify Samples                   8.   Inspection Approve
1. Look for Business
Supplier Quality Survey

  The more formal quality survey consists of a visit to
  the supplier’s facility by a team of observers from
  departments such as Quality Control / Assurance,
  Engineering, Manufacturing, and Purchasing.

  Depending on the product involved, the activities
  included in the quality control / assurance portion of
  the survey can be chosen from the following list:
Supplier Quality Survey

   Philosophy, quality policy, organization structure,
   commitment to quality.
   systems in use, caliber of specifications, orientation to
   modern technique, attention to reliability, engineering
   change control, development laboratories.
   Physical facilities, maintenance, special processes,
   process capability, production capacity, caliber of
   planning, lot identification, and traceability.
Supplier Quality Survey

   Specifications, vendor relations, procedures.
 Quality Control / Assurance:
   Organization structure, availability of quality control
   and reliability engineers, quality planning (materials, in-
   process, finished goods, packing, storage, shipping,
   usage, field service), audit of adherence to plan.
 Inspection and Test:
   Laboratories, special tests, instruments, measurement
Supplier Quality Survey

Data Systems:
    Facilities, procedures, effective use of reports.
    training, motivation.
 Quality Results:
    Performance attained, prestigious customers,
    prestigious subcontractors.
2. Engineering Requirements
 The engineer must obtain information to be sure that the
 supplier has the capability to provide a product that meets all
 fitness-for-use requirements
3. Prepare Samples and quality samples

 Incoming inspection
    Consists of a physical inspection of the product.
    When the inspection occurs at the buyer’s plant, it
    is called incoming inspection.
    When the incoming inspection is conducted by the
    buyer at the vendor’s plant, it is called source
    Incoming inspection on a product can vary from
    100% inspection of all product to a simple identity
 Evaluating Delivered Samples
Type             Approach                                Application
100%             Every item in a lot is evaluated for    Critical items where the cost of
   inspection    all or some of the characteristics in   inspection is justified by the cost of
                 the specification.                      risk of defectives.
                                                         Also, used to establish quality level
                                                         of new vendors.

Sampling         A sample of each lot is evaluated by    Important items where the vendor
   inspection    a predefined sampling plan and a        has established an adequate quality
                 decision made to accept or reject the   record by the prior history of lots
                 lot.                                    submitted.

Identity         The product is examined to assure       Items of less importance where the
    inspection   that the vendor sent the correct        reliability of the vendor laboratory
                 product.                                has been established in addition to
                 No inspection of characteristics is     the quality level of the product.
Uses of Supplier Quality Data
Supplier’s test data provide an opportunity to
  eliminate incoming inspection. The process is:
    Along with product shipments, the vendor
    arranges to transmit test data.
    The buyer performs a lot-by-lot incoming
    inspection on the product and compares the test
    data with the vendor’s test data to determine if the
    vendor’s laboratory can be relied on.
Uses of Supplier Quality Data - Example
5. Prepare proposal and
6. Accept proposal
7. Production
 Scoring system for each supplier
                              R e c e iv in g In sp e c tio n       M a n u fa c tu rin g           F in a l In sp e c tio n
   A c tiv ity                R      W         R X W              R      W         R X W        R        W         R X W
   1. Q uality M anagem ent       8        3     24                   8        3        24              8        3         24
   2. Q uality P lanning         8        4      32                 8        4         32             10        4         40
   3. Inspection E quipm ent     10         3    30                  10         3        30             10        3         30
   4. C alibration              0       3         0                10        3         30             0        3          0
   5. D raw ing C ontrol         0        3       0                10        2         20            10         2         20
   6. C orrective A ction       10        3      30                  8        3        24              8        3         24
   7. H andling R ejects         10        2     20                  8        2         16             10        3         30
   8. S torage and S hipping      10        1    10                   10        1         10            10        1          10
   9. E nvirom ent              8        1        8                 8        1         8             8         1          8
   10. P ersonnel E xperience      10        2   20                   10         3        30             10        2         20
                               T o ta l =       174               T o ta l =        224             T o ta l =       206

   R = rating; W = w eight
   Interpretation of totals:
                                                                1 0 - T h e sp e c ific a c tiv ity is sa tisfa c to ry in
   F ully approved: E ach of the three totals is 250.                 e v e ry re sp e c t (o r d o e s n o t a p p ly ).

   A pproved: N one of the three totals is less than 200. 8 - T h e a c tiv ity m e e ts m in im u m
                                                              re q u ire m e n ts b u t im p ro v e m e n ts c o u ld b e
   C onditionally approved: N o single total is less than 180. a d e .
                                                          0 -T
   U napproved: O ne or m ore of the totals is less than 180. h e a c tiv ity is u n sa tisfa c to ry .
Use of Histogram Analysis on Supplier Data
Pareto Analysis
 Supplier improvement programme can fail
 because the vital few problems are not
 identified and attacked.
 The Pareto analysis can be used to identify
 the problems in a number of forms:
  1.   Analysis of losses (or defects, lot rejections, etc.)
       by material number or part number. Such analysis
       serves a useful purpose as applied to catalog
       numbers involving substantial or frequent
Pareto Analysis of Suppliers

                                                            Pareto Analysis of Incoming Inspection

                Number of Defects
                                              700                                                                                                                                                          80

                                              500                                                                                                                                                          60
                                              200                                                                                                                                                          20
                                                   0                                                                                                                                                       0
                                                                   ze                 n   s
                                                                                                             s                s   s              al                    al              s   s          er
                                                                 Si               sio                   fe                 ne                  su                 su                ne         Ot
                                                            le                                     De                  i ck                  Vi                 Vi               ck
                                                                                en                                                                                            hi
                                                       Ho                   m                  n                  Th                  in
                                                                                                                                         g                 ld
                                                                       Di                 Co                 ld                at                     Co               H
                                                                   d                                    Co                   Pl                                   PT
                                           Count                  165                110                   79                69                  66                 61                61          257
                                          Percent                19.0               12.7                  9.1               7.9                 7.6                7.0               7.0         29.6
                                          Cum %                  19.0               31.7                 40.8              48.7                56.3               63.4              70.4        100.0
Quality Rating
 Supplier performance is not limited to quality of product
 delivered. It includes:
  1. Delivery against schedule
  2. Price
  3. Other performance categories.
 These multiple needs suggest that supplier rating should include
 overall supplier performance rather than just product quality
     Rate the three principle vendor performances in
     accordance with the following plan:
      Factor    Unit of Measure               Weight
      Quality   Percent of lots accepted      40
      Cost      Low price / actual price      35
      Service   Percent of promises kept      25
Quality Rating-example
Using Supplier Ratings
 to determine the share of future purchases
 given to each supplier.
 highlights the supplier to be dropped as
8. Inspect and Approve
 Statistical process control
   Control Chart
Outbound Logistic
What is Six Sigma?
 Six Sigma is a comprehensive and
 flexible system for achieving, sustaining
 and maximizing business success. It is
 uniquely driven by close understanding
 of customer needs, disciplined use of
 facts, data and statistical analysis, with
 diligent attention to managing,
 improving and reinventing business
Six Sigma approach

      • Identify the Customer’s Need

      • Center around the Target

      • Reduce Variation

      • Reduce Defects
   Six Sigma Framework
How to Operationalize Six Sigma:

Define               Measure               Analyze                   Improve                Control
Define Charter     • Translate CTQs to • Benchmark and          • Fix Root Causes &    • Set up Control
                     Key Metrics &       Baseline Processes       Eliminate Bottlenecks Mechanisms
 dentify CTQ &       Drivers
Critical to                            • Understand Variation   • Isolate the            • Monitor Variati
Quality) Variables • Measure Key                                  “Vital Few” from the     & Trends
                     Variables &       • Target Opportunities     “Trivial Many”
Map High Level       Collect Data        and Establish            Sources of Variation   • Take Action
Process                                  Improvement Goals
                   • Use Appropriate                            • Use of Brainstorming
                     Tools             • Map Detailed             and Action Workouts
                                         Process by
End of Presentation


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