1. Presentation on
Supplier quality improvement
Presented by :Ashutosh S Chandorkar
Date : 25.11.14
On the ocassion of Quality month 2014
2. NEED FOR OUTSOURCING
• Capacity constraints
• Optimize labour resources
• Drive cost down
• Focus on core competency
• Company/Government Policy
3. STATUS OF OUTSOURCING IN
AMD ,
NASIK
No of detail parts outsourced : 11600
Percentage Outsourcing : 42.75 (by
no of parts)
Percentage SMH outsourced : 33.15
4. SUPPLIER QUALITY ASSURANCE
Evaluation of supplier during supplier selection
(Vendor evaluation committee)
Interaction with HAL personnel during first off
proving
Interaction with HAL quality personnel during
pre dispatch inspection
Feedback of snags and mistakes
Quality audits carried out at supplier premises
Vendor rating feedback (once a year)
5. QUANTITATIVE MEASURE
What can be measured can be improved
Most of our Quality assurance tools are
subjective
There is a need to provide quantitative feel
(metric) to the supplier about quality aspects.
The metric should be indicative of specific quality
parameters
The metric should give insight to the supplier in
improvement areas and scope
6. DEFINITION OF DEFECT
Any deviation observed in the part which
prevents the inspector from accepting the part.
Rework has to be classified as defect.
Each rework has to be identified as separate case
The part offered for inspection has to be
completed in all respects before offering to the
inspector.
7. DEFECT RATE
Number of defects per consignment is a
quantitative measure of the completeness and
quality of parts made by the supplier.
In order to compare it with a previous
consignment we have to introduce a ratio.
Defect rate:
Number of defects in a consignment
Number of parts offered for inspection
8. CLASSIFICATION OF DEFECTS
Sr no Type of defect Sub type Instances Total
1 Dimensional variation Bore size variation
Slot size variation
Diameter variation
Thickness variation
Size variation
2 Tool marks
3 Unsatisfactory polish
4
Misunderstanding/skipping
of technology
5 Miscellaneous
9. METHODOLOGY TO USE DEFECT
RATE ANALYSIS
Suppliers need be briefed about the defect rate
analysis activity prior to implementation
Inspection personnel will have to record defects
during the course of PDI
Supplier’s inspector /supervisor needs to be
present during the course of recording the
observation and the defect rate document will be
signed by both sides
Since all are parts are inspected, we will
randomly carry out the defect rate analysis for
30% of the PDI.
Quarterly review of defect rate for all suppliers
10. METHODOLOGY TO USE DEFECT
RATE ANALYSIS
Establish benchmark after initial quarter of
defect rate analysis
Set targets to suppliers on improvements in
defect rate and defect types
Monitor/review performance of supplier
Include defect rate and defect type as a vendor
rating parameter
Rewards/appreciation to supplier with least
defect rate
11. PROS AND CONS OF THE
METHODOLOGY
Supplier become aware of their quality related
performance
Can get specific feedback in areas of
improvement. Identify weaknesses
Customer becomes aware of the kind of
assistance to be extended to the supplier
Should provide a motivation for improvement
Should serve the purpose for fulfilling
certification related documentation
12. PROS AND CONS OF THE
METHODOLOGY
Person dependant (bias because of personal
relations)
Subjectivity due to perceptions
Cumbersome method possibility of mistakes
cannot be ruled out
May become ritualistic if not followed in the
proper spirit
