The document discusses procurement quality assurance and its importance. It describes the key activities in procurement quality assurance like developing a procurement quality strategy, evaluating supplier quality in tenders, monitoring supplier quality performance, and ensuring quality requirements are included in contracts. The goal is to embed quality considerations throughout the procurement process from the initial tender stage through supplier performance monitoring after contract placement. This helps manage quality risks and assure the delivery of products and services that meet requirements.

1. THE IMPORTANCE OF
Developed and Presented by Myron. D. B. Betshanger

2. WHAT IS PROCUREMENT QUALITY ASSURANCE ?
Quality Planning
• Quality
documents
• Quality skills &
resources
• Budget
• ISO 9001
compliant QMS
• E- Quality
system tool
• Audit Plans
Quality Engineering
• Specifications/Scope/Works info
• Design Quality
• Energy Efficiency Quality
• QA & QC Risk assessment &
baseline setting
• Concessions granted
• Designs reviewed
• Designs changed
Procurement Quality
Assurance
• Procurement Quality
Strategy
• Enquiries
• Evaluations
• Physical assessments
• Adjudications
• Negotiations
• Designs reviewed
• Contracting
• Expediting
• Supplier Quality
Performance
Execution
QA+QC
• Package/Works Quality docs
• Inspection & Surv schedule
• Inspections & Surv execution
• Materials QC
• Fabrication QC
• FAT/SAT
• Shipping & Transport QC
• Preservation QC
• Construction/Erection QC
• Pre-Commissioning QC
• Commissioning QC
• Databook Quality
Underpinned by a strong focus on
Management Responsibility,
People & Suppliers
Customers & Stakeholders Assurance & Improvement effort
• System Reviews
• Training and Competency in
ISO & Quality Principles
• Training & Competency in
e-Quality system tool
• Promotion of Quality
• Awareness of Eskom Quality
Requirements
• Internal Customers & Stakeholders
• External Stakeholders
• Quality Audit outcomes
• Quality Management System
Improvement

3. Focused on Delivery Supplier Quality Assurance Excellence
Quality Engineering
- Assure quality in design
Supplier Assurance &
Performance Measurement
Quality Control
Supplier performance at
Execution
System Assurance and
Supplier Audits
- Perform assessments and
audits
Procurement
Quality Assurance
-embedding Quality into
contracts
- Supplier evaluation,
negotiation, adjudication

4. Some Risk Attached To A Lack Of Proper Procurement Quality Assurance
Inadequate Quality
specifications in tender
documents
Potential
misunderstanding of
quality requirements by
potential suppliers
Insufficient emphasis of
quality requirements
based on importance &
criticality of products /
services
Less capable suppliers
could be contracted
Subsequent difficulties with
managing supplier quality
performance objectively on
quality against original quality
requirements and performance
criteria
Insufficient Quality
requirements in Contracts

5. Quality Value Chain Representation
Provide integrated project & programme life cycle quality assurance & control services
ASSURE QUALITY
in CONCEPTUAL
PHASE
ASSURE QUALITY
in DESIGN PHASE
ASSURE QUALITY
in
PROCUREMENT
PROCESS
VERIFY PRODUCT
& SERVICE
QUALITY in
EXECUTION
MEASURE,
ANALYSE &
IMPROVE
QUALITY
ASSURE QUALITY
ENABLE
COMPLIANCE,
EXCELLENCE AND
QUALITY

6. Procurement Quality Assurance In Cross-Functional Teams
Quality Project/Package Mgt Commercial Engineering
Legend
Project / Package : QA/QC Processes and Interfaces
URS
Quality Engineering
Review and Assurance
Review
/Change
designs
Approve final designs with
full Quality specs.
Development
designs and
technical specs
Procure with full
supplier Quality and
Tech specs
Develop PQ strategy
& Perform
Procurement QA +
Supplier Assessment
After Contract
award, Facilitate
Quality hand-over
to
Execution.
Participate in
Quality
docs/ITP's
Reviews
Develop
Procurement
approach
Review technical
corrective actions
& approve
concessions
Participate in Quality
docs/ITP's Reviews
Forward
reviewed to
Quality
docs/IPT's to
supplier
Co-ordinate
review of Quality
docs,ITP's by
team and
approve.
Received and act on
issues by
supplier/contractors,
review & approve
non-tech corrective
actions & concessions
Receive Inspection
notifications,
inspect and
provide PM with
issues + reports.
Re-inspect
where
required.
Quality Engineering Dept. Procurement QA Dept. QC Dept.

7. Support the Procurement process by providing and managing the Quality
Assurance elements into the Procurement Value Chain for Projects and
Services.
The key focus areas are:
• Development of Risk based Procurement Quality Strategy.
• Development of procurement Quality specifications into Enquiries.
• Evaluations of Quality aspects in tender submissions and bids.
• Adjudication Quality decision support.
• Negotiations support on Quality aspects.
• Assure Quality requirements in Contracts.
• Post Contract Supplier Quality performance monitoring.

8. Procurement Quality Assurance Activities In Procurement Value Chain
Procurement
Strategy
Meetings
• Agree on evaluation method for tender returnable’s for quality based on scope of work
• Technical Evaluation Strategy document
Review Tender
Documents
• Ensure agreed Quality requirements are included in tender documents
• Acceptable tender in line with Eskom Requirements
Attend
Clarification
Meetings
• Clarify with potential tenderers the quality returnable’s

9. Procurement Quality Assurance Activities In Procurement Value Chain
Tender
evaluation
• Evaluate Tender quality returnable’s in line with the evaluation quality requirements
• Clarification points, Fair evaluation results, Final Report
Supplier
Negotiation
Meetings
• Negotiate with suppliers on quality deliverables
• Clarified deliverables in line with Eskom’s Quality Requirements
Supplier
Assessments
• Ensure that capability and capacity assessments are performed on potential suppliers
• Submit final evaluation reports for potential suppliers

10. Procurement Quality Assurance Involvement In Contract Placement
Contract Placement
• Ensure Quality requirements embedded in contract
• Contract placed with adequate Quality requirements
Handover to
Execution
• Handover and introductions
• Entitlement of Quality Control Personnel
• Enable enforcement of requirements by suppliers

11. Procurement Quality Assurance Involvement In Contract Placement
Monitoring of Supplier
Quality Performance
during the Product or
Service Delivery
Phase
• Measure and Monitor.
• Manage supplier quality database
Expediting
• A Pro-active discipline implemented early in a project life cycle to ensure
equipment and materials are delivered on time to meet the Project programme
requirements by the regular monitoring of the supplier’s performance during
manufacture and their ability to meet the contractual delivery dates
• Benefits
• construction milestones are achieved
• timely completion of the project
• Risks
• No expediting or inadequate expediting can result in serious delays due to manufacturing
problems going unnoticed, which could have major cost implications and have a serious
impact on the construction schedule and ultimately delay project completion.

12. Procurement Quality Assurance in Supplier Performance Monitoring
• Monitored Key Performance Areas include:
• Quality
• Delivery
• Design
• Cost
• Management System

13. Supplier Performance- Quality Review
Introduction
• Supplier Quality Performance Monitoring rating is a
consistent process to monitor identified supplier
• Key Performance Areas aligned to quality that are
critical to our success
• The process is designed to Capture specific data,
utilizing a scorecard and ranking approach and a
Combination of :Qualitative (subjective) &
Quantitative (objective) measurement
Scope
• This Procedure Applies to the procurement of
products and services from approved suppliers
and the subsequent measurement of
performance of those suppliers on quality
aspects.
Purpose
• The Purpose is to ensure that Suppliers are
objectively measures and monitors the performance
on Quality aspects, to determine corrective,
preventive and improvement actions relevant to
continued usage of a supplier
Process for Monitoring
Supplier Performance Monitoring is broken down into
3 main activities
PREPARE for Supplier Quality Performance monitoring
EXECUTE Supplier Quality Performance Monitoring
And
REPORT on Supplier Quality Performance Monitoring

14. Thank You
Myron . D. B. Betshanger
Corporate Governance & Strategic Management, Ethics, Compliance
& ERM Specialist, and Anti-Corruption Specialist, Procurement / Supplier Quality
Assurer.
Cell. 082 5243086
E-mail: betshangermyron2@gmail.com
@betshangermyron
LinkedIn: http://www.linkedin.com/pub/myron-duncan-burton-betshanger/
37/219/1b8