This document discusses supplier selection, certification, and relationship development. It provides guidance on selecting suppliers based on criticality, technical knowledge, and specialization. The certification process aims to determine if suppliers meet needs, develop capabilities, and build strong relationships. Relationship development involves inspection, training, using a team approach, and recognition to foster quality improvement and create incentives for suppliers.

2. Contents
 Supplier Selection
 Supplier Certification
 Relationship Development

3. Supplier Selection
MR. Adnan Ali

4. What is the Supplier
 The definition of a supplier is a person or entity that is the source for goods or services. A
company that provides microprocessors to a major computer business is an example of a
supplier.

5. Why Supplier Selection Is Important?
The need to identify and select a new supplier can arise from a number of reasons.
 A source used in the past may have gone out of business. Its price may have risen
unreasonably or its quality slipped to unacceptable levels. Its technology may be
outdated.

6. Before Start the Supplier Selection.
3 Questions should be Answered Before Supplier Selection.
 How Critical is the Item, Product or Service?
 Does the Organization have the Technical Knowledge to Produce this Item
Internally?
 Are there Suppliers who Specialize in producing items?

7. Conditions for Selection and Evaluating
of Suppliers.
 Supplier Understand the management policy of the organization.

8.  The supplier maintains high technical standards and has the capability of dealing
with feature technological innovations

9.  The supplier maintains high technical standards and has the capability of
dealing with feature technological innovations

10.  supplier has the capability to produce the amount of production needed.

11.  There is no danger of the supplier breaching corporate secrets.

12.  The price is right and delivery dates can be meet. The Supplier is easily
accessible in terms of Transportation and Communication, there must be a
system to trace the product from receipt and all changes of production
delivery.

13.  The supplier is sincere in implementing the contract provisions.

14.  The supplier has an effective quality system and improvement program such
as ISO/QS 9000.

15.  The supplier has a track record of customer satisfaction and organization
credibility.

16. Supplier Certification
MR. AHSAN KHAN

17. What is Supplier certification?
 After supplier selection and approval, the next step is certification process,
which starts after the suppliers begin shipment of the product.
 This process has been described by customer/supplier technical committee of
ASQ, which developed the following eight certification criteria:

18. Why certify
I. Way to determine which suppliers meet the company’s
needs
II. Develop supplier capabilities
III. Build stronger and open relationships
IV. Better communication and sharing of information
V. Better serve our customers
VI. Meet corporate improvement objectives through
collaboration

19. Certification process
 The customer and supplier shall have agreed on specifications

20.  The supplier shall have no product-related lot rejection for a significant
period of time or significant number of lots.

21.  The supplier shall have no nonproduct-related rejections for a stated period
of a time or number of lots.

22.  The supplier shall have no negative non-product-related incidents for a stated
period or number of lots.

23.  The supplier shall have a fully-documented quality system.

24.  The supplier shall have successfully passed an on-site system evaluation.

25.  The supplier must conduct inspections and tests.

26.  The supplier shall have the ability to provide timely inspection and test data.

27. Benefits of Supplier Certification
 it eliminates receiving inspection
 a customer/supplier partnership is created, with each partner being
responsible for its own appropriate quality
 the number of suppliers is reduced to manageable level,

28. Mr. Moshin Khan
Relationship Development

29. Relationship Development
Following are the points of relationship development.
 Inspection
 Training
 Team Approach
 Recognition

30. Inspection
 The goal of inspection is to eliminate good and bad parts .There are three
phases of inspection.
1. 100% inspection
2. Sampling
3. Audit

31. 100% Inspection
 In this phase 100% inspection is recommended by both customers and
suppliers

32. Sampling
 As the supplier gains confidence in its quality performance , a change to
sampling is recommended , provided there is statistical control of the process
using control charts and process capability.

33. Audit
 In the 3rd phase , the supplier continues statistical control of process and
initiate its own auditing . The customer now has complete confidence in the
supplier and initiate identity checks.

34. Training
 In small organizations , the senior managers perform many different
functions. Frequently no one has expertise in quality or ability to train work
force . Therefore the large organizations may invite the supplier to attend
their courses or present the course at the supplier’s end.

35. Team Approach
 Customer/Supplier teams are established in a number of areas , such as
product design , process design , and the quality system.
 Team meetings should occur at both parties plants so they obtain a greater
understanding of the process.

36. Recognition
 Creating incentives for suppliers is one way to ensure that they remain
committed to a quality improvement strategy . Incentives may be in the form
of a preferred supplier category with its rewards.