Supplier Responsibilities: Section II

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Section II

Supplier Responsibilities
It has been said many times in many situations, garbage in, garbage out. In
fact, it is known as the GIGO principle. In the case of launching a program
on time, on budget, and with minimum interruptions (for whatever reason),
that process is a function of the supplier doing the best it can all the time.
Of course, in order for this to happen, the original equipment manufacturer
(OEM) (customer) must have identified the requirements.
There is no argument that the behavior of the supplier is of paramount
importance in this process. So let us identify the issues, concerns, and
requirements that any supplier has and the antidotes for poor performance.
To be sure, nothing is perfect! However, perfection can be defined based on
the set requirements that a customer requires of a supplier. Small or indifferent
deviations may indeed be overlooked, but in the case of the supplier satisfying
the customer, it is the suppliers responsibility to either eliminate or minimize
the issues, concerns, or problems so that flawless launching takes place. To
do this, an organization must have core business strategies, planning, and a
vision for continual improvement. This must be a way of life and a relentless
perseverance to perfection. A pictorial view of at least one approach to this
journey are shown in the core business strategy chart on the next page. There
are many variations of this, and every organization should develop its own.
In Section II, we are going to examine some of the requirements that every
supplier must understand and practice so that the customer will receive the
product and/or service flawlessly. Above all, by following the concepts on
which we have focused, we are certain that organizations will improve dramatically. A survey in the Modern Machine Shop Journal (September 2014, 8187)
supports my contention. The results are summarized in the table on the next
page. The article does not say what the overall sample was, but it does indicate that the sample was taken from aerospace, automotive, military, and
equipment suppliers.

68

Supplier Responsibilities

One approach to core business strategy


VI. Level production

Improvement with
core business
strategy

V. Pull system

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III. Continuous flow


II. Stability
Phase

I. Vision

Safety
programs
Develop
vision

Time

Production
control board

Standardized
work

Value stream
mapping
5S

Smaller
lot size

Management
labor relations

Top Five Improvement Methods


Items
Continuous
improvement program
5S workplace
organization
Cellular
manufacturing
Just-in-time
manufacturing
Quality certifications

Flexible
work

Marketplace

Error
proofing

Visual
factory
Baseline
analysis

Share vision &


receive buy in

Empowered
teams

Takt
time

Line layout
cell layout

Measurable
OEE, DTD, FTT

6-Sigma

Material
logistics

Line load
analysis

Kaizen

Level
schedule

JIT

Kanban

Quick
changeover

IV. Synchronous production

Every part
every day

Fixed
production
plan

TPM

Improvement
without core
business strategy

Develop roles &


responsibilities

Top Five Supply Chain Practices

Top Shops
(%)

Others
(%)

85

55

63

42

44

25

44

30

59

45

Items
Customer
satisfaction surveys
Access to customer
forecasts
Just-in-time
customer delivery
Sharing forecasts
with suppliers
Design for
manufacturability

Top Shops
(%)

Others
(%)

70

30

63

31

59

35

59

18

56

28

Furthermore, scientific evidence presented by Lakhal (2014) suggests that ISO


9000, total quality management (TQM) practices, and organizational performance have a direct significant relationship with excellence (p<.01). On the other
hand, Jones (2014) has identified the critical factors of success as being leadership
(p<.0001), measurement analysis, and knowledge management (p<.0001).

References
Jones, M. (2014). Identifying critical factors that predict quality management program success: Data mining analysis of Baldrige award data. Quality Management
Journal 4961.
Korn, D. (2014) What it takes to be a top shop. Modern Machine Shop September, 8187.
Lakhal, L. (2014). The relationship between ISO 9000 certification, TQM practices and
organizational performance. Quality Management Journal 3848.

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