Supplier Appraisal Engineers - Coursework Example

Student’s name Course code+name Professor’s name University name Table of Contents 1.0.Introduction 2 2.0.Engineering problems faced by supplier’s appraisal engineers 3 2.1.Supplier Infrastructure 3 2.2.Lack of performance measurements 4 3.0.Common mistakes from contractors and suppliers 6 3.1.Failing to measure and track cost of poor supply quality 6 3.2.Inadequate safety assessment process 6 3.3.Frequent Systemic Problems 6 3.3.1.Figure 2: Systemic Problem 7 4.0.Suggested solutions to the problems 7 4.1.Closed Loop Corrective Action 7 4.1.1.Figure 3: Closed Loop Corrective Action 8 4.2.Application of Supplier Scorecard 8 4.3.Supplier Audit 9 5.0.Reference 10 1.0. Introduction Supplier’s appraisal engineers represent challenge for big organizations. That is, a company that needs to be considered for supply of commodities must be subjected to pre-qualification that ascertain whether all control frameworks are in tandem with expectations and thus covering all elements required in the new global standard for supplier governance. This is where supplier’s appraisal engineers come in. Unfortunately, in order to ensure the process of contracting and supplying comply with industry standards, these professionals face engineering problems that may affect quality of appraisal(s) given. In view of this, the essay critically assesses main engineering problems faced by supplier’s appraisal engineers. In so doing, it will integrate such problems with common mistakes committed by suppliers and or contractors. The conclusion will be provision of best solutions to the identified problems and mistakes as faced by engineers and committed by contractors. 2.0. Engineering problems faced by supplier’s appraisal engineers 2.1. Supplier Infrastructure In the process of ascertaining whether a supplier qualifies, engineers face poorly integrated supplier infrastructure. Supplier infrastructure means the required tools and practices which that necessitate the process of supplying. A good example of a poorly integrated supplier infrastructure is lack of automated process. One of the key roles of supplier’s appraisal engineer is to track data management tools that can measure service and supplier performance. Therefore it becomes an engineering problem trying to audit a company that has poorly automated process as one of its infrastructure. The problem here is that the engineer will not be able to present quality metrics as relates to supplier performance to the contracting management team. In broadly speaking, when a supplier lacks proper infrastructure platform (automation), the engineer will not be able to ascertain the following; a. Compliance: rating infrastructure of the supplier that can support scope of supply (like processes, systems, resources) b. Performance: evaluation of elements such as quality, price and on-time deliveries c. Criticality: engineer needs this to ascertain impact of supplier’s performance on the study chain The figure 1 below represents risks that engineer may not be able to present to the contracting company incase suppliers have poorly integrated infrastructure. 2.2. Lack of performance measurements One of the key roles of supplier’s appraisal engineers is to evaluate on behalf of the contracting companies, performance measurement of suppliers. However, one technical or rather, engineering problem that face supplier’s appraisal engineers is when suppliers do not have record of their performance measurement. Within the realm of supplier’s appraisal engineering, performance measurements mean assessment of the following; a. Parts Per Million (PPM) b. Quality Performance Measurement (QPM) c. Plant Disturbance (PD) To highlight the above terms, PPM means the efficiency of products or machines to be supplied. The value is calculated and reported to supplier quality management periodically. On the other hand, QPM means the engineer will be able to assess and calculate performance indicator based on a three month window. For engineer to report QPM to the contracting company, s/he will be able to calculate; a. PPM for the most recent three month period b. Actual number of non-conforming materials or products from the supplier and c. Total number of inspection reports that have been issued during the three month evaluation period Other than PPM and QPM, the engineer will also be able to evaluate the performance of the supplier. Therefore when a supplier or contracting companies do not have proper performance measures, supplier’s appraisal engineers will have the above levels of engineering problems that actually affect their operations. 3.0. Common mistakes from contractors and suppliers 3.1. Failing to measure and track cost of poor supply quality Most contractors and or suppliers do not take initiative of recording or tracking Cost of Poor Supply Quality (COPQ) attributed to their goods. As earlier noted, when supplier’s appraisal engineers do audits of the supplier (source inspection) there is examination of customer-purchased product - performed at the supplier's facility which is meant to ensure there is product integrity and conformance to a given requirements. Unfortunately, Bill (2010) argues that most of suppliers fail to measure and track information provided by engineers thus failing quality management systems---they may not be able to track quality related issues. 3.2. Inadequate safety assessment process One common mistake with suppliers and contractors is that some of them assume that it will be the responsibility of contracting companies to hire supplier’s appraisal engineers with technical knowledge to assess the building, product and the feasibility of the items to be supplied. However, it needs to be noted that these engineers are constantly needed to assess issues immediately affecting quality of items that can be supplied. Further to this, safety assessment process ensures development of the remediation plan by suppliers especially when engineering team revisits for a follow up. 3.3. Frequent Systemic Problems Systemic issues in suppliers and contractors are, as a matter of fact, common across a number of organisations. These systemic issues are daily occurrence in operations thus limiting quality of items to be supplied. The table below has been developed to help explain some of the systemic problems and the percentage most organisations have failed to address. 3.3.1. Figure 2: Systemic Problem Category of Systemic Problems Percentage of Occurrence Standardization (i.e. quality reaction plan, work instructions, process and quality control plan 30 percent Tiered supplier management (supplier quality etc.) 45 percent Operating training (inadequate regular training, certified workers, etc.) 23 percent Maintenance programmes (inadequate of proactive maintenance, delayed reactive maintenance etc.) 24 percent Source: Quality Focused Supplier Process Assessment for Supplier’s Appraisal Engineers 4.0. Suggested solutions to the problems 4.1. Closed Loop Corrective Action Systematic drop in the Cost of Poor quality can be achieved through the implementation of a Quality Management System (QMS) which has an integrated and closed loop corrective action process. This is particularly a solution to the problem of Frequent Systemic Problems especially when there is nonconformance or deviations in standards of goods supplied. In addition, application of this corrective measure ensures that the process of supply becomes auditable by the engineers thus giving the organization a tool for continuous improvement. The diagram below shows how Closed Loop Corrective Action operates. It is also essential in providing answers to problems related to inadequate safety assessment process. 4.1.1. Figure 3: Closed Loop Corrective Action Source: Learning to See by Mike Rother and John Shook 4.2. Application of Supplier Scorecard Introducing supplier scorecards is an important step especially when it is designated to rank relative performance of the supplier within the supply base and tracking improvement in supplier’s quality after a given time. Since scorecards also provide the needed data point into any future of the contractor/supplier, it is a necessary tool for solving in situation where suppliers fail to measure and track cost of poor supply quality. 4.3. Supplier Audit This process ensures that the supplier works with the procedure and process that the contracting parties agreed upon. The process of supplier auditing encompasses conformances in shipment process, engineering change process and quality process at the supplier. This is an effective solution for problems related with infrastructures. 5.0. Reference Bill, C. (2010). How Delhi Helps Suppliers Develop a Quality Focused Culture. Marcus Chao, Supply Chain Management Review, January/February review. Read More