Exam 2 - E. Quality Management
Lot tolerance percent defective (LTPD)
the level of poor quality that is included in a lot of goods.
Supplier Certifications and Registrations
A) General (ISO, good manufacturing practices [GMP]) B) Industry specific
3. ISO 9004:2009
Quality management - Guidelines for performance improvement. This broader document provides guidelines for objectives that are not included in ISO 9001:2015. These include continual improvement, and enhancing overall performance.
Six Sigma/Cpk process bounds (quality practices)
Six Sigma is a quality management program with a goal of no more than three defects per million parts, and an outstanding commitment to quality. Cpk refers to a quality measurement index for process capability. This helps to determine whether or not products consistently meet their specifications.
Cause and effect (Ishikawa) diagrams (tool of quality)
Often workers spend too much time focusing improvement efforts on the symptoms of problems rather than on the causes. The ________ or fishbone chart is a cause-and-effect diagram that captures all the possible causes of a problem in a format designed to show their relationships to the problem (the effect) and to each other. The diagram resembles the skeleton of a fish. The diagram shows the problem as the head of the fish, major causes as the ribs of the fish, and sub-causes forming smaller bones off the ribs of the fish. The facilitator moves to root causes by systematically asking brainstorming participants the question, "Why?". This is sometimes referred to as the five whys.
Meeting Customer Needs
One of the important determinants of quality is how well an organization satisfies or delights its customers. Often customers are defined as internal or external customers. Another term that describes customers is end user.
Certification Requirements
Organizations may create quality standards that, when achieved, become the basis for the supplier to be certified, thereby qualifying for reduction or elimination of incoming inspections. These standards usually include definitions of how the measurements are made, and the minimum level of quality that will no longer require inspection. To become certified, suppliers review their measurement system with the supply management organization to ensure that the measurements are correlated, and to provide documentation that the minimum certifiable quality levels have been achieved.
Measures used to determine levels of customer satisfaction:
customer satisfaction surveys and focus groups. Once these measures are in place, a baseline should be created and tracked over time to determine if improvement efforts have resulted in heightened levels of customer satisfaction.
Check sheets (tool of quality)
data gathering tools that can be used in forming a histogram. Can be either tabular or schematic.
Besides providing inputs to improvement, benchmarking is useful for:
externally validating an organization's approach to its business.
Control charts (tool of quality)
graphs or diagrams used in statistical process control (SPC) to record, measure, and analyze variations in processes to determine whether outside influences are causing a process to go out of control. The objective is to identify and correct such influences to keep the process in control.
More complex sampling plans are referred to as:
multiple sampling plans or sequential sampling plans. With these sampling plans, the acceptance sampling rules might occur as follows: n1 = sample size for sample # 1 n2 = sample size for sample # 2 nn = sample size for sample # n c1 = acceptance number for sample # 1 c2 = acceptance number for sample # 2 cn = acceptance number for sample # n r1 = rejection number for sample # 1 r2 = rejection number for sample # 2 rn = rejection number for sample # n
1. ISO 9000:2015
Fundamental terms and principles of quality management. The following seven principles provide the foundation for ISO 9000:2015 and ISO 9001:2015. o Customer focus. o Leadership. o Engagement of people. o Process approach. o Improvement. o Evidence-based decision-making. o Relationship management.
The bottom line in acceptance sampling is that acceptance sampling plans are designed to give two things, n and c, in which:
n = the sample size of a particular sampling plan, and c = the maximum number of defective pieces for a sample to be rejected. The average sampling plan can be stated in simple terms; that is, n = 20 and c = 5. This clearly communicates the bounds of the sampling plan: Take a sample of 20 items and if five are defective, reject the lot of materials. It is important to remember that the supply management professional should always randomize when selecting product from a supplier to be inspected.
Consumer's risk
opposite of Producer's risk. As a consumer, a shipment of a poor-quality product has been received, and the product has good quality. Therefore, the consumer pays for the product, uses it in the production process, and suffers the consequences. Denoted by beta (β). The goal of acceptance sampling is to reduce producer's risk to low levels while maintaining consumer's risk at acceptable levels.
Product benchmarking
performed by many organizations when designing new products or upgrades to current products. This type of benchmarking often includes reverse engineering or dismantling competitors' products to understand the strengths and weaknesses of their designs.
Best management practices (BMPs) and good manufacturing practices (GMPs) are generally
practices that are encouraged or required by regulatory agencies. For example, the U.S. Food and Drug Administration (FDA) publishes BMPs for food manufacturers. Medical instrument manufacturers follow the FDA GMPs. Some of these practices require the use of lean manufacturing or SPC
Supply management departments sometimes categorize suppliers, according to certain criteria, as
preferred, partnered, certified, and prequalified.
Prequalified (or approved) suppliers
suppliers that meet an organization's selection criteria, and have been added to the approved list (ISM Glossary 6th edition). ________________ consists of closely examining the suppliers to determine such factors as financial strength, facilities, location, size, technology, labor status, management, costs, terms, references, and other factors. Such suppliers are therefore ____________ to do business with the organization.
Acceptance Testing
test procedures that lead to formal acceptance of a new or changed product, process or system. For example, the overall condition of a given lot may be determined by inspecting only a portion or sample of the lot. For a software system, a user acceptance test plan is agreed to by the buyer and seller, it is then carried out, and the results are compared to pre-established severity thresholds to determine corrective action.
External customers
the bill-paying receivers of the work. The ultimate people whom the organization is trying to satisfy with its products or services. If the organization has satisfied these customers, it will continue to prosper, grow and fulfill the objectives of the organization.
Quality improvements
the enhancements that increase value or decrease the time requirements of processes, activities, performance, products, and other areas.. Attaining these improvements requires a systematic approach based on predetermined targets, and includes quality control activities, quality assurance processes, and quality management programs.
Quality Management
the function of planning, organizing, controlling, and improving the quality of products and processes. This involves leadership and prioritization of quality improvement activities in the organization.
Kaoru Ishikawa
the inventor of the seven basic tools, was known for "democratizing statistics."
initiator organization
the organization that initiates contact and studies another organization. These are not static roles because the target organization often enters into a reciprocal agreement to observe the initiator organization.
target organization
the organization that is being studied (also called a benchmarking partner). These are not static roles because the target organization often enters into a reciprocal agreement to observe the initiator organization.
Acceptable Quality Level (AQL)
the process limit of a measured attribute averaged from a series of satisfactory lots. Typically used for a sample inspection. This concept has been troublesome to many who consider this an acceptance of less-than-perfect quality. To statisticians, this is simply an economic decision that is associated with producer's risk.
Producer's risk
the risk associated with rejecting a lot of materials that has good quality. For example, a customer concludes a product has poor quality and returns the product, even though the product has high quality. In this case, the producer has been judged inaccurately. Denoted by alpha (α) The goal of acceptance sampling is to reduce producer's risk to low levels while maintaining consumer's risk at acceptable levels.
Internal customers
those within the organization receiving internal goods or services. In a sense, an economic transaction takes place in internal services in that service providers are funded as a result of the services they provide to the organization as a whole. Other authors have used an abstraction of this term to include the person at the next step in a process. Therefore, the person who works at workstation number 3 can be considered the customer of the worker at workstation number 2.
Financial benchmarking
usually involves using financial databases. The internet is an important tool that can be searched for benchmarking financial performance.
Many times an organization wants to work with its suppliers to achieve consistency in quality practices. This may include the following areas:
· Acceptance/rejection history · Testing capability · Workers · Machines · Process control · Statistical process control (SPC)/statistical quality control (SQC) · Six Sigma/Cpk process bounds · Organization and management of quality systems · Documented systems/procedures · System certification/validation
Supply management organizations may categorize suppliers to meet specific needs as follows:
· Approved suppliers · Partnered suppliers · Certified suppliers · Prequalified suppliers · Certifiable suppliers · Disqualified suppliers · Acceptance testing
Statistical Process Control (SPC)'s primary activities are directed toward the following:
· Defining the process (using tools such as data collection, histograms, run charts, and process capability). · Reducing variation (using tools such as cause-and-effect diagrams, Pareto charts, brainstorming, and team-based problem solving).
the seven basic tools of quality (B7)
· Histograms · Pareto charts · Cause and effect (Ishikawa) diagrams · Check sheets · Scatter diagrams · Flowcharts or process maps · Control charts
Several types of benchmarking found in the quality literature: (Note they are not all mutually exclusive.)
· Process benchmarking · Financial benchmarking · Performance benchmarking · Product benchmarking · Strategic benchmarking · Functional benchmarking
The most common supplier registration standards used worldwide:
ISO 9000:2015 and ISO 9001:2015
Other Organizational Requirements for Supplier Certification (E.g., Evidence of Statistical Process Control [SPC])
· Management responsibility · Quality system · Contract review · Design control (design and development planning) · Document and data control · Procurement · Control of customer-supplied product · Product identification and traceability · Process control · Inspection and testing · Control of inspection, measuring and test equipment · Inspection and test status · Control of nonconforming product · Corrective and preventive action · Handling, storage, packaging, preservation, and delivery · Control of quality records · Internal quality audits · Training · Servicing · Statistical techniques
The levels of thoroughness of inspections include:
· No inspections at all. · Occasional audits or random inspections, such as for certified suppliers. · Routine sample inspections. · One hundred percent inspections, such as automated testing.
The core ISO 9000 standards are:
1. ISO 9000:2015 2. ISO 9001:2015 3. ISO 9004:2009 4. ISO 19011:2011
When nonconforming products are produced, four things can happen:
1. They can be reworked to meet specified requirements. 2. They can be accepted with or without repair or concessions. 3. They can be re-graded for alternative applications. 4. They can be rejected and scrapped.
Preferred suppliers
A group of suppliers that an organization has determined meet its expectations for quality, delivery and/or price, and that are able to respond to unexpected changes. Often the organization establishes master price agreements with these suppliers. For items where _________ suppliers have been identified, the entire organization is required to buy from those suppliers.
The affinity diagram (New 7 Tools (N7))
A tool to bring to the surface all the issues associated with the problem. This is a total quality management (TQM) tool in which the members of a team each sort data in silence, looking for associations. After sorting, the team identifies the associations found, the critical links, and the issues that emerged.
Various Quality Processes and Standards
A) Six Sigma B) Lean Six Sigma C) Lean D) Kaizen E) International Organization for Standardization (ISO) F) Statistical Process Control (SPC) G) Process Capability (Cpk)
·The interrelationship digraph (New 7 Tools (N7))
After completing the affinity diagram, it might be useful to better understand the causal relationships between the different issues surfaced. The tool for doing this is the _________________ _______.
Documented systems/procedures (quality practices)
All inspection procedures should be in writing, and a solid training program with periodic updates should be in place.
Functional benchmarking
An example of __________ benchmarking occurs in supply management. The Institute for Supply Management®(ISM®) provides a frame-work for the networking of supply management professionals. This allows for the functional sharing of information.
Workers (quality practices)
Indicators of worker capability to look for might include the number of hours of statistical quality control (SQC) or total quality management (TQM) training, worker certifications held, and the use of process control charts by the equipment operators.
Disqualified suppliers
Individuals or organizations that fail to meet the standards established by a supply management organization, and are barred from competing for that organization's business (ISM Glossary 6th edition). Typically, a supplier would not be disqualified until several steps had been taken to attempt to correct the underlying performance problems. Disqualifying a supplier is a last resort.
Collaboration With Stakeholders
It is important for key stakeholders that are impacted by or have a stake in ensuring consistent high quality from suppliers collaborate in the design, implementation, and administration of a supplier quality certification program. Each stakeholder brings vital information and expertise to the table. Supply management works with design and process engineers to identify specifications and performance requirements. Marketing is the voice of the external customer and should have a good idea of their needs as it relates to quality. However, if the customer is part of the internal organization, that customer should be included in developing the program. Quality assurance (QA) provides quality performance feedback, jointly determining quality goals and expectations with supply management, and collecting and sharing data on supplier nonperformance costs. QA also offers assistance in supplier development.
The differences between AQL and LTPD:
Lots of AQL or better should usually have an alpha (that is, for example, a 5%) or less chance of rejection. This is related to Type I error. Lots of LTPD or worse should have a beta (that is, say, a 10%) or less chance of acceptance. This relates to Type II error. There is theoretically only one combination of sample size (n) and acceptance number (c) that meets both conditions simultaneously. In practice, both conditions would be unable to be met precisely, and the supply management professional must choose a combination of n and c that approximates both conditions simultaneously.
Process benchmarking
a performance comparison of business processes against an internal or external standard of recognized leaders. Most often the comparison is made against a similar process in another organization considered to be best-in-class. This can involve studying process flows, operating systems, process technologies, and the operations of target organizations or departments.
4. ISO 19011:2011
Provides guidelines for internal and external audits of quality and/or environmental management systems. The ISO registration process typically takes several months from initial meeting to final registration audit. This time frame differs from client to client, but each process usually follows the steps below. · Step 1 — Inquiry. The organization contacts registrars to investigate the terms for registration. The prospective organization then makes a final selection of a registrar with whom the organization is comfortable. · Step 2 — Contract with registrar. In this process, registration steps are determined and a price is negotiated. A signed quotation or purchase order leads to the first stage of the certification process. Some organizations may wish to have a pre-assessment or gap analysis audit. · Step 3 — Phase 1 audit. At this stage, the registrar performs an on-site audit of the documented quality system against the applicable standard. · Step 4 — Certification audit. Every element of the ISO 9000 standard is audited several times during the registration process. Representative samples of an organization's business processes are chosen for any audit. During each three-year period, 100 percent of the organization is audited. The audit program is a valuable tool that provides a clearly and mutually defined process and snapshot of auditing — past, present, and future. · Step 5 — Process audits (optional). The organization may choose business processes for auditing to the applicable standard, allowing the client to learn and experience the registrar's auditing methods and style. · Step 6 — Final certification audit. Once the organization's documented quality system has met the applicable standard, the registrar will conduct an audit to determine the system's effective implementation. This may involve interviewing the process owners and responsible personnel as designated in the documented quality system for processes chosen from the audit program. · Step 7 — Rolling certification audits. These are sometimes referred to as surveillance audits where the registrar returns on either six-month or annual cycles.
2. ISO 9001:2015
Quality management systems - Requirements. This specifies the requirements of a quality management system, and is useful to all types organizations. These are used for internal implementation, contractual purposes or third-party registrations. Consists of 10 sections: o Clauses 1-3: Introduction and Scope of the Standard. o Clause 4: Context of the Organization. o Clause 5: Leadership. o Clause 6: Planning. o Clause 7: Support. o Clause 8: Operations. o Clause 9: Performance Evaluation. o Clause 10: Improvement.
"democratizing statistics"
Statistical concepts are difficult for many people to understand. For the average person, a means was needed to obtain the power of inferential statistics without the in-depth knowledge required to use parametric statistics correctly. Statisticians have long understood the importance of visual tools for communicating and understanding statistical concepts. Ishikawa adapted and invented these simple tools, known as the seven basic tools of quality (B7), so the average person could analyze and interpret data. These tools have been used in thousands of organizations, and by all levels of managers and employees with worldwide success.
Approved suppliers
Suppliers that meet an organization's selection criteria and have been added to the approved list. The approval process may include submission of samples for testing, or other steps to approve the item or service to be purchased. It may also include inspection of the supplier's quality systems.
System certification/validation (quality practices)
Supply management professionals today are requiring various types of quality certification of suppliers. These range from being qualified, to being certified, to complete quality assurance. Many forms and distinctions are in use.
ISO 9000 Family of Standards: Basics
The International Organization for Standardization (ISO) has more than 160 national standards institutes globally that jointly develop standards. The goal of ISO is to develop a voluntary set of standards that are useful for improving business operations and meet market conditions. ISO 9000 family of standards is not a prescription for running a business or an organization. However, its requirements provide a recognized international quality standard that businesses can follow to become more effective and efficient. To gain the greatest benefit from ISO standards, processes need to be first planned and followed. The organization must then correct deficiencies in current processes and strive to continually improve.
Machines (quality practices)
The equipment capability can be monitored in several ways. The supply management professional can look at the maintenance history of key elements in the process for frequency of breakdowns, and preventive maintenance activity. The presence of process control charts is another way to monitor machine capability.
Multiple sampling plan advantages (over single sampling plans) include:
The sample size used in multiple sampling plans will have a smaller average sample size with the same amount of protection as a single sampling plan. The decision relating to multiple sampling plans will usually be made on the first phase of the sample. This then results in smaller samples.
Sampling Plan
The selection of the sample size n and the acceptance number c.
Acceptance testing
These are test procedures that lead to formal acceptance of a new or changed product, process or system. For example, the overall condition of a given lot may be determined by inspecting only a portion or sample of the lot. For a software system, a user acceptance test plan is agreed to by the buyer and seller; it is then carried out, and the results are compared to pre-established severity thresholds to determine corrective action (ISM Glossary 6th edition).
Quality Documentation
Typically, documentation requirements are specified by either the customer or the registrar. These may vary. This simply requires developing standard operations procedures according to the customer's or registrar's requirements.
Testing capability (quality practices)
What abilities does the organization have to detect correct and incorrect work by both the workers and equipment? A batch sampling technique or some form of statistical sampling procedure will most likely be used instead of 100 percent inspection of the incoming components. Final examination of the finished product will probably take place in a secured area awaiting final release. Quality control personnel should do the examination, and the inspection procedures should be in writing. Test methods, procedures and instruments should be the same as those used by the supply management professional's incoming quality control procedures to ensure compatibility. All gauges and test devices should be reviewed to ensure that calibration dates are current. Shop-floor quality checks should be conducted at regular intervals to verify those performed during the process by production-floor employees.
Organization and management of quality systems (quality practices)
What are the overall organizational systems in place for quality? Is it the traditional "check after an item was made," or is it a proactive system that checks the work as it is being produced?
Acceptance/rejection history (quality practices)
What do the records indicate about the supplier's performance? Acceptance or rejection history should be readily available and reviewed, along with traceable records. A check should be made to ensure that measuring device calibration dates have not expired.
Process control (quality practices)
What types of quality detection and correction systems are used? Primary systems in effect today include statistical process control (SPC) and Six Sigma/Cpk. Validation of the manufacturing process should be properly documented. If the organization has a program of statistical quality control or statistical process control (SQC/SPC) in place, it should be reviewed.
Prioritization matrices (New 7 Tools (N7))
When different priorities are obtained from the tree and matrix diagrams, weighted matrices are used to prioritize which variables or topic should be emphasized. These are similar to the analytical hierarchy process developed by Thomas Saaty.
Tree diagrams (New 7 Tools (N7))
With the affinity diagram, teams identify key issues relating to a problem. The ____ _______ is useful to identify the steps needed to address the given problem.
At the core of Six Sigma is the following equation:
Y = f(X) Strictly speaking, this means that Y (the dependent variable) is a function of X (an independent variable). To Six Sigma practitioners, an output is a function of inputs and processes where: Y = output (key business objectives and measures) f = function (interrelationships to be controlled and managed) X = controllable and non-controllable variables that affect Y - follows the DMAIC (Define, Measure, Analyze, Improve and Control procedure. ___ _____ programs include champions (upper managers who champion projects), black belts (quality specialists who have received extensive training), and other team members who are involved in these improvement efforts.
Flowcharts or process maps (tool of quality)
a diagram of the steps of a process. Each step is identified in sequence along with its key characteristics, such as time involved.
Histograms (tool of quality)
a diagram of values being measured vs the frequency with which each occurs. When a process is running normally (only common causes are present), the _________ is depicted by a bell-shaped curve.
Scatter diagrams (tool of quality)
a graph used to analyze the relationship between two variables. One variable is plotted on the x-axis and the other on the y-axis. The graph will show possible relationships between them. Regression analysis and other statistical techniques can be used to quantify those relationships.
As the supplier achieves each level of performance,
a higher level of trust, improved integration into the supply management organization, and an increased use of quality systems or statistical process control (SPC) to monitor performance results are achieved.
Quality Assurance (QA)
a management function that includes establishing specifications that can be met by suppliers; using suppliers that have the capability to provide adequate quality within those specifications; applying control processes that ensure high-quality products and services; and developing the means for measuring the product, service and cost performance of suppliers, and comparing it with requirements.
5S System
a process improvement method that offers a practical approach to making improvements, whether at the office, logistics function, or warehouse. By assigning everything a location, time is not wasted looking for items. It is a concept that originated with the Japanese, and has five rules — Seiri (Sort), Seiton (Set in Order), Seiso (Shine), Seiketsu (Standardize), and Shitsuke (Sustain). 1. Sorting takes place first, where unused items are separated and thrown away. 2. Set in order — straightening the workplace so items are easy to find — is the second step. 3. Shining is the third step, which means to initially clean the work area and then follow up with a daily cleaning thereafter. 4. Standardization, the fourth step, means that standards are set for the workplace and work practices, and the organization and its employees operate in a consistent and standardized fashion. This might include standard paint colors for electrical lines or air hoses, standard labels for temperature gauges, or the way customer service representatives answer the telephone. Also, procedures are standardized. This provides a great basis for ISO 9000 registration. 5. Sustaining — maintaining the changes that have been made, as well as continually improving and training on these changes— takes place. The reason the __s are useful in starting quality initiatives is that they help to develop the discipline needed to improve quality. Such discipline requires a cultural change that can occur as a result of implementing the __s.
benchmark
a standard or point of reference used in measuring or judging an organization's performance according to selected criteria. A _________ is an organization that is recognized for its exemplary operational performance. It's not an average; it is the best. To document performance and compare that performance to that of the best organizations. To facilitate the discussion, the terms initiator organization and target organization will be used.
Acceptance Sampling
a statistical quality control technique used in deciding to accept or reject a shipment of input or output. When compared with statistical quality control,__________ ________ is defined by its occurrence after production has been completed. This can be either at the beginning of the process when receiving components, parts or raw materials from a supplier, or at the end of production as in the case of final inspection. The focus will be on inspection of incoming materials.
Statistical Process Control (SPC)
a technique using the application of statistical control charts in measuring and analyzing the variation in processing operations. The methodology monitors the process to determine whether outside influences are causing the process to go out of control. The objective is to identify and correct such influences before defective products are produced, and thus keep the process in control. If the process is tightly controlled, then its output (products) will be within allowable tolerance.
Process decision program chart (New 7 Tools (N7))
a tool used to help brainstorm possible contingencies or problems associated with the implementation of some program or improvement.
Under the Uniform Commercial Code (UCC)
after a reasonable opportunity to inspect the goods, supply management professionals become responsible for all defects that incoming inspections should have uncovered, even if no inspection took place. Documenting the certification arrangements with suppliers (and defining the liability for quality problems discovered later) can avert potential issues. Supply management professionals should make sure that both parties sign the documented agreement.
Performance benchmarking
allows initiator organizations to assess competitive position by comparing products and services with target organizations. Performance issues may include cost structures, various types of productivity performance, speed of concept to market, quality measures, and other performance evaluations.
Activity network diagram (New 7 Tools (N7))
also known as a PERT diagram and is used in controlling projects. This is known as an Activity on Node Chart (AON).
Supplier quality certification
an organization's process for evaluating the quality systems of key suppliers in an effort to eliminate incoming inspections.
Pareto charts (tool of quality)
graphs showing the frequency with which events occur, arranged in order of descending frequency. They are used to rank issues so that resources can be applied first to those with the largest potential return. These are actually histograms that are aided by the 80/20 rule adapted by Joseph Juran from Vilfredo Pareto, the Italian economist. The 80/20 rule states that 80% of the problems are created by 20% of the causes. This means there are a few vital causes that create most of the problems. This rule can be applied in many ways. The 80% and the 20% are only estimates. The good news is that by focusing on the vital few, failures can be better controlled, satisfaction of the most important customers can be increased, or 80% of the complaints can be eliminated.
The original version of ISO 9000
implemented internationally in 1994 by the International Organization for Standardization (ISO) Technical Committee. Standards have since been added, and are reviewed every five years.
Statistical process control (SPC)/statistical quality control (SQC) (quality practices)
involves checking products while they are being produced. Samples are periodically taken by line employees and compared to the range of existing tolerance. If a product is out of its tolerance range, the production line is stopped and corrected. This ensures that no additional out-of-tolerance products are produced. There should be control charts at individual workstations indicating that checks are being made during production.
Quality Control (QC)
involves measuring quality performance and comparing it with specification requirements as a basis for controlling output quality levels. The quality assurance function is responsible for this activity.
Strategic benchmarking
involves the practice of observing how others compete. This is rarely industry specific as organizations go outside their own industries and learn lessons from organizations around the world. This typically involves target organizations that have been identified as world-class or high-performance such as Baldrige, Shingo or Deming prize winners.
Acceptance sampling in continuous production — Single and double sampling plans are called
lot-by-lot sampling plans. As separate samples are performed, additional lots of materials are received. Sometimes it is not feasible to collect products into lots because they are produced in a continuous manner. In these cases, acceptance sampling procedures for continuous production are used. These procedures typically involve alternating between 100 percent inspection and sampling inspection.
The N7 tools are useful for:
managing longer projects that involve teams. With the B7 and N7 tools, the supply management professional has a reasonably good set of skills that will help in managing many projects. It is important to note these tools have been successfully used within many different settings, cultures and education levels. The power of these tools is that when coupled with the PDCA (plan-do-check-act) cycle, organizations have a simple, easy-to-understand methodology for solving unstructured problems. The tools are especially useful when used in teams. Many of these tools are also fun to use, which is often seen as a plus. By using these tools effectively, unproductive meeting time is reduced to a minimum, and good, fact-based decisions are made.
Partnered suppliers
refers to a close relationship between a buyer and seller to attain some advantages from each other in a positive way. A partnership in this context does not imply a legal relationship. Buyer-seller partnerships may be of operational importance, such as a long-term, single-source relationship with an office supplier; or of strategic importance, such as a long-term, single-source relationship with a supplier of a good or service of strategic importance (ISM Glossary 6th edition). Such relationships are usually built around long-term arrangements, large-volume commitments, and joint product or service process development. Electronic links between the organizations may automate ordering and delivery scheduling. Such arrangements generally work best when there is a mutual benefit in forming a relationship, for example, to compete with another set of organizations for the same customers. Many organizations are moving away from using the word partner because of its specific legal meaning. In many organizations, terms such as strategic alliance and special relationship are used to indicate a supplier association that is based on more than the traditional price-based, arm's length model.
Six Sigma
represents a well-thought-out packaging of quality tools and philosophies in an honest effort to provide rigor and repeatability to quality improvement efforts. - focused more on cost reduction than traditional continuous improvement processes. - organized around creating champions, black belts, green belts and, in some situations, yellow belts. From the early days of improving the robustness of design at Motorola, ___ _____ has morphed into an organization-wide program for improvement involving hierarchical training, organizational learning, and pay-for-learning.
New 7 Tools (N7)
set of managerial tools that focus more on group processes and decision-making for improvement. These tools are known as the New Tools for Management. These tools have their roots in Japanese practice and date back to pre-World War II. They were developed by a research effort enacted by a committee of the Japanese Society for QC Technique Development. · The affinity diagram · The interrelationship digraph · Tree diagrams · Matrix diagram · Prioritization matrices · Process decision program chart · Activity network diagram
Matrix diagram (New 7 Tools (N7))
show the relationship between two, three or four groups of information. It can also give information about the relationship, such as its strength, and the roles played by various individuals or measurements. similar in concept to quality function deployment in its use of symbols.
end user
someone who is at the end of the chain of events that results in the production of a product or service. Software developers who are programming software solutions for customers often use the term end user. Service organizations have many titles for customers. These titles include patient, registrant, stockholder, buyer, patron and many others. As service and product producers, the customer is the focus of activities.
Industry Specific Standards
standards that are industry specific. For example, SAE International, a global organization of more than 128,000 engineers and other technical experts, has published AS9100D, which includes ISO 9001:2015, but has specific definitions, notes and requirements for the aviation, space and defense industry. QuEST Forum, a global organization dedicated to quality and sustainability in the information and communication technology industry, created TL 9000 in 1998. IATF 16949:2016 is a standard originally created by ISO for the automotive industry.
Certifiable suppliers
supplier that is not currently certified by the supply management organization, but is in the process of becoming certified, may already be certified by another division of the same organization, or may be certified by another organization.
Certified suppliers
supplier whose quality control system has proven to be highly reliable, thus eliminating the need for incoming inspection (ISM Glossary 6th edition). This supplier is integrated with the supply management professional's enterprise wide quality control system, and through which a larger quality assurance system is established. In this way, total costs associated with quality are reduced through the elimination of duplicate efforts, and use of Statistical Process Control (SPC) and other quality control processes and information sources. The supply management organization typically defines the standards that suppliers must meet to become _________. In some industries, there are also standards agreed upon by the entire industry.
Inspections may occur at many places, and may have many levels of thoroughness. Inspection locations may include:
· The supplier's plant, in process, as goods are made or as a service is performed. · The supplier's plant, at inspection stations. · The supplier's plant, at final inspection before shipment or at the end of a service. · The supply management professional's organization, at incoming inspection. · The supply management professional's organization, in process, as the supplier's materials are used. · The supply management professional's organization, at final inspection before shipment. The earlier inspections occur, the more likely the problems and service issues will be corrected. Suppliers that use process controls and inspections as materials are made, and correct problems immediately, are least likely to ship a defective product.
Times when acceptance sampling might be needed:
· When dealing with new or unproven suppliers. · During start-ups, and when building new products. · When product can be damaged in shipment. · With extremely sensitive products. · When product can spoil during shipment, such as agricultural seed. · When problems with a certain supplier have been noticed in the production process, bringing the supplier's performance into question.