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Supplier Quality Management Overview

Supplier quality management (SQM) aims to ensure suppliers provide goods and services that meet customer needs with minimal inspection through interactive relationships between customers and suppliers. Global companies are increasingly investing in SQM systems and processes. SQM measures supplier performance, recovers costs for poor quality, conducts supplier audits and scorecards, and engages suppliers in quality improvement to enhance the customer's own quality. Effective SQM implementation involves defining quality requirements, evaluating suppliers, selecting suppliers, conducting joint quality planning, validating conformance, and creating supplier ratings.

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Ajit Singh Yadav
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33 views2 pages

Supplier Quality Management Overview

Supplier quality management (SQM) aims to ensure suppliers provide goods and services that meet customer needs with minimal inspection through interactive relationships between customers and suppliers. Global companies are increasingly investing in SQM systems and processes. SQM measures supplier performance, recovers costs for poor quality, conducts supplier audits and scorecards, and engages suppliers in quality improvement to enhance the customer's own quality. Effective SQM implementation involves defining quality requirements, evaluating suppliers, selecting suppliers, conducting joint quality planning, validating conformance, and creating supplier ratings.

Uploaded by

Ajit Singh Yadav
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Supplier quality management has emerged as one of the leading business practices in the past few years.

Most of the global players are making significant investments in systems and processes to improve supplier
quality. This white paper briefly describes various aspects of SQM:

What is Supplier Quality Management (SQM)?

Supplier Quality Management (SQM) is confidence in a


supplier's ability to deliver a good or service that will
satisfy the customer's needs. Achievable through
interactive relationship between the customer and the
supplier, it aims at ensuring the product's 'fit' to the
customer's requirements with little or no adjustment or
inspection, directly from supplier.

Why Supplier Quality Management (SQM)?

The following key elements of SQM enable companies to


improve their own quality by improving their supplier’s
product and delivery quality.

 Measuring & tracking cost of poor supplier quality


 Cost recovery (Penalty for poor service / component /
delivery)
 Supplier Audit
 Supplier Scorecard (Ratings)
 Supplier Development
 Closed Loop Corrective Action
 Engaging Suppliers in quality systems

How to implement Supplier Quality Management


(SQM)?

The US quality guru Joseph Moses Juran divides the


supplier quality assurance process into nine steps:

1. Definition of the product's quality requirements


2. Evaluation of alternative suppliers
3. Selection of the most appropriate supplier
4. Conduction of joint quality planning
5. Cooperation during relationship period
6. Validation of conformance to requirements
7. Certification of qualified suppliers
8. Conduction of quality improvement plans
9. Creation and use of supplier ratings
For Supplier:

 General Organization and Management Structure (with contact information)


 Material, Facilities, Logistics & Tooling (to fulfil company production requirement)
 Product Realization, Measurement, Analysis & Improvement (to fulfil company quality requirement)
 Business Continuity
 Warranty Charter & Cost of Poor Quality (COPQ)

For Company:

 Supplier Quality Manual


 Approved Suppler List (ASL)
 Potential Supplier List (PSL)
 Compliance Criteria
 Quality Agreements
 Non-Disclosure Agreements

 Improved Customer satisfaction


 Improved Quality
 Transparent & Fair Supplier Orders
 Avoid supply chain risk and disruptions
 Protect and improve brand/reputation
 Avoid costs and achieve savings
 Segment and rank vendors
 Collaborate with Suppliers
 Improve internal processes

At NPCL, we receive various products (like meters, cables, poles etc.)


directly from OEMs and supply them to our consumers without any
modification. Hence, quality of these products directly affects the
service of NPCL and thus the consumer satisfaction. Also, poor quality
of these products has significant impact on our revenue because of
higher number of breakdowns and complaints.

Therefore, along with QMS, SQM will help us to enhance our quality
of service and thus to meet our vision of being one of the best power
distribution companies in the country, along with Customer
Satisfaction Index above 90%.

Also, to achieve our mission of being an excellent service provider to


our customers and a preferred business enterprise for our partners
and society, we will need a very effective, strong & robust Supplier
Quality Management system.

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