Supplier Quality Performance
Quality is the measure of how well a product or service meets requirements. When a company cannot make or create all it needs internally, it relies on external suppliers to provide goods and services. Supplier quality is the measure of how well the supplier meets the customer's needs, and supplier quality performance is how well suppliers meet quality metrics over time.
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Measures of Supplier Quality
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Supplier quality performance is measured by defects per million products. It can be measured by how often the product delivery conforms to a timeline and budget. Supplier quality performance can be measured by six sigma process control charts, supplier lead time and how quickly the supplier responds to quality corrective action requests.
Supplier Quality Performance Management
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Supplier quality performance is monitored over time. If a supplier's quality performance begins to drop, the customer can choose to help the supplier diagnose the quality problems. They may also choose to seek another supplier before the quality of the product is so poor that it impacts their own processes.
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Supplier Quality Performance Audits
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Quality audits catch problems before they reach your loading dock. Quality standards require audits to ensure the supplier's quality performance. This can include audits of their process monitoring methods, their quality management system, and quality improvement plans.
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References
- "The Procurement and Supply Manager's Desk Reference"; Fred Sollish, John Semanik; 2007
- "Supplier Evaluation and Performance Excellence"; Sherry R. Gordon; 2008
- "Total Quality Management"; Jack P. Pekar; 1995
- "Measuring Performance for Business Results"; Mohamed Zairi; 1994
- "The Supplier Management Handbook"; James L. Bossert; 2004
Resources
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