Quality and quality audits are an important part of the supply chain management process. Therefore it is important to understand where the quality function fits within the overall supply chain management process and how it interacts with other functions within that process. Most importantly, we will discuss best practices in supplier auditing and how quality audits can be used in ways outside of traditional conformance verification. Additionally, how to implement a robust remote auditing program will be discussed. Case studies will be shared to demonstrate best practices in supply chain management and supplier quality auditing as well as those suboptimal practices to avoid.
In this new global economy, more than 50% of value creation is achieved outside of an organization’s walls, or through their suppliers. In the United States, recent studies show that 100% of manufacturers include at least one element of their finished product that is obtained from outside of their organization. With this being the case, along with the increased emphasis on supplier control in federal regulations and ISO 9001 as well as, the various industry specific quality management system standards, quality professionals must have a thorough understanding of the supply chain management processes which control supplier selection and management. Therefore it is important to understand where the quality function fits within the overall supply chain management process and how it interacts with other functions within that process.
Quality and quality audits are an important part of the supply chain management process. Conducting a successful supplier audit can be used as a means to identify, assess and mitigate organizational risk. Audits can be combined with Lean and Six Sigma methodologies to help drive supplier improvement. Audits can help foster communication and build relationships (unfortunately the opposite can also be true). Important questions will be asked and answered during this session.
The first part of day one of this workshop will review how quality supports supply chain management process at strategic, tactical and operational levels.
- Help determine approach to supplier selection – Will it be based on strategic partnership, low risk, cutting edge technology or a combination of those and other factors?
- Help determine supplier selection criteria – Which criteria? What is the weight for the different criteria? How is risk calculated?
- Help determine supplier selection process – How does the process work? Who are the approvers? What is the process cycle time? What are the process risks?
- Assess supplier and organizational risk – What is the level of risk for a given supplier and/or the product that they provide?
- Participate in supplier selection process – Evaluate information submitted based on established process, discuss and then vote on supplier acceptability.
- Determine the level of supplier control required, based on the risks of doing business with them – on site audits, remote audits, increased AQL at incoming inspection, skip lot inspections and so forth.
- Generate supplier performance reports – either generate the report or provide information for supply chain to generate report
- Schedule and conduct supplier audits – take the lead with input from supply chain and site management
- Assess performance in conjunction with other supply chain imperatives, such as cost. – contribute to assessment along with supply chain, engineering and other appropriate functions within the organization
The second part of day one of the workshop will focus on how to optimize your supplier audit program.
Supplier Audit Program
- Why do we conduct supplier audits?
- What elements make up a robust supplier auditing program will be discussed.
- How do you evaluate your own supplier audit program?
- What are pitfalls to avoid when developing your supplier audit program?
- When to conduct remote vs. onsite audit?
- Who should conduct audits and how are those auditors trained.
The second day of the workshop will focus on how to conduct a successful supplier audit
Successful Supplier Audits
- How do you conduct a successful supplier audit?
- What are the differences between internal and supplier audits?
- Audit planning
- Setting the stage – the opening meeting
- Tools, tips and techniques for conducting supplier audits.
- Collecting objective evidence
- Observing and sampling
- Taking notes
- Resolving conflict
- Effective communications
- Ending on a high note – the closing meeting
- Reporting results
- Evaluating responses
- How do you make a desk audit more than just a paperwork exercise?
- What are practices to avoid in conducting supplier audits?
- How might supplier audits be used to examine a supplier beyond just conformance with requirements?
Case studies from real life examples will be used to illustrate key points. This original content does align with related aspects of the CSQP and CQA bodies of knowledge. Attendance in this session will provide attendees with knowledge of how to conduct a successful supplier audit as well as, a practical understanding of supply chain management principles from the quality perspective.
Key takeaways for attendees:
- Understanding best practices in supplier auditing
- How to conduct a robust remote audit
- Understanding of supply chain management from the quality perspective
- How to optimize remote processes related to supplier management
- Realizing the underutilized potential of the supplier audit program
- Useful templates for use in the supplier audit program
Who should attend this session?
- Supplier Quality Managers/Engineers
- Quality Managers/Engineers
- Quality Auditors
- Supply Chain Professionals
- Continuous Improvement Professionals
What is unique about this session?
- Broader than usual review of the supply chain management process from the quality perspective
- Unique applications of the supplier audit process