Monitoring performance is essential to make sure all parts of the process are working as efficiently as possible. When selecting a sub-tier supplier OEM’s and Tier 1 suppliers will monitor key performance indicators using defined criteria for acceptable performance. These indicators will vary based on the supplier but there’s a general checklist of questions when assessing system quality. These questions fall into six categories: facilities, profile information, logistics, manufacturing, quality, and technology.
Here are some questions that will come up in supplier assessment:
Facilities
Does the supplier have a formal capacity plan and analysis methodology that is used and maintained?
List the employee turnover rate for the past two years
Profile Information
What products or services does the facility manufacture?
Is there any pending litigation against the supplier/facility?
What is the supplier’s on-time delivery percentage for production and service parts for the past two years?
Logistics
What are the different modes of transportation used to ship product?
Does the supplier have internal packaging design capabilities?
Manufacturing
Is there evidence of appropriate and adequate operator training?
Is the work place properly organized, e.g., 5S, lean, ergonomic?
Does the supplier select resources based on education, training, experience, and/or requirements?
Quality
Does the supplier ensure early sub-tier supplier involvement in APQP?
Does the supplier conduct equipment validation and perform run at rate in preparation for production?
Does the supplier have an end-of-life management process, e.g., controlled ramp-down, to protect customer quality and schedules?
Technology
Is there is evidence of regular design and development reviews with customers?
Are technical reviews completed to address all open issues?
Are formal documented design reviews by the appropriate functions conducted at appropriate stages of design per a design plan?
The full checklist of questions is available as a part of the CQI-19 guidelines and would be essential in dealing with assessments.
If you are having difficulty navigating the CQI-19 guidelines alone, check out our training webinar that covers the guidelines in greater depth.