Achieving Zero Rework through Effective Supplier Quality Practices
RT-308’s Phase II researchers developed a method of applying indicators and reports commonly used in the industry to develop calculations (e.g., corrective action reports, preventive action reports, and non-conformance reports), as well as repurposing the nine criteria used for supplier evaluations to estimate values for Pfab and Pinsp for a particular supplier. The team tested its resulting Supply Chain Risk Profiler tool mostly by using data collected from the PO instrument and conferring with subject matter experts within the CII community.
The team also developed a glossary of terms and definitions related to the Supply Chain Risk Profiler tool to expand efforts to define a common language that could be used in the process of selecting and evaluating suppliers, and during the supplier quality surveillance (SQS) function:
- Cost of Non-quality (CostNQ)
- Total Landed Cost including the Cost of Non-quality (TLC+NQ)
- Number of non-conformances – used as a proxy for quality
- Pfab – fabrication capability, calculated using supplier ratings
- Pinsp – inspection capability, calculated using quality-related data (number of non-conformances, corrective action reports, and preventive action reports)