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Achieving Zero Rework through Effective Supplier Quality Practices

Publication No
RS308-1
Type
Research & Development Product
Publication Date
Sep 01, 2014
Pages
21
Research Team
RT-308
DOCUMENT DETAILS
Abstract
Key Findings
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Abstract
The quality of materials and equipment supplied to a capital project directly affects the ability of the project team to complete it on time and on budget. The fact that so many items are custom, one-of-a-kind, or made of rare materials makes supplier
Key Findings

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)
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Project Phase
Research Topic
Achieving Zero Rework through Effective Supplier Quality Practices
Keywords
Cost of Non-quality, Total Landed Cost (TLC), Supplier Quality System, Number of Non-conformances, Quality Management, rt308