The Quality Blog

The popular 5 Why technique has been used in problem solving for some time. Some even swear by it. I have found that the 5 Why technique does not actually allow the team/users to find the root cause. It points to where to look but is not fundamentally able to refine the info needed to close in on the root cause(s). I like to use Is?Is Not as a way to build the criteria for testing my theories, but more important than that, Is/Is Not allows us to compare the differences and look at the process and or environmental changes that may have contributed to the difference in the Is and Is Not.

Without the discipline of a technique used to take facts and perform the comparative analysis, 5 Why may go off into weird directions. (Some of you knw what I mean)

Best to use 5 Why to get to the point where facts are not available and switch to a more useful fact gathering technique.

Much has been said about outsourcing, some good and some bad. What cannot be debated is that outsourcing is here to stay and it is a cost effective way to manage an important part of your business. Outsourcing your supplier process is one of the areas which can be quite effective (cost and performance) if done professionally. Let me explain.

Supply Chain Management is not just about ranking a suppliers ability to meet IOS or TS requirements. It encompasses a relationships, sourcing decisions, engagement levels, quality of systems as well as performance and future development to attain even higher levels of performance. These elements must all be included in a supply chain management strategy. If not, a significant amount of inefficiency can take place.

It has been estimated by industry insiders that a full 33% or 1/3 of the energy spent on suppliers is redundant or could be done in a more integrated way. While it is agreed universally that supplier engagement in product development activities almost always returns a benefit in simplicity of designs with lower costs/price. Engageing too late when suggestions for design for assembly or manufaturing cannot make it into the design, is a common sentiment.

Supply Chain management is often left up to different departments with little or no coordination and results linked not to a process but to individual SQA/STA (supplier developmemt engineers) experience.

Outsourcing the complete Supply Chain Management function provides several benefits:

1. One focused organization looks at sourcing, engagement, collboration, performance and development instead of possible different departments.
2. Integration reduces amount of time per supplier and emphasis is placed on high value products and processes
3. Cost can be shared across many OEM’s where generic data, and development activities would benefit many customers instead of individual customers
4. Suppliers can share in the expense of being managed

In summary, I do not mean to say that all organizations do not practice effective Supply Chain Management, I am suggesting that expertise exists, that could do an equally effective job (or better) and do it at a cost that is competitive or below what internal resources are doing it for today.

Does anyone have a comment or question?

http://www.quality-one.com/services/supply-chain-management.php

Supply Chain Management has 5 distinct activities, Planning, Engage, Collaborate, Develop, Validate

Suppliers and their products and services impact are growing at most of my customers. A problem that has surfaced is managing the change that a supplier might make to their process and understanding how that change might affect the customer. Automotive PPAP process has been around for a long time setting rules for change when it is or is not permitted. The supply chain and the risks that are present due to noncommunicated change are quite high and any supply chain management process must keep change at a minimum. If change is required, managing that change requires a technical risk assessment like an FMEA Failure Mode and Effects Analysis. The FMEA provides the oppurtunity to understand the change and its effects typically before we are committed to the change.

A supply chain strategy must have change rules and strict adherance to those rules included for it to be effective.

Supplier developoment is one of 5 supply chain management elements in our strategy. Within supplier development there are several key aspects that require attention.

1) Procative activity (relationship and communication)

2) Reactive Capability (how quickly and effectively we respond to issues)

3) Prevention Activity (ongoing process of preventing problems through various approaches)

With these three things in mind a supplier development strategy at the individual supplier level or across all suppliers in a strategic chain is necessary to get full value.