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Supply Chain Management
The supply chain of any company provides a significant amount of value or content to the product or service offered. With an ever increasing dependence on the supply chain, assuring that the relationships and communication necessary for a successful business venture affects customer satisfaction and ultimately the bottom line.
Original equipment manufacturers have typically attempted to engage and control its suppliers with some measures of success. Most companies, however, are feeling the strain of the expense associated with keeping this expertise in-house. Turnover and lack of technology transfer from seasoned experts to new replacements make it difficult to obtain consistent measurable results. Therefore, maintaining the integrity of the supply chain is vital for future success.
QAI has a time-proven and highly effective business model for the management of a supply chain. Our emphasis on the right people, tools and techniques increases measured effectiveness in supply chain performance by 35-40%. This translates into a lower cost per supplier with a higher level of contact expertise available for the supplier, thus benefiting the customer.
QAI Supply Chain Management Model
QAI’s Supply Chain Management model includes five phases:
- Supply Chain Management Strategy and Planning
- Supply Chain Engagement
- Supply Chain Collaboration
- Supply Chain Demonstration
- Supply Chain Development / Replication
Each process is made up of multiple sub-processes supported by disciplines, techniques and/or tools.
Supply Chain Management Strategy and Planning
Developing a strategy for supply chain development assumes that all supply chains or the links in the chain are not equal. Engagement with various suppliers, both internal and external, that make up the supply chain is different. Strategic planning assures that the proper resources are applied to obtain the desired benefits.
Elements of Supply Chain Management Strategy and Planning include:
- Safety and Regulatory Impact
- Price to Cost Target Planning
- Value Driven Activity (Benefit / Cost)
- History and Legacy
- New Innovation Expectations
- Early Sourcing Planning
- Negotiation
Supply Chain Engagement
Engaging the right supplier at the right time has the desired benefits of collaboration. There are multiple levels of engagement which require different resourcing levels. These levels can be adjusted to achieve best value and stay within budget while managing risk.
Elements of Supply Chain Engagement include:
- Communication and Relationship Building
- Program and Project Management Planning
- Supply Chain Risk Assessment
- Design Risk Assessment (part of New Product Introduction)
- APQP (to determine requirements and specifications)
- Concept Designs and Processes
- Refined Negotiation of Price and Cost
Supply Chain Collaboration
QAI is a driver of collaboration between the product design and process design team members, as well as supply chain elements required for success. Collaboration is the concurrent communication process of developing a product and process simultaneously. CPPD, or Collaborative Product and Process Design, is best deployed in:
- Design for Six Sigma (specific high value activities)
- Product Development Processes (overall delivery activities)
In CPPD, risk is a substitute for actual failure, since failure is to be avoided rather than experienced. Risk is uncovered by utilizing linked reliability and design tools combined with discipline. Considerations in CPPD include cost, timing, ease of assembly and manufacturing, and reliability planning.
Collaboration permits the engaged parties the opportunity to design the product and process simultaneously. Elements of collaboration include but are not limited to:
- Design Reviews
- Project Management
- Technical Risk Assessments and Mitigation
- Test Planning Verification and Validation
- CPPD
- Design for Assembly and Manufacturing
- Cost Optimization
Supply Chain Demonstration
New products are often a challenge for process applications. Comfort levels are usually lower than on manufacturing processes which are already robust and running efficiently. The Process Readiness Phase of the proposal shifts attention toward the manufacturing and assembly processes. The primary purpose of this phase is to increase the confidence of the team about the desired reliability through technical evidence created prior to manufacturing even one piece.
Demonstration and validation activities focus on the evidence that risk is reduced in design, technology, cost, manufacturing and assembly. Evidence is gathered with a prevention focus (virtual and proactive) and then a detection focus (physical and measured). Elements of demonstration include:
- Readiness Reviews
- Computer Aided Engineering and Simulation
- Statistical Studies and Capability
- Control Strategy
- Value Engineering
- Value Stream Mapping
- Process FMEA (Failure Mode and Effects Analysis)
- Measurement Systems Analysis
- Problem Resolution Process
- PPAP Submission
Supply Chain Development/Replication
Taking what you have learned and applying it has the benefit of not having to relearn the same lessons over and over. Legacy and replication moves the supply chain forward and increases velocity for the next iteration. Failure and continuous process improvement must also be addressed in the replication phase to assure that we do not repeat the same problems in the future.
Elements of replication include:
- Warranty Return
- CPI and Six Sigma
- Rapid Improvement Processes such as Lean Product Development
- Variation Reduction
- Delivery Performance Improvement
Measuring Success Through Supply Chain Management
Three measured themes run throughout the product development services offered by QAI. These three themes are:
- Quality
- Cost
- Delivery
Each measurable has its applicable metrics for design reviews within the Program Management process. These metrics are used to engage, evaluate and improve each engineering activity where safety, reliability and quality can be affected in a major way.
Call QAI today at (248) 280-4800 and discover the value our SCM 5 Phase Model can bring to your organization.
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