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Supplier Control
By: Neal Stiemert


Purchasing

One of the requirements of the ISO 9001:2000 standard is the Purchasing process. Last month, I provided you with a sample of a purchasing procedure, this month I will provide you with a procedure for supplier control that is the other half of the purchasing process.

ISO Requirement:

(Key requirements are in Italics)

7.4 Purchasing

7.4.1 Purchasing process
The organization shall ensure that purchased product conforms to specified purchase requirements. The type of extent of control applied to the supplier and the purchased product shall be dependent upon the effect of the purchased product on subsequent product realization or the final product. The organization shall evaluate and select suppliers based on their ability to supply product in accordance with the organiation's requirements. Criteria for selection, evaluation and re-evaluation shall be established. Records of the results of evaluations and any necessary actions arising from the evaluation shall be maintained (see 4.2.4).

7.4.2 Purchasing information
Purchasing information shall describe the product to be purchased, including where appropriate

  a)   requirements for approval of product, procedures, processes and equipment;
  b)   requirements for qualification of personnel; and
  c)   quality management system requirements.

The organization shall ensure the adequacy of specified purchase requirements prior to their communication to the supplier.

Section from The Widget Company Quality Manual

7.4   PURCHASING

Purchasing Process
The Widget Company controls the purchasing process to ensure purchased product conforms to requirements. The type and extent of control is dependent upon the effect of the purchased product on the final product.

The Widget Company evaluates and selects suppliers based on their ability to supply product in accordance with Williams and customer requirements. Criteria for selection and on-going performance evaluation is established and defined in operating procedures. The results of evaluation and on-going performance evaluations are recorded.

Purchasing Information
Purchasing information describes the product to be purchased, including where appropriate:
  -   requirements for approval of product, procedures, processes and equipment;
  -   quality management system requirements; and
  -   requirements for qualification of personnel.

The Widget Company ensures the adequacy of specified requirements prior to their release to the supplier by reviewing purchasing information prior to release.

Verification of Purchased Product
The Widget Company performs receiving inspection and testing and/or other verification activities to verify the quality of purchased product.

Where The Widget Company or a customer proposes to perform verification activities at the supplier's premises, The Widget Company specifies the intended verification arrangements and method of product release in the purchasing information provided to the supplier.

Sample Procedure:

The Widget Company
Operating Procedure
Title: Supplier Control

No. XX           Rev. A

Approved by:     Little Johnny                             Date:     6-15-04            
SCOPE:

This procedure applies to selection and control of suppliers of products and services that affect the quality of products sold to The Widget Company customers.

1.0   REQUIREMENT FOR NEW SUPPLIER

Purchasing is notified by Sales that a requirements exists for a new supplier of products or services. A requirement for a new supplier may also be initiated by Purchasing to replace an existing supplier.

2.0   EVALUATE SUPPLIERS CAPABILITY

A Widget Company new supplier evaluation form is filled out and the suppliers capability is evaluated. The suppliers capability to satisfy Widget Company requirements is reviewed by Purchasing and any other appropriate personnel as determined necessary by Purchasing.

Evaluation may include one or more of the following:
- capability to supply Williams requirements - lead times
- price - references
- samples submitted - customer requirement

Note:
If the product or service is a customer requirement, no further evaluation is necessary.

Prior to approving a supplier, it is necessary for Widget Company and the supplier to clearly communicate to each other all details regarding the product or service to be provided. Any unclear specifications, quality requirements or other issues shall be resolved prior to placing the supplier on the Widget Company approved suppliers list.

3.0   SUPPLIER CAPABLE?

No - go to 1.0
Yes - go to 4.0

4.0   PURCHASE

The supplier is placed on the Widget Company approved suppliers list maintained by Purchasing.

5.0   SURVEILLANCE

Supplier performance is monitored by Purchasing maintaining supplier performance records.

6.0   SUPPLIER PERFORMANCE SATISFACTORY?

No - go to 6.1
Yes - continue to purchase

6.1   CORRECTIVE ACTION

Corrective action for sppliers is performed as follows:

Quality Level Action Taken Supplier Status
first reject phone call to supplier noted in the suppliers record Approved supplier
second reject in a 12 month period phone call to supplier and corrective action request issued Approved supplier
third reject in a 12 month period phone call to supplier, corrective action request issued, warning letter sent and supplier reduced to conditional status Conditional supplier

7.0   OUT-SOURCED PROCESSES

Suppliers of out-sourced processes shall:
  7.1   Meet the Widget Company specifications
  7.2   Perform inspection and testing to verify that the product meets specification
  7.3   Maintain inspection and test records for a period of two (2) years
  7.4   Only ship products to the Widget Company that meet specification
  7.5   Provide the Widget Company access to the manufacturing, packaging and
       testing facilities upon request

Notes:
  1. Records of supplier evaluations and correspondence shall be kept as quality records.
  2. Supplier corrective actions are in accordance with the Williams corrective action procedure.
  3. A reject is defined as the reject of one (1) line item that does not satisfy Williams quality requirements.
  4. Suppliers that have not been used for a period of three (3) years shall be re-evaluated as a new supplier.

Supplier categories are defined as follows:

Approved supplier - A supplier that has had no more than two rejects in a 12-month period.
Conditional supplier - A supplier that has had more than two rejects in a 12-month period. A conditional supplier may be removed from the Williams approved supplier list.



End of Document
Here are copies of the Purchasing sample documents in PDF format:

  Sample Purchasing Section in a Quality Manual
  Sample Supplier Control Procedure

I hope this information helps you with your transition. Feel free to contact me with any questions at 800-959-0632.


Neal Stiemert
President
Independent Quality Consultants, Inc.

About the Author

Neal Stiemert Neal D. Stiemert is President of Independent Quality Consultants, Inc. and holds a Bachelor of Science degree from Indiana University school of business. Neal is an ASQ certified quality engineer, a certified lead auditor and has over 24 years of management, auditing, consulting and training experience in the quality profession.

Neal has served as an examiner for the Minnesota Quality Award, an SPC instructor at Purdue University and an officer and committee member in the Chicago and Minnesota sections of ASQ. Neal also conducts registration audits for Smithers Quality Assessments and SAI Global Assurance Services.

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