Supplier Certification Presentation

8/13/2019 Supplier Certification Presentation

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Supplier Certification

Jieyoung Cho, Jennifer Kimmell, Miranda

Mullin, Justi Tipton, Jeff Verber


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What is Supplier Certification?

Part of a larger strategy of Supplier Quality

Management

Process of managing the relationship

between your organization and its suppliersto coordinate as one in creating value for all

stakeholders

A minimum requirement to be considered forwork

Main goal: continuous improvement


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Why Certify?

Way to determine which suppliers meet thecompanys needs

Aware of what suppliers can and can not do beforeeveryone invests time and money

May not have to do some processes, such as

inspection Consistent methods for managing suppliers

Develop supplier capabilities

Build stronger and open relationships

Better communication and sharing of information

Better serve our customers Meet corporate improvement objectives through

collaboration


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Factors in Certification

Quality

Delivery, cost, and technology

Environmental standards

Financial status Communication capabilities

Business practices/processes

Importance of factors vary across

industry and companies


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Types of Certification

ISO 9000(International Standards

Organization) quality program for certification,

emphasis on documentation as well

Industry equivalents (ISO 14000auto-

industry)

Self-designed certification program by

company


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International Organization for

Standardization (ISO)

Specifies standard requirements for state-of-the-art

products, services, processes, materials and

systems, and for good conformity assessment,

managerial and organizational practice.

Measures quality, ecology, safety, economy,

reliability, compatibility, interoperability, efficiency,

and effectiveness

Currently ISO is developing areas to assess

environment, service sectors, security, and good

managerial and organizational practices.


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Types of ISO

ISO 9000 Primarily concerned with

"quality management".

The customer's qualityrequirements

Applicable regulatoryrequirements

Enhance customersatisfaction

Achieve continualimprovement of itsperformance in pursuit ofthese objectives.

ISO 14001 Primarily concerned with

"environmental management".

Minimize harmful effects onthe environment caused byits activities

Achieve continualimprovement of itsenvironmental performance.

Can be applied in:

Product Development

Design Department


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Company Examples

High-Tech Industry: Applied Materials

Complete Supplier Management Process

Automotive Industry: Toyota Environmental Focus

Airplane Industry: Boeing

Retail/Food Industry: Starbucks


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Applied Materials (AMAT)

Supplier Management Process

Supplier Approval Process

Assessment process is used for new suppliers as wellas existing suppliers when needed

All suppliers must perform an annual F-52 ISAT self-assessment

Applied Materials may conduct an on-site validationfor any annual assessment

Supplier Performance Management

Quality, Delivery, Cycle Time, Cost Agreements Process

Request for Quotation


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AMAT: F-52 ISAT

ISAT = Integrated Supplier Assessment Tool

Strategic Supplier Management

5 Criteria SSQA (Standardized Supplier Quality Assessment)

Lean Manufacturing and Capacity Management

Special Process Technical Assessments

Business Alignment

Business Infrastructure


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AMAT: Confidential Information (CI)

and Intellectual Property (IP) A supplier CI and IP Control Plan must include the following:

Corporate Commitment

Documented policies and processes to protect CI

Periodic self-assessments

Physical and Information Security Controls Limiting access to CI to only those with a need to know

Labeling and securing all documents and databases

Returning or destroying and CI that is no longer needed

Effective visitor controls.

Human Resource Controls

Training

Nondisclosure agreements (NDAs)

Sub tier Supplier Controls

Non-disclosure agreements (NDAs)


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AMAT: Levels of Certification

First Article Inspection (FAI)

Part to Print (PTP)

Form, Fit, Function (FFF)

Wafer Process Qualification TEST- Alpha and

Beta Testing


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Automotive Industry

TOYOTAFOCUSING ON ENVIRONMENTAL IMPROVEMENTS
http://images.google.com/imgres?imgurl=http://www.nunawadingtoyota.com.au/images/toyotalogo_black.gif&imgrefurl=http://www.nunawadingtoyota.com.au/finance.html&h=275&w=190&sz=19&tbnid=Erfde0UPd5P_UM:&tbnh=109&tbnw=75&hl=en&start=10&prev=/images%3Fq%3Dtoyotalogo%26svnum%3D10%26hl%3Den%26lr%3Dhttp://www.toyotaownersonline.com/index.php


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EMS Certification Standards

ISO 14001 (TOYOTA, GM & FORD)

INTERNATIONAL STANDARDS ORG

KYOTO EMS STANDARDS (KES) MIYAKO AGENDA 21 FORUM

ENVIRONMENTAL MANAGEMENT

ECO-STAGE EVALUATION SYSTEM BASED ON TOYOTA EMS STANDARDS

GREEN SUPPLIER GUIDELINES
http://images.google.com/imgres?imgurl=http://www.hydrogenassociation.org/newsletter/IMAGES/AC04-ToyotaLogo.jpg&imgrefurl=http://www.hydrogenassociation.org/newsletter/ad93ac04.asp&h=97&w=145&sz=22&tbnid=eealqr5dX1I-QM:&tbnh=59&tbnw=89&hl=en&start=100&prev=/images%3Fq%3Dtoyotalogo%26start%3D80%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DNhttp://images.google.com/imgres?imgurl=http://www.londonjobs.co.uk/corpages/lj_toyota/images/toyotaLogo.gif&imgrefurl=http://www.londonjobs.co.uk/corpages/lj_toyota/images/&h=24&w=99&sz=2&tbnid=ZgWVXMOBjW2-lM:&tbnh=18&tbnw=77&hl=en&start=53&prev=/images%3Fq%3Dtoyotalogo%26start%3D40%26svnum%3D10%26hl%3Den%26lr%3D%26sa%3DN


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Management System

Organization's structure for managing its

processes - or activities - that transform

inputs of resources into a product or service

which meet the organization's objectives,such as satisfying the customer's quality

requirements, complying to regulations, or

meeting environmental objectives.


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Toyota Supplier Environmental

Program

Suppliers Has ISO 14001 certification or meets in-house

standards

Substances of concern Products-does not contain 19 categories of

substances, including heavy metals

Manufacturing-does not utilize 457 substances,including organochlorine substances

Other requirements Submission of official corporate commitment to

regulatory compliance

Reporting of material composition data, etc.


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Working Closely With Suppliers

Environmental rating system

Workshops

Support programs/activities On-site inspections of major suppliers

Prevent environmental risk

"Toyota has a unique relationship with its suppliers. We are known forexpecting them to share our high quality standards. Now we are askingthem to join us in becoming environmental leaders."


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Airline Industry

Boeing


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Boeing Preferred Supplier

Certification

Suppliers are evaluated on: Advanced Quality System Implementation

Business Processes

Performance

Suppliers who meet or exceed standards receivebenefits including: Selection Preference

Reduced Inspections

Industry Recognition Additional Business Opportunities
http://wzus.ask.com/r?t=p&d=us&s=a&c=p&l=dir&o=0&sv=0a30051a&ip=80c1a94b&id=3D359AA67CA694329B8CB4B40FD516FB&q=boeing&p=2&qs=31&ac=23&g=56823JugvA9s0E&en=js&io=6&ep=&eo=&b=img&bc=&br=&tp=d&ec=16&pt=%20&ex=&url=http%253A%252F%252Fwww.aerospace-technology.com%252Fprojects%252Fboeing777&u=http://images.ask.com/fr?q=boeing&desturi=http%3A%2F%2Fwww.aerospace-technology.com%2Fprojects%2Fboeing777&fm=i&ac=23&ftURI=http%3A%2F%2Fimages.ask.com%2Ffr%3Fq%3Dboeing%26desturi%3Dhttp%253A%252F%252Fwww.aerospace-technology.com%252Fprojects%252Fboeing777%26imagesrc%3Dhttp%253A%252F%252Fwww.aerospace-technology.com%252Fprojects%252Fboeing777%252Fimages%252FBoeing777_4s.jpg%26thumbsrc%3Dhttp%253A%252F%252F65.214.37.88%252Fts%253Ft%253D253780517049584203%26thumbuselocalisedstatic%3Dfalse%26fn%3DBoeing777_4s.jpg%26f%3D2%26fm%3Di%26ftbURI%3Dhttp%253A%252F%252Fimages.ask.com%252Fpictures%253Fq%253Dboeing%2526page%253D2&qt=0


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Boeing (cont.)

Levels of Certification Gold

Silver

Bronze

Boeing scores the following categories: Cost

Quality

Product Delivery

Leadership

Technology Support

Worldwide:18 GOLD, 176 SILVER, and 438 BRONZE
http://wzus.ask.com/r?t=p&d=us&s=a&c=p&l=dir&o=0&sv=0a300523&ip=80c1a94b&id=5FDCA56BB6B8A4B2BD6161F0D73AA5A9&q=boeing+logo&p=1&qs=31&ac=23&g=3945+qsQwyVSK6&en=js&io=0&ep=&eo=&b=img&bc=&br=&tp=d&ec=3&pt=%20&ex=&url=http%253A%252F%252Fwww.airliners.net%252Fdiscussions%252Fnon_aviation%252Fprint.main%253Fid%253D294484&u=http://images.ask.com/fr?q=boeing+logo&desturi=http%3A%2F%2Fwww.airliners.net%2Fdiscussions%2Fnon_aviation%2Fprint.main%3Fid%3D294484&fm=i&ac=23&ftURI=http%3A%2F%2Fimages.ask.com%2Ffr%3Fq%3Dboeing%2Blogo%26desturi%3Dhttp%253A%252F%252Fwww.airliners.net%252Fdiscussions%252Fnon_aviation%252Fprint.main%253Fid%253D294484%26imagesrc%3Dhttp%253A%252F%252Fwww.preston.net%252Flinks%252FLogo_boeing.gif%26thumbsrc%3Dhttp%253A%252F%252F65.214.37.88%252Fts%253Ft%253D15229549017515307350%26thumbuselocalisedstatic%3Dfalse%26fn%3DLogo_boeing.gif%26f%3D2%26fm%3Di%26ftbURI%3Dhttp%253A%252F%252Fimages.ask.com%252Fpictures%253Fq%253Dboeing%252Blogo%2526page%253D1&qt=0


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Boeing (cont.)

Gold

Lockheed Martin Corporation

Harris Corporation

Silver

3M Company Mitsubishi Heavy Industries LTD.

TEKTRONIX Inc.

Bronze

West Coast Aerospace Inc. ITT Industries, Inc.

(As of March 31, 2006)
http://wzus.ask.com/r?t=p&d=us&s=a&c=p&l=dir&o=0&sv=0a30050b&ip=80c1a94b&id=46018BC1E647498E0CADE30ADA519E06&q=boeing+supplier&p=1&qs=31&ac=23&g=07003+Dqjq%YLR&en=pi&io=10&ep=&eo=&b=img&bc=&br=&tp=d&ec=16&pt=%20&ex=&url=http%253A%252F%252Fwww.mtifwb.com%252Fstatic%252Fawards.shtml&u=http://images.ask.com/fr?q=boeing+supplier&desturi=http%3A%2F%2Fwww.mtifwb.com%2Fstatic%2Fawards.shtml&fm=i&ac=23&ftURI=http%3A%2F%2Fimages.ask.com%2Ffr%3Fq%3Dboeing%2Bsupplier%26desturi%3Dhttp%253A%252F%252Fwww.mtifwb.com%252Fstatic%252Fawards.shtml%26imagesrc%3Dhttp%253A%252F%252Fwww.mtifwb.com%252Fimages%252Fawards_supplier.gif%26thumbsrc%3Dhttp%253A%252F%252F65.214.37.88%252Fts%253Ft%253D15163019409064019771%26thumbuselocalisedstatic%3Dfalse%26fn%3Dawards_supplier.gif%26f%3D2%26fm%3Di%26ftbURI%3Dhttp%253A%252F%252Fimages.ask.com%252Fpictures%253Fq%253Dboeing%252Bsupplier%2526page%253D1&qt=0


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Retail/Food Industry

Starbucks


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STARBUCKS PREFERRED SUPPLIER PROGRAM

COFFEE SOURCING GUIDELINES

PERFORMANCE CRITERIA

QUALITY ENVIRONMENT

SOCIAL CONDITIONS

SUSTAINABILITY MEASURES

FINANCIAL INCENTIVES

THIRD PARTY VERIFICATION
http://www.starbucks.com/retail/akeelah.asp


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Conclusion

Overall benefits

Improve supplier competitiveness

Optimize source selection process

Reduce inspection

Support lean manufacturing

Varies across industry and company

Not a one time certification but a continuousimprovement process


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Sources

International Organization for Standardization. ISO in brief.May 2005. Retrieved April 23, 2005.

International Organization for Standardization. ISO 9000 and 14000 - in brief

Northeast Supply Chain Conference. Supplier Certification. September 20, 2004. Retrieved April 17, 2006.

Society of Manufacturing Engineers. Supplier Certification. 2004. Retrieved April 17, 2006.

Supplier Quality Management and Certificationwww.csuohio.edu/ce/programs/Courses/MGMT480901.htm

Strategic Materials Initiatives. Welcome to Applied Materials: Supplier Training.AppliedMaterials. Slides 49-51,53-58,65,71,79. 2006.

www.toyota.com

www.toyota_industries.com/environment/library/pdfgreen/06-08.pdf

www.precisiongrove.com/directed/boeingcert.html

Supplier Certification Presentation

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