ABSTRACT Industries in the new era tend to concentrate on linking with other corporations on a geographic level, to bring in all their forces together to create a highly technical & cost effective collaboration. This collaboration also involves joining forces with the suppliers across the product development cycle for easy access & faster processing of the products. This also ensures quick access to markets, lower product cost & better quality. Attaining successful suppliers results in success of the company & enhances its overall performance. It isn’t easy for a company to recognize if the suppliers they choose are capable of supporting their new product development or hinder their growth & effect the company’s performance. Companies need …show more content…
One being the company not concentrating on its core competency & compromising to reduce cost or finishing the production stage in a hurry. The best of products takes time to be procured & delivered & may cost a little extra. Some companies believe in multiple supplier integration. They give the responsibility of developing & maintaining components to one supplier & the procurement & manufacturing of other components to another supplier. This maybe excellent if the company has greater control over the suppliers but in real time situation this is not …show more content…
Auditing is one such method, product auditing is done in order to ensure that the product manufactured by the company is meeting the expectations that they promised to deliver. It ensures a thorough inspection of the products before being delivered to the customers. By Process Auditing: having a perfect process in place can avoid the problems during new product development. A systematic investigation process to make sure everything is perfect & the process is being followed accordingly. By Systems Auditing: Comparing the internal quality system i.e. is the quality system followed by the company to the external quality standards. This not only helps the company have better processes but also sets a bar for the suppliers to match up to their expectations. There are also various quality assurance standards that can help assess the supplier’s quality standards. Standards such as ISO9000, ISO9001, ISO9002
“Fifth, the company should audit the whole process frequently to ensure compli- ance with these procedures.”
Monitoring is the ongoing process of measuring and analyzing to ensure that quality controls are maintained. It is generally less formal than auditing and performed by the organizations staff. Auditing in contrast, is a more structured and formal approach to analyzing quality control operations. Someone who is independent of the organization performs audits. At the conclusion of an audit formal recommendations are also provided for areas of improvement.
In order to build a strong relationship between companies there must be a trust. So trust played a big role in this case. A good example in this case was that inland steel “concern that a single-sourcing policy might cause it to lose touch with the market”. On the other hand, whirlpool “concerned about the technological risks of relying on only one supplier”. However, building a trust relationship between them was the best solution by the belief that both companies will be a low-cost
Secondly, from years of quality control practice the firm established a well-know quality control procedure, "the Method". It has great value to the company in that it includes detail best practices for the production procedures which guarantees and improves the quality of the products. It serves as an efficient decision measure tool and a great training material.
In other words, the process takes responsibility for quality throughout the project’s life cycle. Quality Assurance also have outputs that are change requests, project management plan updates, project documents updates, and organizational process asset updates. Quality Assurance in conjunction with its outputs have inputs for continuous quality improvement and they are quality management plan, process improvement plan, quality metrics, quality control measurement and project documents (Schwalbe, 2016). For example, in a headphone manufacturing company, the quality control finds that batch of headphones have poor sound quality and recommends discarding headphones produced past its initial 3 weeks. The quality assurance investigates and reports that the supplier has changed components in a part of the headphone that caused the issue and demands the supplier to make a change and fix the issue (Spacey,
It is suggested for any organization to review, reassess any existing supply chain management or any delivery techniques, before developing a new supply chain method so that any exposure to high risk of failure is reduced. Somerset as a company taken advantage of outsourcing and transferred it product manufacturing to China leveraging low cost labor and raw material. The labor cost and other cheap material reduce Somerset overhead cost, but there is always the risk of not delivering product on time due to the foreign country political climate, change in tax and tariff and local
... in implementing control mechanisms that will help to measure the quality of products, at the time so that they are ready to evaluate the performance.
These procedures and practices are used both by GM and by their vendors. The policies vary from layered inspections, statistics, process failure modes, effects analysis and control plans (Drew, 2011). All quality measures produce a graded system of quality management utilizing quality tools. An example of quality control test is that of speedy response wherever dilemmas are resolved quickly and immediately throughout visual management. Individuals responsible for specific tasks are kept accountable for some corrective actions that may subsist. What General Motors did was ignore this quality measurement when it was dealing with the problems of the Chevrolet
...ction. Product development, service delivery, materials purchasing, product design, and manufacturing operations must all be included. I Auditors will look for continuous improvement in the system. These improvements can include better education of employees, better communication of ideas from and to employees, better reporting of environmental impacts within the company, and improved identification of environmental aspects. ISO 14000
A company’s relationship with key suppliers is a vital part of any company’s success. A good supplier relation means better price, meeting company standards and a better service level. That 's why when Honda started working with Modine, Honda made sure that its relationship with Modine was
Audit is a process to evaluate and review the accounts and financial statement objectively. We can divide it into internal auditors and external auditors. Internal auditors have a inner knowledge of business process. Auditor has access to the much confidential information and all levels of management. But they may lose their judgement and they are not acceptable by the shareholder. “The overall objective of the external auditors is to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to report on the financial statements in acco...
It is known as ISO 9000 family and the ISO 9001 is the one which is concerned about the requirement of the QMS. Of course, that creates the needs for understanding these standards in order to get the certificate from the organization which is authorized by the ISO. That also creates the need for the training which is very important for companies to implement the QMS. The standards have been developed the course of the quality history from needing a quality control to a quality assurance. Basically, implementing a Quality Management System is important for companies to succeed in today’s market, and will enhance customer satisfaction, and improve internal process. It becomes more and more a necessity for international companies because it saves a lot of money in one hand and time in the other. Nevertheless, implementing such system requires an effort, training, and using consultant companies to ease the establishment of the system and to get the certificate eventually.
Alteration: paper evidence difficult to alter without detection. Any one tries to change anything on paper there must be marks, auditor can find the marks and whether there are changes in financial statements. Any change for fraudulent, misappropriation of asset can been found easily if auditor wants to find.
ISO 9001:2008 is a world-wide accepted standard for quality management systems. As such, ISO 9001:2008 focuses on a large variety of business activities – not merely on quality control. Implementing ISO 9001:2008 will affect virtually all of the business processes. The websites of ISO and the 9001 Council contain much information on ISO 9001 and how to implement it (Iso.org). An introductory online ISO 9001 course is also available on the website.
The audit has three different types, operational audit, compliance audit and financial statement audit. The operational audit is to evaluate whether the firms’ operation procedures and methods are efficiency and effectiveness. Efficiency and effectiveness of operations are more difficult to objectively evaluate than standard. The purpose of a compliance audit is to determine whether the audit is following specific process, regulations. A significant portion of the compliance audit work is employed by the organizational invited auditors by themselves. A financial statement audit is conducted to determine whether the overall financial statements are stated in accordance with specified criteria. Normally, the criteria are generally accepted accounting