How well do you know your supply chain? A supply chain is only strong as its weakest link. When it comes to controlling your suppliers, the better you are at understanding the entire chain and identifying weak links, the better your company will be in the long run.
The recently released API Spec Q1 9th Edition – Addendum 2 focuses on supply chain controls, specifically relating to multi-tier suppliers. As you are aware, Q1 has always required us to manage our supply chain. However, the revised requirements expand the controls to include associated (tier 2 & 3 level) suppliers that are essential for product realization.
To that end, in today’s post we will focus on a couple of tips to improve the effectiveness of your supply chain controls.
An efficient supply chain control program enables your company to reduce costs, minimize risk and satisfy customer expectations. For more information on how Accupoint Software can help your organization to improve your supply chain control program, please contact us today.
The Cost of Quality, sometimes referred to as COQ, is a measurement that sums up the costs related to the prevention and subsequent detection of defects, and the costs associated with these defects. The COQ defines the total costs of quality activities. This is money spent beyond the basic production costs to ensure that the customer receives a quality product. Let's take a look at how COQ is calculated.
The COQ includes the money spent on prevention, appraisal, and correction in a production environment. COQ can be expressed as the effort in terms of time, but it is probably best served as a calculation involving money.
The calculation itself is not complicated, and it is the addition of two compound values (which makes this the most straightforward approach to COQ):
The Cost of Control and Cost of Failure of Control each require a calculation based on their components.
Cost of Control
The Cost of Control can be defined as follows:
The Prevention Cost is the amount of money spent to prevent defects incurred during the manufacturing process. All Quality Assurance programs and efforts are included in this number, including any preventive measures taken.
The Appraisal Cost is the cost associated with all efforts focused on the detection of defects. The cost associated with Quality Control efforts are included here, including final testing and other forms of quality control.
Cost of Failure of Control
The Cost of Failure of Control is sometimes known as the Cost of Non-Conformance. This is the total cost of failure within the manufacturing process. It is broken up into Internal Failures and External Failures.
Internal Failure Cost is the direct cost associated with internally recognized defects and the costs associated with correcting them. For example, this would be the expense of fixing the discovered defects and retesting them, also known as Cost of Rework.
External Failure Cost is the cost associated with defects discovered by the customer and their correction. This Cost of Rework for external failures can include such items as product service, liability issues, and recalls.
Getting the COQ to a minimum requires careful balancing between the Cost of Control and the Cost of Failure of Control. The prevailing thought is that an increased Cost of Control will keep the Cost of Failure of Control to a minimum.
However, in most practical applications an increased Cost of Control can rapidly approach a diminishing return on investment when it is raised beyond a certain degree of effectiveness. The key is to keep the costs balanced as needed.
Quality has a price that can be calculated and studied. But the importance of maintaining the business image has many returns in repeat business and word of mouth.
For more information on how Accupoint can help your organization monitor and reduce your COQ, please contact us today.
Regardless of the industry you work in, calibration is one of those things you simply cannot overlook. Inspection equipment needs to function reliably and accurately. Calibration ensures consistency and is a requirement of quality management standards across the globe. In this week’s blog will examine four key steps to ensure that your organization is ready for your next audit.
The Calibration process does not have to be time consuming. With the right systems in place, you will be prepared for any audit, as well as have the peace of mind that comes with protecting yourself from liability. For more information on how Accupoint Software can help simplify the calibration process, contact us today.
All certified organizations must strictly adhere to and comply with regulatory guidelines and requirements such as the ISO standards. However, too many organizations seem to take a cavalier attitude towards internal quality audits. Failure to maintain proper documentation and records of the process may ultimately lead to loss of certification and clients.
Internal Audits are vital to the longevity and success of a business enterprise. Today, internal quality audits take a holistic approach leveraging powerful auditing software capable of monitoring systems in real time.
In today’s post, Accupoint Software will illuminate some of the benefits of an effective internal quality audit process.
Quality internal audits help an organization identify areas that need improvement. The software evaluates the effectiveness of a management system and highlights areas in its functionality that require expansion.
Agent of Change
Internal audits compare the documentation practices in the organization with standards in the real world. If your organization is lagging behind, an internal review will compel your team to evolve into newer, more efficient practices.
Quality internal audits highlight security risks in your organization. As more organization utilize technology in their operations, information theft is becoming an increasingly intimidating security threat. Internal audits will identify sensitive areas of attack and help develop procedures and action items to address vulnerabilities.
Internal quality audits help to identify inefficiencies and unnecessary waste. Identifying and correcting the source will lead to lower production costs and ultimately, higher profits.
Another benefit of the internal audit process is that a company can draft monitoring and assessment procedures. This involves guidelines of how and when to conduct routine assessments on the system.
For more information on how Accupoint can help streamline your internal audit process, please contact us today.
Your company's ability to promptly respond to your customers' needs hinges in great part upon your suppliers' efficiency. While price should always be a key consideration when evaluating suppliers, there are other factors that also should be considered. Below are five supplier evaluation best practices to help ensure that you select a capable, top-notch supplier.
1) Assess the supplier's resources and scalability. A supplier should have the manpower, tools, and facilities to support your company's continued growth. Additionally, the suppliers you choose should be able to handle large orders or requests without significant delays.
2) Visit the supplier's operations. A live visit to a supplier's headquarters can be an eye-opening experience. Ideally, you should choose suppliers with clean, well-illuminated, organized facilities. Equipment should be well maintained and employees should demonstrate keen attention to safety protocol.
3) Ask suppliers to outline their quality control procedures. Quality control procedures are vital to ensuring that products undergo a thorough inspection prior to dispatch. A good way to assess a supplier's commitment to quality control procedures is to find out if the supplier conducts internal audits on a regular basis.
4) Request references. A robust collection of glowing references from legitimate clients is a great indicator of a supplier's ability to meet your needs. Make sure that you contact each reference provided and ask whether the supplier was able to deliver products in accordance with cited promise dates.
5) Verify the supplier's certifications and accreditations. Industry certifications indicate that a supplier demonstrates a commitment to continued quality improvement and consistency in operations. Ideally, suppliers should possess ISO 9001 certification and Accredited Company Training Schemes (ACTS).
We invite you to contact us to learn more about our supply chain management solutions. We can help you separate the most accomplished suppliers from those that may not have the resources to promptly respond to your needs. We look forward to helping you expand your supplier network!