Martin, John A.; Skalla, Robert Edward, C.P.M. (1991, ASQC) Pierce Manufacturing Inc., Appleton, WI
Pierce Manufacturing embarked on a supplier management program in an effort to improve quality on purchased parts and supplier performance. The goals of the program were to improve working relationships, improve overall product quality, reduce lead times, reduce costs, and improve delivery performance.
Suppliers were measured in four categories: delivery performance, price and value analysis, service and technical support, and quality systems. The first category required suppliers to respond to a self-evaluation questionnaire, which included questions about the supplier's facilities, quality evaluation, and audit rating results. The second category evaluated suppliers in three areas of performance: receiving inspection, discrepancy reports, and internal supplier warranty rework reports. The third category, field warranty performance, monitored a monthly field replacement parts list and warranty labor performed on defective items. The last category, statistical process control commitment and usage, reduced the supplier's scrap and rework, reduced Pierce's inspection efforts, and improved consistency in performance.
Based on a rating system, Pierce established four supplier classification levels: (1) Probationary Supplier, (2) Approved Supplier, (3) Conditionally Certified Supplier, and (4) Class A Fully Certified Supplier.
Case study,Competitiveness,Manufacturing,Measurement and control,Quality system,Customer supplier relationships