Which of the Following Four Critical Processes for Quality Review Is Not Correct

The topic of supply chain and critical suppliers is one of my favorites, and Mireaux Direction Solutions has always preached the concept of grading suppliers prior to reevaluation. Even when ISO 9001 never called for differentiation of suppliers, we always brash our Clients to distinguish the critical few versus the trivial many when evaluating or reevaluating suppliers, with the main goal of making this exercise meaningful and value added. But how can ane differentiate them?

It's all in the main process map

Nosotros all know that adopting the process arroyo is cardinal to a proficient management organization. In fact, if you lot read my article Practise You Experience Similar Your Company is Acting Similar a Chicken Without a Caput? Detect Out What Adept Process Mapping Can Do for You lot!, yous will learn that I compare a visitor'due south chief process map to the design for a building's foundation: Without a good programme, no thing how fancy the firm is, information technology will either non stand or it will somewhen crumble. So we'll assume you have done your homework and have a skillful process map. If that is the case, you should have what you need in lodge to separate your disquisitional suppliers from those that are non-disquisitional. Just look, what is a "good" procedure map? You lot'll know if your visitor has a good process map if information technology exhibits the following traits:

1. It's readable – You read that right. If your process map has arrows going in every direction or looks like a hieroglyph, and so y'all certainly nevertheless have some work to do.
2. Easily recognize inputs and desired outputs – This volition help to know what the correct direction of the activities are.
3. Distinguish Cadre versus Support processes: This is critical because we understand that the core is what makes the visitor money.

Hither is a very simple representation of a Main Procedure Map for a visitor's core processes. Let's pretend this visitor does machining and welding:

So now that nosotros have a skillful representation of a core main Process Map, then we can begin to distinguish critical versus non-disquisitional suppliers.

Review the process map and identify critical processes

Stand in front of your Process Map, review it and with the aid of your direction squad if necessary. Circumvolve all the processes that you considered absolutely critical to delivering top-notch quality products or services.

Do not fall into the trap of thinking everything is important, ask yourself these questions:

1. If I had to do without this procedure, could I still deliver a good product or service?
2. If this process became deteriorated or degraded, could I still deliver a good production or service?

Using the same unproblematic Process Map from in a higher place, look at it, and ask yourself: what could I absolutely not live without?

In this sample case, we came upward with 3 critical processes:

1. Inspection
2. Materials Planning
3. Warehouse and Shipping

Review each critical process and identify disquisitional suppliers:

At present that nosotros have identified our critical processes, we can review each one to see if at that place is a vendor involved in those processes that we deem critical to our goal. Once over again, non every vendor volition exist critical, even if the process we're reviewing is. We evaluate vendors by going through the same two questions, simply with a twist:

1. If I had to do without this vendor, could I still deliver a good product or output from this process?
2. If this vendor disappeared or degraded, could I still deliver a good product or output from this process?

In our instance, let'due south review 1 by 1:

1. Inspection
   Say we utilize NDE Labs and X-ray labs. We would agree that without those vendors, we could pretty much non function in this department, therefore they are critical. And as a bonus, for any inspection that we do internally, we use instruments calibrated by a lab. In this case, we also believe this lab is critical because if our instruments are reading inaccurately, we could brand serious mistakes, so the verdict is:

1. Critical Vendor ane: NDE Labs
2. Disquisitional Vendor 2: X-Ray Labs
3. Critical Vendor three: Calibration Lab

• Materials Planning
  In our sample company, we exercise not utilize any vendor to assist us with materials planning, except our good old Buyer Planner Jimmy. Yet, what Jimmy buys is critical: our raw materials! Our metal pipes and welding materials are indispensable to our operations. Therefore nosotros will make these two products critical and thus the vendors who supply them:
  1. Critical Vendor 4: Metallic Supplier
  2. Critical Vendor five: Welding supplier
• Warehouse and Aircraft
  In this case we employ a vendor for packaging material, merely we do non consider that critical because we tin always improvise packaging material. However, the trucking companies are definitely cardinal in ensuring the product reaches the client. Local couriers are not critical because there are so many and we have our own truck.
  1. Critical Vendor vi: Trucking companies

Could there be more critical suppliers?

And so based on our simple practice, we were able to identify 6 Critical Vendors. We accept grouped them so that is easy to blueprint our entire evaluation and reevaluation program later on. These are the final iv groups, proceed in mind also we are talking about vendors in plural, so anyone that fits in the category is considered disquisitional, non but one vendor out of the pack:

1. NDE, X-Ray and Calibration Labs
2. Metal Suppliers
3. Welding Suppliers
4. Trucking Companies

And think that there is no real departure between Vendor and Supplier. To find out more about that, read our blog Effective Evaluation and Reevaluation of Suppliers role 1.

So could there be more critical suppliers? Of course, you can e'er dig a chip deeper, review your support processes (not just the cadre processes as we did) and maybe notice out if there are other areas that could make or suspension your products or services. If that's the case, now you lot know what to ask in lodge to truly find out if the Vendor is critical. Once y'all take decided who is disquisitional and who is not, you can continue to design your supply chain program as per the API requirements.

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Source: https://mireauxms.com/blog/determine-critical-suppliers-api-specification-q1-api-specification-q2

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