Defective Parts
what are the 3 concerns when we have defective parts
How to keep production going
Disposition of defective parts
work with supplier to fix problem for the future
Capability
add a new capability to enhance our design work
Dual Sourcing
the practice of using two suppliers for a given component, raw material, product, or service.
Product Disposition
The decision about what to do with non-conforming product.
3 things we want from suppliers
Quality
Timely delivery
Cost
Capacity/Growth/Bottleneck
allows us to do more of the same to accommodate growth or increased use of the same capability
Integrated Supplier
a supplier who performs the purchasing function for another company. Also known as a procurement services provider.
Supplier (Vendor)
a supplier is a company that makes goods and services available to other companies or consumers.
Quality
consistancy
Cost Reduction
usually means moving an out sourced part in-house
Make/Buy Decisions
the process of choosing between manufacturing a product in-house or purchasing it from an external supplier.
Supplier reduction
A purchasing strategy to shrink the supplier base. Tins reduces complexity and costs while increasing pricing leverage.
Cost
lowest reasonable
Labor Reduction
this option should also be chosen after looking at outsourcing, automation, and kaizen
Minimum Order Quantity
the minimum order size accepted by a supplier.
make/buy decisions are generated by:
1) Design
2) Problems with an in-house produced part or process
3) Problems with vendor (cost, delivery, quality)
4) Capacity constraints
QTC
quality, timely delivery, cost
1. Replace
2. Safety
3 Improved qualities, accuracy, lead-time
1. to retire equipment no longer maintainable
2. to reduce risk to workers
3. comes under the category of more control of the operation. Usually, to eliminate a poor vendor
Outsourcing
the practice of having certain job functions or business processes done by an outside company instead of using an in-house department.