Defective Parts
what are the 3 concerns when we have defective parts
1. How to keep production going
2. Disposition of defective parts
3. work with supplier to fix problem for the future
add a new capability to enhance our design work
capability
the practice of using two suppliers for a given component, raw material, product, or service.
dual sourcing
The decision about what to do with non-conforming product.
product dispotion
3 things we want from suppliers
Quality
Timely delivery
Cost
3 things that allow us to do more of the same to accommodate growth or increased use of the same capability
capacity/growth/bottleneck
a supplier who performs the purchasing function for another company. Also known as a procurement services provider.
integrated supplier
a supplier is a company that makes goods and services available to other companies or consumers.
supplier/vendor
Quality
consistancy
usually means moving an out sourced part in-house
cost reduction
the process of choosing between manufacturing a product in-house or purchasing it from an external supplier.
make/buy descisions
A purchasing strategy to shrink the supplier base. Tins reduces complexity and costs while increasing pricing leverage.
supplier reduction
Cost
lowest reasonable
this option should also be chosen after looking at outsourcing, automation, and kaizen
labor reduction
the minimum order size accepted by a supplier.
minimum order quantity
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
the practice of having certain job functions or business processes done by an outside company instead of using an in-house department.
outscouring