hi my name is florian from quality guru
we answer your questions
and share knowledge about quality
management
and today i would like to talk about
potential supplier analysis
that means what can we do and how can we
do it that we source in
new suppliers into our portfolio and
make sure that they are delivering
on the right quality level just from the
beginning
and avoiding mistakes so let's look
right into it
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so now let's look into potential
supplier analysis
and what i say here is based on the
automotive
industry and i think it will be similar
to
many other industries because the logic
is quite
simple and i think it applies to
different industries as well so if
you're working in another industry
check what you can get out of this and
maybe comment below the video
if in your industry it's different or
the same
so what i recommend as a tool before we
start is
look into the vda 6.3
processor audit red book you can buy it
on the internet
maybe you can find a summary somewhere
but here
you can find really specific
questionnaire questions you can ask
when you go into the audit and in
evaluation criteria because according to
this
book there are certain questions you can
ask
and you can evaluate and then you come
out with a score
from basically 0 to 100 and you can
evaluate the performance of your or the
potential
of your supplier and by this c if there
are maybe some
red flags during the audit where you say
oh this is a no-go or here we need to
pay
special attention because the potential
supplier audit
happens when we want to source in
new suppliers into our portfolio so for
example could be that the company
is opening a new factory in a new
country or a new area and needs now
new suppliers or it could be that
you already have a supplier but this
supplier is opening another factory
and you now want to buy products from
this new factory but this new factory
as it is a new factory we don't know
very much about the performance so we
have to
analyze it yeah or it could be that you
already have an existing supplier
and this existing supplier is now you
now want to buy
another technology from them or a
product which requires new processes
and you know the supplier you know the
site but you don't know if the supplier
can handle this kind of technology and
this kind of
processes so in this kind of situation
we make a supplier potential analysis
and we can use a questionnaire like for
example the vda 6.3
and basically there's always a more or
less four-step process which we can go
to first of all we define the objectives
what is the target of our supplier
potential analysis
and this we can agree with the supplier
up front do we want to
source here different technology a new
product
or do we want to release a new factory
or what it is
what we want to achieve and then we send
the supplier first step
let them do the work first and evaluate
themselves to that they have their own
baseline
and their own learning experience so
send them
a questionnaire maybe your company has a
question otherwise you can
get one out of one of the
many standards maybe the vda 6.3 on the
internet
and let them know that you want them to
do a self-evaluation
based on this specific standard maybe
it's yours maybe it's an
industry specific standard and let them
tell you
how they see themselves in terms of all
the different
items and only when you see the
self-evaluation and they are on a level
that you say
this is an acceptable level then
you go there and you do an on-site visit
before not because if they are not ready
and they say themselves and their
self-evaluation they're not ready
why would you go there and really waste
your time it's only a waste of time you
can spend your time with another
supplier
and let them get ready you can talk to
them okay if you're not ready now when
are you ready
and then you plan your on-site visit
after they show you
in their self-assessment that it's now
time and that they are prepared for this
and when you go there during your
on-site visit
make an audit spend their time depending
on the size and the complexity and the
risk with the supplier what you
estimate could be a day could be several
days
so it depends on you how risky you think
this supplier could be and how important
for your supply chain it is
then you allocate the right amount of
time there and then you go into
asking the questions and going through
all the processes in the system of the
supplier
and this starts there are many topics
you can look into for example is the
supplier
able to deliver professional project
management
that means when they say okay i want to
launch a product within six months or
one year do they really have the
structures in place
that you trust and processes that you
trust that they can really deliver
on their planning or that a chaotic
supplier and you
must be careful and be monitoring every
step of the way so this would be then
a risk or another would be change
management look at the change management
if something changes
during the years of supplier
relationship how do they manage those
changes especially in the
automotive industry the manufacturing
production line needs to run
every day and if there's a problem with
changing something from
one status to another this could stop
the whole supply chain so there's always
a big risk with regards to change
management so look into
this as well then there are other topics
of course the operations how do they
design
their product how do they design their
process and how do they execute and
control
their production operations so look into
this
go into the shop floor look at their
controls see
if their processes are capable look at
all the data look at
what they what are their scrap rates how
much do they throw away
and get a clear image how much is this
company
in control of their operations and do
they take the right reactions
in case something is going wrong
then also look at that supplier
supplier management so do they have many
suppliers
how do they manage their suppliers are
their supplier released
what kind of supplier they have what are
their requirements
to their suppliers how do they manage
their suppliers
that can show you a lot about the
stability and how much risk
do they maybe later transfer to you or
because if they don't manage their
suppliers correctly and that affects
them
then it automatically also affects you
so you need to look also
at their supply base and how they
managed to
manage them and what kind of performance
did they have in the last
period and then also a very important
point is the
people in the company are they
well trained do they know what to do do
they know the job are they
changing all the time also here you can
see a lot of professionalism or maybe a
lot of risk
if the people are always changing then
the operations are not stable
and this instability will sooner or
later
maybe hit this company and then later as
a consequence also you so you want to
make sure that they have
the right people with the right training
with the right capabilities in order to
support their own operations
yeah and also their materials how do
they handle their materials when they
come into the company do they have good
controls about them
how do they make sure that the materials
are released do they have the right
process in place do they have the right
controls in place
so that only the right materials go into
the product
you can also talk about equipment are
they maintaining their equipment
do they have a lot of problems with
their equipment is the equipment new is
the equipment old
and here you can also get a clear idea
about risk and opportunities of this
supplier and what do they do if there's
a problem
do they have problem solving skills do
they have fast reaction do they have
people who know how to analyze clearly
and to take the right decisions
if yes then it's a good sign if not then
you need to write it down in your report
and give them the feedback that there is
some work for them to do that they have
to
improve before they can really work
together with you
and last but not least maybe to mention
also
customer support how would they support
you if you need something
are they picking up the phone are they
having people maybe on your side talking
to you
what kind of service are they able to
deliver to you so that when there is
something happening
and you have a need that they are there
for you in order to communicate quickly
and effectively
and get all the problems and issues
solved as soon as possible
these are some general points just to
mention some of them probably there are
many more
and if your company is for example very
interested also in safety
issues in the supply chain
sustainability which is more and more
important you can also see
what kind of certification and
environmental management and health and
safety management they have
maybe also looking into the financials
is it a financially stable company
because if the company goes bankrupt
then they will not be able to deliver
parts to you because nobody will work
and then you will
also have a big problem so there could
be many issues you could look in
in such a supplier potential analysis
and it depends on you what kind of focus
you want to place in this
kind of audit at the end you come to a
conclusion
and it's either you want to move forward
with the supplier because they're there
you fully agree with everything what is
there you think it's there's no show
stopper
maybe there are some points you would
say okay you have to develop them and
you would
maybe give them a kind of a conditional
approval and say okay i would like to
move forward with you but
first of all you need to solve these one
or two or three points and if you
develop them and you can show me the
results
then we can give you additional business
and we can start with new projects or
maybe you say no the supplier
is totally horrible i was shocked and i
think this will not
possible to develop this within one or
two or three years because
there's so much work to do and it's too
much risk for us to work with the
supplier
then you would say okay no i cannot
release the supplier
so there's not the supplier doesn't have
the potential
to come into our portfolio and maybe we
can talk again in
two or three years when you are ready
but now it's not the time
so i hope this helps you to understand a
little bit about
potential supply analysis so we have the
situation we want to source potential
suppliers into our portfolio
but we need to be careful from a quality
point of view if the supplier
has the ability to continuously deliver
the good performance their parts their
services
with a stable quality and delivery
over the long run if you like these kind
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very much
and see you in the next video