Setting the Bar

Setting the expectations for your suppliers seems quite easy - perfection or nothing. That is where it goes all downhill, as fantasy and reality clash.
Everyone wants 0 defect, no production interruptions, not having to sort material, not having to fill out corrective actions - the truth is that this happens every day in almost every manufacturing facility. So when you start your relationship by demanding perfection from your supplier, but then turn around and use the nonconforming parts because you have no other choice, what is the message you are really sending, for sure it is not WE MUST HAVE 100% COMPLIANCE OR YOU WILL PAY DEARLY...as you slam your fist on the table.

So what is the expectation? What specifications are truly critical to stay within tolerance? How far can you bend without breaking? Really, what do reasonably believe your suppliers should maintain as a level of excellence?

What can suppliers expect from you when dealing with nonconformance - either to product or processes? I find consistency is key, act and react with the same set of logic, establish a predictable pattern and suppliers will respect your 'demands'. Another great approach is to not bow to suppliers' threats - if they refuse to work with you, or play coy and force you to use the material 'because everything in house is like that', you are just enabling them. Stick to your guns and get your desired outcome. And have a plan BEFORE you make first contact. Do not fall victim to knee jerk reactions. This is where a lot of us fall down.

1. Once you find that there is a problem, establish what the true problem is before throwing a supplier under the bus and looking for a scapegoat.
2. Determine what is the true acceptance criteria. This may not fit the specification, but it will salvage material and still allow for production to continue without ill effects downstream.
3. Formulate your inventory needs prior to contacting the supplier so you don't get stuck eating their bad inventory.
4. Establish reasonable expectations and requirements from all parties that will remedy the situation.
   
5. Now communicate to the nonconforming party what the situation is, and what it is you expect them to do.
6. Do NOT bow to pressures and let the supplier dictate the situation - you must stay in control no matter what. As long as you are making sound decisions based on all of the information available, you must LEAD - as soon as you let the supplier take control you are at their mercy.
7. Keep a cool head - the hardest part of the entire process if things really come off the rails.
8. Stay consistent throughout the process, and continue to re-enforce your expectations.
9. FOLLOW THROUGH ON YOUR REQUIREMENTS

It is in the follow up where you will make your biggest strides in setting the bar. If you layout a set of deliverables from the supplier, i.e. 8D, APQP document updates, re-PPAP, capability studies, etc. follow up and ensure that the requirements are filled. This is where respect is earned - everyone can get through the emergency and good parts will always start flowing through the process again - you have to ensure that you close the loop and get everything you asked for. Once you have completed this cycle a few times, suppliers will know what the expectation is in the future.

Be reasonable, stay consistent and close the loop.

take care,
jay