Selection, contracting and monitoring of suppliers and sub-tiers to ensure purchased products and services meet final customer requirements and suppliers continually raise their performance levels.
As with many industries, the aerospace and defense industry continues to increase the amount of work outsourced to suppliers, from the manufacturing of components to the building of modules and sub-assemblies. This trend has resulted in a very complex supply chain, making customers increasingly dependent upon their supplier’s ability to manage their sub-tiers. The Supplier Quality Management Basics in this SCMH “Buy” Section discusses some of the key elements for managing supplier quality. This guidance including an assessment process is designed to increase the robustness of sub-tier management throughout the supply chain.
The intent of this guidance is to drive advancements in the Supplier’s Sub-tier management system. The foundation is based on the requirements of the IAQG Standard 9100 for the purchased product.
IAQG standards AS/EN/JISQ/SJAC 9100, 9110 and 9120 require every organization to continuously improve their performances and determine actions to ensure these performances are in line with targets defined by internal and external stakeholders.
IAQG Product and Supply Chain Improvement Strategy Stream has identified a list of most commonly used Key Performance Indicators (KPIs) covering the main domains of the supply chain (‘Customer metrics’, ‘Engineering and Product Development’, ‘Program Management’, ‘Manufacturing and Production’, ‘Supplier Management’, and ‘In-Service – feedback from operations’).
Use of these KPIs should support harmonization and reduction of customization of these KPIs between the entity establishing them and its different internal and external customers.
Each KPI is listed on a single page and provides the following information: KPI Name; KPI Abbreviation; KPI Description; KPI Formula; KPI Unit of measure; and Detailed explanations.
The Supplier Selection and Capability Assessment Model (SSCAM) is designed to assist organizations (customers) in executing an effective assessment of existing or potential suppliers. It also allows these suppliers to perform a self-assessment, for instance before the arrival of their customer.
The material provides a model to select a Supplier and/or Assess its Capability to achieve sustainable On Time & On Quality delivery objectives. Its structure is aligned with the six processes of the IAQG product life cycle (Design and Develop, Make, Buy, Deliver, Customer Support, Plan and Manage).
Although it was initially designed to be used before a contract is signed, it may also be used later when, for any reason, it is necessary to evaluate if the capability of the supplier is still at the expected level or to trigger a supplier development action.
This guidance describes the elements for a basic Supplier Quality Management System (SQMS) for managing a supplier’s performance and product conformity. It is applicable to any company in the supply chain with an emphasis on companies who may not have a complete SQMS in place or a new company to the aviation, space and defense supply chain. It contains basic elements that should be utilized (as applicable to the type of business) to ensure product conformity of materials and/or services received from their suppliers.
Most regulatory agencies and Buyers of products or services in the aviation, space and defense industry, have requirements that an organization they do business with has a Supplier Quality Management System (SQMS) that includes documented processes and procedures for managing their suppliers. Some of the basic elements for an SQMS should include but not be limited to processes to address:
- Flowdown of quality requirements
- Supplier Pre-production Planning
- Production Readiness
- Purchased Product Verification
- Supplier Performance Monitoring
- Supplier Surveillance
The guidance material is written from the perspective of a customer or purchasing organization, referred to as the “Buyer”.