Future Trends in Supply Chain

Quality Management

Jeffery L. Cawley
Northwest Analytical, Inc.

IFT 2002
Session 5 - Supply Chain Process and Quality
Management in the Food Industry
June 16, 2002
 Topics

•Supply Chain as Quality Reporting Driver

•Supply Chain - Benchmarks
•Process Literacy & Process Analytics
•Making it Work
 Supply Chain
Quality Reporting

Within

Within

Supply Chain Customer

Plant

Enterprise
 Evolution of Supply Chain
Quality Role

• Fundamental to success of integrated

enterprise and supply chain
• Trend from inspection to process
management
• Quality Deliverable now part of product
 Enterprise Quality Reporting

• Extend Use of Data Beyond Quality Dept

• Support Process Management
• Support Process Improvement
• Enabling Technology =
Manufacturing Quality System
 Benchmarking
• Models
• Within Own Industry,
• Supply Chain
• Other Industry

• Boeing Preferred Supplier Program

• Boeing’s own benchmarks - Auto, Motorola
 Boeing
Preferred Supplier Certification
• Mgmt. Commitment • Key Characteristics • Leadership • Quality
• SPC Plans • Process Stabilization • Technology • Cost
• Documentation • Capability • Product Delivery • Support
• Employee Involvement • Flowdown

Statistical Supplier
Process Business
Control Processes
Supplier
Performance

•Quality Acceptance
•On-time Delivery
•Affordability
•Customer Satisfaction
 Boeing
Preferred Supplier Certification Process
SPC Requirements

Bronze Level Silver Level Gold Level

• Documented • Critical Processes & • SPC used in
Implementation Plan with Control Characteristics Manufacturing and
Milestones Identified Business Operations
• Verification of Initial • Evidence of Process • Evidence of Process
Implementation Control Control
• Cpk > 1.33 • Min. Cpk of 1.50 on
• Monitoring Non-capable Critical Processes
Processes • Monitoring of Non-
• Plan to reduce Variation Capable (Non Critical)
of Non-capable Processes
Processes • Plan to Reduce Variation
• Philosophy of of Non-Capable
Continuous Processes
Improvement • Philosophy of
Continuous
Improvement
 Boeing Supplier
Performance Maintenance
Process
Sustained Continued
Performance Benefits

Monthly
Performance
Evaluation
Duration Notification

• 2 Months Poor Performance

• 6 Months Probation
• 9 Months Downgrade / Decertify

Performance Recovery - Reinstate • Corrective Action Plan

• 2 consecutive months
good performance

Evaluate Continued Poor

Disengagement Performance
 Process Analytics

• The Future Trend

• Process Visibility
• Process Literacy
• Fundamental to Success of Integrated
Enterprise and Supply Chain
• Quality Data Systems + Process Analytics =
Competitive Advantage
Process Analytics

Visualization

Analysis

SPC EDA
Stats
 Process Analytics

Suppliers Customers
Collaboration
Process Analytics

Exchange Services Portals - WePMS

Quality
Information
Process HMI/SCADA MES LIMS System
Process Analytics

Integration Services

Information
Manufacturing
&
Management
Databases
 Integrated Management Systems

• Strong Trend
• Technology critical mass
– Networks / Web
– Manufacturing Data Systems
• LIMS Role with MES, ERP, SCM
 Making It Work
Enabling Technology

• Data Collection
• Databases
• Process Analytics
• Reporting
– Network
– Web
 Quality Data Flow

Corporate Plant-floor
Databases SCADA MES LIMS ERP Data Collection

NWA Data Set

ODBC Connectivity - Data Definition - SQC Configuration

SPC Web
SPC Software
Server

Enterprise
Management Operations QA/QC Engineering Laboratory Plant Floor

Customer
 Making It Work
Planning

• Standards
• User Needs
• Usability
• Modular - Incremental Build
• Scalability
 Making It Work
Web Technology

• Reduce Overhead
• System cost
• Installation/maintenance
• Training/support
• Integrate different generation systems
• Reduce Barriers
• Time
• Distance
 Web-based Quality Reporting

Where are the works in progress?

 Summary

•Supply Chain as Quality Reporting Driver

•Supply Chain - Benchmarks
•Process Literacy & Process Analytics
•Infrastructure
•Supply Chain Integration
 Jeffery L. Cawley
Northwest Analytical, Inc.
519 S.W. Park Ave.
Portland, OR 97205
Tel: 503.224.7727 Fax: 503.224.5236
Email: jcawley@nwasoft.com
www.nwasoft.com