Memorandum

Date:

October 30, 2011

To:

Dr.David Hartmann, Ph.D.

From:

Kam005,kam064

Subject:

Grade Sheet for Assignment 2 OPM 532

Exercise 3, p.165: You have been employed as a quality assurance manager for a small metal fabrication firm (100 people). Your first assignment is to certify the suppliers and schedule a visit to each. Make a checklist with scoring criteria for your visit. Many organizations get materials, components and services from outside suppliers. Therefore, they have to know what kind of standards the suppliers are standing on. Thus, regular inspections are essential to achieve the same quality level as attained within the organization. They are several techniques to certify their own suppliers. Supplier certification is the process of managing the relationship between the organization and its suppliers to coordinate as one in creating value for all stakeholders. There are several reasons why organizations certify their suppliers: Way to determine which suppliers meet the companys needs Aware of what suppliers can and cannot do before everyone invests time and money May not have to do some processes, such as inspection Consistent methods for managing suppliers Develop supplier capabilities

 Build stronger and open relationships Better communication and sharing of information Better serve our customers Meet corporate improvement objectives through collaboration According to those reasons, metal fabrication firms as I belief may follow the upcoming factors in certification: 1. Quality 2. History 3. Delivery, cost and technology 4. Financial status 5. Communication capabilities 6. Business practices/processes Many companies use the ISO (International Organizational for Standardization) and other equivalents as a base. Then they focus on what is important to them, or to make the requirements stricter. There are many types of ISO. I have chosen the ISO 9000 because it concerns primarily with quality management. Metal fabrication firms are producing products more than services; therefore, quality is the major issue to be concerned. The following points are the ISO 9000 criteria: The customer's quality requirements Applicable regulatory requirements Enhance customer satisfaction Achieve continual improvement of its performance in pursuit of these objectives. The following scorecard may help the quality assurance manager to identify the performance of the firms suppliers.

Supplier Rating System Item: Certifying the metal fabrication suppliers Period: 30th of October, 2011 General Categories 1. Goals Supplier meet the organizaton's goals Management structure Maintainable goals Reachable goals 2. Quality Performance Ability to adapt changes and enhancements Sufficient capabilities to supply Maintaining the suppliers' standards 3.Delivery, cost and technology Technology improvement Supply dates can be met Price is acceptable Valid vehicle for delivering 4.Financial Status Coduct on-site audits Supplier must have a robust financial condition 5.History Supplier has positive industry reputation 6.Communication Capabilities Maximum Points 20

Supplier A Actual Points

Supplier B Actual Points

Supplier C Actual Points

Supplier D Actual Points

12

20

12

12

12

Coordinate and communicate with internal departments Reachable whenever the company needs supplies 7. Business practices/policies Reporting to management Cleanliness Total 12

100

In conclusion, supplier certification is an important procedure that must be done in the firm. Suppliers provide inputs to factories. The more the suppliers are sufficient,, the better the productions. Thus, the quality assurance manager should always update his inspection categories from time to time. Suppliers should expect any sudden search.