Wednesday, 20 January 2016

All That You Wanted To Know About Supplier's Quality

What Is Meant By Supplier's Quality ?

Supplier's quality is the ability of a vendor to produce a quality product for its customer. This is achieved through an interactive relationship between a supplier and his/her customer. Supplier's quality is aimed to ensure the fitment of aproduct  according to a customer's requirement with minimum or no adjustment.

How to measure supplier's quality ?

There are certain metrics through which one can measure a supplier's quality.

·         Cost of quality - This metric measures the cost incurred by an organisation to manufacture a quality product. This cost is further divided into cost of bad quality and cost of good quality.

·         Percentage of compliant products - The metric pertains to products belonging to food and drinks, to defence and to pharmaceutical sector. The product produced should be compliant with government regulations. The metric refers to the percentage of products manufactured which are compliant with government guidelines.

·         Overall equipment effectiveness or OEE - The metric lists as to how often an asset should be available for manufacturing a product for a customer according to the specifications. Secondly, when an asset produces a product according to specifications of a customer, how close is the asset manufacturing to its theoretical maximum. Third, OEE measures the percentage of products produced within quality specifications.

OEE = Availability * Efficiency * Quality

·         New Product Introduction or NPI-  NPI is defined as a percentage of new products introduced in the market that affects time, quality and volume deadlines. Profit's growth depends on the introduction of new products in market as well as on how good a company hits NPI targets.

·         No shipment delays - A quality product should be produced but not at the expense of delayed shipment or delivery.

For more on supplier's quality measurement, call us at +91 8459136607 ; +91-9717771415 or e-mail at info@boundlessindia.comor visit us at

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