Question

Qnestion 6 engineer subcontractor in an electronics company. Being given the rincal supplier rating schedule by his supervisor, Mr Koo starts to work on the supplien (15 marks) () Bugene Koo is a quality rating process. Identify the different phases in this rating process that he needs to follow (or implement) (b) Some years ago, a company was certified with ISO-9001 2008. The current managernent team is looking into the need of upgrading its quality system to ISO-9001:2015. As Quality Bngineer, provide POUR changes in the 2015 version (as compared to the 2008 version) (10 marks) that may be beneficial to the company

Answer 1

QUESTION 6(b):

Changes in ISO 9001:2015 are as follows:

1) ISO 9001:2015 HAS A HIGH LEVEL STRUCTURE (HLS)

As a result of the new arrangement in ten clauses, ISO 9001:2015 now has the same unambiguous structure as all standardised management systems, known as a ‘High Level Structure’ (HLS).

The core elements of ISO 9001, ISO 14001, ISO 22000, OHSAS 18001, etc. are therefore all the same from now on. This has made the integration of various management systems much simpler. If, for example, an organisation wishes to implement ISO 14001 in addition to ISO 9001, the parts that cover the same topic can easily be seen in the standards.

2) ISO 9001:2015 PUTS MORE FOCUS ON INPUT AND OUTPUT

There is more emphasis in ISO 9001:2015 on measuring and properly assessing the input and output of processes. According to ISO 9001:2015, you must closely monitor which articles, information and specifications are involved in the production process. You must also clearly check whether good articles come out of the production process.

3) RISK-BASED THINKING IS AT THE CORE OF ISO 9001:2015

Risk-based thinking has a very important place in ISO 9001:2015. You are now strongly encouraged as an organisation to use risk analysis in order to decide for yourself which challenges you see in the management of your business processes.

Formal risk analysis, familiar to many organisations via FMEA or HACCP techniques, is now standard for everyone. To emphasise their dominance, the concept of ’risk’ occurs forty-eight times in ISO 9001:2015, compared with only three times in ISO 9001:2008.

The addition of risk-based thinking has made the ‘preventive measures’ of ISO 9001:2008 redundant. These preventive measures no longer appear in ISO 9001:2015

4) CONTEXT OF THE ORGANISATION IMPORTANT IN ISO 9001:2015

ISO 9001:2015 requires an organisation to construct its quality management system from now on from the specific context within which it is active. This means, among other things, that, as an organisation, you have to take into account the needs and expectations of interested parties and that you evaluate and deal with internal and external strategic questions. You have to show that, as an organisation, you understand and respond to the expectations of all the parties concerned.

QUESTION 6(a):

Step 1: Conduct an internal needs analysis

To begin, you’ll need to benchmark current performance and then identify needs and targets before developing a procurement strategy. This involves the collection of several different types of data. The purpose for collecting initial data is to benchmark current performance, resources used, costs for all the departments/functions in the organization, and current growth projections.

Step 2: Conduct an assessment of the supplier’s market

In this step, the strategic procurement team identifies potential countries that are feasible sources of the required raw materials, components, finished goods or services. If there are specific requirements, it may limit the number of countries that are suitable. For instance, if one of the raw materials used by the organization can only be found in one country, then options are much narrower. For manufactured products, there will be a much wider range of potential countries from which to select. Services may be limited by the technological requirements of the organization.

Step 3: Collect supplier information

It is important for a company to select suppliers carefully. A supplier’s inability to meet selection criteria can result in significant losses for the organization. The business reputation and performance of the supplier must be evaluated, and financial statements, credit reports, and references must be checked carefully. If possible, the organization should arrange to inspect the supplier’s site and talk to other customers about their experiences with the supplier. The use of agents, who are familiar with the markets and stakeholders, can also be beneficial to this process. Organizations may select more than one supplier to avoid potential supply disruptions as well as create a competitive environment. This strategy is also effective for large multinational organizations and allows for centralized control, but more regional delivery.

Step 4: Develop a sourcing/outsourcing strategy

Based on the information gathered in the first three steps, an organization can develop a sourcing/outsourcing strategy. The following are examples of sourcing strategies: Direct purchase: Sending a Request for Proposal (RFP) or a Request for Quote (RFQ) to select suppliers. Acquisition: Purchasing from a desirable supplier. Strategic partnership: Entering into an agreement with a selected supplier. Determining the right strategy for you will depend on the competitiveness of the supplier marketplace and the sourcing/outsourcing organization’s risk tolerance, overall business strategy and motivation for outsourcing.

Step 5: Implement the sourcing strategy

Sourcing strategies that involve acquisition or strategic partnerships are major undertakings. In these cases, suppliers are likely to have the following characteristics: Involvement in activities core to the buyer, e.g. supply limited raw material for core product, access to highly confidential proprietary knowledge One of a limited number of available suppliers with specific equipment/ technology and skilled labour pool Part of the broader business strategy For a direct purchase, organizations may begin with an Expression of Interest (EOI), prepare an RFP or RFQ, and solicit bids from identified potential suppliers as part of a competitive bidding process. The RFP should include: detailed material product or service specifications delivery and service requirements evaluation criteria pricing structure; and financial terms.

Step 6: Negotiate with suppliers and select the winning bid

The strategic procurement team must evaluate responses from suppliers and apply its evaluation criteria. Bidding suppliers might request additional information in order to make the most realistic bid, and the organization should supply this information to all bidders and enable them to respond to the new information before making a final decision. The strategic procurement team will then evaluate the received proposals, quotes, or bids, and use the selection criteria and a process to either shortlist bidders to provide more detailed proposals (if reviewing EOIs) or select a first and second successful bidder (if reviewing RFPs or RFQs). After the evaluation process is complete, the strategic procurement team will enter contract negotiations with the first selected bidder.

Step 7: Implement a transition plan or contractual supply chain improvements

Winning suppliers should be invited to participate in implementing improvements. A communication plan must be developed and a system for measuring and evaluating performance will need to be devised using measurable Key Performance Indicators (KPIs). This is especially true in the early stages of using a new supplier. Transition plans are especially important when switching suppliers.