Original Date: 10/27/2003
Revision Date: 01/18/2007
Best Practice : Supplier Review Program
Auto-Valve, Inc. implemented the quality program, AS 9100, and developed a Supplier Review Program to meet the requirements. The Supplier Review Program provides significant benefits in quality and delivery improvements and cost reductions.
Prior to implementing the Aerospace Standard, AS 9100, Auto-Valve, Inc. (AVI) neither tracked supplier data nor had performance criteria for suppliers. Quality requirements were not being passed down to the suppliers, nor were expectations and feedback being communicated. There were no alternative suppliers identified when the original supplier could not deliver parts. Price increases were being accepted as unavoidable, and suppliers were not held to delivery schedules. AVI was unable to meet any of the ISO/AS requirements.
In March 2003, AVI implemented its Supplier Review Program to meet AS 9100 quality system requirements. Suppliers are audited bi-annually, and from data continuously collected, they are rated on quality, delivery, and cost. Quality requirements are passed down to all suppliers, and feedback is provided through annual ratings and audits. Suppliers are rated on a weighted scale of 40% for quality, 40% for delivery, and 20% for price. In order to remain an AVI supplier, a rating of at least .80 must be maintained. Those not maintaining the .80 rating must provide written corrective action and prove that the corrective action is being followed through the audit process. A database of alternative suppliers is maintained for potential problems. Prices are negotiated for a one-year period and, since suppliers are being held accountable for delivery schedules, delivery is quicker and more reliable. With the implementation of the Supplier Review Program and AS 9100, the number of AVI’s suppliers has been reduced from more than 350 to 91.
For more information see the
Point of Contact for this survey.