gsqa value: the supply chain quality...
TRANSCRIPT
GSQA Value: the Supply Chain Quality ImperativeNovember 1, 2010
Quality Assurance for your Supply Chain
John McGlinnVP Sales
EMNS, Inc.www.gsqa.com
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About EMNS
Service solution in production for over 12 years
About EMNS
In use at Fortune 1,000 companies
Over 10,000 connected facilities in over 40 countries
Experts in high reliability and security hosting Experts in high reliability and security hosting
Headquartered in Downers Grove, IL
Consumer Packaged Goods/Toys
GSQA has customers in the following process and discrete market verticals:
Beverage and Snack Foods
Rubber and Plastics
Chemicals
Oil and Petroleum, Nuclear Fuel
P i t d C ti
Confectionery
Pet Food
Proteins – Beef and Pork
Mi i /N t l R
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Paints and Coatings Mining/Natural Resources
AgendaAgenda
Why Worry?
(About the Supply Chain Quality Imperative)( bout t e Supp y C a Qua ty pe at e)
Issues(Unknown suppliers & materials)(Unknown suppliers & materials)
Solutions(Don’t want to leave you hanging)(Don t want to leave you hanging)
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In A Perfect WorldIn A Perfect World …
All Suppliers Would Be Equal ….
Materials Would Arrive …
On TimeOn Time
From the right supplier/country
Properly Labeled
Made To Your Specifications
With No Variability Or Defects
Every Time!Every Time!
But it’s not a perfect world!
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The Supply Chain Quality ImperativeThe Supply Chain Quality Imperative
“Quality visibility can be lost over the horizon, whether 10 miles or 10 000 miles away ”whether 10 miles or 10,000 miles away.”
Out-sourcing and off-shoring extend Extended (tiered ) and decentralizedg gsupply chains and defy manual methods of quality management.
Extended (tiered ) and decentralized supply chains create new quality challenges: material validation and supplier quality assurance at lower cost and higher efficiency.
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Sample Tiered Supply ChainMaterial Flow
Sample Tiered Supply Chain
dShipping location
Ship
Lots
Use
d
Ship
Rcv
Lots
Use
d
Ship
Rcv OEM/Finished
Product Plant
Shi
p Shipping location enters shipment and lot information
Ship
Lots
Use
d
Ship
Rcv
L
Rcv
Receiving location confirms receipt of lot
Rcv
Lots
Use
d
Ship
Rcv
R receipt of lot information
Uncontrolled 3rd
Tier Suppliers
Use
d
ipcvip
“Trusted” First Tier SuppliersInvisible 2nd Tier
SuppliersLots
Use
d
Incoming lots are mapped to outgoing lots
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Lots
U
ShRc
Sh
Extended Quality VisibilityExtended Quality Visibility
Multiple quality events in the supply chain need to be linked for complete quality visibilityMultiple quality events in the supply chain need to be linked for complete quality visibility
Supply Chain Quality ManagementSupplier Quality Assurance
Supply Chain Quality Management
FinishingFeederExternal Supplier Dist Channel
1. Customer1. Customer2: Enterprise2: Enterprise3: Supplier3: Supplier4: Supplier’s Supplier4: Supplier’s Supplier 1. Customer2: Enterprise3: Supplier4: Supplier’s Supplier
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Wh W ?Why Worry?
Reputation
Financial
p
Risk
Operational Risk
Market Performance
Food/Product Safety Recalls RiskBrand Equity
Scrap
ReworkR i Plant Disruptions
Poor Quality
Other Operational Inefficiencies
Reputation
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Since It’s Not A Perfect World You Must
Di t ib t S ifi ti
Since It’s Not A Perfect World You Must ….
Distribute Specifications
Test Inbound Materials
Perform Supplier Audits
Manage Corrective Actions
Recover Costs From Suppliers
Have Supplier Quality ManualsHave Supplier Quality Manuals
Rate and Rank Suppliers
Perform Supplier Development
The Cost Of Supplier Quality
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Ind str ChallengesIndustry Challenges
Still paper-based COAs? PDFs with e-mail? Inactionable data?
Material variability impact on finished products known?
Specs on paper, in PDF, in e-mail, out-of-synch with suppliers?
pRoot-cause analysis tools?.
Analysis of supplier process results lab test comparisons
Non-conformances by phone calls, e-mails, lost time, chasing responses, no tracking?
Purchasing cannot see supplier material performance
results, lab test comparisons, spec adjustments?
responses, no tracking?
Regulatory Compliance docs managed on paper, separate web Hard-to-get material data for
supplier material performance, non-conformance & audit responsiveness?
site, audits labor intensive?
One-up, one-down traceability difficult to achieve does not
Hard-to-get material data for reports? In the dark, out of synch about critical issues?
Keeping supply base in
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difficult to achieve, does not provide enough visibility?
Keeping supply base in compliance?
Ind str ChallengesIndustry Challenges
Still paper-based COAs? PDFs with e-mail? Inactionable data?
Material variability impact on finished products known?
Specs on paper, in PDF, in e-mail, out-of-synch with suppliers?
pRoot-cause analysis tools?.
Analysis of supplier process results lab test comparisons
Non-conformances by phone calls, e-mails, lost time, chasing responses, no tracking?
Purchasing cannot see supplier material performance
results, lab test comparisons, spec adjustments?
responses, no tracking?
Regulatory Compliance docs managed on paper, separate web Hard-to-get material data for
supplier material performance, non-conformance & audit responsiveness?
site, audits labor intensive?
One-up, one-down traceability difficult to achieve does not
Hard-to-get material data for reports? In the dark, out of synch about critical issues?
Keeping supply base in
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difficult to achieve, does not provide enough visibility?
Keeping supply base in compliance?
One company took a different approachOne company took a different approach…Reduce test costs of incoming raw materials. Increase supplier confidence from continuous material compliance information. Lower test-equipment costs and testing consumables.Provide online ASN (advance shipment notification) from all suppliers independent of their technology assets for enhanced o de o e S (ad a ce s p e t ot cat o ) o a supp e s depe de t o t e tec o ogy assets o e a ced
inventory management with On-The-Way, Shipment Received, or Released Status, with date procured to support first-in first-out material management and increased production efficiency.
Online ASNs also should provide production scheduling efficiency with material delivery dates that support more accurate production scheduling, that in turn should reduce line down time waiting for needed materials, and provide an increase in production efficiency.
Eliminate manual COA entry filing and storage by online supplier-entered COA data Simplify record keeping and informationEliminate manual COA entry, filing, and storage by online supplier entered COA data. Simplify record keeping and information accessibility supporting supplier shipment tracking and materials traceability. Online information will also reduce storage and archival costs.
Reduce non-conforming material by online shipment validation of material specification prior to materials being shipped by the supplier to reduce wasted time and money dealing with out of specification material.
Reduce manufacturing waste caused by high material quality variability using automatic SPC, Ppk and time trend analysis on incoming materials to reduce unexpected results in the manufacturing process reduce defects unusable lots wasted materials andincoming materials to reduce unexpected results in the manufacturing process, reduce defects, unusable lots, wasted materials and associated disposal and reclamation costs.
Simplify the cost recovery effort to track and analyze the expenses incurred because of a supplier's non-conformance and quality issues, and allow for the charges to be passed back to the supplier.
Provide corporate-wide online real time view of all suppliers, CAR/CAP summaries, supplier performance and audit status to simplify the management of suppliers worldwide. Also should result in a reduction in documentation storage and archival costs.
P id li t f CAR/CAP li d l t dit d t ti ti l l i d t t d th lProvide online management of CAR/CAP, supplier development, audit and statistical analysis data to reduce the manual generation, tracking, management and reporting of quality records required for ongoing ISO/QS/AS 9000 and TS 16949 compliance. Online information should also reduce documentation storage and archival costs.
Provide online message of the day and automated supplier notification of CAR, audit and quality events that will reduce mailings, faxes and email to suppliers.
Provide supplier rating and ranking through online supplier quality performance summaries.
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Reduce costs in supplier communications, specification management and testing requirements with online real time analysis of material characteristics and trends across suppliers and regions to simplify engineering's task of evaluating and modifying material specifications.
GSQA is a single point for manufacturers to align supply chain qualityGSQA is a single point for manufacturers to align supply chain quality objectives with their suppliers and co-manufacturers to achieve a higher quality standard, improve productivity, and reduce costs.
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Ten Points of GSQA ControlTen Points of GSQA Control
Electronic COAs (e-COA)Send and receive raw material, packaging, in-process and finished
Production AnalysisUtilizing your supplier’s COA data, plant floor test data, non-
product Certificate Of Analysis (COA) electronically between your suppliers, plants, co-manufacturers and customers.
SpecificationsImmediate and secure on-line access to your most recent i t l d t l ifi ti f l t li d
g yconformances, yield results and other quality observations,GSQA highlights variations in material characteristics andproduction processes that are impacting quality and yield.
Statisticsinternal and external specifications for your plants, suppliers and co-manufacturers. On-Line e-Signature supplier specification acceptance.
Non-ConformancesManaging non-conformance and corrective actions and costs
Scorecards
Uses SPC alerts via e-mail to immediately warn when suppliers begin to lose control of their processes and fall out-of-specification. Compare lab results with COAs to assess supplier confidence and trustworthiness.
Managing non-conformance, and corrective actions and costson-line directly with suppliers reduces corrective action cycletime, and helps lower the cost of quality.
Regulatory ComplianceGSQA’s compliance manager collects documentation and data Reports and Alerts
Custom-built to meet specific supplier performance requirements and tied directly with non-conformance data and integrated with ERP/MES data. Cp, CpK, Pp, PpK tracking for current performance and future forecasting.
GSQA s compliance manager collects documentation and datadirectly from your suppliers and plants based on the producttypes provided by that supplier. Automatic alerts warns users ofexpiring documentation and compliance status.
Traceability
epo ts a d e tsReal time data analytics in the form of reports gives each department a view into mission-critical trends that result in maintaining supplier quality. A system of alerts keeps every GSQA user aligned on priority events.
Certifications & Audits
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GSQA provides immediate multi-tier traceability for incoming, in-process, and outbound batches or lots. One click access to COAs, supplier, customer and carrier information.
Certifications & AuditsFeature-rich automation for complete quality documentation control, collaboration, and management.
Ten Points of GSQA ControlTen Points of GSQA Control
Electronic COAs (e-COA)Send and receive raw material, packaging, in-process and finished
Production AnalysisUtilizing your supplier’s COA data, plant floor test data, non-
product Certificate Of Analysis (COA) electronically between your suppliers, plants, co-manufacturers and customers.
SpecificationsImmediate and secure on-line access to your most recent i t l d t l ifi ti f l t li d
g yconformances, yield results and other quality observations,GSQA highlights variations in material characteristics andproduction processes that are impacting quality and yield.
Statisticsinternal and external specifications for your plants, suppliers and co-manufacturers. On-Line e-Signature supplier specification acceptance.
Non-ConformancesManaging non-conformance and corrective actions and costs
Scorecards
Uses SPC alerts via e-mail to immediately warn when suppliers begin to lose control of their processes and fall out-of-specification. Compare lab results with COAs to assess supplier confidence and trustworthiness.
Managing non-conformance, and corrective actions and costson-line directly with suppliers reduces corrective action cycletime, and helps lower the cost of quality.
Regulatory ComplianceGSQA’s compliance manager collects documentation and data Reports and Alerts
Custom-built to meet specific supplier performance requirements and tied directly with non-conformance data and integrated with ERP/MES data. Cp, CpK, Pp, PpK tracking for current performance and future forecasting.
GSQA s compliance manager collects documentation and datadirectly from your suppliers and plants based on the producttypes provided by that supplier. Automatic alerts warns users ofexpiring documentation and compliance status.
Traceability
epo ts a d e tsReal time data analytics in the form of reports gives each department a view into mission-critical trends that result in maintaining supplier quality. A system of alerts keeps every GSQA user aligned on priority events.
Certifications & Audits
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GSQA provides immediate multi-tier traceability for incoming, in-process, and outbound batches or lots. One click access to COAs, supplier, customer and carrier information.
Certifications & AuditsFeature-rich automation for complete quality documentation control, collaboration, and management.
S l bl W b b d S tScalable Web‐based System
GSQA: Data-driven, web-based, enterprise supplier quality and material
performance management system focused on global supply chain qualityfocused on global supply chain quality visibility, operational efficiencies, and
product safety.
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Si l S l ti Si l I t Gl b l Vi ibilitSingle‐Solution, Single‐Instance, Global Visibility
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Si l S l ti Si l I t Gl b l Vi ibilitSingle‐Solution, Single‐Instance, Global Visibility
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Departments Al a s In ol ed
Quality: must keep material variability low (spec compliance)
Departments Always Involved
Quality: must keep material variability low (spec compliance)
Purchasing: own supplier performanceg pp p
Regulatory: maintain supply base in compliance
Operations: plant efficiency and yield goals
R&D: specification definition and spec-tuning
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GSQA Pro ides Sol tions & Val e M ltiple Departments
Quality: proactive analysis that results in reduced supplier material
GSQA Provides Solutions & Value: Multiple Departments
Quality: proactive analysis that results in reduced supplier material variability, decreased scrap events, and root-cause analysis.
Purchasing: real-time assessment of supplier performance data g pp pfor strategic sourcing.
Regulatory: automated document collection and management for assuring supplier compliance and traceabilityassuring supplier compliance and traceability.
Operations: correlation of raw materials with finished product attributes for improved yield.attributes for improved yield.
R&D: interface to PLM and Formulation Mgt systems for online specification distribution and sign-off.
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p g
S pplier/Material RiskSupplier/Material Risk
Which suppliers contribute the most to the cost of quality?
Which suppliers pose the greatest risk?
Knowledgebase
Scorecard
Certifications‐Audit Mgt.
Nonconformance Mgt.
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Material Validation (e‐COA)
F nctional Str ct re of GSQAFunctional Structure of GSQA
Result: Enhanced Operational Performance
Trending e-COA Results
Audit/Cert/Reg-Doc Compliance
Supplier-Material Performance
Global Supplier Comparisons
Supplier Scorecarding
WIP Testing
Prod ction Anal sis
Finished Product e-COA
Supplier COPQ Analysis
Quality based Traceability
Knowledgebase
Production Analysis Quality-based Traceability
Certifications‐Audit Mgt. Not a document management system but a data-driven, web-based, enterprise supplier quality and material performance management system focused on global supply chain quality visibility, operational efficiencies, and product safety.
Nonconformance Mgt.
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Material Validation (e‐COA)
M lti ti S l Ch i Q lit M tMulti‐tier Supply Chain Quality Management
Supplier #1 Supplier’s Supplier Supplier’s Supplier’s Supplier
ShipMaterials
Ship“Raw” Materials
Receive“Raw” Materials
Ship“Raw” Materials
Receive“Raw” Materials
Plant #1
ReceiveMaterials
ShipFinished Products
ReceiveFinished Products
Web
OEM/Customer
Transparency & Global
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EMNS hosting GSQAChicago, IL USA
Quality Visibility
F d S l Ch i Q lit T bilitFood Supply Chain Quality TraceabilityGSQA Traceability Graphical Report
$ $+,$$ $++
Basic Raw Materials Primary Packager/Manufacturer Distributor/Repackager/Shipper End User/Plant
S = Shipping Test; $+ = WIP Test; $++ = Finished Product Test ( )Page 24Proprietary to EMNS, Inc. Not to be reproduced or distributed outside the firm without written consent.
( )$+
Di t M t i l P Fl M
Tier 3 Tier 2Tier 3
Rolling MillMelt ShopQSL QSL
PO
Discrete Material Process Flow Map
Vendor R
(Plate Distributor)
Vendor O
(Melt Shop/Rolling Mill) L&S Machine
(Top Nozzle Leaf Spring Machining)
Tier 1Tier 2
Tier 3
Utility Customer
PO PO
(Plate Distributor)
Vendor C
p g g)
Tier 1
Tier 4
(Fuel Assembly)
PO
QSL
Vendor W
(Nozzle Assembly / Engraving)
Vendor L
(Nozzle Welding / Machining)
(Plate Cutting) Finished Product Delivery
(Fuel Assembly)
Tier 1
QSL
Vendor I
(Test Lab)Vendor G Foundry
(Nozzle Castings)Vendor V
(S i S
Tier 1Tier 2Tier 5
Tier 2 Extrusion Mill
POPO
QSL
QSL
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( ) (Nozzle Castings) (Spring Screw Machining)
Tier 3 Melt Shop QSL
GSQA T bilit f Fi i h d N l A blGSQA Traceability of Finished Nozzle Assembly
Finished Nozzle Assembly Quality-BOM
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GSQA T bilit f Fi i h d N l A blGSQA Traceability of Finished Nozzle Assembly
“Spring” deeper in the “tree” or back in
the supply chain
Shipment Details(underlined link)
Lot Test Data the supply chainLot Test Data and uploaded
quality Documents
(underlined link)
Ship-From & Ship-To Details(underlined links)
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GSQA T bilit f Fi i h d N l A blGSQA Traceability of Finished Nozzle Assembly
“Adapter plate” deeperAdapter plate deeper in the “tree” or back in
the supply chain
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GSQA T bilit f Fi i h d N l A blGSQA Traceability of Finished Nozzle Assembly
“Raw bar stock” deeper in the “tree” or back in the
supply chain
Reverse trace: “Where-used”
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Extend Automation Directly to SuppliersExtend Automation Directly to Suppliers
Material Quality & Product Safety & Regulatory Compliance
SuppliersExisting, Secure, Supplier facing
Regulatory DocsCertifications PLM System
• Specs. • Specs.
Material Quality & Product Safety & Regulatory ComplianceSupplier-facing, Collaborative
PortalRegulatory Compliance
E t d d AuditingSite Audits
Spec. CollaborationSpec. Distribution
p• Test Methods
p• Test Methods
Extended ERP
Traceability
SpecsSpec. Sign-off
LIMS
ERP SystemLot Level Ship Notice
T t R lt
ASN
Specs
e COA
Plant Quality
MES
Test Results
Material Used
e-COA
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Plant QualityCAPA
The Supply Chain Quality Imperative is Now!The Supply Chain Quality Imperative is Now!
Manage quality and material performance across your supply chain today!
“GSQA provides valuable supply chain transparency, not just $ savings in quality administration costs for example. Seeing the summary error rates for every lot of every material for every shipment from every
supplier every day provides a very clear picture of the material quality going into our products. The automatic GSQA ranking of suppliers insures the best performers are contributing to our supply chain.”
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Thank you!
John McGlinnJohn McGlinn
888.900.5033
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www.gsqa.com