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THE SUPPLIER SELECTION PROCESS
(by Choong Ewe Lee)
(choong@brainperformance.com.my)

   
 
     
 

For most of the organization, their purchaser will select & approve new supplier by using the New Supplier Evaluation Form. The selection criteria will be varied depending on how extensive and how critical the purchased items to that organization. However, the selection criteria will be based on the 2 broad key focuses as below :
•    Product Quality Performance
•    Delivery Performance (including the Lead Time)

With the IATF 16949:2016, the standard would like to review the new suppliers' ability based on the risks perspective. The primary consideration shall include the risk of product conformity, interrupted continuity supply to us, quality/delivery performance as well as the evaluation of their QMS status, (such as the certification status of either ISO 9001:2016 or IATF 16949:2016).
 
 

Besides the above 5 key criteria to be taken into consideration, the standard has also outlined another 11 supplier selection criteria for consideration, such as volume of automotive business (in term of % of total business), financial stability, required technology, adequacy of resources, manufacturing capability, etc.

 
 

We believe that, the above will not impact so much on those 1st tier or 2nd tier suppliers (of OEM Car Makers), as this may be part of their current QMS practises. Or, they may just have to slightly align to include those selection criteria that being missed out against the above requirements.

 
 

However, for those 3rd Tier and below with small scale of manufacturing set up, and/or with limited purchasing personnel, they may get used to the simple few criteria of selecting & appointing the new suppliers. With this standard requirements, we have suggested this group of clients to update their New Supplier Evaluation Form by including all the 16 selection criteria above, and use them to evaluate the raw materials and sub-contractors that will directly impact their automotive products, as a start.

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The shift of Predictive Maintenance to Productive Maintenance

 
 
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