Tag: supplier

Top Enterprise Quality Drivers Identified

Over 1800 senior executives and quality professionals were interviewed as part of a recent global Forbes Insights report. “The focus relates to the links between quality efforts and corporate performance, as well as the evolving business value of quality.”

Of those surveyed, 58% of senior executives and 43% of quality professionals identified quality issues with suppliers as a “Most Vexing Yet-to-Be-Resolved or Ongoing Quality Issue.” 57% of senior executives and only 25% of quality professionals also identified delays from suppliers in product or service delays as an ongoing issue.

At Pro QC, we believe that most of the common issues identified with suppliers can be addressed through the process of careful selection and continuous improvement. Utilizing local, on-site expertise when sourcing abroad adds value and reduces the associated costs.

Additional highlights from the Forbes Insights report include:

  • 37% of established organizations formally and extensively measure the impact of quality, in comparison to 10% for struggling organizations.
  • Customer demand for quality saw the highest total (67%) within the Top 10 Enterprise Quality Drivers. Other top rated drivers include brand reputation reliability, customer value, profitability, brand value, and competitive differentiation.
  • Within the Top 10 Business Areas Touched by Quality Initiatives, “production” was identified by 56% of established organizations in comparison to only 39% of struggling organizations. 48% of established organizations identified “supplier management,” in comparison to 27% of those identified as struggling.
  • Close to half of senior executives and quality professionals in this survey report that their quality efforts have increased profitability. A total of 47% attribute profitability growth to their continuous improvement efforts. One in five credit significant growth, exceeding 5% in the most recent year.
  • The estimated annual cost of yet-to-be resolved or ongoing quality-related issues is 1-5% of revenue for 30% of the total surveyed. For 20%, it’s more than 10% of revenue.

How does your organization fare? Check out the Forbes Insight report here.

Pet Industry Trends: Quality Considerations

A love for our furry friends is shared among Pro QC teams across the globe. In fact, international trends are consistent.” World pet markets are growing at a dramatic rate, with a number of countries witnessing higher than ever pet ownership and spending.”

Euromonitor reports that the world pet market arena in India is expected to grow at a 10-15% annual rate in the coming years and is projected to eventually become a leading supplier of pet products around the world. Brazil has one of the largest pet populations in the world, with a sales increase of 12-17% each year. Within the U.S., the American Pet Products Association (APPA) offers a look at the pet industry expenditures from 1994 to 2016. The growth of the spending on the pet industry has been referred to as quite staggering. In fact, even in years in which the economy dipped into recession, Americans made their pets a priority and spending steadily increased. In 1994, the APPA says Americans spent $17 billion on their pets. By 2016, spending nearly quadrupled to an estimated $62.75 billion. By 2020, the pet industry could hit $96 billion in sales.

Trends predicted in the pet industry include an increase in “pet tech” items and more product choices. One of the biggest trends at Global Pet Expo was an increased amount of choice, with many products refreshed with new colors, styles and designs. “From food products to apparel to toys to gear, there’s something for every individual person and pet.”

As the industry grows, safety and quality requirements become an increasing consideration. Quality solutions offered to the industry include:

Supplier Evaluations: Visit the factory prior to working with them to determine if they will meet your requirements/expectations.

An example Initial Supplier Evaluation can be found here as an example. Learn more about the supplier audit process here

QC Inspections: Inspect the product prior to production, in-process, or pre-shipment. Ensure product meets expectations. From animal furniture, toys, beds/bedding, kennels, apparel and more, experienced QC professionals can visit suppliers on-site to identify shipment issues early . Inspections generally include a check for workmanship/cosmetic defects, functionality, packaging, labeling, etc.

Learn more about QC inspections here. 

Product Testing: Check products for materials content, or to ensure other safety features like resistance to corrosion. Weather testing and lifecycle testing also assist in the product design process.  Evaluate per various national and international standards and regulations.

Continuous Improvement: Recurring issues are identified and often evaluated through root causes analysis. Improvement plans can address issues and work to resolve ongoing.

Resources cited:

Trends for 2017 in the Pet Industry

The World’s Pet Markets Trend

What is Responsible Sourcing & How Do You Manage It Effectively?

Our latest video discusses a topic increasing in relevancy. Responsible Sourcing is also a topic we’ll be discussing next week at ASQ’s annual World Conference on Quality & Improvement.  Visit us in Booth 607, or attend one or both of our sessions on Monday, May 1st.

3pm – 4pm

M26: Managing Supplier Social Responsibility: On-Site Audits

5:30pm – 6:45pm

AF04: Incorporating SR Into Daily Life

Avoiding Product Recalls

downloadOver the years, we’ve had our share of inquiries related to organizations seeking to resolve a recall situation.  While many of these calls are reactive, a proactive approach is recommended to avoid the cost and overall impact to stakeholders.

How can you avoid product recalls? 

Know Product Safety Requirements –  Avoiding recalls generally starts with product design and specification development. Due diligence is required to determine if any applicable testing is required depending on the market in which it will be sold. Contacting a testing lab for a general inquiry is worth the time and effort. Researching ANSI and ASTM standards is also advised.  A third party’s expertise can also be leveraged here and specifications development/testing can be outsourced.

Know Your Suppliers – Supplier selection is a critical component in the quality process. Verifying suppliers and performing an on-site evaluation adds an additional level of assurance. Considerations include:

  • Management
    • Is there a quality manual, and how are people trained?
  • Engineering
    • Are there control systems and a formal system of using updated drawings/specs?
  • Quality Control
    • Is there a quality department, and how much ultimate repsonsiblity do they have?
  • Incoming QC
    • Are raw materials inspected, and is inspection equipment calibrated?
  • Packaging
    • Are they packaged to prevent damaged and properly labeled?
  • Non-Conforming Materials
    • Is there a specific area for non-conforming materials and applicable training for handling/reporting?
  • Corrective Action
    • Is corrective action properly communicated, documented and follow-up on?
  • Manufacturing
    • Is there documentation, a maintenance program, etc.?

View an example Initial Supplier Evaluation report here to get a better idea of the basics when considering a potential partner.

Don’t Skip Inspections – Even the most highly rated suppliers have been known to release a shipment or two with quality issues that somehow went unseen. Some of these quality concerns can end up being safety issues that can easily result in recalls or other rework/warranty situations.  For an added level of assurance, incorporate pre-shipment inspections. These happen when the shipment is 100% produced and 80% packaged. So, you’re able to confirm visual/workmanship issues, functionality and packaging integrity issues.

View example QC inspection reports here to get a better idea of what’s included in the final evaluation of product.

For additional information regarding avoiding recalls and ensuring quality, contact us.

Recent recalls are listed on the CPSC site here.  “The CPSC fulfills its mission by banning dangerous consumer products, establishing safety requirements for other consumer products, issuing recalls of products already on the market, and researching potential hazards associated with consumer products.

A global site is also available here.  “The GlobalRecalls portal brings together information on product recalls being issued around the world, on a regular basis, together in one place – on an OECD platform.”

Quality: It’s What’s Driving the Global Automotive Industry

A report issued by McKinsey & Company predicting trends up through 2020 in the global automotive industry identifies four challenges that will affect the industry’s growth.  With these four challenges in mind, we offer quality solutions that effectively hedge or otherwise prepare those working within the industry.

  • Complexity and cost pressure
  • Diverging markets
  • Digital demands
  • Shifting industry landscape

“To capture future growth and find profit from these challenges – and to mitigate their risks – OEMs cannot simply turn to their traditional toolbox. They need to review and adjust their strategic priorities, deploy the appropriate investments and resources, and develop new skills to execute these strategic objectives.”

The automotive aftermarket faces it’s own challenges as well, discussed in detail within the Aftermarket Outlook 2020 report.  According to the report, challenges include:

Challenges_Aftermarket

Quality solutions continue to offer a competitive advantage that ensures long-term sustainability while effectively addressing challenges identified by the industry.  Solutions offered include:

  • Supplier Selection (Verification and on-site initial evaluations)
  • Product Development (Testing, PPAP, etc.)
  • Production (In-process QC inspections, order monitoring, corrective action, etc.)
  • Supplier Management (TS/ISO 16949 audits, process audits, ISO 14001 environmental/sustainability audits, SA8000 social audits, C-TPAT security audits, etc.)
  • Shipping – Logistics (Container loading supervision, pre-shipment QC inspections)

Over the last three decades, Pro QC has assisted a significant number of OEMs and aftermarket parts suppliers in reducing their associated risks and cost. View our example service reports here

Will you be one of over 44,000+ attendees at AAPEX this year? If so, visit us in Booth 1874 to learn more about how we help reduce quality risk and cost in the industry! If you are unable to attend, contact us anytime at one of our worldwide office locations.