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7.4 Purchasing
7.4.1 Purchasing Process - Continued
Key Explanation Points and Tips:
ÞCategorize your purchased products and services accordingly. Then determine what controls you need to ensure consistent purchased product quality and consistent supplier performance. You can then apply different controls for different purchased products. There are several ways to evaluate your suppliers.
ÞBesides product quality, your criteria for supplier selection and evaluation may include the potential supplier’s - financial capability; technical and manufacturing capability and capacity; reliability; reputation; flexibility to handle changes; support; service; cost; etc. The importance of these criteria will vary according to the items materials or services you purchase, and so you can apply different criteria to different suppliers. You can categorize your suppliers accordingly based on these criteria. It might be useful to maintain a list of all qualified suppliers.
ÞOn top of the initial evaluation and approval of suppliers, you are required to carry out ongoing monitoring and measurement of their performance.
ÞUse supplier monitoring indicators to evaluate the consistency, capability and reliability of their performance for quality, delivery, support, etc. Various tools are available to do this.
ÞOn-time delivery is very important and disruptions (due to waiting for materials) at your customers or even your own facility must be avoided.
ÞDepending on the risks related to materials supplied and supplier performance, you might consider requiring some of your key suppliers to comply with some or all of ISO 9001 requirements and perhaps even certification.
ÞAs per clause 4.1, you must identify your purchasing processes whether on site or off site. For each process, you must document the controls for purchased product and suppliers. You must also show the linkage and interaction of purchasing processes with other processes such as design, manufacturing, tooling maintenance, calibration, etc.
ÞWhere any of your controlled suppliers have gone through a significant organizational change (mergers, acquisitions, etc), you must verify (e.g. get a copy of their latest ISO 9001 certification) the continuity and effectiveness of their QMS.
ÞYou must keep records of all supplier evaluations (whether initial or periodic), including any corrective actions placed on them for any nonconformities.
ÞClause 7.4 does not require a ‘documented’ procedure. However, you must identify and document all processes addressing this clause as part of your QMS (see clause 4.1). For these processes, you must also identify what specific documents, controls and resources are needed (see clause 4.2.1d. and 7.1b.).
You could use a documented procedure or other combination of specific practices, procedures, documents and methods. Look at the risks related to your product, processes and resources in determining the extent of documented controls you need to have (also see clause 4.2.1 notes).
ÞPerformance indicators (to measure the effectiveness of purchasing processes in meeting requirements and achieving quality objectives) should focus on measuring supplier performance and reducing variation in and improving purchasing processes and related use of resources.
ÞIndicators for supplier performance may include - reduction of defects in supplied product; scrap; waste and rework; improvement in on-time delivery, service, cost, etc. Indicators for purchasing process may include reduction in supplier - quote review cycle time; contract award cycle time; purchase order-entry errors and omissions; receiving errors & omissions; etc.
ÞFor performance indicators on supplier communications processes, see clause 5.5.3 first paragraph of key explanation points and tips.
