Northeast Supply Chain Conference Sheraton Framingham Hotel Framingham, MA September 20, 2004 Dr. Marilyn Pelosi Western New England College Professor & Jim Limperis, C.P.M. CFPIM GTR Manufacturing Corporate Account Manager

SUPPLIER CERTIFICATION: PARTNERING WITH ACADEMICS TO GET IT RIGHT!

WHY CERTIFY SUPPLIERS?  TO IDENTIFY,  RECOGNIZE AND  REWARD  HIGH-PERFORMING SUPPLIERS  WHO ARE STRATEGICALLY IMPORTANT LINKS  IN YOUR SUPPLY CHAIN

BENEFITS OF SUPPLIER CERTIFICATION  IMPROVE SUPPLIER COMPETITIVENESS  OPTIMIZE SOURCE SELECTION PROCESS  REDUCE INSPECTION  SUPPORT LEAN MANUFACTURING

THREE SUPPLIER CERTIFICATION AREAS  QUALITY SYSTEMS  BUSINESS PRACTICES/PROCESSES  SUPPLIER PERFORMANCE

QUALITY SYSTEMS  CONTINUOUS IMPROVEMENT SYSTEMS  PERFORMANCE MEASURES  IMPROVEMENT ACTION PLANS  MANAGEMENT REVIEWS  VARIATION CONTROL METHODS  PROCESS CAPABILITIES

SUPPLIER PERFORMANCE  QUALITY ACCEPTANCE  ON-TIME DELIVERY  COST COMPETITIVENESS  SERVICE/SATISFACTION INDEX

BUSINESS PRACTICES/PROCESSES  LEADERSHIP  QUALITY  TECHNOLOGY  COST  DELIVERY  SERVICE

SUPPLIER CAPABILITY ASSESSMENT  QUALITY SYSTEM  BUSINESS SYSTEMS  DESIGN TECHNOLOGY  PRODUCTION TECHNOLOGY  PROCESS MANAGEMENT  TRAINING  MATERIALS MANAGEMENT

QUALITY SYSTEM  QUALITY MANAGEMENT  ISO 9000 / QS9000  INTERNAL AUDITING PROCEDURE  FAILURE ANALYSIS CAPABILITY  BENCHMARKING EFFORTS

BUSINESS SYSTEMS  BUSINESS DISASTER RECOVERY PLAN  CAPACITY PLANNING  INTERNAL I.T. SYSTEMS SUPPORT  PERCENTAGE OF BUSINESS BY CUSTOMER & INDUSTRY  RMA CYCLE TIME

DESIGN TECHNOLOGY  EARLY SUPPLIER INVOLVEMENT PROCESS  PROTOTYPE FABRICATION CAPABILITY  PRODUCT QUALIFICATION AND CERTIFICATION PROCESS

PRODUCTION TECHNOLOGY  EQUIPMENT CONDITION  CAPABLE EQUIPMENT FOR PRODUCTION  DEFECT IDENTIFICATION AND HANDLING

PROCESS MANAGEMENT  PROCESS SET-UP CHECKLISTS  STATISTICAL PROCESS CONTROLS  PRODUCT/PROCESS CHANGE CONTROL  DEFECT TRACKING/REPORTING  CYCLE TIME REDUCTION PROGRAM

TRAINING  EMPLOYEE TRAINING  CROSS TRAINING  JOB ROTATION  EMPLOYEE AWARENESS OF COMPANY GOALS AND OBJECTIVES

MATERIALS MANAGEMENT  SUPPLIER’S SUPPLY BASE CONTROL  EDI CAPABILITY FOR SUPPLIER MATERIAL REQUIREMENTS  CONSIGNMENT PROGRAMS  WORK-IN-PROCESS INVENTORY MANAGEMENT  SUPPLIER INVENTORY TURNS

MATERIALS MANAGEMENT (CONT’D)  ON-TIME CUSTOMER DELIVERY  PURCHASED MATERIAL QUALIFICATION & CERTIFICATION  INTERNAL, PROACTIVE COST REDUCTION PROGRAMSS  BAR CODE LABELING

MISCELLANEOUS AUDIT POINTS  FINANCIAL ANALYSIS  FLEXIBILITY  MANAGEMENT INVOLVEMENT  UNIONIZED

SUPPLIER CERTIFICATION TRAINING  LEAN MANUFACTURING  STATISTICAL PROCESS CONTROLS  KAIZEN/ACCELERATED IMPROVEMENT PROCESSES  SET-UP REDUCTION METHODOLOGIES  VALUE STREAM MAPPING

CURRENT PRACTICES  CONTINUUM CHASM  SUPPLIER RECOGNITION OR LACK THEREOF  INCREASED FOCUS ON COST VIA REVERSE AUCTIONS, OUTSOURCING OFFSHORE, MULTIPLE BIDDING  LESS EMPHASIS ON ISO, QUALITY REVIEWS AND RECERTIFICATION