External supplier capability

In the Intoduction to ISO 9001 it states that the quality assurance models represent three distinct forms of quality system suitable for the purpose of a supplier demonstrating its capability and for the assessment of such capability by external parties. In other words, the standard is suitable for contractual as well as for assessment purposes, but it does not actually require demonstration of capability to the assessor or purchaser unless required by the contract. 

Operations Suppliers, manufacturing/production capabilities, distribution organizations, equipment, and facilities. Includes both internal and external trading partner operations. The latter can include operations in channels, other company divisions, and key suppliers. 

Effective QA enables the EPCM contractor to master quality issues, getting it right first time with the resulting economies of time, money and effort. Externally, QA exercised by the EPCM contractor helps give confidence to the owner in the capacity of the former to deliver the plant to specified requirements. The same reasoning can be applied concerning suppliers and construction contractors. Their own QA measures produce internal benefits and, in addition, contribute to convincing the EPCM contractor and the owner as to their capabilities and the conformity of materiel supplied and works carried out. 

The procurement capability such as order processing, contract management, and supplier relationship management, must be designed in response to the external and internal drivers. 

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