The Supplier

Probably the single most discussed area of Supply Chain Management and of international operations management is the management of the supplier in the supply chain. The supply chain can best be described by the words movement, integration, and time. 

Reinventing Lean - Introducing Lean Management into the Supply Chain 

Supply Chain Management also focuses on time. One of the primary goals behind the management of the supply chain is to help us achieve time efficiency throughout the entire supply network. Only by managing and optimizing the entire flow is it possible to shorten the cycle time. 

In this section we will discuss the management of the supply chain by focusing on supplier sourcing and scheduling. In the next chapter we will look at the integration and waste elimination needs of the supply chain. Later in the book we will focus on cycle time efficiencies and logistics/wholesale management. To start this process, let s visit with a new company, N, Inc. 

has encountered numerous difficulties in managing its supply chain. For example, it sources computer components from all over the world. In addition, it manufactures many of its own components and brings them into the production process when external resources become too expensive or difficult to access. However, its divisions are not required to purchase internally produced components rather, they are required to be externally competitive. 

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The demand for domestic gas changes seasonally in temperate climates, and production levels reflect this change. For example a sudden cold day in Northern Europe causes a sharply increased requirement for gas, and gas sales contracts in this region will allow the purchaser to demand an instant increase (up to a certain maximum) from the supplier. To safeguard for seasonal swings, imported gas is frequently stored in underground... 

On the other hand, the NDT service business has evolved towards a more open market, in which the prime contractor requires a transparent access to the data provided by the supplier, in order to ensure the comparison of data obtained from different sources and at different periods of time. Existing fomiats are most of the time proprietary formats released by instrument manufacturers, generally dealing with a unique NDT method and not including complementary information on the acquisition consequently, they fail to meet these requirements. 

As stated above the Surveyor s role will include an assessment of the yard s quality control department including the suppliers of any contracted NDE services. The Surveyor will look for the employment of qualified personnel, the availability of adequate inspection procedures and the presentation of definitive NDE reports. 

What size tube or flow passage is available Small tubes plug unless filtration is installed. Size of filtering is needed from the supplier. 

The technology package for the toll should have established minimum standards for the raw materials that are used in the process. In some tolling arrangements, the company letting the toll supplies some or all of the materials. Others may detail the suppliers the toller must use. 

Organo-metallic compounds, on the other hand, behave very much like organic compounds, e.g. they can be redistilled and may be soluble in organic solvents. A note of caution should be made about handling organo-metallic compounds, e.g. arsines, because of their potential toxicities, particularly when they are volatile. Generally the suppliers of such compounds provide details about their safe manipulation. These should be read carefully and adhered to closely. If in any doubt always assume that the materials are lethal and treat them with utmost care. The same safety precautions about the handling of substances as stated in Chapter 4 should be followed here (see Chapter 1). 

Website references for distributors of substances or/and of equipment have been included in the text. However, since these may be changed in the future we must rely on the suppliers to inform users of their change in website references. 

As before, the data presented here are approximate, intended for the first phase of design. When the choice has narrowed sufficiently, it is important to consult more exhaustive data compilations (see Further Reading) and then to obtain detailed specifications from the supplier of the material you intend to use. Finally, if the component is a critical one, you should conduct your own tests. The properties of ceramics are more variable than those of metals the same material, from two different suppliers, could differ in toughness and strength by a factor of two. 

The platinum anode used was Model 611 obtained from Engelhard Industries. This eleetrode has a height of 5.6 cm. and a diameter of 5.1 em. The total surface area claimed by the supplier is 200 cm.. ... 

The link with FMEA brings into play the additional dimension of potential variability into the assessment of the failure modes and the effects on the customer. The Conformability Matrix also highlights those bought-in components and/or assemblies that have been analysed and found to have conformance problems and require further communication with the supplier. This will ultimately improve the supplier development process by highlighting problems up front. 

The analysis indicated that the conformance problems associated with the hub design had a cost of failure of more than 30%. This would represent at the annual production quantity required and target selling price, a loss to the business of several million pounds. As a result of the study the business had further detailed discussions with their suppliers and not surprisingly it turned out that the supplier would only be prepared to stand by its original quotation provided the tolerances on the hub, discussed above, were opened up considerably (more than 50%). Subsequently, this result supported the adoption of another more capable design scheme. 

The proeess eapability requirements for eomponent eharaeteristies determined by CA are used to support the supplier development proeess. In the approaeh, new designs of bought-in parts sueh as eastings, plastie mouldings and assembly work are diseussed with proeess eapability requirements as the first priority. Where a potential problem with the toleranee on a eharaeteristie has been identified, this... 

A key success factor for reducing the costs and lead times for vehicle manufacturers, for example, is the degree of integration of the suppliers within the product development process. This is seen as a natural extension to concurrent engineering principles (Wyatt et al., 1998). For many years, in engineering companies, a substantial proportion of the finished product, typically two thirds, consists of components or subassemblies produced by suppliers (Noori and Radford, 1995). 

Qualifying the supplier s design through evaluation of produet samples... 

Qualifying the supplier s eapability to meet quality requirements on produetion lots. 

Conduet joint quality planning Co-operate with the supplier during eontaet Obtain proof of eonformanee Certify qualified supplier... 

Boilers. Boiler efficiency will determine how much fuel is used, an important operating cost parameter. Pin the supplier down on just what efficiency is quoted and whether the basis is higher or lower fuel heating value. 

Once the efficiency claim is clear, establish how the supplier plans to achieve the efficiency. What stack gas temperature is required for the efficiency to hold and does the design appear to have the ability to consistently achieve this temperature What percentage excess air is required for efficiency maintenance ... 

On slow-speed equipment, where the hub does not have to be removed for maintenance and integral hubs are not available from the supplier, a straight fit can be used with a reasonably heavy shrink—1.25 mil/ in. of diameter. Tolerances may allow this value to vary from 1.0 to 1.5 mil/in. of diameter however, 1.0 mil/in. may be loo loose for some applications, while 1.5 mil/in. over-stresses hubs at maximum bore sizes. In light of this, each application should be carefully evaluated if there is no experience at hand to use as a guide. Of course, field removal at the higher shrink fit is mnrv difficult. Keys should not be used. 

Finally, a sincere thanks to all the suppliers who provided material for the figures. 

The suppliers of nylon 46 have laid particular emphasis on the fact that this polymer, with its highly symmetrical chain structure, leads to both a high level of crystallinity and a high rate of nucleation. In turn the high nucleation rate leads to a fine crystalline structure which in this case is claimed to lead to a higher impact strength (dry as moulded) than with nylons 6 and 66. 

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