Supplier selection and supplier management improvements at an analytical instrument manufacturing company

Abstract

This thesis addresses the challenges of improving the quality of parts received from suppliers at Waters, an analytical instrument manufacturing company. Preliminary analysis identified improvement opportunities at evaluation of supplier's capability, agreement on requirements with suppliers at early supplier selection stage as well as closed loop supplier management. A 4-step sequential process was designed to improve the supplier selection and management process. First, an initial supplier capability assessment process is incorporated in the quotation process and the Analytical Hierarchy Process is used to make an integrated supplier selection decision. Second, a production part approval process ensures that the supplier fully understands the requirements and proves whether or not it can meet the requirements consistently. Third, a formal inspection report acceptance process for the new product is established to utilize the supplier's inspection resource. Fourth, a formal supplier corrective request process for nonconformance is suggested to provide corrective feedback to the supplier in addition to instructions for improvement. The overall new supplier selection and management process is expected to benefit both Waters and the suppliers. The suggested process is expected to have more visibility to the supplier's capability and improve the supplier quality. The non-value added activities such as incoming inspection rejections and the related disposition process are to be reduced and thus cost saving can be achieved.