ISQA 439 Class 3

1
ISQA 439Class 3

• Ethics
• Specifications

2
Ethics

• More than Gifts and Gratuities
• Cialdinis Influence
• Appearances

3
Unethical Sales Practices

• Commercial Bribery
• False Shortages
• False Price Breaks
• Market Allocation
• False Delivery Promises
• Quotation vs. Invoice
• False Representation
• Counterfeit

4
Unethical Purchasing Practices

• Shopping Bids
• Shopping Ideas
• Samples
• Favoritism
• Payment Terms
• Contract Quantities
• Conflict of Interest
• International Ethics Issues
• Cultural Issues
• Reciprocity

5
Purchasing and Back Door Selling

• Definition
• Why it Happens
• Remedies

6
Ethical Guidelines

• ISM Ethical Standards
• Policies and Procedures
• Ts and Cs
• Annual Supplier Letter
• Business vs. Social Relationships
• Defining Some
• Integrity

7
Sustainability and Ethics

• Three Pillars of Sustainability
• Environmental Responsibility
• Open Pit Mining
• Clear Cutting
• Social Responsibility
• Sweatshops
• Compensation
• Financial Sustainability

8
Specifications

• Responsibility
• Purchasings Role
• How Described
• Descriptive/Design Specs

9
Specification Provides

• Performance Requirements
• Parameters Which Describe
• Including Units of Measure
• Materials to be Used
• Production Processes
• Inspection, Test Requirements
• Reference to Other Documents or Specifications
• Mil Specs, Drawings, SAE Specs, etc.

10
Elements of Specifications

• Intended Use
• Standardization
• Value Analysis
• Internal Negotiation Opportunities

11
Quality

• How would you define Quality?

12
Quality

• Definitions
• Quality - Quality Control
• PROCESS Controls
• Rule of 10
• Quality and Multiple Sourcing
• Supplier Certification

13
Quality Definitions

• Manufacturing-Based - Philip Crosby
• Quality means conformance to requirements
• Value-Based - Feigenbaum
• Quality means best for certain customer
  conditions. These conditions are (a) the actual
  use, and (b) the selling price of the product

14
Quality Definitions

• Customer-Based - Juran
• Quality is fitness for use
• Customer-Based - ATT
• Quality is meeting customer expectations.

15
Philip CrosbyQuality is Free, pp. 15-16

• Quality has much in common with sex. Everyone
  is for it (under certain conditions, of course).
  Everyone feels they understand it (even though
  they wouldnt want to explain it). Everyone
  thinks execution is only a matter of following
  natural inclinations. (After all, we do get
  along somehow). And, of course most people feel
  that all problems in these areas are caused by
  other people. (If only they would take time to
  do things right).

16
Quality

• Is Quality Free?
• Can We Achieve 100 Quality?

17
Total Quality Management

• TQM Principles
• Know/Understand Customers and Requirements
• Satisfy/Delight Customers
• Continuous Improvement
• Elements of TQM
• Process Identification
• Process Mapping
• Process Simplification
• Process Controls
• Track - Monitor
• Continuous Improvement

18
Value Analysis

• Begun by Larry Miles at GE
• Basic Objectives
• Reduce Cost While Maintaining Function
• or
• Increase Function While Maintaining Cost
• NEVER Cheapen Product While Reducing Cost
• Focus is Always on Function and Value

19
Value Analysis, cont.

• Exploded View Parts Diagram
• Question Each Part
• Really Necessary?
• An Industry Standard?
• If Custom,
• of Most Suitable Material?
• Do Specs Reflect Need
• Manufactured in Most Efficient Way?
• Assembled in Most Efficient Way?
• Does Each Component Match Overall Design?
• An Example

20
Standardization

• Internal
• Processes
• Materials
• Equipment
• External
• Industry Standards (Materials)
• Industrial Standardization (SAE)
• Multi-Industry (ANSI, ASTM)
• International (ISO, Metrics)

21
Standardization

• Industry Standards
• Company Standardization
• Impacts on Inventory
• Impacts on Purchasing
• Impacts on Maintenance and Repair
• Impacts on Quality
• Implementation

22
Suppliers and New Product Development

• Early Supplier Involvement
• Supplier Expertise and Cost
• Latest Technology
• Faster to Market
• Improved Quality
• Fewer Changes

23
(No Transcript)
24
(No Transcript)