The Quality Hub Podcast

Hello everyone and thanks for listening to the Quality Hub and chatting with ISO Experts. I’m your host Xavier Francis and today I’m here again with Murphy Shah and Matthew Pilley, both consultants here at Core Business Solutions. Glad you could join us again guys.

Hey Axe, I’m glad to be back. Awesome. Good morning.

Good morning. Good to see you again. Always a pleasure to have you guys here.
So this week is the second part of our three-part series on Purchasing and Clause 8.4 of ISO 9001 Standard. If you haven’t listened to the first part, we recommend you do so before continuing here. Well gentlemen, let’s get started.

Today we’re going to look at Clause 8.4.2 and I’m going to read the first section. It states, “The organization shall ensure that externally provided processes, products, and services do not adversely affect the organization’s ability to consistently deliver conforming products and services to its customers.”

So we’re going to start with Murphy this time.

What does that mean?

So that statement is pretty important. It’s about how we control our suppliers to ensure that they are providing us with good-quality parts and services. Because when their quality declines, that in turn would affect our ability to provide our customers with good quality products or services.

Okay, so it sort of shows that flow down. Yeah, it’s the domino effect. If our supplier falls, then we fall.

And then our customer falls. Right. So that’s what the standard is trying to say here.
If we put controls in place to ensure our supplier is okay, then we’ll be okay. And ultimately our customer will be okay.

All right, that’s pretty clear. Certainly is a proactive approach too and not just reactive. Putting things in place to manage your suppliers.

Makes sense. Now Matthew, how do we at CORE approach that?

The first thing we do is outline a supplier management process in your quality manual. So we help companies build a quality manual. Typically they don’t have one.

We have a template for that and that’s what we use to build out the company’s highest-level quality document, which is the quality manual. As with all clauses and requirements in the standard, we help the organization’s draft process for the qualification and evaluation of suppliers that align with those requirements. And we also typically define purchasing as what we consider to be a key process.

In case anybody isn’t familiar with key processes, the standard defines a key process as a critical activity or series of activities within an organization that is essential for achieving the intended outcomes. If we’re talking about suppliers that are supplying you with what you need to do your job and what your business needs to do, that’s pretty darn key.

Absolutely. And we want to achieve an outcome of conforming products. As a key process, one of the deliverables for our certification projects is to develop what we call a process plan document.

That process plan defines people within the business who serve as the process owner and the other key players who have a role in managing or administering the purchasing process. It documents the records and other procedures that are associated with the process and the organizational approach to how they carry out their purchasing process by way of activities or steps. Almost as if you’re defining a work instruction or a procedure.

The process of how you’re going to go about procuring product services.

Right. At a very high level. Within that process, a business can define how it intends to apply control to purchase products.

Whether that’s receipt of documentation such as certificates of conformance or associated test data. Any incoming inspections that might need to be performed based on the received products. And then finally, within our platform, we provide the tools necessary to document the qualification and evaluation of suppliers regularly for the evaluations.

Right. So just setting up that process, that key process of how to go about doing purchasing. Right.

And making sure it’s aligned with the values that you have as a company. Making sure it’s aligned with what you want from a supplier. So you need to determine all of that and then put a process in place.

Absolutely. Okay. Very good.

Now Murphy, what are some best practices for establishing effective supplier controls to ensure quality and compliance?

Well, the first control that I think of when it comes to suppliers is contracts and purchase orders. Okay. You know, this would help clearly define what is expected from the supplier and what they have to meet expectation-wise.

Okay. And that’ll ultimately tell the supplier what they have to do. Makes sense.

Another best practice that we help our clients with is to implement a good incoming inspection process. To make sure you receive the right stuff and it conforms to specifications.

Perhaps implement a written procedure that outlines those types of controls.

All right. And you know, on top of that, you could also implement a program to evaluate the supplier performance. To ensure they stay compliant with their requirements.

Not only evaluate their performance but also maybe visit them and audit them. To make sure the controls that you put on them are still being met and they’re satisfactory.

Okay. That’s interesting. I mean, that makes sense though.

If you’re making something that’s super important you need to make sure the tolerances are there. And certain things are used a certain way. Maybe from a manufacturing point, you want to make sure the tool is oiled properly.

So that something doesn’t hit a certain temperature. You know, when it’s being cut or something like that and you’re checking it out. That makes a lot of sense.

Now, Matthew, and Murphy mentioned contracts and POs. Are there any other ways that an organization can communicate its quality requirements and expectations to suppliers?

I mean, I would say that it starts at the very beginning of the process. When you first identify a supplier and decide that there’s somebody that you want to work with. Laying out your expectations for a supplier in terms of what’s necessary to keep the wheels turning at your business.

Clear and consistent communication about what you need from your suppliers. And a clear understanding of their capabilities. Do they have the ability to provide or do what it is you’re asking them to?

The capacity to provide products and services on time. With good quality at a high level. So communicating purchase order requirements.

And providing product requirements documentation that they’re expected to meet. Maybe that’s formal specifications. Maybe it means providing CAD drawings or blueprints.

You know, clearly defined terms and conditions as well. So that there’s no question. There’s no question about what you’re asking of them.

And they understand exactly what they need to do to meet what you’re asking for. Make sure that you’re providing enough information to set them up for success. Which ultimately sets you up for success.

So beyond that, if you want to go a step further, you can define and document formal quality agreements. That outlines specific requirements and expectations for products. And you can build out separate purchasing specifications for products that are mutually agreed upon.

Okay. So it comes down to clear communication and expectations. Yeah.

And it was interesting, you mentioned, you know, we talk about quality, quality, quality.