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Vendor / Supplier / Contractor Selection Process

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Viewing 10 posts - 1 through 10 (of 10 total)
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  • #30140

    YSQuek
    Member

    Hi, I was wondering if anyone has experience or tips on such processes ( Transacttional ) to share ? Thanks & Regards
    James 

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    #78217

    Sharil
    Member

    Hi James,
    Guess what…? currently, I’m working on a transactional process. But mine is the (Request for Quotation) on-time delivery.
    Which Phase are you in now?  We had just finished off Measure Phase and we will be entering Analyze Phase. One of the main reason I do not like transactional process is because of its high percentage are involve in human factors. Which SUCKS..?
    Hey but that what six sigma is all about…taking new challenges to use the method.
    I know since our is a transactional process, I hope we can work together. Later

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    #78219

    Saherngu
    Participant

    Hi, Sharil. I think ours are quite similar. We’re developing a Preferred Supplier List that offer fixed price over a fixed period based on a certain quantity. Actually, I wondering what’s the best way to evaluate the suppliers and put them on the list. Problem is : the supplier is Sub-Contractor; whose prices, delivery and service quality is very subjective and difficult to quantify. Hmm …. ….
    Cheers !
    James 

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    #78227

    Ron
    Member

    Supplier selection is a critical part of any operation whether it is product or services being supplied.
    After spending twenty years in manufacturing I find myself now in the Transactional world. The things we found common in manufacturing have yet to surface in the transactional world.
    Supplier selection and control being a key. I would recommend you create a supplier selection procedure based on the criteria of the ISO 9000 documentation. A site survey should be a must requirement and the surveyor must be knowledgeable about the product or service being audited. If you do not have it you can contract that portion.
    Also always require your suppliers inform you of who their suppliers are and require notification of any change in their supply base.
    Any other questions feel free to contact me.
     

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    #78263

    YSQuek
    Member

    Hi, Ron. I agreed that it should be based on criteria of the ISO 9000 Doc. In fact, we have that in place. So, we have a Approved Sub-Contractor List of about 20+ Sub-Contractors. The List is revised and updated on a regular basis, accordingly to the performance and quality of services rendered. Price is not an Important Criteria for this evaluation procedure, since its pretty subjective. I think the ISO has taken care of the CTQ part of the Selection Process. Now, I into tackling the CTC aspect of it. Hope to reduce the number of approved Sub-Contractor from 20+ to 3. By increasing the Business Volume for them, I hope to achieve better pricing; say to bring down the average cost per point installation – Economy of Scale. We would treat them Preferred Sub-Contractors or Business Partners … … Well, this is the overall picture … … the challenge is how to reduce from 20+ to 3 Nos with Statisitical Justifications … I think first I’ll have to statistically show the Significane Difference on the type of service they’re offering to us. If there is, I’ll have to Categorize the “Different Type of Services”. Next, I’ll probably test for the “Significant Difference” on the Pricing from different Sub-Contractors … … if there’s no Significant Difference, things would be easy, since it means that their pricing strategies are generately quite similar, all we have to do to negotiate with them for a fixed price on a fixed quantity and terms, whoever can give us the lowest price ( with reasonable confidence level, of course ) would be the preferred Sub-Contractors … … If there’s is “Significant Difference” in their pricing, I might wanna base my selection criteria on their pricing consistency, and overall value per installation point; looking for the Sub-Contractor whose pricing has the smallest Variations and lowest Mean. Once, its identified, negotiate with them & convince them to enter into the ” Preferred Sub-Contractor Scheme “. Well, this is the approach I’ve in mind or rather what I’m doing right now … …
    I was wondering if this is case where solutions to the problem is pre-conceived, and we’re using statistically or 6 Sigma tools to justify the so-called solutions. Such approach, can get pretty baise and subjective, and its difficult to be detected … … Is such approach appropriate ? Can we still called this a 6 Sigma Project ?
    Regards
    James  

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    #78394

    shree nanguneri
    Member

    Hi,
    The selection of vendor/Supplier/Contractor regardless of the nature of the process be it manufacturing, transactional can be done very efficiently using a tool called QFD (Quality Functon Deployment) or otherwise known as House of Quality.  If you need any help in this matter, you may contact me. 
    I have used this over and over and each time it only made more sense to stick to it.
    Shree

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    #78400

    Girish R Tiwari
    Participant

    Please let me know some more detail as to how to go about it.
    We have about 350 Suppliers at present.
     
    Regards
    Girish

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    #78403

    shree nanguneri
    Member

    Hi Girish,
    Kindly send an email to [email protected]
    Shree

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    #78416

    Marvin
    Participant

    Shree,
    Don’t you just mean the house of quality? You wouldn’t do a full QFD on the vendors. Instead, you would label your wants on one axis and the vendors on the other axis. You would then quantify every vendor against each want (the vendors would all be relative then). Each want is also assigned a weighting. A final score per vendor can then be calculated, and you can select the top vendor more by quantitative fashion then qualitative.
    Isn’t that what you mean? If not, please clarify it here…I hate it when conversations go offline, everyone else loses out of the knowledge.
    Thanks,
    Marvin

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    #78435

    shree nanguneri
    Member

    Marvin:
    Yes the QFD I am referring to takes the House of Quality to a higher level in what you can do.   There is a way to quantify the metrics using the house of quality.  In order to get the house organized for accomplishing these metrics I preferred to coordinate a separate dialogue.
    For yours as well as others’ benefit, I would be glad to share the outcome based on the specific needs from the person who has requested it.  I also do not wish to dey people the benefit of learning.  However, to eliminate the waste of discussing items that would tend to digress from the issue, I proposed an efficient route that always worked.  Hope you guys wouldn’t mind.
    Shree

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