SupplierCertification

BUTLER, Andrew

HAMPTON, Monica

PINTO, Victor

ROBERTS, Nolan

SULLIVAN, Casey

Supplier Certification outline What is certification History of supply chain certification Typical criteria for certification Other types of standards Steps to supplier certification Companies who require supplier certification Who’s in charge of the certification process Most popular ISO standards Environmental Standards and supply chain certification Target Corporation Advantages vs. Disadvantages

What is certification?

Sets guidelines for generic standards.i.e. (ISO 9000 - Quality Management Standards), customer focus, leadership, involvement of people, process approach, and so on.

Organizations with the same certification follow the same general guidelines.i.e. (ISO 14001 - Environmental Management Standards), reduce energy consumption, reduce waste generation and disposal costs…

Leads to conformance & control.

History ofsupply chain certification

WWII: Bomb making factories in the UK had problems with bombs detonating in weapons factories.

INSPECTORS: Ministry of Defense placed inspectors in factories to oversee production.

UNITED STATES: Developed a standard for military procurement. NASA put together a similar quality standard.

BRITISH STANDARD INSTITUTE: BSI published the first UK standard for quality assurance. By 1979, they had developed BS5750, which set a precedent for later standards.

ISO: The International Organization for Standardization began setting management standards in 1987 with (ISO9000), but had been operating since 1947.

Typical criteria for certification

High quality Cost efficiency Precise delivery Strive for long-term partnership

Other types of standards

British Standards (BS) The world’s first national standards-making body (NSB) and is currently number one in the world. i.e. (BS 15000- IT Service Management), Used to assess managed IT service.

Society of Automotive Engineers (SAE) Has more than 90,000 members from more than 97 countries. Has over 8,300 technical standards and related documents. i.e. (SAE J1349 - Certified Power), A way to measure and report engine horsepower and torque.

While many types of registrars/standard developers exist, we will focus mainly on ISO and BSI

Steps to supplier certificationunder BSI (QMS)Purchase the standard / review literature and software Get familiar with the standard Quality publications Software tools

Assemble team / select strategy / Training Top management General awareness (workshops, seminars, courses)

Review consultancy options / choose a registrar Independent consultants Access effectiveness of your QMS, issue certificate (BSI)

Steps to supplier certificationunder BSI (QMS)Develop Quality manual / Develop support documentation Why you are in business, what your intentions are, how you are

applying the standard in your business Support the quality manual, how to complete a task, who does it,

order of standard

Implement your Quality Management System (QMS) Communication / training Collect records Pre-assessment by registrar (correct areas of concern)

Gain registration / continual assessment Registrar review of your QMS Advertise success, promote business

Companies Who RequireSupplier Certification

DuPont

- Services EMR TRFR Proof of Insurance Proof of any applicable contractor’s license Acceptance of DuPont “General Service Conditions” and

“On and Off Site Services Addendum to General Service Conditions”

Companies Who RequireSupplier Certification

Raw Materials

Materials must meet DuPont specifications as stated in purchase agreements issued by DuPont

Complete “Company Registration Form” for each manufacturing site supplying material to DuPont and provide supporting source documents

Quality system registration certificates

Action plans with completion dates to achieve quality system registration

Membership in the American Chemistry Council (ACC)

“DuPont Principles on Child and Forced Labor”

Companies Who RequireSupplier Certification

DuPont’s Quality Commitment Quality procedures to assure meeting our customers certification expectations,

i.e. ISO, TS, QS, QA Quality Certifications

ISO CertificationsAkron Laboratory

ISO/IEC 17025:2005 

European Technical Center ISO 9001:2000 

Kalrez® Kalrez® Certification - ISO 9001 

Neoprene Pontchartrain ISO Certification

Viton® Chambers Works ISO 9001:2000 Chambers Works ISO/TS 16929  Dordrecht ISO 14001  Dordrecht ISO 9001:2000 Dordrecht ISO 9001:2000 Scope Dordrecht ISO/TS 16949:2002 Dordrecht ISO/TS 16949:2002 Scope 

Companies Who RequireSupplier CertificationEastman Kodak CompanySupplier Certification Criteria: Evidence of a sound and effective quality management system Product/Service Quality/ reliability levels meet or exceed Kodak’s

requirements Delivery and lead-time performance levels meet or exceed Kodak’s

requirements Demonstrated capability of meeting of exceeding Kodak’s year-over-year

productivity requirementsSupplier Certification Process: Supplier demonstrates excellent performance meeting the above criteria The Supplier Quality Process Team recommends a supplier for certification The team submits evidence The Quality Director of Worldwide Purchasing awards certification Supplier certification is renewed yearly if…

Who’s in charge of the certification process The International Organization for Standardization (ISO),

publishes a variety of international standards for various organizations.

Many companies have accreditation bodies to authorize certification bodies/registrars, which audit organizations that are applying for a standard.

The certification process is done through the “third-party” registrars, like BSI Management Systems, the market leader in certification.

Most popular ISO standards

ISO 22000:2005 Food safety management systems

ISO 14001:2004 Environmental management systems

ISO 9001:2000 Quality management systems

ISO 22174:2005 Microbiology of food and animal feeding stuffs

- As of 2005, there are 15,000 ISO standards and over 300,000 pages worth of terminology and information

Environmental Standards and Supply Chain Certification

ISO 14000 Benefits

Cleaner, more environmentally friendly process, products and overall environment.

Quality Products Costs

Can be expensive to implement. Already being done in most of the US, through state law,

and EPA. Repetitive as a result.

Proyecta Guadalajara

Study of small to medium enterprises by World Bank, and Mexican Government on feasibility of ISO 14001. Increased environmental awareness by smaller countries where

pollution is an issue.

Implications Implementation of ISO 14001 was well within the reach of most

SME’s and economic, as well as environmental performance improved.

Proyecta Guadalajara (ctd.) Several companies in Mexico now seeking

certification through ISO and Mexican Institute for Normalization and Certification.

Why should we care? If it is a successful project, and it was, then is it possible to

duplicate the results in other poorer countries?

WEEE and the Supply Chain Certification

WEEE is a law passed by the EU in 2000.

Waste Electrical and Electronic Equipment Take back program to deal with electronic waste,

regardless of country of origin. Companies that do business in Europe will find it

much easier to do business with suppliers who are certified in ISO 14001.

Dell

Target Corporation

Target and Supplier Certification Corporation standards

Supplier/Target relationships Certification impacts on relationships

Advantages vs. Disadvantages Advantages

• Marketing tool• Procurement inclusion• Education and mentoring• Network opportunities• Financial assistance• Less Inspection/Cost Savings• Increase profitability and customer satisfaction

- Reduced waste and rework, shortened cycle times, improved problem tracking and resolution and better supplier relations.

• 90 countries around the world have adopted ISO standards• Objective third party verification of quality assurance• Sustainable business performance• Lower cost solutions• Higher quality products• Long term relationship with suppliers

Advantages vs. Disadvantages

Disadvantages

High Cost Time Consuming

Documentation

Requires employee support

Sources www.bsiamericas.com http://www.bsi-global.com/ www.iso.org http://www.capsresearch.org/ http://www1.us.dell.com/content/topics/global.aspx/corp/environment/ http://www.kodak. http://www.ism.ws/ www.dupont.com http://www.wbenc.org/ http://www.inc.com/magazine/20060401/index.html T558, Target Distribution Center, Keil and Getz Author Unknown. “Countdown to compliance” Works Management; Dec2005, Vol. 58 Issue

12, p28-29, 2p King, Andrew and Lenox, Michael. “New Report Finds Mixed Meaning in ISO 14001

Certification” An excerpt from the academic paper "ISO 14001 Helps Buyers Push Suppliers to Clean Up Their Acts. ﾓ Business & the Environment with ISO 14000 Updates; Feb2006, Vol. 17 Issue 2, p13-13, 2/3p

Wells, Richard P.; Galbraith, David. Greener Management International, Winter99 Issue 28, p90, 13p, 3 graphs, 1bw; (AN 3423603)

Questions …