Supplier Certification

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SupplierCertification

• BUTLER, Andrew
• HAMPTON, Monica
• PINTO, Victor
• ROBERTS, Nolan
• SULLIVAN, Casey

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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
• Whos in charge of the certification process
• Most popular ISO standards
• Environmental Standards and supply chain
  certification
• Target Corporation
• Advantages vs. Disadvantages

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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.

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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.

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Typical criteria for certification

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

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Other types of standards

• British Standards (BS) The worlds 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

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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)

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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

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Companies Who RequireSupplier Certification

• DuPont
• - Services
• EMR
• TRFR
• Proof of Insurance
• Proof of any applicable contractors license
• Acceptance of DuPont General Service Conditions
  and On and Off Site Services Addendum to General
  Service Conditions

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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

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Companies Who RequireSupplier Certification

• DuPonts Quality Commitment
• Quality procedures to assure meeting our
  customers certification expectations, i.e. ISO,
  TS, QS, QA
• Quality Certifications
• ISO Certifications
• Akron Laboratory
• ISO/IEC 170252005 
• European Technical Center
• ISO 90012000 
• Kalrez
• Kalrez Certification - ISO 9001 
• Neoprene
• Pontchartrain ISO Certification
• Viton
• Chambers Works ISO 90012000
• Chambers Works ISO/TS 16929 
• Dordrecht ISO 14001 
• Dordrecht ISO 90012000
• Dordrecht ISO 90012000 Scope

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Companies Who RequireSupplier Certification

• Eastman Kodak Company
• Supplier Certification Criteria
• Evidence of a sound and effective quality
  management system
• Product/Service Quality/ reliability levels meet
  or exceed Kodaks requirements
• Delivery and lead-time performance levels meet or
  exceed Kodaks requirements
• Demonstrated capability of meeting of exceeding
  Kodaks year-over-year productivity requirements
• Supplier 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

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Whos 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.

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Most popular ISO standards

• ISO 220002005 Food safety management systems
• ISO 140012004 Environmental management systems
• ISO 90012000 Quality management systems
• ISO 221742005 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

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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.

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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 SMEs and economic, as well as
  environmental performance improved.

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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?

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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

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Target Corporation

• Target and Supplier Certification
• Corporation standards
• Supplier/Target relationships
• Certification impacts on relationships

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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

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Advantages vs. Disadvantages

• Disadvantages
• High Cost
• Time Consuming
• Documentation
• Requires employee support

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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.? 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)

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Questions