Quality Control 101 July 14, 2020 Presenters David Alexander Dory - PowerPoint PPT Presentation

Quality Control 101 July 14, 2020

Presenters David Alexander Dory Lanenter Founder & President, Sr. Quality Control Baysource Global Manager, QIMA 2 info@qima.com

Outline Sourcing the Right Supplier Risk Analysis Setting KPI Goals and Expectations QC 101 Free Resources 3 3 info@qima.com info@qima.com

Industries Automotive Commercial & Construction Fitness Home Appliance Equipment Equipment Food & Tools & HVAC Lawn & Beverage Hardware Garden Marine Medical Industrial Recreation Device Machinery & Sport Steel Educational Water Toys Treatment 4 4 info@qima.com info@qima.com

China’s Manufacturing Landscape 5 5 info@qima.com info@qima.com

Major Industrial Provinces North South Central Shandong Guangdong Hubei Hebei Guangxi Henan Beijing Guizhou Shanxi Tianjin Hunan Inner Mongolia Jiangxi Liaoning Jilin Heilongjiang East West Chongqing Shanghai Sichuan Zhejiang Shaanxi Jiangsu Gansu Fujian Ningxia Anhui Qingyai Yunan Tibet Xinjiang 6 info@qima.com

Proper Sourcing Program Workflow PHASE 1 RFIs RFIs RFIs RFIs RFIs RFIs RFIs RFIs Customer Key Kick-off DFMEA Meeting Desktop Research RFI Summary Phase 1 Criteria Checklist Report Summary Summary PHASE 2 PHASE 3 PHASE 4 RFIs RFQ/ RFIs RFPs Simple Comparison Comprehensive Matrix & Ranking Comparison Quote Comparison Matrix & Ranking Workbook Factory Audit Reports Phase 3 Phase 2 NDAs Initial Visit Phase 4 Summary Summary Reports Summary 7 info@qima.com

Strategic Priorities Find a good partner to grow an develop the business Scale up Diversify Reduce risk Mitigate tariffs 8 info@qima.com

Sourcing Research – RFP Initial Re- Audit QA, QC Samples SCM Visits RFQ search (Qualify) Plan (Verify) (Find) 1. Review required and preferred requirements 2. Prepare search criteria 3. Perform desktop research 4. China industry associations 5. Conduct phone interviews 6. Screen dozens of candidates: • Management interest? • Technical fit? • Reputation? • Solvency? • Quality procedures? • Etc. 9 info@qima.com

Potentials Suppliers removed after primary review Select for investigation Eliminate opt outs Rejected Semi finalist deep dive con calls Finalist recommended visits 10 info@qima.com

Target Map Initial Re- Audit QA, QC Samples SCM Visits RFQ search (Qualify) Plan (Verify) (Find) SVI Thailand Hi-P MIDEA Thailand Vietnam Rosti VS Industry Malaysia Malaysia Beyonics Malaysia Maspion Indonesia 11 info@qima.com

Initial Visit Criteria 12 info@qima.com

Recommend Eliminating from Consideration SVI (TH) Lack applicable plastic injection molding experience, final assembly, and box build capabilities. Beyonics (MY) Although they have capability across multiple core processes, they have no experience for leveraging all processes in one project. Midea (VN) Focuses on large white goods. Core competencies not applicable. Maspion (ID) Unsuitable for core product range but may have potential for flatware, glassware, and other accessories. 13 info@qima.com

Recommendations Initial Re- Audit QA, QC Samples SCM Visits RFQ search (Qualify) Plan (Verify) (Find) 1 2 3 Maximize competitive Combine onsite Collect insight and maximize negotiating position by manufacturing/quality audits investment in the CM sourcing including three companies with the RFQ phase to save process. Each company has different in the next phase. time and enable onsite strengths. Encourage feedback on verification of the quality, and design, material, and/or functionality accuracy of RFQ responses. – to take out cost. Gain value-add input whether we award the business to a particular supplier…or not. 14 14 info@qima.com info@qima.com

Scoring 4 Independent Scores 2 Client Leaders 2 CMD Leaders 5 Categories, 60 Criteria 1. Quality management 2. Quality inspection 3. Manufacturing capability 4. Warehousing, movement 5. R&D, cost management 15 info@qima.com

#1 V.S. Industry (MY) Pros Cons Large EMS provider. Large company. Deep experience with global brands. Bedford would be a small Locally concentrated in one site. percentage of total business. Long history with target applications. Risk of responsiveness suffering Product design launch capability with 50 R&D staffers. and falling in priority below this Solid NPI to launch new products. factory’s other major clients. Multiple manufacturing capabilities: Tooling design and fabrication: 80 units/month Plastic molding: 1500 units machines worldwide Plastic finish: 12 spray spindle line, laser marking SMT and PBCA: 40 SMT lines, 750 mil point/month Automated processes for wire harnesses High-precision metal stamping Chemical etching for stainless steel filters Woven and non-woven filter assembly Strong Complex box build capability 16 info@qima.com

QA/QC Initial Re- Audit QA, QC Samples SCM Visits RFQ search (Qualify) Plan (Verify) (Find) Perform QA/QC as required: Other reports & audits as required: Incoming Quality Control (IQC) ISO 9001 and/or ISO/IATF 16949 In Process Quality Control (IPQC) ISO 14001 Outgoing Quality Control (OQC) Production Part Approval Process (PPAP) Initial Sample Inspection Reports (ISIR) Failure Mode Effect Analysis (FMEA) First Article Inspection Report (FAI) Advanced Product Quality Planning (APQP) Statistical Process Control (SPC) Measurement System Analysis (MSA) Root Cause Analysis Environmental Audits Social Responsibility Audits Health & Safety Audits 17 info@qima.com

Prototypes, Sampling Initial Re- Audit QA, QC Samples SCM Visits RFQ search (Qualify) Plan (Verify) (Find) Tool/mold build (or relocation) supervision First article inspections Tool status reports First article inspection reports Review part variances with factory Sample payment facilitation Sample shipment consolidation 18 info@qima.com

Supply Chain Management Initial Re- Audit QA, QC Samples SCM Visits RFQ search (Qualify) Plan (Verify) (Find) Ongoing placement of purchase orders, monitoring production and assuring that supplier Manage the supply chain meets delivery times Outsource inspections to certified labs when required Monitor quality; provide reports, videos, photographs Supervise loading for on time delivery Coordinate exports Handle freight forwarder and customs documentation Follow up on the completion of orders 19 info@qima.com

Develop / Optimize Suppliers Root Cause/Corrective Action Implementation Resource Management Lean Inventory, Capacity Optimization Production Flow Optimization IP/Risk Management Automation Sustainability Advanced Planning, Scheduling KPIs, Dashboards 20 20 info@qima.com info@qima.com

2020-21 Course Continued tariff uncertainty Chinese export declines SE Asia shift is happening CMD Facility Screening, Thailand, 2019 21 info@qima.com

Risk Analysis and Making a Quality Plan Understanding your product Understanding your end clients Understanding your supplier Communicate and set expectations Build an inspection check list Are there mandatory testing requirements 22 info@qima.com

QC 101 Inspection types: IPC, PM, PSI, DUPRO, CLC, Sample taking AQL Check lists Factory Audit Testing 23 info@qima.com

Inspections Secure Your Product Quality at Every Stage of Production ProductionTimeline 0-20% 20-80% 80-100% 100% Initial Product Check (IPC) Pre-Shipment Container Loading During Production Inspection (DUPRO) Inspection (PSI) Check (CLC) Detect quality issues early in the Mid-production follow upto Verify the quality of the Ensure every product you production process (raw whole production lot before paid for makes it to the ensure that all issues materials, machines setup, etc.) discovered are corrected it leaves the factory truck; reduce the risk of damage during shipment before ordercompletion 0-100% Production Monitoring (PM) Detect quality issues early in the production process (raw materials, machines setup, etc.) Sample Picking (SP) Have samples collected from the production line, for your own reference or lab testing 24 info@qima.com

Our Supplier Audit Programs Bring Awareness and Education to Factories Ethical Audits: QIMA’s Best-In-Class Protocols use innovative solutions and most recognized international standards for ethical compliance Manufacturing Audits: Ensure your suppliers' capabilities deliver on their promises Structural Audits: T o keep workers safe, our licensed civil engineers assess the structural, fire, and electrical safety of factory buildings Environmental Audits: We assess your suppliers’ pollution risk through actionable audit protocols (ISO 14001) including chemical controls, water testing, waste disposal assessment C-TPAT Audits: Audits that strictly adhere to the protocols of U.S. Customs and Border Protection Food Audits: Hygiene (GHP) and Good Manufacturing Practice (GMP) Audits for food processing facilities 25 info@qima.com