9 Steps for a Robust Quality Management System in Manufacturing Companies

Aug 2, 2022 | Procurement in manufacturing industries

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Aug 2, 20223 min read

Implement a successful procurement QMS for manufacturing with steps including defining quality standards, supplier evaluation and selection, supplier audits, performance monitoring, controlling goods quality, complaint management, employee training, and continuous improvement.

A procurement quality management system (QMS) is a set of processes and procedures that organizations use to ensure the quality of goods and services they acquire. In manufacturing companies, a procurement QMS is essential to ensure that the raw materials and components used in production meet the required quality standards and specifications. Here are the steps to implement a procurement QMS for manufacturing companies: 

  • Define the quality standards: This should include both industry-specific standards and internal company standards for evaluating suppliers and goods or services. 
  • Develop a supplier evaluation and selection process: This process should include a set of criteria for evaluating suppliers based on their quality, cost, delivery, and service capabilities. 
  • Implement a supplier quality audit program: Once suppliers have been evaluated and selected, a supplier quality audit program should be implemented to ensure that suppliers are meeting the established quality standards. This program should include regular supplier audits and inspections. 
  • Implement a supplier performance monitoring program: In addition to supplier quality audits, a supplier performance monitoring program should be implemented to track suppliers' performance over time. This program should include regular supplier reviews and performance metrics. 
  • Establish a system for supplier corrective action: This system will help address any quality issues that arise; it should include a process for identifying quality issues, communicating them to suppliers, and implementing corrective actions.  
  • Implement a system for monitoring and controlling the quality of goods and services: Once the suppliers have been evaluated, selected and their performance is being monitored, a system for monitoring and controlling the quality of goods and services should be implemented. This system should include processes for receiving, inspecting, and testing goods and services to ensure that they meet the established quality standards. 
  • Establish a complaint and non-conformance management system: This system should include a process for identifying, documenting, and resolving issues and complaints. 
  • Train employees on the procurement QMS: All employees involved in the procurement process should be trained on the procurement QMS, including the processes and procedures for evaluating suppliers, monitoring supplier performance, and controlling the quality of goods and services. 
  • Continuously improve the procurement QMS: The procurement QMS should be continuously reviewed and improved to ensure that it is effective and meets the changing needs of the organization. This should include regular audits, reviews, and performance metrics. 

Boeing and Toyota are examples of companies that have effectively leveraged procurement QMS. The companies have dedicated procurement QMS that include a supplier evaluation and selection process, supplier quality audit program, supplier performance monitoring program, and a system for monitoring and controlling the quality of goods and services. Through this process, Boeing and Toyota have been able to ensure the quality of goods and services used in production and improve supplier performance. 

Overall, it's clear that a procurement QMS is essential for manufacturing. 

FactWise generates sustainable positive impact for global product manufacturing companies by optimizing direct materials. Our end-to-end Source-to-Pay solution accounts for batch production, offers customizable goods receival and quality check workflows, enables teams to reschedule or terminate rejected quantities with a couple of clicks, and calculates accurate, on-time payments. Users find it intuitive and efficient (create RFX <1min) and love our dynamic and historic insights into supplier performance. 

About the Author

Stawan is the founder and CEO of FactWise. Before founding FactWise, Stawan was the NA TMT-Procurement Leader at McKinsey. Passionate about procurement, Stawan has 15 years’ experience in enabling clients of all sizes to achieve business impact via procurement.


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