Title: Assessment of supplier quality cost in automobile industry

Authors: S.N. Teli; V.S. Majali; U.M. Bhushi; L.M. Gaikwad

Addresses: Mechanical Engineering Department, Gogte Institute of Technology, Khanapur Road, Udyambag, Belgaum-590 008, Karnataka, India ' Mechanical Engineering Department, Gogte Institute of Technology, Khanapur Road, Udyambag, Belgaum-590 008, Karnataka, India ' Sahyadri College of Mangalore Engineering and Management, 'Sahyadri Campus', Adyar, Mangalore-575007, Karnataka, India ' Mechanical Engineering Department, Saraswati College of Engineering, Plot No.46A, Sector-5, Kharghar, Navi Mumbai-410210, India

Abstract: Today the cost of quality (COQ) is of more strategic and economic importance, which has been previously applied for an internal performance measure within companies. The purpose of this paper is to present cost of quality using part per million equivalents (PPMeq) to determine rejected parts and their associated manufacturing cost. The customer's products and services depend upon supplier's cost, quality and delivery improvement. The purpose is to communicate expectation to our suppliers that has to be used in the manufacture, design and development of parts, products. A competitive advantage can be more effective by supplier quality management practices which involve a commitment of time, resources, and expertise. This paper briefly outlines PPM agreement to establish a minimum standard for the supplied quality and to encourage suppliers to develop ways of working towards the prevention of non-conformances and their underlying causes implemented by such manufacturers in supplier quality management.

Keywords: supplier assessment; supplier quality costs; part per million equivalents; PPMeq; automobile industry; automotive suppliers; cost of quality; COQ; rejected parts; manufacturing cost; supplier quality management.

DOI: 10.1504/IJQET.2014.059841

International Journal of Quality Engineering and Technology, 2014 Vol.4 No.1, pp.1 - 20

Received: 08 Mar 2013
Accepted: 12 Apr 2013
Published online: 17 May 2014 *

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