Auditing Cycles for Contract Manufacturers

Hi all,

We are currently developing an auditing cycle for all our contract manufacturers through risk assessment via the following factors:

- current audit score

- number of Non-conformances in a year

- the level(or severity) of the non-conformances

- CCPM

Just thought what would be other possible parameters we can include in our risk assessment (e.g. volume made) and what do other companies do to establish auditing cycles for their contract manufacturers

Cheers,

AC

Hi AC ,

there is three things :

- Risk assessment .

- Performance evaluation 

- Audit cycle.

for risk assessment , it depends on your organization size , business type , ... generally it is around the below titles ( each organization select its own )

- Capacity (Does the organization have the capacity to deliver the order)
- Competency (Is the organization, its people or its process competent)
- Consistency (Does the organization produce a consistent output)
- Control of process (Can the organization control its process and offer flexibility)
- Commitment to Quality (Does the organization effectively monitor and manage quality)
- Cash (Has the organization got a strong enough financial base)
- Cost (Is the product or service offered at a competitive price)
- Culture (Are the supplier and buyer cultures compatible)
- Clean (is the organization ethical, funded legitimately, doesn't engage Child labor, etc)

- Communication efficiency (Does the organisation have support technology of information integration)to support collaboration and co-ordination in the supply chain.

Performance Evaluation :

you can create you own way to set the KPI's for your supplier that satisfies you business needs .

beside what you used you can add :

- Delivered quantity accuracy vs. the PO  (%)( number of missed deliveries *100 / total number of deliveries ).

- On time deliver vs PO (%) ( number of missed deliveries * 100 / total number of deliveries ).

- Response to complaints / defects ( rate code be used. 

- FTQ ( consignment accepted without re-sampling or re-analysis. and so on ....

For audit Cycle :

most of organizations after the finalizing the risk assessment and financial calculations , they sign off an agreement then share their audit guideline or checklist and set an audit day with the supplier then the supplier , or perform a GAP assessment before the audit  , after the audit the action plan shared to be agreed and implemented , if supplier passes the audit it means that it is approved .

BR,

Ehab