New Supplier Introduction. Risk Minimization through Supplier Quality Management using the Example of a Chinese Automotive Supplier

Diploma Thesis , 2018 , 79 Pages , Grade: 1.3

Engineering - Mechanical Engineering

This thesis will examine supplier risk management and provide prospects to minimize these risks. Thus, the thesis will identify latent quality risks for automotive companies by introducing unknown suppliers and discloses methodological measures to minimize proactively such risks through the systematic of supplier quality management. The research is going to contribute a solution approach on this research problem that can be applied as a guideline to minimize supplier quality risks. Consequently, the theoretical framework for quality management and risk management will be examined by this thesis and existing tools and methods are compiled. A research study will be elaborated with findings and analysis from expert’s knowledge. These research findings will be combined subsequently with the theoretical framework and will culminate in a recommended approach to achieve supplier risk minimization.

With an increasing demand, the automotive industry must deal with the reliability of vehicles and components. The success of many companies is based on the quality of their products, especially for companies operating successfully on the global market. In fact, all the car manufacturers as well as their suppliers are expanding their production capacities in the growth region China. Thereby new, innovative suppliers need to be established which are quality-capable. Of great importance is high quality, absolute delivery reliability together with unrivaled low prices. Stable partnerships are required with suppliers to rely on in the long-term. A New Supplier Introduction represents a risk for quality particularly when the supplier starts from a Greenfield. The major problem when nominating new suppliers is that there is no security in advance for the quality performance of the new supplier in series and that the companies depend on their suppliers with their quality performance. The nomination of the dedicated suppliers has to be done without field experience or quality performance key indicators.

Inhaltsverzeichnis (Table of Contents)

• Abstract
• Table of Contents
• List of Abbreviations
• List of Figures
• List of Tables
• 1.1 Introduction
• 1.2 Problem Definition and Research Questions
• 1.3 Aims and Objectives
• 1.4 Thesis Outline and Structure
• 2 Concepts and Theoretical Framework
• 2.1 Supplier Quality Management
• 2.1.1 Need for Quality Management
• 2.1.2 Supplier Quality Management
• 2.2 New Supplier Risk Management
• 2.2.1 Risk Definition and Risk Management
• 2.2.2 Risks, uncertainties and threats by new suppliers
• 2.3 Chinese Supplier ""
• 2.3.1 Chinese Supplier "Precision Products Manufacturing"
• 2.3.2 Risk situation at
• 2.4 Intercultural competence for China
• 3 Tools and Methods to manage supplier risks
• 3.1 Strategic measures for risk minimization
• 3.2 Contract Management towards suppliers
• 3.2.1 General Quality Agreement
• 3.2.2 Strategic Supplier Contract
• 3.2.3 Feasibility Commitment
• 3.3 Methodological elements
• 3.3.1 Project Management
• 3.3.2 TS 16949 Requirements
• 3.3.3 ISO 9001
• 3.3.4 Qualified Supplier Location
• 3.3.5 VDA 6.3 Process Audit
• 3.3.6 Potential Analysis
• 3.3.7 Maturity Evaluation
• 3.3.8 Supplier Component Review
• 3.3.9 APQP - Advanced product quality planning
• 3.3.10 PPAP - Production Part Approval Process
• 3.3.11 FMEA Failure Mode Effects Analysis
• 3.3.12 Run@Rate / Capacity confirmation
• 3.3.13 Poka-Yoke
• 3.3.14 Safe Launch Concept
• 3.3.15 Final delivery release by customer
• 4 Methodology
• 4.1 Introduction to Research Methodology
• 4.2 Research Design and Process
• 4.2.1 Design
• 4.2.2 Process
• 4.2.3 Framework
• 4.3 Research Method
• 4.3.1 Qualitative Research Characteristics
• 4.3.2 Criteria of Qualitative Research
• 4.3.3 Data Collection Method
• 4.3.4 Structured Interview Section
• 4.3.5 Semi-Structured Interview Section
• 4.3.6 Interview procedure and participants
• 4.4 Analysis Method
• 5 Findings
• 5.1.1 Relevance of New Supplier Introduction
• 5.1.2 Main risks of NSI
• 5.1.3 Application of Tools and Methods
• 5.1.4 Effectiveness of methods
• 5.1.5 Lack of risk evaluation
• 5.1.6 Lack of Central SQM NSI
• 5.1.7 Dependencies on individual person and supplier
• 5.1.8 Ideas and improvement potential
• 5.1.9 Supplier Development
• 5.1.10 Purchasing and Escalation
• 5.1.11 Backup Strategy and Second Source
• 5.1.12 Proactive Risk Management before NSI
• 5.1.13 Summary
• 6 Discussion of Results
• 6.1 Outcome
• 6.2 Recommended Approach
• 6.3 Effort of time, money and personnel
• 7 Conclusion
• 7.1 Limitations
• 7.2 Suggestion for further research and Outlook

Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)

This thesis examines the challenges and opportunities of introducing new suppliers in the automotive industry, specifically focusing on minimizing quality risks associated with Chinese suppliers. The study aims to identify the potential quality risks involved and develop a methodological approach for proactive risk management through supplier quality management (SQM). This research will contribute a guideline for minimizing supplier quality risks, drawing on both theoretical frameworks and empirical findings.

• Supplier quality management and its role in mitigating risk
• Identifying and mitigating risks associated with new supplier introduction
• Analyzing the specific challenges of sourcing from Chinese suppliers
• Developing a practical approach for supplier risk minimization
• Assessing the effectiveness of various tools and methods for managing supplier quality

Zusammenfassung der Kapitel (Chapter Summaries)

• Chapter 1: Introduction: This chapter introduces the research topic of new supplier introduction in the automotive industry, highlighting the importance of supplier quality management in mitigating risks. It defines the research problem and outlines the key research questions that will be addressed throughout the thesis.
• Chapter 2: Concepts and Theoretical Framework: This chapter delves into the theoretical foundations of supplier quality management and risk management. It examines the need for quality management in the automotive industry, the specific challenges posed by new suppliers, and the importance of intercultural competence when working with Chinese suppliers.
• Chapter 3: Tools and Methods to Manage Supplier Risks: This chapter explores various tools and methods that can be employed to proactively manage supplier quality risks. It covers strategic measures for risk minimization, contract management strategies, and a comprehensive overview of methodological elements, including project management, quality standards, and risk assessment tools.
• Chapter 4: Methodology: This chapter outlines the research methodology used in the thesis, detailing the research design, process, and methods. It focuses on qualitative research methods and explains the data collection and analysis techniques employed to gather and interpret insights from expert interviews.
• Chapter 5: Findings: This chapter presents the findings of the research, analyzing the data gathered through interviews with industry experts. It identifies key challenges and opportunities related to new supplier introduction, the effectiveness of various risk management tools, and potential areas for improvement.
• Chapter 6: Discussion of Results: This chapter provides a comprehensive discussion of the research findings, highlighting the key outcomes and implications. It outlines a recommended approach for minimizing supplier quality risks based on the research results and discusses the required effort in terms of time, money, and personnel.

Schlüsselwörter (Keywords)

The key keywords and topics explored in this thesis include supplier quality management, new supplier introduction, risk minimization, risk management, quality, China sourcing, automotive industry, and intercultural competence. The study focuses on mitigating risks associated with new supplier introduction by utilizing a comprehensive framework for supplier quality management.

• College: University of applied sciences Frankfurt a. M.
• Grade: 1.3
• Author: Anonym (Author)
• Publication Year: 2018
• Pages: 79
• Catalog Number: V464999
• ISBN (eBook): 9783668942356
• ISBN (Book): 9783668942363
• Language: English
• Tags: Supplier Quality Management, New Supplier Introduction, Automotive, Risk Minimization, Supplier, Management, Chinese Automotive Supplier, New Supplier, Risk, risks, purchasing, buy, APQP, PPAP, VDA, AIAG, SQA, SQE, China, Chinese, Supplier Introduction, Suppliers, Introduction, Automotive Supplier, SQM, Quality Management, Quality, Engineering, Mechanical engineering, Maschinenbau, Einkauf, Master Thesis, Master, Diplomarbeit, car, Lieferanten, Lieferantenqualität, Sourcing, nomination, source