Incoming Inspection Improvement and System development for Evaluation of Supplier : a Case Study of an Acrylic Sheet Factory

Abstract

This thesis is concerned with incoming inspection and supplier evaluation syseem in a case factory, which is a producer of cast acrylic sheet. The purpose of the study was to examine the current practice in these areas and propose ways propose ways to imporvements. An examination into the existing practice for raw material inspection revealed a number of problems in the areas of Man, Machine, Material, Method&Measurements. A Team appointed from all departments involved and affected by raw materials was set to solve problems in these areas and establish a formalized inspection plan for key raw materials. Regarding the system for evaluating suppliers, the existing system measured only suppliers' product quality and delivery performance. A new system was developed to incorporate more criteria to provide a comprehensive view of suppliers' performance. The new system measures suppliers in the areas of product quality, delivery, pricing, and service. An audit was also added as a requirement to assess suppliers' facility, capability, as well as internal processes. The cross-functional approach was emphasized throughout all stages of the development of this evaluation system from design to rating of suppliers. Results from six-month observation showed a trend for improvement in suppliers' delivery. On-time deliveries have improved from 85 percent to 95 percent for masking paper and from 83 percent to 95 percent for pigment/ dye. The majority of key suppliers also demonstrated overall improvement in service level. In addition, there is also a noticeable trend of decrease in defects caused by masking paper and pigment/dye