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ISO clause 7.4 states that:
³The organization shall ensure that purchased product conforms to specified
purchase requirements. The type and extent of control applied to the supplier and
the purchased product shall be dependent upon the effect of the purchased product
on subsequent product realization or the final product.

The organization shall evaluate and select suppliers based on their ability to supply
the product in accordance with the organization¶s requirements. Criteria for
selection, evaluation and re-evaluation shall be established.´

Suppliers are the basically backbone of the Organization. The organization must
have strong and efficient suppliers for the good output of the product.
Implementation of ISO is very helpful for the inspection evaluation and revaluation
of suppliers.

In clause 7.4.3 standard I found some verification about purchasing of product.

Industry shall establish some plans for inspection and evaluation of input in the
process.

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OBJECTIVE:
cccccccccccThe current project of supplier QA system is being carried out for the
fulfillment of the CQP course held under PIQC under the guidance of Sir Naeem
Shahzad. During the completion of this activity I note down few points which I
found very weak in that area and I suggest them to implement these points for the
betterment of organization.

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ÊCOPE:
ccc Suppliers of EMCO group of industries, Inspection and evaluation of suppliers.

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^ Ê
ÊTEM FOR ÊPPLIERÊ OF EMCO GROP OF

INDÊTRIEÊ
In the Tiles section of EMCO industry I found implementation of QA system in
supplier sector. According to EMCO quality policy Suppliers are their Partners.
The Top management is very keen observer about selection of their Supplier yet
they have very strong criteria for selection but I found some flaws in the system.
During my completion of this activity I suggest them to implement these points for
the improvement of organization.

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LOGIÊTICÊ F REÊ
Mostly logistics fares pay by the suppliers. Suppliers have their own cargo and
agents. EMCO policy has two ways for the payments of logistics fares. In first way
ex-mine and frat paid by the supplier and in the other way the cargo expenses paid
by the EMCO.

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ÊPPLIERÊ OF EMCO INDÊTRIEÊ

Since 1986 Top management of EMCO industries are personally connected with
Suppliers. Industry has criteria of the selection of supplier. Most of their Suppliers
of raw material are 24 years old it mean they have relationship with them from
start of Tile section. EMCO industries Tile section has 70 percent of old suppliers
and 30 percent portion of those suppliers which are connected with this industry
from couple of years. EMCO also have procedure of re assessment for old and new
suppliers. This process is for the betterment of raw material which is according to
the words of the top management is the input of process. Universal mining works,
swat mining works and Zia ul Allah Khan and Co are the most oldest and regular
suppliers of EMCO industry.

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ccccccccccccccccccccccccccccccccccccccccccccccccR  METERI LÊ
EMCO get their raw materials from all over the Pakistan. They want the best
suppliers among all Tile industries. Organization got the raw materials in the shape
of stones and clays. Most of the materials are from northern areas of Pakistan swat
and abotabad are the main cities of suppliers.

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ÊPPLIERÊ LIÊT OF EMCO TILE ÊECTION

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cccccccccccccccccOLD SUPPLIERS OF RAW MATERIAL 70%

OLD SUPPLIERS OF RAW MATERIAL 30%

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ccccccccccccccccccccccccccccccccc Procedure of selecting new supplier

The criteria of making a contract with EMCO as supplier the Company has to
submit an Intro letter about the product which they supply to the Organization with
a sampling lot for testing if the product is according to the specification. They
Order to supplier trial version for 3 times. The selection of supplier is according to
the ISO standard.

If the product is not fulfilling the requirement of organization they

send their specification to the supplier for correction. Acceptance rate is 90 percent
accuracy of product low before this rating EMCO consider that product as a reject
lot.

EMCO also noticed that the how much the supplier is financially strong because
they mostly bought their product in credit. According to EMCO policy supplier
must be financially strong.

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INÊPECTION OF PRODCT
For the inspection of the supplier¶s product organization have an inspection lab.
The sample product sent to the lab for inspection after process the lab
administration report the result to top management. Top management contact to the
supplier for the next trial orderÚccc

PERÊON L
VIÊIT INÊPECTION

After accept the intro letter from supplier the inspection team from ceramic lab
they visited the supplier¶s mines. They check the material status of the mine and
the equality of the product. EMCO believes in equal quality of product and input of
the process is really matters in production.

Inspection team checks their old n new supplier¶s quartile. The audit their
suppliers for the betterment out of the process if the production dept complains
about the products nonconformance the inspection team contact with supplier and
visit his place as soon as they can.

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RE ÊÊEÊÊMENT PROCEDRE
EMCO also have very strong criteria for reassessment of supplier. Firstly
Organization issues the questionnaire that must be filled by the supplier after that
they personally visit the place of supplier. Document number PU01 is the form of
reassessment/revaluation for supplier.

PRCH ÊING PROCEDRE

EMCO has a purchasing procedure Document number PCPU01. This standard is
set for the purchasing department of EMCO. This procedure has clauses,
references and an amendment sheet.

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RECOMMEND TIONÊ
cIn the end of this project I found some flaws in the structure of supplier selection,
evaluation and inspection. Most of the criteria of supplier selection are according
to QMS 9000. I noted down some gaps under my observation.

×c Organization must have some SOP's for the procedure of supplier.

×c No identification system on same component supplied by different supplier.
Organization should design a classification form between suppliers
×c Pre-assessment form must be designed before the evaluation of supplier.
×c QA agreement must be defined between EMCO and the suppliers.
×c Organization doesn¶t have contract procedure with the supplier. Top
management should signed contract with supplier before registration.
×c Organization only considering on quality control of supplier, like focusing
just on the end product. For the Quality assurance they have to focus on the
whole process of supplied material.

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