In today’s competitive manufacturing and supply chain environment, the pursuit of high-quality outcomes is essential for businesses aiming to stay ahead. Preventing and eliminating defects is critical to sustaining customer satisfaction and reducing operational costs.
By working together, manufacturers and suppliers can identify potential weaknesses in the supply chain, agree on mutually beneficial solutions, and track progress together. The implementation of effective supplier development and controlled shipping programs can make all the difference.
Supplier development refers to the strategies and practices used by organizations to improve their suppliers’ capabilities, which in turn improves the quality, cost, and reliability of products they provide. Through effective supplier development programs, manufacturers can work collaboratively with their suppliers to align processes, enhance skill sets, and foster stronger communication and trust.
One of the essential tools in achieving these goals is the controlled shipping process. This process is used to manage and monitor the shipping of products from suppliers to manufacturers to customers. It ensures that defective parts or products do not enter the supply chain, which is crucial for maintaining high quality and operational efficiency.
The controlled shipping process has different levels of implementation depending on the severity of the issues and the required corrective actions.
Controlled Shipping Level 1 (CSL 1):
CSL 1 is a more basic and reactive level of control, focused on containing the issue temporarily. It is intended to prevent defective parts from reaching the manufacturing process while still allowing the supplier to manage the issue. It’s used when there is a suspected quality issue, but it hasn’t yet been deemed severe enough to require a complete shutdown or suspension of shipments.
CSL 1 can be in place for a short time, typically until the supplier demonstrates corrective actions that can ensure defects are resolved and do not recur.
Controlled Shipping Level 2 (CSL 2):
CSL 2 is a more stringent level of control, used when the problem has become recurring and more significant, and the risk of delivering defective products is high. It is intended for situations where the supplier has not been able to resolve or contain the issue at CSL 1, and the issue is critical enough that requires a higher level of oversight, thus requiring the services of a 3rd party.
Key actions taken for CSL 2 may include:
- The supplier is required to implement 100% inspection and even more rigorous controls, including root cause analysis and corrective actions. The customer’s requirements may include verification of these actions by the 3rd Party Quality Engineer.
- The supplier may need to provide frequent reports or documentation on quality monitoring activities, often under the scrutiny of a manufacturer’s quality team.
- In some cases, the manufacturer may place further restrictions on shipments or suspend shipments until improvements are made.
CSL 2 tends to last longer and remains in place until the supplier demonstrates that they have fully corrected the issue and have implemented measures to prevent recurrence. The duration of the CSL 2 activities will usually be determined by when the Permanent Corrective Actions (PCA) have been implemented and proven out (i.e., zero defects for X days following implementation and verification of the PCA). CSL 2 builds on the foundation of basic supplier quality controls and moves toward a more comprehensive, proactive, and corrective system.
Best Practices for Achieving Operational Excellence in CSL 2
Achieving operational excellence in the CSL 2 process requires a structured approach that emphasizes collaboration, continuous improvement, and data-driven analysis and decision-making. Some of the best practices for implementing CSL 2 successfully include:
- Defect Containment and Root Cause Identification
At CSL 2, containment measures are intensified. It is no longer enough to simply monitor shipments for defects; immediate corrective actions must be taken when issues arise. This involves implementing an enhanced process to identify defects early in the manufacturing or shipping process and reacting utilizing a structured problem-solving approach.
Defect containment includes steps such as sorting or reworking defective goods, but it also focuses heavily on finding the root cause of defects. By isolating the source of recurring quality problems – whether it is a design flaw, supplier error, or manufacturing inconsistency – companies can implement long-term fixes and prevent defects from recurring in future shipments.
- Increased Supplier Accountability
At CSL 2, suppliers are held to a higher standard of accountability for the quality of the parts they provide. There is a significant focus on ensuring that the suppliers’ quality management systems are robust and capable of preventing defects from leaving their facilities. The CSL 2 inspection process should be redundant to that being performed in the CSL 1. The objective is not just to react to problems, but to proactively engage with suppliers to ensure they are adhering to quality standards by viewing the CSL 2 as the customer,
Increased accountability means that suppliers are required to monitor the quality of their output more carefully and collaborate with manufacturers to ensure the right corrective actions are implemented.
- Collaboration and Communication with Suppliers
Open communication is paramount to ensuring operational excellence at CSL 2. Companies should establish a collaborative relationship with suppliers to foster transparency and a sense of shared responsibility for quality outcomes. Regular meetings, performance reviews, and joint problem-solving sessions help ensure that everyone involved understands the quality objectives and the actions necessary to meet them.
- Robust Data Collection and Analysis
Data plays a crucial role in ensuring operational excellence at CSL 2. The best way to monitor quality and identify recurring issues is through robust data collection and analysis.
Using real-time tracking tools and integrated systems can provide visibility into the entire supply chain, allowing issues to be addressed before they escalate into larger problems. The more data is collected and shared with stakeholders, the clearer the picture becomes for both suppliers and manufacturers about the recurring quality issues and potential fixes.
CSL 2 also places a strong emphasis on reporting. Effective reporting is a critical component of this level. Data must be collected, analyzed, and reported at every stage of the production and shipping process to track defect patterns, evaluate the effectiveness of containment actions, and determine areas that require further improvement.
- Corrective Action Plans and Verification
Corrective Action Plans (CAPs) are central to CSL 2. These plans are required to outline the actions that will be taken to address defects and prevent recurrence. The effectiveness of these plans must be verified through rigorous follow-up and evaluation. Verification ensures that the corrective actions put in place are not only addressing the immediate issues but also providing long-term solutions.
This often involves conducting audits of the corrective actions, reviewing defect reduction statistics, and engaging in continuous monitoring to track improvements. If CAPs are ineffective, additional measures, such as further process adjustments or stricter containment strategies, may be required.
- Implementing Continuous Improvement Programs
Quality issues and defects are often a result of systemic problems that can only be addressed through continuous improvement programs. Utilizing methodologies such as Lean, Six Sigma, or Total Quality Management (TQM) can help organizations identify inefficiencies, streamline processes, and reduce defects at the root cause. These programs help eliminate waste, improve consistency, and foster a culture of quality within the supply chain.
Through continuous improvement, organizations can evolve from reactive to proactive problem solvers, reducing the need for more extensive corrective actions over time.
- Training and Development for Suppliers
Suppliers may not always have the same resources, knowledge, or expertise as the manufacturers they supply. Providing training and resources can help suppliers improve their own quality control processes, which in turn improves the overall supply chain quality. This could include offering supplier workshops, sharing best practices, and providing tools to improve quality management systems.
Conclusion
In today’s competitive environment, focusing on supplier development programs and mastering CSL 2 not only enhances operational effectiveness and efficiency but also strengthens the foundation for sustainable, high-quality production processes that can prevent defective products from entering the supply chain.
By focusing on key characteristics such as defect containment, root cause analysis, increased supplier accountability, effective data analysis, and corrective action verification, suppliers and manufacturers can ensure a more robust process that consistently delivers high-quality products.
Vayan is fully committed to preventing nonconforming parts and assemblies from external suppliers or internal manufacturing processes to reach end-users by working closely with both OEMs and suppliers, leveraging data analytics and tracing quality issues to their root causes, and implementing sustainable corrective actions.
Our Supplier Development and Controlled Shipping Level 2 services can help you prevent quality issues before they cause a broader impact or resolve them quickly when they happen.
To learn more, go to Vayan Group – Engineering Support & Supplier Development Services, email us at [email protected] or call +1 (586) 795-9595. Our team would like the opportunity to discuss how Vayan can help you elevate your quality control processes.