Embedding quality assurance within procurement
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The document discusses procurement quality assurance and its importance. It describes the key activities in procurement quality assurance like developing a procurement quality strategy, evaluating supplier quality in tenders, monitoring supplier quality performance, and ensuring quality requirements are included in contracts. The goal is to embed quality considerations throughout the procurement process from the initial tender stage through supplier performance monitoring after contract placement. This helps manage quality risks and assure the delivery of products and services that meet requirements.
Embedding quality assurance within procurement
- 1. THE IMPORTANCE OF Developed and Presented by Myron. D. B. Betshanger
- 2. WHAT IS PROCUREMENT QUALITY ASSURANCE ? Quality Planning • Quality documents • Quality skills & resources • Budget • ISO 9001 compliant QMS • E- Quality system tool • Audit Plans Quality Engineering • Specifications/Scope/Works info • Design Quality • Energy Efficiency Quality • QA & QC Risk assessment & baseline setting • Concessions granted • Designs reviewed • Designs changed Procurement Quality Assurance • Procurement Quality Strategy • Enquiries • Evaluations • Physical assessments • Adjudications • Negotiations • Designs reviewed • Contracting • Expediting • Supplier Quality Performance Execution QA+QC • Package/Works Quality docs • Inspection & Surv schedule • Inspections & Surv execution • Materials QC • Fabrication QC • FAT/SAT • Shipping & Transport QC • Preservation QC • Construction/Erection QC • Pre-Commissioning QC • Commissioning QC • Databook Quality Underpinned by a strong focus on Management Responsibility, People & Suppliers Customers & Stakeholders Assurance & Improvement effort • System Reviews • Training and Competency in ISO & Quality Principles • Training & Competency in e-Quality system tool • Promotion of Quality • Awareness of Eskom Quality Requirements • Internal Customers & Stakeholders • External Stakeholders • Quality Audit outcomes • Quality Management System Improvement
- 3. Focused on Delivery Supplier Quality Assurance Excellence Quality Engineering - Assure quality in design Supplier Assurance & Performance Measurement Quality Control Supplier performance at Execution System Assurance and Supplier Audits - Perform assessments and audits Procurement Quality Assurance -embedding Quality into contracts - Supplier evaluation, negotiation, adjudication
- 4. Some Risk Attached To A Lack Of Proper Procurement Quality Assurance Inadequate Quality specifications in tender documents Potential misunderstanding of quality requirements by potential suppliers Insufficient emphasis of quality requirements based on importance & criticality of products / services Less capable suppliers could be contracted Subsequent difficulties with managing supplier quality performance objectively on quality against original quality requirements and performance criteria Insufficient Quality requirements in Contracts
- 5. Quality Value Chain Representation Provide integrated project & programme life cycle quality assurance & control services ASSURE QUALITY in CONCEPTUAL PHASE ASSURE QUALITY in DESIGN PHASE ASSURE QUALITY in PROCUREMENT PROCESS VERIFY PRODUCT & SERVICE QUALITY in EXECUTION MEASURE, ANALYSE & IMPROVE QUALITY ASSURE QUALITY ENABLE COMPLIANCE, EXCELLENCE AND QUALITY
- 6. Procurement Quality Assurance In Cross-Functional Teams Quality Project/Package Mgt Commercial Engineering Legend Project / Package : QA/QC Processes and Interfaces URS Quality Engineering Review and Assurance Review /Change designs Approve final designs with full Quality specs. Development designs and technical specs Procure with full supplier Quality and Tech specs Develop PQ strategy & Perform Procurement QA + Supplier Assessment After Contract award, Facilitate Quality hand-over to Execution. Participate in Quality docs/ITP's Reviews Develop Procurement approach Review technical corrective actions & approve concessions Participate in Quality docs/ITP's Reviews Forward reviewed to Quality docs/IPT's to supplier Co-ordinate review of Quality docs,ITP's by team and approve. Received and act on issues by supplier/contractors, review & approve non-tech corrective actions & concessions Receive Inspection notifications, inspect and provide PM with issues + reports. Re-inspect where required. Quality Engineering Dept. Procurement QA Dept. QC Dept.
- 7. Support the Procurement process by providing and managing the Quality Assurance elements into the Procurement Value Chain for Projects and Services. The key focus areas are: • Development of Risk based Procurement Quality Strategy. • Development of procurement Quality specifications into Enquiries. • Evaluations of Quality aspects in tender submissions and bids. • Adjudication Quality decision support. • Negotiations support on Quality aspects. • Assure Quality requirements in Contracts. • Post Contract Supplier Quality performance monitoring.
- 8. Procurement Quality Assurance Activities In Procurement Value Chain Procurement Strategy Meetings • Agree on evaluation method for tender returnable’s for quality based on scope of work • Technical Evaluation Strategy document Review Tender Documents • Ensure agreed Quality requirements are included in tender documents • Acceptable tender in line with Eskom Requirements Attend Clarification Meetings • Clarify with potential tenderers the quality returnable’s
- 9. Procurement Quality Assurance Activities In Procurement Value Chain Tender evaluation • Evaluate Tender quality returnable’s in line with the evaluation quality requirements • Clarification points, Fair evaluation results, Final Report Supplier Negotiation Meetings • Negotiate with suppliers on quality deliverables • Clarified deliverables in line with Eskom’s Quality Requirements Supplier Assessments • Ensure that capability and capacity assessments are performed on potential suppliers • Submit final evaluation reports for potential suppliers
- 10. Procurement Quality Assurance Involvement In Contract Placement Contract Placement • Ensure Quality requirements embedded in contract • Contract placed with adequate Quality requirements Handover to Execution • Handover and introductions • Entitlement of Quality Control Personnel • Enable enforcement of requirements by suppliers
- 11. Procurement Quality Assurance Involvement In Contract Placement Monitoring of Supplier Quality Performance during the Product or Service Delivery Phase • Measure and Monitor. • Manage supplier quality database Expediting • A Pro-active discipline implemented early in a project life cycle to ensure equipment and materials are delivered on time to meet the Project programme requirements by the regular monitoring of the supplier’s performance during manufacture and their ability to meet the contractual delivery dates • Benefits • construction milestones are achieved • timely completion of the project • Risks • No expediting or inadequate expediting can result in serious delays due to manufacturing problems going unnoticed, which could have major cost implications and have a serious impact on the construction schedule and ultimately delay project completion.
- 12. Procurement Quality Assurance in Supplier Performance Monitoring • Monitored Key Performance Areas include: • Quality • Delivery • Design • Cost • Management System
- 13. Supplier Performance- Quality Review Introduction • Supplier Quality Performance Monitoring rating is a consistent process to monitor identified supplier • Key Performance Areas aligned to quality that are critical to our success • The process is designed to Capture specific data, utilizing a scorecard and ranking approach and a Combination of :Qualitative (subjective) & Quantitative (objective) measurement Scope • This Procedure Applies to the procurement of products and services from approved suppliers and the subsequent measurement of performance of those suppliers on quality aspects. Purpose • The Purpose is to ensure that Suppliers are objectively measures and monitors the performance on Quality aspects, to determine corrective, preventive and improvement actions relevant to continued usage of a supplier Process for Monitoring Supplier Performance Monitoring is broken down into 3 main activities PREPARE for Supplier Quality Performance monitoring EXECUTE Supplier Quality Performance Monitoring And REPORT on Supplier Quality Performance Monitoring
- 14. Thank You Myron . D. B. Betshanger Corporate Governance & Strategic Management, Ethics, Compliance & ERM Specialist, and Anti-Corruption Specialist, Procurement / Supplier Quality Assurer. Cell. 082 5243086 E-mail: betshangermyron2@gmail.com @betshangermyron LinkedIn: http://www.linkedin.com/pub/myron-duncan-burton-betshanger/ 37/219/1b8