Jamey Mann, Director of Global Purchasing for Kimball Electronics, and Paul Grooms, Quality Manager for Kimball Electronics – Tampa, were recently featured in the April edition of Electronics Sourcing North America. Both Jamey and Paul shared their experience and expertise regarding evaluating supplier performance for Kimball Electronics in the article titled, “There’s more to supplier performance than product quality.” Below are a few excerpts from the article and a link to the full story from Electronics Sourcing North America.
Examining supplier service
Other companies are also looking more closely at total cost and supplier responsiveness to requests, problems and issues. At EMS provider Kimball Electronics, based in Jasper, Ind., “service” is a key criterion that is measured, said Paul Grooms, quality manager. Service includes how well a supplier responds to an issue brought to its attention and if they address the issue with root cause analysis, corrective actions and formulate a preventative action plan, said Grooms.
TCO is an important component of supplier evaluation at Kimball. “The cost of transacting business is factored into the overall business rating of all suppliers,” said Jamey Mann, director of global purchasing and supply for Kimball. “Suppliers that provide additional attributes that lower the cost of doing business are provided more consideration in our sourcing decisions,” he said.
Such attributes include “coverage of liability, terms, freight, and inventory programs, all add value and are expected. We value the innovative contributions from our supply base,” said Mann.
Kimball measures quality of the products that suppliers manufacture. “Quality is an objective measure of the PPM (defect levels) over a rolling three-month period,” said Grooms. He added in discussions with suppliers, quality is “much more involved” than the PPM defect level.
“For example, a supplier that has a defective shipment, but demonstrates/provides services to address the immediate needs, such as sorting, replacement parts, failure analysis to address design marginalities is an invaluable partner and it is recognized by Kimball as a differentiator for doing business,” said Grooms.
With delivery, suppliers are measured on delivery to their committed date, said Mann. The percentage of deliveries that are on time are measured. “Each supplier’s ability to provide shipments within a fixed time frame (plus & minus) of the due date is very important to Kimball Electronics,” said Mann.
Shipments made too early impact inventory levels. Late deliveries can result in production lines going down, he noted.
While social responsibility is not part of the scorecard, a supplier is assessed on this when becoming a Kimball approved supplier. “Kimball makes it a priority to ensure our suppliers address both social and global regulatory responsibilities when doing business with us,” said Grooms.
Mann said that Kimball uses scorecards as the center point of periodic business/quality reviews with critical suppliers to improve relationships with suppliers to meet both parties’ needs.
Mann said scorecards are important to Kimball because having suppliers that “deliver a high-quality product on time and at the best cost is invaluable to us and our customers.”
Poor quality = less business
He said poor quality and service will impact the awarding of future business to a supplier. However, Kimball will work with problem suppliers to improve their performance.
Link to the full article from Electronics Sourcing North America here: