COST & QUALITY IMPACT ANALYSIS OF IMPLEMENTATION SUPPLIER QUALIFICATION MANAGEMENT IN X FACTORY

• Main Author: Irsan Artomo, Rindi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/48619
• Institution: Institut Teknologi Bandung

Supplier Qualification Management (SQM) is a life-cycle system that covers identification, selection, assessment/audit, quality agreement, change control, qualification, and supplier regular monitoring. This model does not only comprise of the requirements for business but the quality assurance system as well since the quality of materials is at worst risk as it directly links to finished product’s safety and efficacy. PT X is a Fast Moving Consumer Goods (FMCG where material processing is highly complex as it directly involves factory operational cost and the quality of end-product. So implementation of SQM in PT X is very suitable, since this system not only promote success in manufacturing but also quality of the finished product. According to the results of risk assessment, along with the audit result, numbers of complaint, and the shipment accuracy rate, a total of 232 suppliers were collected under certified supplier category and underwent skip lot testing based on arrival frequency. A total of 2,449 acquired material were used for skip lot testing; 508 passed skip lot in 5 arrival batches, 675 in 10 batches, and 1,266 in 20 batches. The study proves that the implementation of SQM significantly decreased the annual cost of material testing for 28 percent and supplier nonconformance report (SNCR) rate for 60 percent in 2019.