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4.1 Governance and Operating Model

Supplier Quality Management (SQM) is notthe "Procurementtechnical withfirewall aseparating caliper."external Whilesupply Procurementchain focusesentropy onfrom your internal manufacturing stability. Unlike Procurement, which optimizes for cost and delivery (Commercial), SupplierSQM Qualityoptimizes focuses onfor riskRisk and capabilityCapability (Technical). TheThis missionchapter mandates the operational architecture required to extend process control beyond the factory walls, ensuring external partners function as reliable extensions of the SQM function is to extend the factory's quality firewall beyond our own four walls, ensuring that external partners operate with the same rigor as our internal lines.production This chapter defines the boundaries, authority, and operational rhythm of the Supplier Quality Engineer (SQE).line.

Mission and Boundaries

The SQESupplier isQuality theEngineer technical(SQE) conscienceoperates ofwith the supply chain. The role is governed by a strictabsolute separation of powers from Procurement. This separation is critical to prevent conflictsthe conflict of interest betweeninherent in prioritizing "gettingcheaper" the part cheap" andover "getting the part right.compliant."

  • The SQE Mission: To guarantee that no defective material entersIf the manufacturingissue streamis andTechnical that(Capability, supplierRisk, processesSpecification) are–> statistically capable of meeting specifications.
  • What SQE Ownsowns (Thethe "Red" Zone)decision.:
    • TechnicalMandate: Qualification:Exercise Vetoveto power over new suppliers based on audit results.
    • Material DispositionMandate:: The absolute authority to Block or Quarantine suspect material,material regardlessimmediately. ofThis authority overrides production urgency.
    • CorrectiveMandate: Action: Ownership ofOwn the SCAR (Supplier Corrective Action Request)Request cycle.(SCAR) cycle from initiation to validation.
  • WhatIf SQEthe Doesissue NOTis OwnCommercial (ThePrice, "Green"Terms, Zone)Logistics): –> Procurement owns the decision.
    • CommercialMandate: Terms:Negotiate Pricing,pricing, payment terms, and contracts (Procurement).contracts.
    • SelectionMandate:: We validate capability; Procurement selectsSelect the partner from the SQE-qualified list.
    • ExpeditingMandate:: ChasingExpedite late partsdeliveries.

Pro-Tip: Never allow "Commercial Leverage" to override a "Technical Veto." If a supplier is technically incapable, no price discount can compensate for the resulting line-down risk.

Authority Matrix (RACI Logic)

Ambiguity during a quality spill is a Buyerfailure function,mode. notadhere ato Qualitythe function.following

Thedecision Supplierlogic Qualityto RACImaintain Matrix

velocity.

ToScenario: ensure decision-making velocity, authority is clearly mapped. Ambiguity in a "Line Down" situation is unacceptable.

Decision / Activity

SQE (Quality)

Procurement (Buyer)

Engineering (R&D)

Operations (Prod)

New Supplier Qualification
  • SQE: Accountable. Validates technical capability.
  • Procurement: Consulted. aligns commercial terms.

AccountableScenario: (A)

ConsultedStop (C)

Informed (I)

Informed (I)

BlockShip / Quarantine Stock
  • SQE: Accountable. Executes the physical and digital block.
  • Operations: Informed. Adjusts production planning.

AccountableScenario: (A)Deviation Approval

  • Engineering:Informed (I)

Accountable. Only design authority can waive a specification.

  • SQE:Informed (I)Consulted. Assesses risk of the deviation.

    • Informed (I)

    Issue SCAR

    Responsible (R)

    Informed (I)

    Consulted (C)

    Informed (I)

    Approve Deviations

    Consulted (C)

    Informed (I)

    Accountable (A)

    Informed (I)

    Close CAPA/SCAR

    Accountable (A)

    Informed (I)

    Consulted (C)

    Informed (I)

    Stop Ship (At Supplier)

    Accountable (A)

    Consulted (C)

    Consulted (C)

    Informed (I)

    NegotiateScenario: Recovery Cost Negotiation

    Informed (I)

    Accountable (A)

    Informed (I)

    Informed (I)

    • KeyProcurement: DistinctionAccountable:. TheRecoups SQEfinancial canlosses stopfrom the linesupplier.
    • SQE: (TechnicalInformed. Block);Provides technical evidence of the Buyer negotiates the financial consequence (Commercial recovery).failure.

    The Operating Process MapLifecycle

    The SQM lifecycle of Supplier Quality is a closed-loop system,control system. Do not atreat these as linear seriesadministrative ofsteps; events.they are gates that must be cleared to proceed.

    1. Phase 1: Qualification (Pre-PO):

      • TriggerInput:: Procurement nominates a potential source.
      • ActionAction:: SQE performs aExecute Risk Assessment and On-Site Audit (VDA 6.3 / ISO 9001).
      • GateLogic:
        • :If Audit Score ≥ Threshold –> Pass/Pass. Add to Qualified Vendor List (QVL).
        • If Audit Score < Threshold –> Fail. A failed audit places the supplier onAssign "Do Not Use" status in the ERP.status.

      Phase 2: Incoming Control (Active):

      • TriggerInput:: Material arrivalarrives at Dock.
      • ActionAction:: IQC (Incoming Quality Control) inspects per the SQE-defined Sampling Plan defined by the SQE.Plan.
      • OutputLogic::
        • If PassCompliant –> Release to StockStock.
        • If ORNon-Compliant –> Reject to MRB.

      Phase 3: Escapes & Reaction (Reactive):

      • TriggerInput:: Defect founddetected on the lineLine or in the field.Field.
      • ActionAction:: SQE initiatesInitiate Containment (24h) and issues aissue SCAR.

    2. Phase 4: Resolution & Monitoring (Sustaining):

      • TriggerInput:: SCARSupplier Response.submits CAPA.
      • ActionAction:: SQEVerify verifies the "Permanent Corrective Action"Action (PCA).
      • MetricMetric:: Update Supplier Scorecard update (Quality Component).Scorecard.
    3. Re-Validation (Loop):
      • Trigger: Major process change or annual schedule.
      • Action: Surveillance Audit to ensure the "Golden Process" has not degraded.

    Interface with Internal Stakeholders

    The SQE doesoperates notas workthe insystem aarchitect silo.for Theexternal "Handshake"quality, requiring precise interfaces with internal teams is critical.teams.

    • IQCInterface (Incomingwith Quality Control)IQC:: The SQE isacts as the "Legislator" (writesdefines the inspection plan);plan and limit samples), while IQC acts as the IQC"Enforcement" Inspector(executes the plan).
      • Requirement: Provide clear, binary acceptance criteria. Ambiguous instructions lead to false rejects or escapes.
    • Interface with Production: Production is the "Policeprimary Officer"customer.
      • Requirement: (enforcesIf bad parts stop the plan). Theline, SQE must provide clear "Limit Samples" and inspection instructions.
      • Production: Operations is the "Customer." If the line stops due to bad parts, the SQE must bepresence on the floor is required within 15 minutes to assess the fallout.impact.
    • Interface with Program Management (PM)::
      • Requirement: The SQE providesDefine the "Risk Profile" for NPI. If a supplier is risky,high-risk, the SQE mandatesmandate "Safe Launch" protocols (e.g., 100% source inspection).

    Final Checklist

    Governance Element

    Mandate

    Risk of Failure

    Veto Power

    SQE can disqualify

    Using incapableIncompetent suppliers forenter costsupply chain

    Stop Authority

    SQE can block stock

    ContaminatingDefective thematerial factorycontaminates WIP

    SCAR Ownership

    SQE Only

    Technical rootRoot cause ignoredremains unaddressed

    Commercial Separation

    No Pricing Discussions

    QualityTechnical compromisedjudgment forclouded priceby cost

    Deviation Authority

    Engineering Only

    Unsafe "useproduct as is" decisionsconfiguration


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