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4.1 Governance and Operating Model

Supplier Quality Management (SQM) is the technical firewall separating external supply chain entropy from your internal manufacturing stability. Unlike Procurement, which optimizes for cost and delivery (Commercial), SQM optimizes for Risk and Capability (Technical). This chapter mandates the operational architecture required to extend process control beyond the factory walls, ensuring external partners function as reliable extensions of the internal production line.

Mission and Boundaries

The Supplier Quality Engineer (SQE) operates with absolute separation of powers from Procurement. This separation is critical to prevent the conflict of interest inherent in prioritizing "cheaper" over "compliant."

  • If the issue is Technical (Capability, Risk, Specification) –> SQE owns the decision.
    • Mandate: Exercise veto power over new suppliers based on audit results.
    • Mandate: Block or Quarantine suspect material immediately. This authority overrides production urgency.
    • Mandate: Own the Supplier Corrective Action Request (SCAR) cycle from initiation to validation.
  • If the issue is Commercial (Price, Terms, Logistics) –> Procurement owns the decision.
    • Mandate: Negotiate pricing, payment terms, and contracts.
    • Mandate: Select the partner from the SQE-qualified list.
    • Mandate: Expedite late deliveries.

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 failure mode. adhere to the following decision logic to maintain velocity.

Scenario: New Supplier Qualification

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

Scenario: Stop Ship / Quarantine Stock

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

Scenario: Deviation Approval

  • Engineering: Accountable. Only design authority can waive a specification.
  • SQE: Consulted. Assesses risk of the deviation.

Scenario: Recovery Cost Negotiation

  • Procurement: Accountable. Recoups financial losses from the supplier.
  • SQE: Informed. Provides technical evidence of the failure.

The Operating Lifecycle

The SQM lifecycle is a closed-loop control system. Do not treat these as linear administrative steps; they are gates that must be cleared to proceed.

Phase 1: Qualification (Pre-PO)

  • Input: Procurement nominates a potential source.
  • Action: Execute Risk Assessment and On-Site Audit (VDA 6.3 / ISO 9001).
  • Logic:
    • If Audit Score ≥ Threshold –> Pass. Add to Qualified Vendor List (QVL).
    • If Audit Score < Threshold –> Fail. Assign "Do Not Use" status.

Phase 2: Incoming Control (Active)

  • Input: Material arrives at Dock.
  • Action: IQC inspects per the SQE-defined Sampling Plan.
  • Logic:
    • If Compliant –> Release to Stock.
    • If Non-Compliant –> Reject to MRB.

Phase 3: Escapes & Reaction (Reactive)

  • Input: Defect detected on Line or Field.
  • Action: Initiate Containment (24h) and issue SCAR.

Phase 4: Resolution & Monitoring (Sustaining)

  • Input: Supplier submits CAPA.
  • Action: Verify Permanent Corrective Action (PCA).
  • Metric: Update Supplier Scorecard.

Interface with Internal Stakeholders

The SQE operates as the system architect for external quality, requiring precise interfaces with internal teams.

  • Interface with IQC: The SQE acts as the "Legislator" (defines the inspection plan and limit samples), while IQC acts as the "Enforcement" (executes the plan).
    • Requirement: Provide clear, binary acceptance criteria. Ambiguous instructions lead to false rejects or escapes.
  • Interface with Production: Production is the primary customer.
    • Requirement: If bad parts stop the line, SQE presence on the floor is required within 15 minutes to assess impact.
  • Interface with Program Management (PM):
    • Requirement: Define the "Risk Profile" for NPI. If a supplier is high-risk, mandate "Safe Launch" protocols (e.g., 100% source inspection).

Final Checklist

Governance Element

Mandate

Risk of Failure

Veto Power

SQE can disqualify

Incompetent suppliers enter supply chain

Stop Authority

SQE can block stock

Defective material contaminates WIP

SCAR Ownership

SQE Only

Root cause remains unaddressed

Commercial Separation

No Pricing Discussions

Technical judgment clouded by cost

Deviation Authority

Engineering Only

Unsafe product configuration


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