Statistical Methods for Supplier Management
This Pyzdek Institute online workshop is 100% hands-on with no lecture or PowerPoint. It is typically done in two 4-hour sessions with a few working days between sessions. The workshop briefly covers key statistical methods for supplier management in Minitab statistical software with time also spent tying the workshop content to Lean Six Sigma concepts. However, the workshop focus is on convincing suppliers to use a statistical approach to Continuous Improvement, building arguments against price increases and the language to include in a formal Purchasing Specification.
The workshop structure is a logical sequence of modules, many with the following steps:
- A brief concept discussion
- Instructor demonstration of the methods (datasets & worksheets provided)
- Attendees work on their own, or in small groups, on the same method (dataset provided)
- Section summary, Q&A session
|LOCATION||On-site or Online|
The course content includes hands-on case studies to demonstrate course concepts, one of which is to understand the true cost of non-conforming product and the negative impact on both supplier and customer finances. Instead of a spreadsheet-based Cost-of-Poor-Quality approach, the attendees will see a visual alternative in the form of a flow diagram that describes the complex supplier-customer workflow for non-conforming material events (figure 1). The case study includes a hands-on exercise to simulate the accumulating costs associated with each step in the workflow. The result is a much clearer picture of actual remedial costs for non-conforming product. Attendees can then use this approach to press problematic suppliers to focus on a statistical approach to continuous improvement and process optimization.
Supervisors, Managers, Technicians, Engineers, and other Professionals.
|Course content||% of time spent|
|Hands-on exercises & interpretation of results||100%|
Getting things started
|Introductions, understanding attendee interests|
|Statistical Thinking and Recurring Themes (multiple case studies)|
Convincing suppliers and preventing price increases
|Q: What’s in it for the supplier?|
A: Lower costs
|Why the supplier should reduce price in the long run|
|Supporting your suppliers|| |
Statistical methods for supplier management
|Measurement system considerations|
|Supplier sampling & subgrouping methods|| |
|Control chart methods|| |
Create Purchasing Specification documents
|The dangers of the status quo|
|Purchasing Specification structure (not all subjects covered in detail, but listed for continuity purposes)|
Optional exercises, time permitting
|Error-proofed supplier measurement systems workflow||Hands-on exercise|
|Short run control charts|
|XBar-R chart||Paper & pencil exercise|
|Attribute control charts|| |
|Escalating supplier requirements to DOE approach||Hands-on exercise|
|Process Capability Analysis|| |
The Pyzdek Institute’s Statistical Methods for Supplier Management workshop is available for groups. Whether you are looking for online or onsite training, we are pleased to accommodate your needs and customize the course to your organization.
- Three 4-hour sessions for online (recommended) to allow attendees to collect data, present it during the sessions, etc.
We are happy to help. Give us a call at +1 (520) 789-6291 or send us an email using the form below.