Page 242 - The Handbook for Quality Management a Complete Guide to Operational Excellence

he majority of the cost of most manufactured product is in pur-
chased materials. In some cases the percentage is 80 percent or
Tmore; it is seldom less than 50 percent. The importance of consis-
tently high levels of quality in purchased mate rials is clear.
It is important to remember that dealings between companies are
really dealings between people. People work better together if certain
ground rules are understood and followed. Above all, the behavior of
both buyer and seller should reflect honesty and integrity. This is espe-
cially important in quality control, where many decisions are “judgment
calls.” There are certain guide lines that foster a relationship based on
mutual trust:
• Don’t be too legalistic. While it is true that nearly all buyer-seller
arrangements involve a contract, it is also true that unforeseen
conditions sometimes require that special actions be taken. If buyer
and seller treat each other with respect, these situations will pres-
ent no real problem.
• Maintain open channels of communication. This involves both formal
and informal channels. Formal communication includes such
things as joint review of contracts and purchase order requirements
by both seller and buyer teams, on-site seller and buyer visits and
surveys, corrective action request and follow-up procedures, record-
keeping requirements, and so on. Informal communications involve
direct contact between individuals in each company on an ongoing
and routine basis. Informal communications to clarify important
details, ask questions, gather back ground to aid in decision making,
etc., will prevent many problems.
• The buyer should furnish the seller with detailed product descriptions.
This includes drawings, workmanship standards, special process-
ing instructions, or any other information the seller needs to pro-
vide product of acceptable quality. The buyer should ascertain that
the seller understands the requirements.

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