Supplier Assessment/Operational Analysis
Every supplier development project begins with pre-assessment planning, followed
by the supplier assessment/operational analysis. Omnex can assist you in conducting
an onsite assessment of the problematic suppliers to determine their weaknesses
and to recommend improvements. Omnex can also monitor (or train you to monitor)
your supply chain to ensure that good suppliers are retained and troubled suppliers
are encouraged to improve.
Supply Chain - Operational Assessment and Improvement
First, Omnex believes the assessment process, to add value, must be undertaken prior
to sourcing - not after the fact, to "certify" an already-selected supplier or to
attempt to remediate an under-performing supplier. Second, the process must assess
enterprise capability - evaluating, at a minimum, product and process technology,
process design, process control methodologies, system disciplines and deliverables.
This necessitates an operational assessment involving personnel with extensive,
sophisticated knowledge of product and process engineering as well as effective
process control methodologies, partnered with others capable of making profound
organizational and commercial judgments.
Operational Due Diligence
Omnex employs Operational Due Diligence, a thorough, disciplined process, to determine
real value, potential, and risk. To be effective, it must involve a rigorous assessment
of several critical areas. Each area is examined in the context of both the present
state and the (potential) future state, with careful considerations of practicality,
- Cultural Barriers
- Technical and Technology Hurdles
- Systemic Concerns
- Financial Feasibility
In the Omnex approach, an operational assessment will address, at a minimum:
- The overall capabilities, qualifications and limitations of an organization, considering
things like operational performance metrics in addition to more traditional financial
metrics, certifications, customer recognition and system awards (Shingo, Deming,
Baldrige, etc.), and evidence of valid 2nd and 3rd party assessments.
- Management systems are defined and effectiveness determined based on goals and measurable
objectives, understanding of actual (vs. public) drivers of policy and practice,
processes for and effectiveness in determining and acting on customer driven, critical
- Current and historical customer-specific concerns, incidents and trends. These are
identified and examined, determining issues, performance criteria and benchmarks,
assessing what the organization considers "normal" versus "extraordinary" in terms
of failure and containment and as drivers for corrective action.
- Approaches to operational Planning of Products & Processes, with particular attention
to the focus (or lack thereof) on customer requirements, process definition and
control, manufacturing product and process metrics, the use of AQP, statistical
tools, analytical and error proofing techniques and preventive action. What approaches
to both process and product verification and validation are employed?
- Actual Products and Processes, including assessments of process capability and availability,
conformity to and effectiveness of control plans and inspection/test disciplines,
MSA and gauge control, application of error proofing, identification and traceability
and material controls as well as evidence of reduction in variation and continual
improvement. Purchasing and supplier relationships receive particular focus and
robust assessment, as do hiring and compensation practices.
- Technologies employed in product, process and information management are gauged
for competitiveness, suitability, compatibility and useful life, including facilities
and infrastructure, both internal and external (utilities, logistics, etc.)
- Process capability and Leanness, using sampling metrics to establish present state
as well as potential future state opportunities for efficiencies and economies in
flows, cycle times and capacity utilization.
This ultimately leads us to develop a statement of work, action plan and project
plan. Implementation includes executing the action plan and project plan with progress
reports along the way. Included in the progress reports are the number of deliverables
met and other measures of success. Omnex monitors results after the conclusion of
the project to ensure that the improvements remain in place.