Quality STRATEGIES FOR DIVERSE SUPPLIERS

In Part I (MBN USA Conference Edition) we looked at the definition of a quality management system such as ISO 9001:2000 and other ISObased quality management systems that are industry specific such as TL 9000 for the telecommunications industry, AS 9100 for aerospace and ISO/TS16949 for the automotive industry.

In today’s world you will find companies also requesting software and/or hardware suppliers to be certified to a certain level in CMMI or to implement Six Sigma tools and techniques. Six Sigma tools can be used within your quality system of continual improvement to make specific targeted improvements aimed at cost reduction.

Sector standards and CMMI overlap in certain areas and many times you can achieve many of the requirements of these various standards and CMMI through your current ISO based certification. For instance, if your organization is registered to TL 9000, you will meet most of the requirements of a level 3 CMMI certification.

Organizations such as QuEST Forum, the telecommunications nonprofit organization dedicated to the telecommunications industry quality standard TL 9000, are mapping their quality standards against others to determine the similarities and differences of each standard and CMMI.

Recently, AT&T, a pioneer in supporting supplier diversity, wanted to educate its supply chain, in particular its minority, women, disadvantaged, and veteran business enterprises or suppliers, on ISO 9001:2000 and TL 9000. AT&T felt it was critical for improvement in their supplier chain. Joan Kerr, executive director of AT&T’s supplier diversity programs and long time advocate of MWDVBE companies, contacted BIZPHYX, a WBE that specializes in preparing companies for implementation and registration of ISO 9001:2000, TL 9000, and other quality programs, to help with this endeavor.

“AT&T wanted to provide a way to educate and encourage our suppliers to understand the benefits of certifying to a quality management system such as ISO 9001:2000 and TL 9000. Not only do these certifications equip the suppliers with a requirement of AT&T, but with other companies and industries as well. As we look at the marketplace for innovation and globalization, it is imperative that we see how serious our suppliers are to quality. ISO 9001:2000 and TL 9000 are globally recognized standards and provide a wealth of quality guidance necessary for suppliers in today’s competition.” Kerr said.

In response to this need, AT&T invited its California MWDVBE executives to attend workshops held in Oakland and Los Angeles to learn more about why AT&T wanted its supply chain to take a look at ISO 9001:2000 and TL 9000 and see the benefits of certifying their companies to these quality standards. These educational overviews of the quality management systems were held jointly with AT&T and BIZPHYX. AT&T also worked with BIZPHYX to offer a solution for its diverse suppliers to achieve these registrations at a significantly reduced price.

“After Joan Kerr contacted BIZPHYX, we developed a webinar-based solution to furnish MWDVBE companies with a path to achieve certification in ISO 9001:2000 and TL 9000 at an affordable cost,” said Sue Clancy, president of BIZPHYX. “AT&T not only wanted to educate the suppliers but provide a path forward as well.”

Pete Varma, president and CEO of Intraline and a participant in the pilot of AT&T’s TL 9000 program said, “We already see significant improvement in our processes and procedures. We have become more focused on our customer’s needs and looking at how we relate to our customers. The program has already been a success for Intraline. We are looking forward to achieving certification in December. I am thankful for the direction provided by AT&T to their suppliers and for the opportunity to improve my business.”

Teltech Telecommunications, a WBE headquartered in Edwards, Colo., received its certification in ISO 9001:2000 and TL 9000 in 2005. Lisa Hanlon, managing partner of Teltech stated, “Without these certifications, I can say we would not have met the qualifications for some major contracts we received in the past year. We are better able to deliver on time and with fewer problems. As we look globally to other opportunities, registration to TL 9000 and ISO 9001:2000 is a definite plus.”

Vincent Stephenson of VS Supply, a professional cleaning sales and service company, is using ISO 9001:2000 certification to reinforce and communicate the company’s environmental objectives, “Green friendly products and services is really at the core of what we are about,” Mr. Stephenson said. “Establishing a quality policy and major objectives and documenting them helped us communicate this to our clients in a credible way and it also helps us deliver consistently on our promises.”

Certification to a quality standard significantly enhances a firm’s organizational DNA. It certainly improves your ability to meet your customer’s requirements and shows your desire to supply quality goods and services. It puts you on a more even keel with all suppliers in your customer’s supply chain, and it shows that your company is serious about quality. Although quality standards are not the end all to getting your products and services out defect free, they certainly get your organization going down the right path to preventing defects and acting on problems once they occur. Customers are more willing to work with a company that strives to provide good quality and can prove that they are doing so, then a company that doesn’t.With a quality management system, you can offer that proof.