Improvement Study In Terms Of OEM Supplier Quality Management For Company X Shanghai Plant

OEM has become more and more popular with economic globalization and professionalization. On one hand it results in cost reduction, capacity expansion and maximization of company resource which help positioning company better for further development with strengthened competitiveness. On the other hand it also brings challenges in terms of quality management with the increasing complexity of OEM product moving from low-value-added business to high-value-added business.X company, as the leading one in dispenser market has the footprint in Shanghai China where is the Headquarter of Asia to provide both commercial and manufacture solution. In face of a new million-dollar business opportunity for vapor recovery pump, it’s decided to localize this product in Shanghai. This thesis is about the research of OEM supplier quality management for X company. SQMS and SQE theory are applied with specific improvement actions after deep analysis of X company’s current supplier quality management systems by using SWOT method. Overall the whole optimized solution is achieved through brainstorm and PDCA theory to manage quality according to different stages between two independent companies to finally aligned with ultimate product quality requirement covering from supplier assessment and development, first piece qualification and continuous improvement after mass production. Earlier engagement of cross-functional team at supplier development stage and quantified supplier assessment make a full-scale assessment which further secure the cooperation during execution among OEM supplier and X company. Besides the idea of grading management is adopted based on the classification on component level with the development of whole project execution. And continuous update on supplier quality management solution in a dynamic view is approved to be necessary to finally make this project a successful one. Hopefully it can bring some ideas for similar cases in helping any company to make OEM supplier a real part of integral quality management internally.