Production location change by supplier without info to customer

Golfman25

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Dear All,

I would like to consider a hypothetical situation where a supplier changed their production location a few years ago without informing or seeking approval from the customer. The customer discovers this situation during a scheduled audit, despite the supplier refusing any visits for many years. The invitation was to the tier 2 production plant, which is a completely external company not listed in the customer's Approved Supplier List (ASL). All PPAP documentation is assigned to the 'Production place: tier 1 location'.

How should the purchasing team react to a situation like this with the supplier?"
So based on your other responses, I am not sure you have much leverage. First question would be, is this an off the shelf type part or a custom part for your product only? Second, what happened a few years ago is water over the damn. The intent of change management is to predict and avoid possible problems due to the change. Since it's been 3 years and was just now discovered, it doesn't look like any problems where created. Probably an audit of the new location and a full PPAP would get you back on track.
 

Matt's Quality Handle

Involved In Discussions
Making the assumptions that :
  • This is automotive (based on PPAP language)
  • Tier supplier has a significant portion of their business in the automotive industry
You can insist on an audit and full PPAP as a carrot, with the stick being contact with their registrar. You should also notify YOUR customer so that you're not as negligent as YOUR tier 1.

But all this is a quality, not a purchasing function.

I had a very similar situation just over a decade ago (the Friday before Memorial Day weekend, 2013). A metal supplier closed one of their facilities and began shipping from another location without notifying us. It was discovered as a safety question from the floor supervisor. The two locations banded their steel differently, introducing an injury risk with our unbanding method. So I was asked to contact the supplier about their banding method. The reply was "Oh, that's how they do it in Detroit."

"I thought you guys were in Kentucky," And just like that, I didn't get to ease into my long weekend.

We had to report to Ford and Chrysler, and insisted on an on-site audit. Hit them with a corrective action chargeback, and they paid for my travel to go audit their new site.

As an aside, the butterfly effect of this led me to walking in on two production operators literally with their pants down.
 

Pawel Zelazowski

Involved In Discussions
So based on your other responses, I am not sure you have much leverage. First question would be, is this an off the shelf type part or a custom part for your product only? Second, what happened a few years ago is water over the damn. The intent of change management is to predict and avoid possible problems due to the change. Since it's been 3 years and was just now discovered, it doesn't look like any problems where created. Probably an audit of the new location and a full PPAP would get you back on track.
It's customized element. I agree with You compleatly - 13. years without any critical issue - additioanl parts is seconf functionality element. Prapably final of this activity would be: PPAP and audit on tier2 + development plan from tier1 to supplier.
 

Enghabashy

Quite Involved in Discussions
It's customized element. I agree with You compleatly - 13. years without any critical issue - additioanl parts is seconf functionality element. Prapably final of this activity would be: PPAP and audit on tier2 + development plan from tier1 to supplier.
*the results above could be the output of risk assessment in this case of change
 

Golfman25

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It's customized element. I agree with You compleatly - 13. years without any critical issue - additioanl parts is seconf functionality element. Prapably final of this activity would be: PPAP and audit on tier2 + development plan from tier1 to supplier.
Since it is a custom part, I would voice my displeasure in not letting you guys know of the move. But at the same time, make sure that you have processes in place to make a move/change simple and only as complicated as necessary. We moved locations and it was going to be a nightmare until our customer's figured out it wasn't a big deal. We where able to streamline approvals at the new location to just the min necessary. On the other hand, I have a customer that complicates even the simple changes -- took them two years to respond to a change request.
 

Golfman25

Trusted Information Resource
You suggest PPAP level 4 only ? I thought about Level 2.
Whatever works for you. In our case, we just did a first article inspection to prove that dimensions didn't change, and we where on our way. And we were able to do it via families of parts as opposed to every parts. But we are tool dominant process. So as long as the tooling is sound, the machines make little difference. You do need educated customers to make it happen though.
 
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