Click here to see this story as it appears in the March-April 2018 edition of Metal Casting Design & Purchasing

One of the most challenging aspects of a purchaser’s responsibilities is finding a supplier whose capabilities match the needs of the company. Another challenge is ensuring existing suppliers continue to be compatible sources of castings.

Procurement professionals will find conducting a supplier audit helpful in determining the viability of a casting source. Audits look beyond the basics such as metal, casting process, and size ranges and examine the business climate within a company. Does the supplier have effective continuous improvement plans in place? Are defects or missed delivery dates appropriately examined and addressed to avoid future errors? Is the scheduling process robust and flexible enough to absorb disruptions without affecting lead time?

Many metalcasting facilities undergo third party audits to verify their processes and signal to potential customers they have certain standards in place. OEMs might also choose to perform their own audit.

A recommended approach to casting source auditing is to take a process model approach. This is an application of a system of processes within an organization, including the identification and interactions of these processes. The ISO 9001:2008 standard that metalcasting facilities are certified for as mandated by OEMs promotes the adoption of the process approach to develop, implement and improve the quality management system and enhance customer satisfaction by meeting customer requirements.

In a nutshell, the process approach to auditing emphasizes:
•    Understanding and fulfilling customer requirements.
•    The need to consider processes in terms of added value.
•    Obtaining results of process performance and effectiveness.
•    Continual improvement of processes based upon objective measurements.

Process Model Methods
A commonly used process model description uses four categories to describe the operation of the model: inputs to the process, outputs to the process, controls and resources applied to the process, and measurements taken of the process performance (Fig. 1). When thinking about the four categories, auditors should be mindful of the criteria to be considered in the metalcasting facility specific to the front office and the shop floor (Table 1).

Another methodology created by William Edwards Deming uses the circular Plan-Do-Check-Act circular philosophy to encourage continuous improvement (Fig. 2).

Plan-Do-Check-Act terms mean:
•    Plan: Identify a situation/problem/issue and create a plan of action.
•    Do: Test the plan of action.
•    Check: Has the situation been corrected? Was the correct plan of action created?
•    Act: Make this plan a reality and follow through with it.

Approaching an audit from a process mindset will help guide which questions to ask, documents to seek, and variables to examine within the casting supplier.

What to Look for in the Front Office
Several criteria should be examined in the front office of a metalcasting facility. The following paragraphs list what will be required to review and evaluate the some of the main criteria.

Contract Review
The casting supplier has the means to receive and process orders in a timely manner.

Important factors to evaluate:
•    Quoting practices.
•    Date, quantity, price.
•    Ship-to and routing instructions.
•    Quality, production part approval process, and packaging requirements.

Management Commitment
The auditor is checking if the entity believes in the systems in place and ensures the operations are run with the customers’ needs in mind at all times.

Systems and operations to check for include:
•    Detailed management reviews.
•    Strong, sound initiatives in place.
•    Interrelated involvement with all facets of the business.
•    Active engagement with employees.

Training Programs
A competent workforce is the key to successfully producing quality castings, so proper training programs must be in place and effective.

Factors to review and evaluate:
•    The defined competency criteria.
•    Presence of a solid, planned training structure.
•    Training results.
•    On the job training.

Short- and Long-Term Improvement Plans
This requires looking at current practices and planning for the future. Profitability of both customer and casting supplier are based on the supplier’s ability to produce quality castings.

Questions to consider:
•    Is the metalcaster reinvesting into the infrastructure and updating equipment (melting, molding, finishing, etc.)?
•    Is the future outlook based on demands with a timeline?
•    Is the metalcaster incorporating ergonomics and safety best practices into production?

Continual Improvement Techniques
This requires a willingness of the supplier to adapt, learn and change. When issues arise, the ability to identify and rectify those issues is a strength.

Factors to evaluate:
•    Defined corrective action program (customer-oriented).
•    Contingency plans.
•    Internal audit program.
•    Sound use of quality tools such as APQP, PFMEA, and 5-S.

Communication/Information Flow
Communicating information is vital in ensuring quality is met. The information flow must be smooth and uniform.

Factors to evaluate:
•    Software systems.
•    View from the shop.
•    IT backup.
•    Transparency from order to shipment.

Safety Programs
Strong safety programs promote the overall health and wellness of all employees and should be strictly required.

Factors to evaluate:
•    Lost time reports.
•    OSHA trained staff.
•    Accident review structure.
•    Wellness programs.
•    Defined stringent training.

What to Look for on the Shop Floor
A number of criteria should to be examined on the shop floor of a metalcasting facility. The following paragraphs list what will be required to review and evaluate the some of the main criteria.

Shop equipment and condition: Employees must have the proper atmosphere and adequate equipment to produce quality products.

Factors to evaluate:
•    Age of equipment.
•    Automation of equipment.
•    Ergonomic impact.
•    Housekeeping.
•    Space (no room or no capacity).

New Job Startup Methods
Processing new jobs is critical in ensuring customer requirements are met and understood within the organization.

Factors to review:
•    Requirements review.
•    Planning of product realization.
•    Routing.
•    Production work instruction development.
•    Testing requirements.
•    Packaging.

Material and Production Flow
Clean material flow (both raw and finished goods) prevents contamination inside the casting supplier’s shop and manufacturing facilities. Production flow impacts delivery capability.

Factors to evaluate:
•    Raw material segregation and identification.
•    Recipe management/charge makeup
•    First-in, first-out systems.
•    Extreme stock levels.
•    Bottlenecking.

Testing Techniques/Capabilities
Testing in the metalcasting industry is unique, yet common between facilities.

Factors to evaluate:
•    Material testing.
•    Process production testing.
•    Visual inspection.
•    Gauge repeatability and reproducibility program.
•    Accuracy of records.

Preventative Maintenance Program
A defined, robust system must be used to prevent downtime, which impacts delivery and quality.

Factors to evaluate:
•    Defined schedule vs. actual performance.
•    Review of unplanned downtime.
•    Key equipment stock level.
•    Contingency plans.
•    Previous major breakdowns.

Workforce
This runs the company. Dedication to the job and the organization determines success.

Items to consider:
•    Age of workforce.
•    Turnover rates.
•    Length of employment.
•    Number of employees vs.
workload.

Value Added Services
What additional processes does the company provide beyond metalcasting?

Check for:
•    Machining.
•    Heat treatment.
•    Coatings.
•    Assembly.

Steps to Auditing
The steps to auditing a casting supplier start with scheduling the audit and ends with implementing and verifying corrective actions:
•    Schedule.
•    Select and prepare auditors.
•    Develop an audit plan.
•    Review documentation.
•    Perform audit.
•    Document audit results.
•    Communicate audit results.
•    Implement and verify corrective actions.

While knowing the criteria to check for in a casting supplier is important, your job as a procurement professional will not be over until a full audit or review of the company has been made.

An audit can be a stressful process, so it is important to have a clear defined plan of action for the audit and to communicate clearly throughout the audit so there are no surprises in the end. The last step, implementing and verifying correction actions is critical, but it is up to the supplier to determine and implement the actions suitable to eliminate causes of nonconformities. The auditor verifies whether the actions did eliminate them.

Third-party auditing, such as ISO 9001:2008, follows a regimented structure that must be followed for a metalcaster to receive accreditation. Similarly, an OEM auditor should follow an internal program that lays out the necessary steps, documentations and actions to take to complete a thorough review of a casting facility.  

This article is based on the AFS Institute course, Casting Supplier Auditing.