The application of QA standards to manufacturing is based upon the nature of the goods produced, the use of the goods and the preferences of the purchaser. For example, manufacturers of certain goods may have to meet several internationally recognized QA standards, including the ISO 9000 series (governed by the International Standards Organization). Standards such as these are demanded by a variety of private and public sector purchasers.
It is difficult to demand a QA standard from a supplier if such a standard is not already in place. In general, those suppliers who can meet a QA standard or are trying to implement one tend to provide quality goods and services.
If it is decided for a certain product or service that a recognized QA standard should be either mandatory or desirable, bid solicitations should clearly state this. Along with this, the question of requiring third party accreditation of the QA standard should be addressed and if necessary, requested as part of the bid package. It may be that only certain parts of a particular QA system will be applied at a particular time during the manufacturing process. If this is a possibility, the manufacturer must state which parts of a standard will be applied during the manufacture or supply of the requested goods or services.
QA standards should not necessarily be restricted to primary goods, equipment or services. Standards may also be warranted for the supply of spare parts, manuals and training requirements, material handling requirements and other related documentation or services.
10.2.2 Handling of Goods
In most projects, goods and equipment undergo extensive handling from the time they leave the supplier's plant to the time of shipment from Canada. It is important to consider the processes in this phase that may affect product quality. These processes include:
1) the level of protection provided by packaging and crating;
2) the storage and warehousing facilities in Canada; and 3) the level of export packaging.
The Logistics’ Handbook addresses these processes in more detail. For quality considerations once the goods have left Canada, refer to chapter 11.
10.3 Responsibility for Quality Assurance and Quantity Verification 10.3.1 Contracting Authority
It is the responsibility of the contracting authority, (usually the EA) to identify and ensure that suppliers are contractually obligated to meet any quality requirements.
It is also the EA's responsibility to ensure that scheduled and documented quantity inspections are carried out at various stages in the procurement cycle. These responsibilities should be clearly
defined in the EA's contract.
Note that many RCs use the services of inspection agencies. It is possible that goods and materials may not be imported into the RC without an inspection certificate. The EA must establish whether the RC will require these inspections to take place and must also confirm that all necessary documentation required to import the goods into the RC is available in the required quantities. These issues should be presented in the procurement plan, and are in addition to any quality requirements.
10.3.2 Supplier
The supplier's responsibilities concerning QA should be specified in its contract.
If stipulated in the contract, the supplier should provide the contracting authority with information concerning quality control procedures for product development, assembly, inspection and testing.
The supplier is also responsible for having a representative present during any other inspections or tests performed directly by or on behalf of the contracting authority. This representative should have the authority to sign and acknowledge any acceptance forms or other documents concerning inspection, testing and auditing activities.
10.4 Inspection
Technical inspections and tests may be unnecessary when purchasing "off the shelf" or standard items covered by warranty. Inspections and tests should only be performed to assure that contract requirements have been met. Monitoring may also be carried out over preservation, marking, packing and shipping operations.
Technical inspections and tests are normally conducted at the factory of the supplier. The supplier's contract should stipulate inspection details such as:
1) who will be responsible for performing inspections;
2) where and when inspections will be carried out;
3) the final inspection and acceptance procedures; and 4) the supplier's responsibility for:
1) facilitating inspections;
2) absorbing any additional costs due to extra work or delay resulting from facilitating inspections; and
3) absorbing costs for correcting defective or deficient work.
10.5 Quantity Verification
The main issue with quantity verification is logistics, and is dealt with in more detail in the Logistics’ Handbook. However, since it is often linked with quality assurance, quantity verification is addressed in general terms in this chapter.
Usually, there are two levels of quantity verification. The first or primary level (see 10.5.1) is when quantity verification takes place at the supplier's plant, within the framework of quality inspection.
The secondary level (see 10.5.2) occurs during the goods transportation process, and may need to occur more than once. The location and number of quantity verifications will depend upon the INCOTERMS 2000 (discussed in detail in the Logistics’ Handbook) used to determine when a transfer of responsibility for goods takes place. This transfer of responsibility may take place more than once, depending upon how many intermediate parties become involved in the transport of the goods.
Whoever is responsible for goods procurement must ensure that the place, timing and who will be involved with the quantity verification functions are documented and implemented.
10.5.1 Primary Quantity Verification
Primary quantity verification is usually carried out at the supplier's plant following quality checks, inspection and testing. The supplier's contract should therefore specify any quantity verification requirements. The contracting authority is responsible for making sure that the verification is carried out and that the quantities delivered are correct and documented. Any deficiencies or shortages should also be duly documented, and appropriate corrective actions initiated.
10.5.2 Secondary Quantity Verification
If the transfer of responsibility for goods is directly between the supplier and the RC (for example, if the INCOTERMS 2000 (Delivered Duty Unpaid to the RC) are used), then the supplier has the responsibility for delivering the required quantity of goods directly to the RC. In this case, any secondary quantity verifications would be at the discretion of the supplier. If, however, the INCOTERMS 2000 dictate transfer of responsibility at some intermediate points between the supplier's plant and the RC, the party responsible for the goods may wish to conduct quantity verifications at various locations along the transportation route. These locations may be the marshalling area, the port of loading or the port of unloading. The Logistics’ Handbook provides more detail information on this.
At the secondary level, quantity verification generally consists of verifying the number of crates, cartons or boxes and assessing their general exterior condition. An insurance agent or marine surveyor normally performs this type of verification. If any damage is noticed, the quantity and condition of the items within the damaged packaging must be checked and a damage report issued to the contracting authority.
In complex construction, infrastructure or transportation projects where equipment and assemblies may be delivered in multiple shipments, it is advisable that quantity verifications take place as each delivery from the manufacturer/supplier is completed.