Potential customers of a company’s new product have tight tolerance requirements. The company plans to purchase a critical component.

Potential customers of a company’s new product have tight tolerance requirements. The company plans to purchase a critical component.

To meet customer requirements, the company should first:

A. implement statistical process control for the component.

B. bring manufacturing of the critical component in-house.

C. develop an alternate source of supply.

D. certify the supplier of the component.

View Answer

Answer: D

Explanation:

When a company plans to purchase a critical component with tight tolerance requirements, the first step to meet customer requirements should be to certify the supplier. Supplier certification ensures that the supplier has the capability to consistently produce components that meet the required specifications. This involves assessing the supplier’s quality management systems, production processes, and adherence to standards.

Implementing statistical process control for the component is important but typically comes after supplier certification.

Bringing manufacturing of the critical component in-house is a significant strategic decision and not necessarily the first step.

Developing an alternate source of supply is a risk mitigation strategy but does not directly address meeting tight tolerance requirements initially.

Reference: Juran, J. M., & Godfrey, A. B. (1999). "Juran’s Quality Handbook." Burt, D. N., Petcavage, S., & Pinkerton, R. L. (2010). "Supply Management."