17November2015

Purchasing

Diversitech Manufacturing has 14 Key departments using standardized Visual Management Boards to bring transparency, productivity output analysis, and time efficiencies to our internal management systems.

This is especially obvious in our 16 Person Purchasing Department which uses 6 main SOP’s to manage their department.

Individual and Department performance is independently evaluated by 14 Key Performance Indicators creating transparency and a strong company culture determined to outperform agreed metrics.

Purchasing Department Key Performance Indicators

Timely ERP Data Entry –Metric 100% ( Audited by Accounting Dept. )
ERP Data Accuracy Rate –Metric 100% ( Audited by Accounting Dept. )
Supplier Payment Prior to Goods Delivered toFactory. Rate ≤5%(Audited by Accounting Dept.)
Production Accidents: Metric 0 (Audited by HR Dept.)
Timely ERP Data Entry –Metric 100% ( IT Dept. )
Each SKU with Two Suppliers ≥70% (Audited by IT Dept.)
Equipment Repair Rate – Rate Production Efficiency Rate ≥98% (Audited by Production Dept.)
RFQ's Processed According to 6 Costing Principles Rate ≥95% ( Audited by Production Dept.)
Qualified Production Rate ≥98% (Audited by QC) Packout Information Accuracy Rate -100% (Audited by QC Dept.)
Inbound Goods Shipping Marking Accuracy Rate. Metric -100% (Audited by QC Dept.)
Product Quality On-time Improvement –Metric 100% (Audited by QC Dept.)
On-Time QC Sample Preparation - Metric 100% (Audited by QC Dept.)
Inbound QC Inspection Pass Rate –Rate ≥99 % (Audited by QC Dept. )
Supplier On-time Delivery Rate - ≥99% ( Audited by Warehouse Dept.)

With Daily Attendance Meetingsand 5S Check Lists to maintain standards, OngoingContinuous Improvement Plans mean we never stop looking for ways to improve both internally and interdepartmentally.

Given the increase in cost of HR in China we see these as a cornerstone for our continued growth and success.

Tracking of 38 raw material prices

Diversitech Manufacturing Tracks the cost of 38 Key Raw Materials to create Purchasing Bench Marks to minimize the impact of inflationary pressures, and where possible reduce purchasing costs.