At one time, most organizations were vertically integrated.
That is most, if not all, functions, processes, and procedures were carried out
within the organization. If a specific department wasn’t functioning properly it
could be addressed as soon as the issue came to light. "Heads would roll" and the organization would continue to function. In the current manufacturing
environment, it is not always economically feasible to integrate the organization
in a vertical fashion. Therefore, many functions, processes, and procedures are
Outsourcing brings up the issue of supplier quality.
When a specific supplier isn’t functioning properly the situation also needs to
be addressed as soon as it comes to light. The organization doesn’t have as immediate
control over a supplier in a horizontal integration. The organization cannot fire
a supplier’s employee, and it may not be wise for a number of reasons to bring your
business elsewhere. Working closely with suppliers and being able to measure your
suppliers’ merit and rate it as a function of your organizational requirements is
necessary for a horizontally integrated organization. It is also a key element in
most manufacturing certification requirements.
The following outline will be addressed, one element
at a time, in a bit more detail.
Horizontally Integrated Organization.
relationships and Supplier Performance
the reality of good, fast, and cheap...
horizontally integrated organization in the manufacturing environment.
Critical Quality concepts.
Reducing nonconformance and increasing profitability.