Cracking the Code of Supplier Quality Surveillance

Introduction

Supplier Quality Surveillance (SQS), also known as source inspection or vendor surveillance, is a critical process in project and supply chain management that ensures equipment and materials (i.e., deliverables) meet specified requirements, are complete and correct, and are delivered on time. SQS includes activities such as auditing, evaluating, inspecting, observing, and reviewing systems, including engineering and procurement, fabrication, manufacturing, and quality management. Unlike traditional ISO 9000 quality management programs, SQS is designed to effectively manage risks to project budgets and timelines.

SQS is distinct from traditional ISO 9000 quality management programs. While ISO 9000 emphasizes compliance with standardized quality systems, SQS is a tailored approach that effectively manages project-specific risks. Projects define their own SQS requirements based on their unique needs. When implemented effectively, SQS mitigates risks that lead to cost overruns, delays, rework, and waste [1]. Megaprojects often exceed budgets and schedules due to incomplete, incorrect, or late deliverables [2]. Most projects face similar risks, but effective SQS mitigates these challenges by maintaining consistency and preventing frustration.

For example, a test separator package (Figure 1) typically has source inspection at the supplier’s facility. This equipment, which includes fixed equipment, pressure piping, a pressure vessel, and structural steel, may also contain electrical components and other systems that require inspection.

SQS seeks to answer three critical questions about project deliverables before shipment:

1. Do they meet specified requirements?
2. Are they complete and correct?
3. Will they be delivered on time?