(Controlled Shipping Level 1 and Controlled Shipping Level 2)
CS1 & CS2 services.
The CS1 and CS2 services are quality control processes based on the restricted shipment of materials to the customer due to constant failure by the supplier where non-quality levels exceed fifteen defects per million. CS1 or Controlled Shipping Level 1 requires the supplier to control from its facilities the quality of all its shipments by 100% inspection of its products. On the other hand, the CS2 or controlled delivery level 2 is required by the customer when the supplier has not been able to solve the problem in the CS1 stage.
These inspection services, known as Controlled Delivery or Restricted Delivery Controlled Shipping o Restricted Shipping are processes that apply when a supplier has sent non-conforming products to its customer. The standard for non-conforming parts is generally no more than 50 PPM (parts per million) which are non-conforming or considered to have one or more defects. Some customers require no more than 15 PPM and some vendors reach 0 PPM on a regular basis.
When a customer detects a non-compliant product or material sent to their plant by a vendor, the customer will notify the vendor through a telephone conversation that is now in Controlled Shipping. A letter will follow documenting the details of this conversation.
Controlled shipping or restricted shipping requires the supplier to immediately implement a redundant inspection process to classify the non-conforming product/material, while implementing a root cause problem solving process. Redundant inspection is in addition to normal controls.
All controlled delivery procedures include these three steps:
SEPARATE: A containment of non-conforming products to isolate them from the normal production process. The supplier is required to establish a separate containment area outside the production area to completely isolate non-conforming products from normal production. Parts already sent to the customer can be placed in a containment area at the customer site, sent back to the supplier at the supplier's expense, or sent to an external warehouse for containment and sorting.
ISOLATE: An inspection of all possible non-conforming products to classify defects. This step includes all parts at the customer's site, at the shipment and at the supplier's site.
REMOVE: The supplier performs a root cause analysis and implements irreversible corrective actions in the production process to completely eliminate non-conforming products.
These controlled shipment inspection services are mainly divided into two categories:
CS1: Controlled Delivery Level 1.
It requires the manufacturer of the product (meaning the supplier) to contain the suspect product and perform a 100% inspection process. This process can be carried out by the supplier's employees although most suppliers commonly prefer to hire an external company specialized in this type of inspection services to guarantee the expected results as well as to avoid possible reoccurrence of quality failures. Within level 1 of controlled shipments, the root cause of the problem must be identified and the customer informed of the corrective and preventive actions implemented at the production, shipment and quality levels.
CS2: Controlled Delivery Level 2.
It will be required when the manufacturer of the product (i.e. the supplier) has failed to correct the problem at the level 1 stage (CS1) or has had recurring quality problems which have impacted the customer. Within this level 2 controlled shipment stage (CS2), the supplier shall maintain the controls, corrective actions and maintain the inspections implemented as part of the level 1 controlled shipment process. However, an additional redundant inspection process shall be added which shall be performed by a specialized inspection company, third party company or external company which may be selected by the supplier but must be approved by the customer. Due to the severity of the problem, clients may choose to hire the specialized inspection company and pay the supplier themselves, and then deduct the costs incurred through cost recovery.
The Root Cause Analysis should be updated and redefined at this stage, looking for the implementation of more robust actions that prevent, control and/or eliminate the risk that the failure will occur again.
It is important to establish and define among the parties the method of data collection and recording which is normally generated on a daily basis and is presented using static graphs such as Paretto charts, I-Chart, Trend graphs and Bar charts.