Audit

An established process to assess potential vendors, often utilizing more than one criteria. Criteria may include technical capability, quality and reliability performance, financial stability, ability to deliver on time, responsiveness to requests, cost, and environmental impact. Vendor selection often occurs when first considering engaging with a new supplier or on a regular basis as an audit. The goal is to offer a means to avoid contracting or buying items or services from unsuitable suppliers.

The cost of ensuring an organization conforms to customers’ quality requirements. Includes the costs of incoming inspection and test, in-process inspection and test, final inspection and test, document review, balancing (review of internal accounts to assure consistency), product quality audits, maintenance and calibration of test equipment, inspection and test materials and services, inspection and testing of materials and parts.