Supply Chain Quality Management Practices

TOWARDS A BETTER UNDERSTANDING OF SUPPLY CHAIN QUALITY MANAGEMENT PRACTICES Article: International Journal of Production Research •This paper reports the result of a comparative study of quality tools and methods adaptation by operations and supply chain managers. •SCQM is defined as a system based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers. •Operation management is traditional been explained by some version of an ‘inputs-transformation process- outputs’ view of the productive capability of the firms.

From Quality perspective, operation managers have focused on internal activities such as process control process improvement, product design improvement and design of experiment. As a result, more and more six-sigma improvement project evolved. •In addition experts like Deming have long emphasized importance of customers and supplier. •In this paper, it explored the difference between quality management practice of operation managers and each type of managers emphasizes supply chain managers, including what quality tools.

Tool can here mean the method such as benchmarking, an approach to improving quality such as process improvement team (PIT) and leadership. Literature review and hypothesis development •Supply chain management has developed as a field from the integration of operations and marketing management. As a result, a linkage with upstream firms – which was once the domain of purchasing – has been elevated in importance. •The quality management precedence for this is found in Deming’s fourth point, ‘End the practice of awarding business on the basis of price tag alone.

Instead, minimize total cost. Move towards a single supplier for any one item, on a long-term relationship of loyalty and trust’. This has resulted in a merging of quality management and supply chain management principles. •Supply chain management practices can result in operational benefits such as decreased production lead times, reduced costs, faster product development, and increased quality •In this article calling for integration of quality and supply chain management Theodorakioglu found a significant positive correlation between supplier management and total quality management.

Quality has been one of the critical determines in choosing suppliers. Hence a hypothesis is developed t understand how managers differ in adopting quality tool. •57 quality tools are selected. Some of the tools are Benchmarking, Enterprise resource planning (ERP), Just in Time (JIT), lean, Quality awards, Six Sigma Black Belt DMAIC, Poka Yoke, basic seven tools of quality like flowcharts, Fish bone Diagram, Affinity diagram, 5-S, Problem evaluation and review technique (PERT), and Data analysis. Quality professional tools like control chart, computer aided testing (CAT), inspection, Gage R&R. •Some supply chain tools like customer relationship management, Complaint resolution, Supplier development, Supplier evaluation like ISO 9000, and customer benefit package. •Design tools like Quality Function Deployment (QFD), Computer Aided Design (CAD), Concurrent design, Quality assurance (QA), Failure mode and effects analysis(FMEA), Design of Experiment(DOE), Design for manufacture (DFM), Reliability Index, DMADV, and Robust design by Taguchi. Management tools like On the Job Training, Change Management, Human resource Management (HRM), Systems Thinking, Contingency Theory, Plan-do-check-act (PDCA) cycle, Crosby-managing quality concept, Malcolm Baldrige National Quality Award (MBNQA), Jurans – Trilogy of improvement, and Hoshin planning •However, these tools are a broad collection of approaches to improving quality that will provide insights to the differences between how operations and supply chain managers approach quality improvement. Methods Data for this study was gathered by inviting participants to complete a web-based survey. The survey included seven Likert scales that allowed respondent rank the extent to which they utilized various quality tools. •These lists are submitted to the panel of six supply chain and quality managers. Result in removal of one tool and addition of two tools in the survey. Total 57 tools are included in the survey. •The test was conducted with MBA students, APICS members, ISM members, and CSCMP members. Result Using SAS, it is examined difference in the utilization of quality tools between operation and managers and supply chain managers. It is computed and found the difference between mean responses of each manger. •A positive difference indicate – a particular tool is utilized to a greater extend between both managers. Negative differences indicate – operation managers tend to use the tool more than supply chain managers. •To test our hypothesis, we then ranked the quality tool means and performed a Kruskal Wallis test to analyze differences in ranks where the treatment was type of manager.

Conclusion •Tools of high importance to both Supply Chain and Operation Managers: On the job training, Data Analysis, Supply chain management, Customer relationship management, Project Management and survey. •Tools important primarily to Supply Chain Mangers: Leadership, Benchmarking, Complaint resolution, Supplier management, Change management, ERP, Awards, Design for the environment, Six sigma, and Deming. •Tools important primarily to Operation Mangers: QFD, Computer Aided Design (CAD), Computer Aided Testing (CAT), Prototyping, ISO 9000, Design for Manufacture, PDCA, Gage R&R, and 5-S. Tools of low importance to both Supply Chain and Operations Managers: DMAIC, Crosby, DMADV, MBNQA, SERVQUAL, Juran, and Hoshin. •There are few surprises. The low rankings for the Baldrige award and the six-sigma methodologies were somewhat surprising. It could be that DMAIC and DMADV is more the domain of six sigma black belts. Since these black belts tend to be more specialized, both managers may not utilize these processes in daily problem solving and decision-making. Reflection on the identified differences reveals that operations managers tend to manage supply chain relationship through procedural methods such as ISO 9000 and supplier evaluation. Supply chain managers tend to adopt more collaborative approaches such as supplier development, awards, and complaint resolution processes. As the field of operations moves more in a supply chain direction, this could change. Supply chain professionals have long emphasized collaboration and this has become part of the supply chain culture.