1. Managing Supplier Quality
Chapter 9
Managing Supplier Quality
in the Supply Chain

2. Strategic Quality Planning Designing Quality Service Chapter 9
The value chain
Supplier alliances
Supplier development
Applying the contingency perspective to supplier partnering
A supplier development program
Acceptance sampling and statistical sampling techniques
Building an understanding of supply chain quality management

3. Strategic Quality Planning Designing Quality Service The Value Chain
The value chain is a tool that disaggregates a firm into its core activities to help reduce costs and identify sources of competitiveness.

4. Strategic Quality Planning Designing Quality Service The Value Chain
The value chain consists of a network of value chains
Value chain activities are the tasks that add value for the customers
Non-Value chain activities typically have costs but no effect on customers and are referred to as hidden factory

5. Strategic Quality Planning Designing Quality Service The Value Chain
Value Chain Activities

6. Strategic Quality Planning Designing Quality Service The Value Chain
The chain of customers
If you work at workstation 4 in a process … you will make sure that the work you do is impeccable before you release it to … workstation 5

7. Strategic Quality Planning Designing Quality Service The Value Chain
Managing the supply chain
… The linkage between a series of suppliers and customers.

8. Strategic Quality Planning Designing Quality Service Supplier Alliances
There is a trend toward developing closer relationships with fewer suppliers
Inspired by lean purchasing approaches supplier alliances relationships have emerged

9. Strategic Quality Planning Designing Quality Service Supplier Alliances
Supplier Development Approaches
Single sourcing
Dual sourcing
Supplier evaluation
Sole-source filters
Baldridge
ISO 9000:2008
Supplier certification or qualification programs
Supplier development programs
Supplier audits
Alliances

10. Strategic Quality Planning Designing Quality Service Supplier Alliances
Single Source
Electronic Data Interchange (EDI)
Vendor Managed Inventory (VMI)

11. Strategic Quality Planning Designing Quality Service Supplier Alliances
Supplier Development
Identify critical products and services
Identify critical suppliers
Form cross-function teams
Meet with supplier top-management
Identify key projects
Define details of agreement
Monitor status and modify strategies

12. Strategic Quality Planning Designing Quality Service Supplier Alliances
Supplier Relationship Management Systems (SRMS)
Much like CRMS
Spend analytics
Sourcing execution
Procurement execution
Payment
Supplier score-carding
Performance monitoring

13. Strategic Quality Planning Designing Quality Service Applying the Contingency Perspective to Supplier Partnering
One variable which affects what customers want from their suppliers is … position in the supply chain

14. Strategic Quality Planning Designing Quality Service A Supplier Development Program: ISO/TS 16949
The ISO/TS standard applies only to automotive companies
Developed by the International Automotive Task Force (IAFT). Members include:
Ford GM
Daimler Chrysler

15. Strategic Quality Planning Designing Quality Service A Supplier Development Program: ISO/TS 16949
ISO/TS Includes:
Quality management system
Management responsibility
Resource management
Product realization
Measurement, analysis and improvement

16. Strategic Quality Planning Designing Quality Service A Supplier Development Program: ISO/TS 16949
Model of a process-based quality manage-ment system

17. Strategic Quality Planning Designing Quality Service Acceptance Sampling and Statistical Sampling Techniques
Acceptance sampling is the technique used to verify that incoming goods from a supplier adhere to quality standards.
Acceptance sampling is controversial.

18. Strategic Quality Planning Designing Quality Service Acceptance Sampling and Statistical Sampling Techniques
Acceptance sampling might be needed when:
Dealing with unproven suppliers
During start-ups and when building new products
When products can be damaged during shipment
When problems with a certain supplier have been noticed

19. Strategic Quality Planning Designing Quality Service Building an Understanding of Supply Chain Quality Management
Supply Chain Quality Management is a systems-based approach to performance improvement that leverages opportunities created by upstream and downstream linkages with suppliers and customers.

20. Strategic Quality Planning Designing Quality Service Summary
The value chain
Supplier alliances
Supplier development
Applying the contingency perspective to supplier partnering
A supplier development program
Acceptance sampling and statistical sampling techniques
Building an understanding of supply chain quality management

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Printed in the United States of America.