FINAL Assignment: Quality Management in Supply Chain

Topic: A study of total quality management and supply chain

Management practices

Presented by

SAJJAD ALI 20366

DATED: May21, 2018

This paper is in extensive overview of “Total quality Management and Supply-chain
Management” practices to explore the relationship between them and also to explore better
understanding of their outcome. For that propose 90 of the practices as been explored from
previous studies of which 50 practices is from TQM and 40 Practices of SCM.

As at seem to be the two most important strategies for any manufacturing, services and small
to mid-size enterprises. These two practices “Total Quality Management (TQM) and
Supplychain Management (SCM)” has become a prerequisite for success in the global market
by implementation of TQM and SCM strategies its Improve Customer Service Level and
hence business performances.

Globalization leads to competition and company must have some competitive advantage our
others if they want to survive and success in future. For that purpose the important thing for
companies is to satisfy their customer by low pricing and high Quality product from
Competitor. Low prices can be achieved if company deduct their desired profit from higher
pricing and cover there desired profit from reducing cost from product Processing and cost
reduction throughout there supply chain by performing TQM and SCM practices

TQM

TQM is a way of planning, organizing and understanding each activity, and of removing all
the wasted effort and energy that is routinely spent in organizations, thus improving the
competitiveness, effectiveness and flexibility of an organization for the benefit of all
stakeholders. It ensures that leaders adopt a strategic overview of quality and focus on
prevention not detection of problems.

For a long term success the company’s must practice Total quality Management practices
throughout organization to ensure Quality of a product and satisfy customer quality
expectation. As quality in process can reduce cost of rework, defects and other costs too.
These quality standards require long-term commitment which requires proper planning, time
and effort to be successfully done it.

Top six TQM practices as been presented in the study: Selection of these six practices was
based on high occurrence in previous studies.

1. Top management commitment also called by role of leadership, management support and
management commitment.

2. Customer focus which include customer satisfaction and orientation

3. Training and Education

4. Continuous improvement and Innovation

5. Supplier Management which includes Supplier relationship, supplier quality and supplier
partnership and collaboration

6. Employee Involvement
SCM

The ultimate goal of supply chain is getting the require product to customer where and how
they want it. Delivering product/service to customer in short lead time and by keep in quality
expectation in mind.

These six practices as also been given by their higher occurrences in previous studies:

1. Customer relationship including of complaint handling, customer satisfaction, close

partnership with customers, customer service management and customer needs.

2. Re-engineering material flows/lean management included management of material flows,

reducing inventory, eliminating of waste, JIT, and manage inventory in the chain.

3. Strategic supplier partnership including supplier involvement, many supplier relationship,

and supplier quality management and collaboration.

4. Employees information and communication technology including information technology

sharing/ communication, and information system between them.

5. Changing corporate culture including employee and management support and

commitment, leadership, participative management and cooperation

6. Close partnership with suppliers which include reliable suppliers and long-tern suppliers.

As the main objective of this paper was to look at the practices of TQM and SCM and
compare them for their commonalities to gain maximum benefits. Total 90 practices is been
explore Out of which the study suggest 12 big influence practices.

From it 5 practises I think is more important. Top management commitment and employee
involvement, Continues Improvement and Customer Focus and the Strategic relationship
with Supplier

1. The commitment of top management is very important for a company as the can act
as leader and can supervise and help employees is employees are the ones who
facilitate work theory from concept stage to completion stage and help them with
machine training to do a better job.

Top Management must see the organization as a system of interrelated component

each with an aim, but all focus collectively to support the aim of the organization.
2. Continues improvement and Customer focus: Today, all organization should
understand if they want to succeed in their businesses they should know the
importance of customer experience and that this experience should be improving
constantly otherwise customer will move somewhere else and even leading company
will fall behind from their competitors

Delivering excellent customer experiences isn’t something that you can measure one
time and not look to improve. The reason for this is that customer expectations are
constantly raising and what’s seen as exceptional service today, may not be the
exceptional service of tomorrow. Businesses need to keep innovating and improving
their service, or risk being left behind.

Customer experience improvement strategy can be based on the Deming Cycle, a

continuous improvement framework based on Six Sigma methodology. This cycle can
be adapted to all situations where improvement is required, and advocates for an
established process for these situations:

Plan your change

Do the change
Study, or check the results of the change
Act to improve the change further

3. Strategic supplier management/Partnership: Suppliers are firms and individuals that

provide the resources needed by the company to produce its goods and services. This
includes materials and parts, capital items, supplies and service.

Organizations spend a lot on purchasing raw materials, components and services.

Therefore, suppliers’ quality can substantially affect the overall cost of a product or
service. to obtaining high-quality products and services for the customer is to work
with suppliers in a partnering atmosphere to achieve the same quality level as
expected by customer .Other benefits includes improved quality, increased
efficiency, lower cost, increased opportunity for innovation, continuous improvement
of products and services.
 Other practices study suggest can result

TQM SCM Lead To

1 Supplier management Strategic supplier 1.JIT

Relationship
2.Cost reduction/reduce inventory

3.On-Time delivery

4.Supplier-customer relationship

2 Top-Management Customer Relationship 1.Customer Satisfaction

Commitment
2.Business performance

3.Employee Involvement

4.Improve market share

3 Continuous improvement Material management 1.Cost reduction

2.Reduce waste

3.Customer satisfaction

4.Quality of goods and service

4 Employees involvement Information and 1.Customer responsiveness

communication
technology 2.Increas Cross-Functional
Communication

3.Improve Efficiency

4.Team Work