TOTAL QUALITY MANAGEMENT IN

SUPPLY CHAIN

Presented byOopinder Singh

Saini

1. Introduction2. Supply chain quality management based on TQM principles3. Customer focus4. Leadership5. Involvement of people6. Process management7. System management8. Continual improvement9. Factual approach to decision making10. Mutually beneficial supplier relationship11. Conclusion

OUTLINE

• Core ideas of TQM were set by W. Edwards Deming, Joseph Juran and Kaoru Ishikawa

• The series standards ISO9000 are implemented in many industries

• In the introduction of Quality Management Systems of ISO9000:2000, eight principles of TQM were proposed

• Eight Principles: Customer focus, Leadership, Involvement of people, Process management, System management, Continual improvement, Factual approach to decision making and Mutually beneficial supplier relationship.

INTRODUCTION

• Enterprises rely heavily on suppliers in supply chain circumstance

• Product quality and manufacturing process of the supplier has great effect on the quality of final product

• Shift in the focus from enterprise to supply chain

• Supply chain focus ensures a competitive advantage

• Core principle of TQM

• Quality efforts comes of customers needs and ends with customers acceptance

• In supply chain circumstance, customer not only includes the end user but also many in between users

• Problems in supply chain occurs due to lack of communications between the users

SUPPLY CHAIN QUALITY MANAGEMENT BASED ON TQM PRINCIPLES

CUSTOMER FOCUS

• Core enterprise should pay attention to needs and expectation of their end users

• All members of the supply chain should pay attention to needs and expectation of their backward users.

• The effect of quality management depends on how effective is the leadership

• In supply chain context, core enterprise provides the leadership

• Core enterprises must act as leaders to cater the needs and expectation of other members

• Core enterprises should foster more leaders of TQM

LEADERSHIP

• Exertion of enthusiasm and creativity of all employees

• In supply chain context, a motivating work atmosphere should be established

• Each employee should understand his/her role in supply chain

• Foster the ethos of self motion and self knowledge in supply chain through 5s, i.e. seiri (organisation), seiton (neatness), seiso(cleaning), seiketsu (standardization) and shitshke (discipline)

INVOLVEMENT OF PEOPLE

• Focus of modern quality view ns the process quality management

• Each step of supply chain has many correlative processes: procurement, logistics, production, inventory, selling, service, etc.

• The processes has their own independent objectives and programs

• There are usually conflicts among the objectives and programs which should be identified and managed

PROCESS MANAGEMENT

• Views quality management system as a big and holistic system

• Identify and manage the sub-systems

• Improve the validity and efficiency of the final targets

• In supply chain context enterprises should: 1. Confirm the mutual dependence relationship 2. Break the boundary among supply chain members 3. Construct and integrate the processes in supply chain system

• Many well operating sub-systems can be constructed to manage the resources rationally among the subsystems

SYSTEM MANAGEMENT

• Focuses on modern quality research and practise

• Focuses on customer satisfaction

• In supply chain context, there is more stress placed on continual improvement because of the competition

• Emphasis is placed on increasing the speed of the continual improvement than of the rivals

CONTINUAL IMPROVEMENT

• Sufficient and effective data

• Usage of advanced information technology to collect the data

• In supply chain context, the supply chain data and information of other members should also be collected

• Data analysis is used to find the problems in supply chain

• Correct and timely decisions to avoid or rectify the problems

FACTUAL APPROACH TO DECISION MAKING

• Main objective is to help suppliers use TQM to analyze and improve their work process

• Organisations and suppliers are mutually dependent

• In supply chain context, the product quality is performed due to the production, sales and services by all members

MUTUALLY BENEFICIAL SUPPLIER RELATIONSHIP

• Things for core enterprise to realize:

1. Identify and select the main suppliers

2. Investigate the requirements of customers and develop new product jointly with suppliers

3. Share information, technology, and resources with suppliers

4. Admit the improvement and achievement of suppliers

5. Take joint improving activities with suppliers

6. Ensure the conformity of quality system

• ISO9000 are made for the standardization of quality management and assurance

• Standards provide acceptable products and services and improves the supply chain quality

• The application of the 8 TQM principles in supply chain promotes the improvement of operation efficiency

CONCLUSION