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Amytitty Harshan
School of Management Studies CUSAT,Kochi-22 Email : smsmib@gmail.com
Abstract : Even though much attention has been focused on supply chain management (SCM) concepts in recent years,
its interlinking with the quality management perspective is often limited and tangential in nature. While the importance of quality management is universally recognized, academic researchers need a more focused approach in evaluating quality management issues within the internal and external supply chain contexts. Consequently, in this study we define the concept of supply chain quality management (SCQM), and evaluate its relevance in academic and industrial practice by comprehensively reviewing prior quality and SCM literature in major journals and inductively identifying the themes that emerge within it. In particular, we take a more critical look at those published studies that specifically lie at the interface of quality and external SCM, and argue that quality practices must advance from traditional firm centric and product-based mindsets to an inter-organizational supply chain orientation involving customers, suppliers, and other partners. We also show that SCQM across inter-organizational supply chains has received scant research attention, even though that perspective is sorely needed in delivering value to customers in often globally scattered supply chains. A case study of a firm that is a firsttier supplier in an offshoot of automotive supply chain is presented to better illustrate the SCQM themes and their treatment in industrial practice. Based on our research, the case study, and experience of working with firms in the domain of quality management and the ISO 9001 certification processes, we propose a Quality-SCM framework that can be used to place prior work in perspective, as well as identify three specific opportunities for future SCQM research.
defined as: (1) problem-solving team integration, (2) training programs, (3) improvement in employee attitude, (4) improvement in communication among employees and between management and employees, (5) a quality certification program and (6) design of experiments. With an optimal execution of these six elements, the SPC implementation would bring positive results. Each team was supported by an upper level manager (sponsor) whose task was to keep the team in the same track and provide it of resources. The next step was to select coordinators for each team who already had some statistical and problem- solving techniques background. They were responsible to teach other techniques and to attend meetings with other areas, in which the status of their own teams were shared and presented. The SPC training was implemented at all levels of the organization, based on the responsibilities and activities of each employee (work-oriented training); e.g., operators and inspectors were trained on how to collect data, on the creation and understanding of control charts, and to participate in problem solving groups; an advanced training in statistics as well as design of experiments were introduced to engineers and technologists: they were trained in how and when to use control charts to monitor a process, to identify possible trends, causes and solutions, as well as to document them. The emphasis shifted from a try-and-error basis to a statistical focus and from an individual approach to a cross-functional collaboration to solve problems in which different areas were involved.
As public concern over food safety and a changing regulatory environment have become focal points in the industry, foodservice operators need to move beyond outdated and unreliable manual processes to better protect their customers and their brand. If daily supply chain quality issues are not managed in a systematic, enterprise-wide manner, the results can include shut downs, loss of customers, reduced employee productivity, higher administrative costs and lost credit dollars. Unfortunately the foodservice industry faces severe challenges in managing supply chain quality, including reliance on inconsistent, manual processes that make it difficult to identify quality related risk and uncover hidden issues. Even when these issues are identified, companies lack enterprise-wide visibility into the status of efforts that would allow them to address these issues and ensure processes are put in place to prevent reoccurrence. Perhaps of most concern, manual processes managed in organizational silos prevent the early detection of troubling trends that can mushroom into larger, more costly issues.
ITN Supply Chain Quality Management is a suite of powerful hosted solutions that enable you to capture, route, correct, prevent and analyze system-wide quality complaints and audits between your organization and your trading partners. Unlike spreadsheet or email-based processes, this solution gives you the ability to collaborate online with your partners and provides a real-time closed-loop view of enterprise-wide quality. By unifying all supply chain product and service quality data into a central repository, you have access to robust reporting, dashboard and alert capabilities so you can identify trends and overdue actions, and create detailed trading partner scorecards. Benefits include:
Protect brand image and market share Reduce the number and severity of quality related issues Reduce the closure time for quality issues Increase credit recovery and reduce credit recovery time Improve communication and collaboration across the organization and with trading partners
1.9 Overview
The Council of Supply Chain Management Professionals defines supply chain management as follows: "Supply Chain Management encompasses the planning and management of all activities involved in sourcing and procurement, conversion, and all logistics management activities. Importantly, it also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third-party service providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies. Supply Chain Management is an integrating function with primary responsibility for linking major business functions and business processes within and across companies into a cohesive and high-performing business model. It includes all of the logistics management activities noted above, as well as manufacturing operations, and it drives coordination of processes and activities with and across marketing, sales, product design, finance and information technology." A typical supply chain begins with the ecological, biological, and political regulation of natural resources, followed by the human extraction of raw material, and includes several production links (e.g., component construction, assembly, and merging) before moving on to several layers of storage facilities of ever-decreasing size and increasingly remote geographical locations, and finally reaching the consumer. Many of the exchanges encountered in the supply chain are therefore between different companies that seek to maximize their revenue within their sphere of interest, but may have little or no knowledge or interest in the remaining players in the supply chain. More recently, the loosely coupled, self-organizing network of businesses that cooperates to provide product [citation needed] and service offerings has been called the Extended Enterprise. Guaranteeing acceptable conditions in a global supply chain can be a complex challenge. As part of their efforts to demonstrate ethical practices, many large companies and global brands are integrating codes of conduct and guidelines into their corporate cultures and management systems. Through these, corporations are making demands on their suppliers (facilities, farms, subcontracted services such as cleaning, canteen, security etc.) and verifying, through social audits, that they are complying with the required standard
The primary objective of SCM is to fulfill customer demands through the most efficient use of resources, including distribution capacity, inventory, and labor. In theory, a supply chain seeks to match demand with supply and do so with the minimal inventory. Various aspects of optimizing the supply chain include liaising with suppliers to eliminate bottlenecks; sourcing strategically to strike a balance between lowest material cost and transportation, implementing just-in-time techniques to
optimize manufacturing flow; maintaining the right mix and location of factories and warehouses to serve customer markets; and using location allocation, vehicle routing analysis, dynamic programming, and traditional logistics optimization to [10] maximize the efficiency of distribution. There is often confusion over the terms "supply chain" and "logistics". It is now generally accepted that "logistics" applies to activities within one company or organization involving product distribution, whereas "supply chain" additionally encompasses manufacturing and procurement, and therefore has a much broader focus as it involves multiple enterprises (including [citation needed] suppliers, manufacturers, and retailers) working together to meet a customer need for a product or service. Starting in the 1990s, several companies chose to outsource the logistics aspect of supply chain management by partnering [11] with a third-party logistics provider (3PL). Companies also outsource production to contract manufacturers. Technology companies have risen to meet the demand to help manage these complex systems. There are four common supply chain models. Besides the three mentioned above, there is the Supply Chain Best Practices Framework.
1.1.2 Supply chain resilience In recent studies, resilience is regarded as the next phase in the evolution of traditional, place-centric enterprise [12] structures to highly virtualized, customer-centric structures that enable people to work anytime, anywhere. Resilient supply networks should align its strategy and operations to adapt to risk that affects its capacities. There are 4 levels of supply chain resilience. First is reactive supply chain management. Second is internal supply chain integration with planned buffers. Then comes collaboration across extended supply chain networks. [13] Finally is a dynamic supply chain adaptation and flexibility. It is not about responding to a one-time crisis, or just having a flexible supply chain. It is about continuously anticipating and adjusting to discontinuities that can permanently impair the value preposition of a core business with special focus on delivering ultimate customer centricity. Strategic resilience, therefore, requires continuous innovation with respect to product structures, processes, but also corporate behaviour. 1.1.3 Social responsibility in supply chains Incidents like the 2013 Savar building collapse with more than 1,100 victims have led to widespread discussions about corporate social responsibility across global supply chains. Wieland and Handfield (2013) suggest that companies need to audit products and suppliers and that supplier auditing needs to go beyond direct relationships with first-tier suppliers. They also demonstrate that visibility needs to be improved if supply cannot be directly controlled and that smart and electronic technologies play a key role to improve visibility. Finally, they highlight that collaboration with local partners, across the industry and with universities is crucial to successfully [14] managing social responsibility in supply chains. 1.1.4 Regulation Supply chain security has become particularly important in recent years. As a result, supply chains are often subject to global and local regulations. In the United States, several major regulations emerged in 2010 that have had a lasting impact on how global supply chains operate. These new regulations include the Importer Security [15] [16] Filing (ISF) and additional provisions of the Certified Cargo Screening Program. 1.1.5 Development and design With increasing globalization and easier access to alternative products in today's markets, the importance of product design to generating demand is more significant than ever. In addition, as supply, and therefore competition, among companies for the limited market demand increases and as pricing and other marketing elements become less distinguishing factors, product design likewise plays a different role by providing attractive features to generate demand. In this context, demand generation is used to define how attractive a product design is in terms of creating demand. In other words, it is the ability of a product's design to generate demand by satisfying customer expectations. But product design affects not only demand generation but also manufacturing processes, cost, quality, and lead time. The product design affects the associated supply chain and its requirements directly, including manufacturing, transportation, quality, quantity, production schedule, material selection, production technologies, production policies, regulations, and laws. Broadly, the success of
the supply chain depends on the product design and the capabilities of the supply chain, but the reverse is also true: the success of the product depends on the supply chain that produces it. Since the product design dictates multiple requirements on the supply chain, as mentioned previously, then once a product design is completed, it drives the structure of the supply chain, limiting the flexibility of engineers to [17] generate and evaluate different (and potentially more cost-effective) supply chain alternatives.
2.0 Illustarations
SQM MODEL
3.0 Photographs
4.0 CONCLUSION
The ultimate objective of both SCM and QM is continuous improvement of the performance and customer satisfaction, which alone is a persuasive reason to join their forces, besides their other common interests. This paper addresses that blending QM and SCM would result in higher benefits than their sole application. A valid means to do so is presenting cases from practice that help us to identify which processes, methodologies and procedures top companies from different industries implement to improve their relationships with their suppliers and customers as well as to improve the performance of their supply chain as a whole. The case studies in this paper demonstrate how applying QM techniques supported and improved SCM activities. As presented in Table 2, by training and implementing QM techniques, supply chain activities such as integration, coordination and information sharing have been supported and improved. Cost and lead time reduction, elimination of inspection of incoming products, standardization, reduction of number of suppliers, and documentation were also positive results gained from the application of QM techniques.
5.0 REFERENCES
[1] Chopra, S., Meindl, P., 2004, Supply Chain Management Strategy, Planning, and Operation. Pearson Education International, Second Edition, Upper Saddle River, New Jersey. [2] Beamon, B.M., 1998, Supply chain design and analysis: Models and methods, International Journal of Production Economics, Vol. 55, No. 3, pp. 281-294 [3] Mentzer, J., DeWitt, W., Keebler, J., Min, S., Nix, N., Smith, C., Zacharia, Z., 2001, Defining Supply Chain Management Journal of Business Logistics, Vol. 22, No 2, pp. 1-25. [4] Serdar Asan, S., Tanyas, M., 2007, An investigation of complexity management practices in supply chains, Proceedings of the 5th International Logistics and Supply Chain Congress, November 8-9, 2007, Istanbul, Turkey. [5] ISO, 2000, The International Standard ISO 9001:2000. Quality Management Systems Requirements, ISO Publications, Geneva. [6] ISO, 2000, The International Standard ISO 9001:2000. Quality Management Systems fundamentals and vocabulary, ISO Publications, Geneva. [7] Quazi, H., Jemangin, J., Wai K., Low, K., Chin L., 1998, Critical Factors in quality management and guidelines for self assessment: The case of Singapore. Total Quality Management, Vol. 9, No. 1, pp. 35-55. [8] Ahire, S., Golhar, D., Waller, M., 1996 Development and Validation of TQM Implementation Constructs. Decision Sciences, Vol.27, No.1. pp. 23-56. 9] Trent, R., 2001 Applying TQM to SCM, Supply Chain Management Review, May-June 2001, pp. 70-78. 10] Forker, L.B., Mendez, D., Hershauer, J.C., 1997 Total quality management in the supply chain: what is its impact on performance?, International Journal of Production Research, Vol. 35, No. 6, pp. 1681-1701. [11] Claver, E., Tar, J.J., Molina, J. F., 2003 Critical factors and results of quality management: an empirical study. Total Quality Management, Vol. 14, No. 1, pp. 91-118. [12] Flynn, B.B., Flynn, E.J., 2005, Synergies between supply chain management and quality management: emerging applications. International Journal of Production Research, Vol. 43, No. 16, pp. 3421-3436. [13] Herrmann, J. 2005 Lecture notes for Quality Management I. Qualittswisschenschaft Technische Universitt Berlin. [14] Romano, P., Vinelli, A., 2001, Quality management in a supply chain perspective. Strategic and operative choices in a textile- apparel network, International Journal of Operations and Production Management, Vol. 21 No. 4, pp. 446-460. [15] Beresford, A.K.C., Pettit, S.J., Whittaker, W., 2005, Improving supply chain performance through quality management in a global distribution environment, International Journal of Services and Operational Management, Vol. 1, No. 1, pp. 75-89. [16] George, S., Weimerskirch, A, 1994 Total Quality Management Strategies and Techniques proven at todays most successful companies. John Wiley & Sons, New York. [17] Kuei, C., Madu, C., Lin, C., 2001 The relationship between supply chain quality management practices and organizational performance, International Journal of Quality & Reliability Management, Vol., 18 No. 8, pp.864-872. [18] Casadess, M., de Castro, R., 2005 How improving quality improves supply chain management:
empirical study, The TQM Magazine, Vol. 17 No. 4, pp. 345-357. [19] Kanji, G., Wong, A., 1999, Business Excellence model for supply Chain management, Total Quality Management, Vol.10, No.8, pp. 1147-1168. [20] Kuei, C., Madu, C.N., 2001. Identifying critical success factors for supply chain quality management. Asia Pacific Management Review, Vol 6, No.4, pp. 409-423.