Strategic Quality Planning

Designing Quality Service

Chapter 9

Chapter 9 ➢The value chain

➢Supplier alliances
➢Supplier development
Managing Supplier Quality ➢Applying the contingency perspective to
in the Supply Chain supplier partnering
➢A supplier development program
➢Acceptance sampling and statistical
sampling techniques
➢Building an understanding of supply
chain quality management
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Strategic Quality Planning Strategic Quality Planning

Designing Quality Service Designing Quality Service
The Value Chain The Value Chain

➢The value chain consists of a network of

value chains
The value chain is a tool that disaggregates a
➢Value chain activities are the tasks that
firm into its core activities to help reduce costs
add value for the customers
and identify sources of competitiveness.
➢Non-Value chain activities typically have
costs but no effect on customers and are
referred to as hidden factory

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Strategic Quality Planning Strategic Quality Planning

Designing Quality Service Designing Quality Service
The Value Chain The Value Chain

Value Chain Activities ➢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

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 Strategic Quality Planning Strategic Quality Planning
Designing Quality Service Designing Quality Service
The Value Chain Supplier Alliances

➢ There is a trend toward developing

➢Managing the closer relationships with fewer suppliers
supply chain ➢Inspired by lean purchasing
… The linkage approaches supplier alliances
between a series relationships have emerged
of suppliers and
customers.

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Strategic Quality Planning Strategic Quality Planning

Designing Quality Service Designing Quality Service
Supplier Alliances Supplier Alliances
Supplier Development Approaches Single Source
➢Single sourcing ➢Electronic Data Interchange (EDI)
➢Dual sourcing
➢Vendor Managed Inventory (VMI)
➢Supplier evaluation
➢Sole-source filters
➢Baldridge

➢ISO 9000:2008

➢Supplier certification or qualification programs

➢Supplier development programs

➢Supplier audits

➢Alliances
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Strategic Quality Planning Strategic Quality Planning

Designing Quality Service Designing Quality Service
Supplier Alliances Supplier Alliances

Supplier Development Supplier Relationship Management Systems

1. Identify critical products and services (SRMS)
2. Identify critical suppliers ➢ Much like CRMS
3. Form cross-function teams ➢ Spend analytics
4. Meet with supplier top-management ➢ Sourcing execution
5. Identify key projects ➢ Procurement execution
6. Define details of agreement ➢ Payment
7. Monitor status and modify strategies ➢ Supplier score-carding
➢ Performance monitoring
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 Strategic Quality Planning Strategic Quality Planning
Designing Quality Service Designing Quality Service
Building an Understanding of Supply Chain Quality Management Summary

➢The value chain

➢Supplier alliances
Supply Chain Quality Management is a
➢Supplier development
systems-based approach to performance
improvement that leverages opportunities created ➢Applying the contingency perspective to
by upstream and downstream linkages with supplier partnering
suppliers and customers. ➢A supplier development program
➢Acceptance sampling and statistical sampling
techniques
➢Building an understanding of supply chain
quality management
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otherwise, without the prior written permission of the publisher.
Printed in the United States of America.

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