UNIVERSITY OF ROEHAMPTON

SUMMATIVE ASSESSMENT

SUPPLY CHAIN STRATEGY AND PROCESSES

REPORT ON GLOBAL SUPPLY CHAIN ANALYSIS OF

HP LAPTOP’S QUALITY PERFORMANCE

Module Title : SUPPLY CHAIN STRATEGY AND PROCESSES

Module Code : RBP020L068S

Student Id : VAR22556240
TABLE OF CONTENTS

1. INTRODUCTION...............................................................................................................2

2. BRIEF INFORMATION ABOUT THE COMPANY AND ITS SUPPLY CHAIN..................3

2.1 Introduction..................................................................................................................4

2.2 Background of the chosen company.........................................................................4

2.3 The global supply chain of the chosen company.....................................................4

2.4 HP’S Supply Chain Structure and Design.................................................................5

2.5 Conclusion....................................................................................................................6

3. CHOSEN OPERATIONS MANAGEMENT PERFORMANCE..........................................7

3.1 HP’s performance on the chosen objective: Quality................................................7

3.2 HP’s Approach to Quality............................................................................................8

3.3 Comparison with a competitor: Dell........................................................................10

3.4 Recommendations for HP to Improve its Performance in quality management

11

3.5 The Implementation of Triple Bottom Line Theory in HP’s Sustainability Strategy
12

4. CONCLUSION.................................................................................................................13

5. REFERENCES................................................................................................................14
1. INTRODUCTION

Every organization must control the movement of goods and services from suppliers to
customers, which is what supply chain management entails (Mentzer, J. T., DeWitt, W.,
Keebler, J. S., Min, S., Nix, N. W., Smith, C. D., & Zacharia, Z. G., 2001, pp. 1-25). With
an emphasis on the quality performance target, this research seeks to analyze Hewlett-
Packard's (HP) supply chain management performance for its laptop product group. A
technological corporation called HP offers products and services to people, businesses,
and organizations operating in a variety of sectors (HP, 2022). One of their most well-
known product groups is laptops, thus it's critical to assess how well they manage their
supply chain to keep their market advantage.

Various mobile computers created for personal and professional use make up HP's
laptop product group (HP, 2022). These laptops have cutting-edge hardware and
software, which makes them appropriate for many uses like gaming, entertainment, and
productivity. The success of this product group and the corporation as a whole depends
on how well these laptops’ function. Delivering high-quality goods and services to clients,
assuring their happiness, and developing a solid reputation are the specific goals of the
quality performance objective (Oakland, 2003).

In conclusion, this report will assess HP's laptop product group's supply chain
management performance, paying particular attention to the quality performance target.
The report's objectives are to identify the upstream and downstream supply chain
participants, analyze their contributions to supply chain management, and assess the

effectiveness of operations management in reaching the quality objective.

2. BRIEF INFORMATION ABOUT THE COMPANY AND ITS
SUPPLY CHAIN

2.1 Introduction
The process of controlling the flow of products, services, and information from the point of
production to the point of consumption is known as supply chain management. It entails
the synchronization and integration of numerous tasks and parties engaged in the
creation and provision of goods and services. Companies must manage their supply
chains effectively if they want to achieve operational excellence, cut costs, and satisfy
client demand (Christopher, 2016).

Due to the fierce competition in the global market, businesses are now concentrating on
supply chain process optimization to achieve a competitive advantage. A properly
managed supply chain can aid businesses in lowering expenses, raising standards, and
increasing customer satisfaction. The design of the supply chain, supplier selection,
transportation, inventory control, and information technology are only a few of the
variables that affect the supply chain's effectiveness (Sunil Chopra and Peter Meindl,
2016).

2.2 Background of the chosen company

A worldwide technology business with headquarters in the US is Hewlett-Packard (HP).
Since its inception in 1939, the business has expanded to rank among the top global
suppliers of technology goods and services (Hussain, M., Nafees, Q., Khan, M., Ahmad,
A., & Ullah, H., 2020, pp. 118-126). HP is active in several industries, including software,
servers, printers, and personal computers. More than 150 countries around the world sell
the company's products, and it has operations in more than 170 of those nations (HP,
2022).

According to (Sunil Chopra and Peter Meindl, 2016), HP's success can be credited to its
efficient supply chain management, which enables the company to effectively coordinate
and integrate the numerous operations and stakeholders involved in the manufacturing
and delivery of goods and services. The supply chain of the business is set up to satisfy
client needs while containing costs and preserving quality. HP has prioritized sustainable
supply chain practices in recent years, including ethical raw material procurement and
lowering its carbon footprint (Harris, J., Ferekides, A., & Satyamurti, R., 2019, pp. 44-62).
HP's supply chain management procedures have given the corporation a competitive
edge in the international technology industry and enabled it to achieve operational
excellence.

2.3 The global supply chain of the chosen company

A complex network of upstream and downstream participants makes up HP's supply
chain. Various parties and activities are involved in HP's supply chain, including suppliers,
manufacturing, transportation, repair, reuse, recycling, operations, and the production of
goods and services.

The upstream elements of the supply chain for the company, such as suppliers of raw
materials, components, and subsystems, are extremely important. To make sure that its
suppliers follow the company's standards for environmental, social, and ethical practices,
HP established a Supplier Code of Conduct (Iyer, K. C., Ozgen-Ozbek, M., Paul, P. K., &
Kafaligonul, H., 2019, pp. 325-342). The business works closely with its suppliers to
maintain a sustainable and ethical supply chain and has a wide range of suppliers (HP,
2022).

The downstream partners in HP's supply chain, such as distributors, retailers, and end
users, are as important to the operation of the business. HP sells its products directly, as
well as through distributors and retailers. To guarantee that its products reach end users
effectively, the corporation has formed alliances with several distributors and retailers
based all over the world (Govindan, K., Fattahi, M., & Keyvanshokooh, E., 2020). To meet
customer demand and deliver goods on schedule, HP closely collaborates with its
distribution partners (HP, 2022).

Using supply chain management techniques, HP has been able to streamline operations
and provide clients around the world with high-quality products. HP has been able to
maintain a sustainable and ethical supply chain that satisfies the requirements of its
stakeholders by collaborating closely with its suppliers and downstream members (Iyer,
A. V., Geraghty, J., & Ngai, E. W. T., 2019, pp. 3662-3685).

2.4 HP’S Supply Chain Structure and Design

An overview of HP's supply chain architecture is shown in the figure below. It illustrates
the important participants and tasks engaged in various supply chain phases. Suppliers,
supply chain personnel, customers, channel partners, recycling vendors, HP employees,
local communities, regulators, and international communities are some of the major
parties with an interest in HP's supply chain.
The diagram demonstrates that the main processes in HP's supply chain are the
extraction of raw materials, production, final assembly, shipping, product take-back,
repair, remanufacturing, re-marketing, and material recycling. For HP's supply chain to
operate effectively and to fulfill customer and other stakeholder expectations, these
operations are essential.

The picture also shows HP's emphasis on sustainability and corporate social
responsibility in addition to supply chain activities. By emphasizing product stewardship,
recycling, and reuse, the company is dedicated to minimizing its negative environmental
impact. In addition, it takes part in social responsibility activities like giving, volunteering,
running the facilities, and staff involvement and development.

The figure offers a thorough overview of HP's supply chain structure and architecture,
showing the important parties and activities involved at various supply chain stages as
well as the company's emphasis on sustainability and CSR.

Fig 1: HP’s Supply Chain Structure and Design

(Source: https://h20195.www2.hp.com/v2/getpdf.aspx/c06601778.pdf)

2.5 Conclusion
To sum up, successful supply chain management is essential for businesses to achieve
operational excellence, cut costs, and satisfy consumer demands. Upstream and
downstream participants in HP's supply chain include vendors, producers, distributors,
and retailers. To guarantee that items are supplied to clients in a timely and effective
manner, the company works closely with its suppliers and distribution partners. The
supply chain is set up to guarantee that goods are manufactured effectively and by the
necessary quality standards. The HP supply chain is shown in the figure that is presented
in this section.
3. CHOSEN OPERATIONS MANAGEMENT PERFORMANCE
This section will evaluate HP's operations management performance goal and contrast it
with its rival, Dell. The analysis will take into account the entire supply chain from a global
viewpoint and will be supported by pertinent theories. Additionally, suggestions will be
made to enhance HP's performance.

3.1 HP’s performance on the chosen objective: Quality

HP's quality management system (QMS) is based on the ISO 9001 standard, which
offers a framework for putting one in place (Standardisation, 2015). Due to its recognition
for excellent quality management procedures, HP's QMS has assisted the company in
improving its quality performance. For its manufacturing site in Singapore, HP received
the esteemed Japan Institute of Plant Maintenance (JIPM) Award in 2020, which honors
excellence in both production and maintenance (HP, 2021).

To further enhance the quality of its products, HP has launched several quality initiatives,
including Design for Six Sigma (DFSS) (Scherer, F. M., & Bernon, M., 2013, pp. 162-
183). The goal of the DFSS technique is to design products that satisfy customer
demands and criteria while reducing production flaws and variances (Bhuiyan, N. &
Baghel, A., 2005). By utilizing DFSS, HP has been able to decrease product flaws and
raise customer satisfaction (Scherer, F. M., & Bernon, M., 2013).

The Total Quality Management (TQM) concepts, which emphasize staff involvement,
customer focus, and continuous improvement, are also used by HP (Goetsch, D. L., &
Davis, S. B., 2014). HP has been able to boost customer happiness, lower costs, and
improve quality performance by implementing TQM concepts (Scherer, F. M., & Bernon,
M., 2013).

HP places a strong emphasis on quality, which is shown in the deployment of quality

programs like DFSS and TQM as well as its QMS, which is based on ISO 9001
standards. Through these measures, HP has been able to lower costs while increasing
quality performance and customer happiness.

3.2 HP’s Approach to Quality

The Quality Management System (QMS), developed by HP to make sure that their
products fulfill customer expectations and comply with legal and regulatory standards,
reflects the company's commitment to quality. The following elements make up the QMS
(HP, 2021):
1. Quality Policy and Objectives: To ensure that all workers are aware of the value of
quality and their part in achieving it, HP has established a quality policy and set of
objectives.
2. Quality Planning: HP uses a methodical method that entails determining client
requirements and converting them into guidelines for product design and production.
3. Quality Control: HP has devised procedures for doing so. These procedures include
receiving raw materials inspections, in-process inspections during manufacturing, and
final inspections before shipping.

The following table gives an overview of the QMS's components and how they
complement the company's quality goals to show how HP approaches quality:

QMS Component How it Supports Quality Objectives

Quality policy and Ensures that all employees understand the importance of quality and
objectives their role in achieving it

Ensures that customer requirements are incorporated into product

Quality planning
design and manufacturing specifications

Monitors and controls product quality to ensure that it meets customer

Quality control
expectations

Identifies and eliminates the root causes of quality problems to prevent

Quality improvement
their recurrence

Table 1: Overview of QMS components

The Deming Cycle, also known as PDCA (Plan, Do, Check, Act), is a key component of
HP's quality management system and highlights their continuous improvement approach:

Figure 2: PDCA cycle

From the standpoint of the global supply chain, HP's quality management strategy is
essential for its overall performance and reputation because it has a direct impact on
client loyalty and happiness. Quality has emerged as a significant differentiator for
businesses in today's global market, where customers have more options than ever
before, and those that fall short of customer expectations are likely to lose market share
(Scherer, F. M., & Bernon, M., 2013). Because it helps to ensure that their goods are of
consistently high quality, HP's focus on quality is vital for both their consumers and their
supply chain partners. This can enhance supply chain performance and save costs
(Handfield, R. B., Sroufe, R., & Walton, S. V., 2013).

3.3 Comparison with a competitor: Dell

Dell is one of HP's primary rivals in the computer sector. To maintain high product
standards and meet or exceed customer expectations, Dell places a strong emphasis on
quality in their operations management performance target (Dell, n.d.).

Both HP and Dell have created robust supply networks with suppliers and distributors
around the world to guarantee timely delivery and affordability from a global supply chain
standpoint. However, a comparison of the quality management systems (QMS) between
the two businesses reveals some distinctions.

The ISO 9001 standard is adhered to by HP's QMS, which also emphasizes customer
satisfaction and ongoing development (HP, 2021). Contrarily, the Six Sigma technique
used by Dell's QMS attempts to reduce errors and variability in processes and products
(Dell, n.d.). While quality is prioritized in all QMS models, the focus on process
improvement varies.

With an emphasis on lowering greenhouse gas emissions, utilizing sustainable

resources, and minimizing waste, HP has a long-standing commitment to environmental
responsibility in terms of sustainable supply chain management (HP, 2021). In addition,
Dell runs a sustainability program that emphasizes ethical supply chain management
procedures and environmentally friendly product design (Dell, n.d.). The 2020 Green
Supply Chain Corporate Social Responsibility (CSR) Assessment placed HP first,
recognizing its leadership in sustainable supply chain management (Hsu, 2020).

Overall, despite certain variances in their QMS methodologies and sustainable supply
chain management practices, both HP and Dell prioritize quality in their operations
management performance targets.

3.4 Recommendations for HP to Improve its Performance in quality

management

3.4.1 Recommendation 1: Implement Total Quality Management (TQM)

Total Quality Management (TQM), a thorough quality management system that
encompasses all employees and departments in the company, can be
implemented by HP to its advantage. Continuous improvement, customer
satisfaction, and staff engagement are the three main focuses of TQM (Oakland,
J. S., & Marosszeky, M., 2006). HP may improve its QMS and raise the quality of
its goods and services by applying the TQM tenets.
 Incentivize Employee Involvement
HP should reward employee engagement and encourage them to take an active
part in quality improvement initiatives to execute TQM successfully. This can be
accomplished through quality measures being included in performance
evaluations, training programs, and recognition programs (Deming, 1986).
3.4.2 Recommendation 2: Embrace Lean Manufacturing
Lean manufacturing, a method of production that emphasizes effectiveness,
waste minimization, and continual improvement, can also be advantageous for
HP. HP can lower production costs, enhance product quality, and boost customer
satisfaction through lean manufacturing (Womack, J. P., & Jones, D. T., 2003).
 Adopt a Kaizen Mindset
 HP should embrace a Kaizen attitude, which emphasizes continual improvement and
waste reduction, to implement lean manufacturing efficiently. To do this, waste within
the production process must be identified and tiny, gradual modifications must be
made to reduce them (Imai, 1986).

3.4.3 Recommendation 3: Emphasize Supply Chain Collaboration

By placing a strong emphasis on cooperation and communication with its

suppliers and other partners in the supply chain, HP may enhance the
performance of its quality management system. HP can raise the general level of
quality of its goods and services by carefully collaborating with suppliers to make
sure that its materials and components adhere to quality requirements
(Christopher, M. & Peck, H., 2004).

 Implement a supplier quality management program

HP should put in place a supplier quality management program that consists of
routine supplier evaluations, training courses, and performance reviews that take
quality metrics into account to do this. As a result, it may be possible to guarantee
that all vendors satisfy HP's quality standards and specifications (Harrison, A., &
Hoek, R. I., 2019).

3.5 The Implementation of Triple Bottom Line Theory in HP’s Sustainability

Strategy
The Triple Bottom Line (TBL) hypothesis, commonly known as the "3 Ps": Profit,
People, and Planet, is a paradigm for evaluating a company's success in terms of its
performance in three areas of sustainability: economic, social, and environmental.
According to this notion, businesses should also be assessed for their effects on
society and the environment in addition to their financial performance (Elkington,
1997).

A corporation that has embraced the TBL tenets is Hewlett Packard (HP), which
incorporates sustainability into all aspects of its business operations. HP has pledged
to obtain 100% renewable electricity by 2035 and reduce greenhouse gas emissions
by 60% by 2025. HP has established ambitious environmental goals for reducing its
carbon footprint and waste generation (HP, 2022). Additionally, HP has adopted a
circular economy corporate strategy that strives to reduce waste and maximize
resource utilization (HP, 2021).

Additionally, HP has started several social impact initiatives that follow the TBL tenets.
For instance, the HP LIFE program provides free online training to small company
 owners and entrepreneurs in underdeveloped nations so they can enhance their
digital abilities and expand their operations (HP, 2021) HP has also launched
programs to narrow the digital divide and encourage digital inclusion in underserved
areas.

For businesses like HP, the TBL theory is a useful tool for coordinating operations
with sustainability objectives, adding value for stakeholders besides shareholders,
and enhancing brand perception (Slaper, T. F., & Hall, T. J., 2011). The TBL theory
offers a thorough framework that takes into account the social, environmental, and
economic aspects of sustainability, as seen in the illustration below.

Figure 3: Triple Bottom Line Image

The Triple Bottom Line idea provides businesses with a valuable framework for assessing
performance beyond purely financial measurements and integrating sustainability
principles into daily operations. A corporation that has successfully incorporated TBL
concepts into its strategy is HP, which has established aggressive environmental goals
and started social impact activities.
4. CONCLUSION
In conclusion, the evaluation of HP's operations management quality performance target
and comparison of its quality strategy with those of its rivals Dell and Lenovo, taking into
account the full supply chain from a global viewpoint, have been completed. HP has
demonstrated a strong commitment to quality through the implementation of TQM and
DFSS quality programs as well as an ISO 9001-based QMS. The Deming Cycle is a
crucial part of HP's continuous improvement methodology, which also includes quality
policy and objectives, planning, control, and improvement. The importance of quality to
HP's overall performance and reputation on the worldwide market, as well as to its
customers and supply chain partners, cannot be overstated. HP has a long-standing
commitment to environmental responsibility and sustainable supply chain management,
and a comparison with Dell exposes notable contrasts in the QMS models and their
emphasis on process improvement. According to the report, HP should keep putting
quality and sustainability at the top of its list of priorities while developing its operations
management strategy to keep its competitive edge in the market.

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