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Summary Global Supply Chain Management (chapter 10, 13, 14)

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It is a short but good summary of the chapters 10, 13 and 14 for the course Global Supply Chain Management.

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Global Supply Chain Management
(chapter 10, 13, 14)

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vivvanstrijland




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GSCM Exam

Chapter 10
Total quality management (TQM) has 2 operational goals:
1. Careful design of the product/service
2. Ensuring that the organisation’s system can be consistently produce the
design
Malcolm Baldrige National Quality Award to help firms review/structure their quality
programs.

ISO standards: suppliers demonstrate that they measure/document their quality
practices according to specified criteria to compete for international contracts. Idea is
to prevent defects by planning/application of best practices at every stage.
ISO 9000 (in business-to-business dealing) has 8 principles:
Customer focus, leadership, involvement of people, process approach, system
approach to management, continual improvement, approach to decision-making, and
mutually beneficial supplier relationships.
ISO 14000 (environmental management) has 3 approaches for dealing with env.
changes:
Monitoring the quality of air, water, and soil  define requirements of environmental
management system that can be implemented using the monitory tools  inclusion
of environment aspects in product designs and encourage use of environment-
friendly products/services.

• Quality specifications:
Design quality is strategic decision. Dimensions: performance, features,
reliability/durability, aesthetics, serviceability, and perceived quality.
Conformance quality is of a tactical/day-to-day nature.
Fitness for Use: identify the dimensions that a customer wants and develop a
quality control program to ensure the dimensions are met.
• Cost of quality (COQ). 3 basis assumptions:
1. Failures are caused
2. Prevention is cheaper
3. Performance can be measured

Defect: any component that does not fall within the customer’s specification limits, Six
Sigma try to reduce the variation in process that leads to these defects.
Calculation of Defects Per Million Opportunities (DPMO):
• Unit: item produced/being served
• Defect: item/event that does not meet customer’s demands
• Opportunity: a change for defect to occur
DPMO = number of defects
--------------------------------------------------------------------- X 1.000.000
number of opportunities per unit X number of units




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