STUDY UNIT 7
The management of quality in Purchasing and Supply
The concept of quality in its relation to the supply function. Pg 112 -113
Definition: Quality is the total combination of features and characteristics through
which product or service, when use, will meet or exceed the expectations of the
customer by being able to satisfy a specific need.
Quality should be seen in terms of the firms market for its final products, because the
quality of the final product is directly influenced by the quality of the material that the
supply side provides.
Determining the exact quality can be important for:
1stly inherent quality characteristics will affect cost and ultimately the return on
investment.
2ndly quality may have marketing implications.
3rdly quality decisions will directly affect activities such as selecting and assessing
suppliers, integrating suppliers activities with the firm’s own activities and ultimately
in determining supplier’s relations
The multiple roles that purchasing has in ensuring internal service quality.
Pg 113 - 114
a. Impacts on organization ability to meet external demands
b. Pivotal role in delivering quality – internal and external
c. Internal customer (operations, design etc) contribute just like the firms
external suppliers in order to satisfy customers.
d. Internal quality of workplace contributes to employee satisfaction.
Different quality management systems. Pg 116-119
3 QMS : TQM
Six Stigma systems
QMS
1. Total Quality Management (definition pg 116)
a. TQM – management philosophy that permeates the whole supply chain
influencing all the participants and also the ultimate customer.
- stresses that employees should provide fault-free products and services
- continuous improvement is the cornerstone (quality is free and do it
right the 1st time)
b. Basic elements – Commitment
Coordination
Personnel Mnagemnt
Supplier mngmnt
Quality info
The management of quality in Purchasing and Supply
The concept of quality in its relation to the supply function. Pg 112 -113
Definition: Quality is the total combination of features and characteristics through
which product or service, when use, will meet or exceed the expectations of the
customer by being able to satisfy a specific need.
Quality should be seen in terms of the firms market for its final products, because the
quality of the final product is directly influenced by the quality of the material that the
supply side provides.
Determining the exact quality can be important for:
1stly inherent quality characteristics will affect cost and ultimately the return on
investment.
2ndly quality may have marketing implications.
3rdly quality decisions will directly affect activities such as selecting and assessing
suppliers, integrating suppliers activities with the firm’s own activities and ultimately
in determining supplier’s relations
The multiple roles that purchasing has in ensuring internal service quality.
Pg 113 - 114
a. Impacts on organization ability to meet external demands
b. Pivotal role in delivering quality – internal and external
c. Internal customer (operations, design etc) contribute just like the firms
external suppliers in order to satisfy customers.
d. Internal quality of workplace contributes to employee satisfaction.
Different quality management systems. Pg 116-119
3 QMS : TQM
Six Stigma systems
QMS
1. Total Quality Management (definition pg 116)
a. TQM – management philosophy that permeates the whole supply chain
influencing all the participants and also the ultimate customer.
- stresses that employees should provide fault-free products and services
- continuous improvement is the cornerstone (quality is free and do it
right the 1st time)
b. Basic elements – Commitment
Coordination
Personnel Mnagemnt
Supplier mngmnt
Quality info
