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Student Learning Objective 3

Recognize the role of management in total quality management

Learning Objective G

Explain supply chains and the importance of partnering.

Content

Chapter 5 presents partnership and strategic alliances. "Partnering is a long-term commitment between two or more organizations for the purpose of achieving specific business goals and objectives by maximizing the effectiveness of each participant's resources (see Besterfield, 2003). A traditional or "old-fashioned" view of partnerships is given in Figure 5-2.

Figure 5.2

Currently most companies operate within or manage a supply chain. A view of a simple supply chain is given in Figure 5-3.

Figure 5.3

Ishikawa established his principles for supplier partnerships.

Slide 40: Ishikawa's 10 Principles

  1. Both the customer and supplier are fully responsible for the control of quality

  2. Both the customer and the supplier should be independent of each other and respect each other's independence

  3. The customer is responsible for providing the supplier with clear and sufficient requirements so that the supplier can know precisely what to produce

  4. Both the customer and the supplier should enter into a nonadversarial contract with respect to quality, quantity, price, delivery method and terms of payment

Source

Slide 41: Ishikawa's 10 Principles, continued

  1. The supplier is responsible for providing the quality that will satisfy the customer and submitting necessary data upon the customer's request

  2. Both the customer and the supplier should decide the method to evaluate the quality of the product or service to the satisfaction of both parties

  3. Both the customer and the supplier should establish in the contract the method by which they can reach an amicable settlement of any disputes that may arise

Slide 42: Ishikawa's 10 Principles, continued

  1. Both the customer and the supplier should continually exchange information, sometimes using multifunctional teams, in order to improve the product or service quality

  2. Both customer and the supplier should perform business activities such as procurement, production and inventory planning, clerical work, and systems so that an amicable and satisfactory relationship is maintained

  3. When dealing with business transactions, both the customer and the supplier should always have the best interests of the end user in mind

Slide 43: Reflections on Ishikawa

  • Lots of common sense ideas,

  • Think of how this is consistent with principles of total quality management