Chapter 3

Global Supply Chain

Quality and
International Quality
Standards

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3
 Global Supply Chain Quality and
International Quality Standards
Chapter 3

➢ Managing Quality for the Multinational Firm

➢ Quality Improvement: The American Way
➢ Quality Improvement: The Japanese Way
➢ Quality Improvement: The European Way
➢ Quality Improvement: The Chinese Way
➢ ISO 9000:2000

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 Global Supply Chain Quality and
International Quality Standards
Managing Quality for the Multinational Firm

➢ Licensing
➢ Partnering
➢ Globalization

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 Global Supply Chain Quality and
International Quality Standards
Managing Quality for the Multinational Firm

➢ Globalization
➢ The Physical Environment
➢ The Task Environment

➢ The Social Environment

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 Global Supply Chain Quality and
International Quality Standards
Quality Improvement: The American Way

➢ Quality Improvement: The American Way

➢ The Malcolm Baldridge National Quality
Award

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 Global Supply Chain Quality and
International Quality Standards
Quality Improvement: The American Way
The Malcolm Baldridge National Quality Award
Seven Categories
1. Leadership
2. Strategic Planning
3. Customer and Market Focus
4. Measurement, Analysis and Knowledge
Management
5. Human Resource Focus
6. Process Management
7. Business Results

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
1. Senior Leadership:

A. Senior Leadership
B. Governance and Social Responsibilities

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
2. Strategic Planning:

A. Strategy Development
B. Strategy Deployment

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
3. Customer and Market Focus:

A. Customer and Market Knowledge

B. Customer Relationships and Focus

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
4. Measurement, Analysis and Knowledge
Management:

A. Measurement, Analysis and Review of

Organizational Focus
B. Information and Knowledge Management

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
5. Human Resource Focus:

A. Work Systems
B. Employee Learning and Motivation
C. Employee Well-Being and Satisfaction

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
6. Process Management

A. Value Creation Processes

B. Support Processes and Operational Planning

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
7. Business results

A. Customer Focused Results

B. Financial and Market Results
C. Human Resource results
D. Organizational Effectiveness Results
E. Leadership and Social Responsibility Results

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 Global Supply Chain Quality and
International Quality Standards
The Malcolm Baldridge National Quality Award

Seven Categories
7. Business results

A. Customer Focused Results

B. Financial and Market Results
C. Human Resource results
D. Organizational Effectiveness Results
E. Leadership and Social Responsibility Results

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

➢Policy ➢Education and

➢Organization and training
operations
➢Quality assurance
➢Collecting useful
Information ➢Quality effects

➢Analysis ➢Standardization
➢Planning for the ➢Control
Future

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

➢Policy Management of
➢Organization and Quality Policy,
operations Correctness and
➢Collecting useful Consistency
Information
➢Analysis
➢Planning for the
Future

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

➢Policy Document
➢Organization and processes for
operations clarifying authority
➢Collecting useful and responsibility
Information
➢Analysis
➢Planning for the
Future

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

➢Policy Document how data

➢Organization and is passed through
operations divisions and how it
➢Collecting useful is transmitted.
Information
➢Analysis
➢Planning for the
Future

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

➢Policy Use of prioritizing,

➢Organization and analytical methods,
operations statistical methods
➢Collecting useful
Information
➢Analysis
➢Planning for the
Future

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

➢Policy Understand present

➢Organization and condition, Plan for
operations the future, promote
➢Collecting useful Total Quality Control
Information
(TQC)
➢Analysis
➢Planning for the
Future

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

Document plans ➢Education and

and training
accomplishments ➢Quality assurance
relate to education ➢Quality effects
and training
➢Standardization
➢Control

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

Design, safety and ➢Education and

reliability issues, training
process inspection, ➢Quality assurance
use of statistical ➢Quality effects
analysis
➢Standardization
➢Control

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

Documentation of ➢Education and

benefits, outcomes training
and results of ➢Quality assurance
quality improvement ➢Quality effects
– both tangible and
➢Standardization
intangible
➢Control

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

Setting standards, ➢Education and

monitoring training
performance and ➢Quality assurance
revision of ➢Quality effects
standards
➢Standardization
➢Control

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Deming Prize

Deming Categories

How are Statistical ➢Education and

Quality Control, training
control points, ➢Quality assurance
control items used? ➢Quality effects
➢Standardization
➢Control

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- Lean Production

Anything that does not add value

for the customer should be
eliminated.

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- Shingo’s seven wastes

1. Waste of overproduction
2. Waste of waiting
3. Waste of transportation
4. Waste of processing itself
5. Waste of stocks
6. Waste of motion
7. Waste of making defective
products

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 Global Supply Chain Quality and
International Quality Standards
The Japanese Way -- The Five S’s

1. Seiri: Organizing by getting rid of the

unnecessary
2. Seiton: Neatness that is achieved by
straightening offices and work areas
3. Seiso: Cleaning Plant and Equipment
4. Seiketsu: Standardized locations for
tools and equipment
5. Shetsuke: Discipline in maintaining
the four prior S’s

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 Global Supply Chain Quality and
International Quality Standards
The Worldwide Way ISO 9000:2000

Five Clauses:
➢ Quality Management Systems
1. Management System
2. Resource Management
3. Product Realization
4. Measurement Analysis and
Improvement

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 Global Supply Chain Quality and
International Quality Standards
The Worldwide Way IS0 9000:2000

Eight Principles:
1. Customer focus
2. Leadership
3. Involvement of people
4. The Process approach
5. A systems approach to management
6. Continual Improvement
7. Factual Approach to Decision Making
8. Mutually beneficial supplier
relationship

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 Global Supply Chain Quality and
International Quality Standards
The Worldwide Way IS0 9000:2000

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 Global Supply Chain Quality and
International Quality Standards
Chapter Summary

Quality Models
➢ Baldridge
➢ Deming
➢ European Quality Award
➢ ISO 9000

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