Course Title : Total Quality Management (TQM)

Course Code : 19JBSO404

Course Facilitator: Dr. KS SRINIVASA RAO

 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier

Rating Systems, *Balanced Score Card:
• Suppliers have a hugely important role at every stage of the product
lifecycle. From sourcing raw materials to helping ramp up
production, and to finding better options for raw materials as the
market starts becoming saturated, companies need to work closely
with their suppliers to get the best out of their products.
• Monitor the supply base, ensure suppliers are providing quality
products, monitor supplier performance, evaluate corrective and
preventive action responses, and perform audits.
• Supplier Selection And Maintenance (Quality Progress) All suppliers
are not equally important to your company's success.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Here are five things you can do to improve the performance of
your suppliers – and none of them involves firing the supplier!
• Listen to Your Suppliers.
• Establish a Service Level Agreement.
• Measure your Supplier Performance.
• Ensure Your Supplier Data is Accurate.
• Establish Routines and Be Predictable.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• How do suppliers help a business?
• At the most basic level, an enterprise needs suppliers
either to provide the resources for the products or
services it sells, or to supply resources needed to run the
business. The key advantage of strong, healthy supplier
relationships is that you can gain better value for your
business.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Supplier quality is a supplier's ability to deliver goods or
services that will satisfy customers' needs.
• This is often accomplished through the use of supplier
quality management systems (QMS), which allow
companies to monitor supply chains and inspect or audit
materials and services at regular intervals.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Here is how SRM can be used and how it can benefit your
business:
• Improve cost management. The first benefit of SRM is cost
management and/or a reduction in costs.
• Streamlined operational efficiency.
• Greater supply chain consolidation.
• Stronger (and longer) supplier relationships.
• Increase your potential to outsource.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• What is supplier quality Manual?
• Any Company requires suppliers to control the quality
and conformance of material as per product specification
so as to eliminate any probability of non-conformance
filtering to production lines.
• This manual is provided to specify and make clear
Company quality requirements and support suppliers in
meeting such requirements.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• What is supplier selection?
• Supplier selection is the process by which firms identify,
evaluate, and contract with suppliers.
• The main objective of supplier selection process is to
reduce purchase risk, maximize overall value to the
purchaser, and develop closeness and long-term
relationships between buyers and suppliers.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Four Basic Stages of Supplier Selection:
• First Stage: Evaluating Offers.
• Second Stage: Operational Capacity Analysis.
• Third Stage: Technical Capability Determination.
• Fourth Stage: Financial Analysis.
• Outcome: Conclusion - Decision of Selection
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier

Rating Systems, *Balanced Score Card:
• Here are the main types of suppliers:
• Services: These include suppliers of electricity, water, telephones,
IT, email, website hosting, stationery, facilities, transport, etc.
• Sub-contractors: If you're in a trade business, these will include
other tradespeople.
• Manufacturers/producers.
• Distributors.
• Importers.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• What are standards means?
• Something established by authority, custom, or general
consent as a model, example, or point of reference the
standard of the reasonable person.
• Something established by authority as a rule for the
measure of quantity, weight, extent, value, or quality.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Quality standards are defined as documents that provide
requirements, specifications, guidelines, or
characteristics that can be used consistently to ensure
that materials, products, processes, and services are fit
for their purpose.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Benefits of Supplier Quality Audits:
• While you want to trust and count on your suppliers, do
you really know for sure that they have the proper
procedures in place, that the procedures are being
actively applied, and that their employees follow their
established procedures?
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Supplier quality audits are the process of verifying that
each of your suppliers is adhering to both industry
standards as set by the law and independent
organizations, as well as your own company and brand
standards.
• Audits are widely recognized as a pertinent part of doing
business.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating

Systems, *Balanced Score Card:
• While there are many reasons for this practice, here are the six biggest benefits
of performing supplier quality audits.
1. A Reduction of Risk
A significant amount of risk accompanies extended supply chains, outsourcing, and
globalization. The risks include:
• Quality
• Safety
• Business Continuity
• Reputation
• Cost Volatility
• Supply Disruption
• Non-Compliance Fines
• Safety Incidents
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating

Systems, *Balanced Score Card:
• While there are many reasons for this practice, here are the six biggest benefits
of performing supplier quality audits.
2. Better Contractor Management and Business Relationships with Suppliers:
Your business can gain ground when costs are reduced, contractor management is
streamlined, brand reputation is protected, and long-term profitability is
achieved. This is easier done when the following tasks are taken care of efficiently:
• Supplier Prequalification
• Supplier Audits
• Worker Management
• Insurance Monitoring
• Analytics
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating

Systems, *Balanced Score Card:
• While there are many reasons for this practice, here are the six biggest
benefits of performing supplier quality audits.
3. Expert Guidance on Safety and Sustainability Performance:
Supplier quality audits actively foster an aligned culture of health and safety
through:
• Contractor Prequalification
• Document Management
• Auditing
• Employee-Level Qualification and Training
• Insurance Verification
• Business Intelligence
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• While there are many reasons for this practice, here are the
six biggest benefits of performing supplier quality audits.
4. Closer Alignment with Your Compliance Standards:
Your business is under pressure to maintain compliance with:
• Country-specific regulations
• Industry standards and regulations
• Corporate policies and standards
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating Systems,

*Balanced Score Card:
• While there are many reasons for this practice, here are the six biggest benefits of
performing supplier quality audits.
5. Better Procurement Decisions:
Procurement teams are under a lot of pressure to find, qualify, monitor, and manage
suppliers, all while lowering the cost of doing so. With supplier quality auditing,
procurement managers can make better and more cost-effective procurement
decisions by:
• Mitigating risk through communication, evaluation, selection, and monitoring services.
• Gaining unprecedented visibility into safety statistics, risk profiles, and historical data.
• Reducing lead time and improving efficiency with ongoing guidance and support throughout
the procurement process.
• Maximizing data quality on the entire supply chain.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating

Systems, *Balanced Score Card:
• While there are many reasons for this practice, here are the six biggest
benefits of performing supplier quality audits.
6. Sustainable Business Practices:
• Today, an organization committed to improving the environment through
sustainable growth is required to meet both regulatory requirements and
societal expectations.
• Managing the long-term value of your company and its brand is party
dependent on properly managing the environmental, social, financial, and
economic impacts throughout its supply chain.
• All of this can be done more easily with thorough supplier quality audits.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Supplier Rating System enables companies to make
informed supply decisions that are optimal for the entire
business.
• The system highlights each supplier's strengths and
weaknesses across multiple areas, and quantifies the
supplier's fit for each specific request, enabling your
employees to become more strategic buyers.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• How is supplier rating calculated?
• Supplier quality performance will be rated using a
composite of a Parts Per Million (PPM) score, a Quality
Reject (QR) score, and a Supplier Quality Event (SQE) score.
• The number of shipments accepted is divided by the total
number of shipments and is multiplied by 100 to calculate
the QR score.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• A Balanced Scorecard is a strategy performance
management tool – a well structured report, that can be
used by managers to keep track of the execution of
activities by the staff within their control and to monitor
the consequences arising from these actions.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit, Supplier

Rating Systems, *Balanced Score Card:
• What is balanced scorecard with example?
• Therefore, an example of Balanced Scorecard description can be
defined as follows:
• A tool for monitoring the strategic decisions taken by the
company based on indicators previously established and that
should permeate through at least four aspects:
1. Financial,
2. Customer,
3. Internal Processes and
4. Learning & Growth.
 Module 3: Continuous Process Improvement
1. Juran’s Trilogy,
2. Kaizen, BPR and TQM,
3. Supplier Importance, Selections, Standards, Quality Audit, Supplier Rating
Systems, *Balanced Score Card. 

Supplier Importance, Selections, Standards, Quality Audit,

Supplier Rating Systems, *Balanced Score Card:
• Do companies still use Balanced Scorecard?
• The Balanced Scorecard links the different performance
measures of a company.
• Although widely used by companies, the Balanced
Scorecard still attracts considerable criticism.
• Firstly, there is no clear evidence that the Balanced
Scorecard implementation leads to a better financial
performance.
Module 3: Continuous Process
Improvement
• Companies Using BPR:

• TASK: Each Student will identify one National and one

International company that Implements Balance Scorecard
(without duplication)
• Give: Name of the Indian Company, Justification of BSC, Name of
the International Company, Justification of BSC
• Update Google sheet
• Google Sheet Link:
• https://docs.google.com/spreadsheets/d/
1x0BUPyjztgenXhzCQz6sHrbQJEtPmIVLe133KyBWt2Y/edit?
usp=sharing
Student Learning and Submission:

https://www.melochein
c.com/documents/mes Post Class
18 *Balanced score card ure_performance_en.pd Readings / activities CO3 *Asynchronous
f / LMS discussions -4
 
https://www.investope
dia.com/terms/b/balan
cedscorecard.asp

Student Volunteers
day wise for BP

Assessment 2:
SIX SIGMA IN CO1,
SELECT SECTOR: Tools of Total Quality CO2,
24 WRITTEN REPORT *Asynchronous
REVIEW OF RESEARCH Management CO3,
ARTICLE CO4
(GROUP)