Toyota’s system of lean production and techniques for eliminating errors such a poka-yoke, which is an exercise formulated to avoid mistakes that can result in defective products, are world-renowned examples of quality assurance. Interestingly, in most cases supply chain quality assurance was established as the major reason for product recall (Roth et al. 2008). Recent product recalls and disorders in supply chains are cautionary indicators that the level of quality management in global supply chains is still inadequate (Zhang et al., 2011).
Total Quality Management (TQM) is seen as a strategy used in management that aims to incorporate awareness regarding quality in all the activities within an organization (Agarwal et al., …show more content…
SCM and TQM are not just tools and techniques, but are rather management ideologies (Khan 2003, Vanichchinchai and Igel 2009) that are employed as management systems at a large scale, which contain distinct arrays of exercises (Khanna et al. 2003).
The objective of SCM and TQM is on the similar lines of achieving customer satisfaction (Gunasekaran and McGaughey 2003). The basic requirement of the customer is the quality of the product to be superior, lesser product delivery time and lower cost of the product. SCM and TQM command the participation of all the central utilities and association with all external partners (Vanichchinchai et al., 2011).
Achieving supply chain quality (SCQ) is not easy. A supply chain must be transformed from its supply chain management approach to supply chain quality management (Kuei et al., 2011). Supply chain quality management (SCQM) differs from supply chain manage- ment (SCM), and the same exists so as to create a quality environment in supply chains. SCQM is a part of SCM that is devised to train organisations to focus on their supply chain proficiencies with the help of customised quality management exercises (Madu and Kuei 2004, Kuei et al. …show more content…
The SCOR-model identifies five performance metrics in two categories: customer-facing metrics that include reliability, responsiveness, and flexibility, and the internal-facing metrics that include cost and assets. In reality, the SCOR-model is normally employed by manufacturing companies to demarcate their supply chain processes and activities, and related performance measures. For a company that has ISO 9000 certification, the SCOR-model is a significant backing to confirm supply chain quality standards.
4.0 Flexible systems and TQM
Since, competition is no more amongst companies, but amongst supply chains, SCM practices are being considered as valued means of ensuring total quality management (TQM) practices and flexible systems (FS) (Siddiqui et al., 2012). TQM practice and FS practices are vital and play crucial role in SCM practice. It is because the aim of an organization is to accrue profits that it must consider the advantages against the decisions it makes along the supply chain.
The figures below elucidate the fact that the TQM practice and FS practice are fundamental and central for SCM practices in effective and efficient