Quality Management in Supply Chain: A Case Study By: Veer Shivajee University Roll No. 4202 Under Guidance of Dr. R.K.Singh DEPARTMENT OF MECHANICAL AND PRODUCTION ENGINEERING DELHI COLLEGE OF ENGINEERING
Contents • Introduction • Literature Review • Research Objective • Case Study- An Introduction • Case Study Frame Work • SWOT Analyses • Supply Chain in ABC Ltd • Quality Management in ABC Ltd • QM Key Factors Prioritization By AHP • Selection of Best area in SCM By AHP • Results & Discussion • References
Supplier Manufacturing Dealer/ Customer Introduction “In recent years, many organizations have looked upon continuous improvement and total quality management (TQM) within manufacturing as the means by which they could maintain a competitive edge” Quality Management
Supplier Manufacturing Dealer/ Customer Introduction “Now, only manufacturing is not responsible for success of any company but it is matter of complete supply chain” Quality Management
Introduction • In this study all the critical factors of Supply Chain in a world leading automotive OEM is discussed and analyzed • Critical factors and their sub factors of Quality Management in Supply Chain also discussed and prioritized.
Literature Review Quality Management: “Quality management is a method for ensuring that all the activities necessary to design, develop and implement a product or service are effective and efficient with respect to the system and its performance”
Supplier Manufacturing Dealer/ Customer Literature Review Supply Chain: “A supply chain is the system of organizations, people, activities, information and resources involved in moving a product or service from supplier to customer.”
Literature Review Supply Chain Management: • A Supply Chain is a network of organizations that cooperate to improve the flows of material and information between suppliers and customers at the lowest cost and the highest speed. • Suppliers and customers work together in a coordinated manner
Literature Review Quality Management in Supply Chain: • Most companies has begin the quality management in supply chain and starts with quality assurance not quality control. • Quality starts from supplier to manufacturing and manufacturing to dealers.
Literature Review Role of QM & SCM in Competitiveness : • For staying in competitive market an organization must have continuous improvement throughout the supply chain in the organization with innovative plan & feed back approach • QM is the right approach for continuous improvement with innovative tools in successful implementation of supply chain management.
Research Objective • Illustrate the concept of quality management systems in supply chain by taking a real life example of an automobile OEM to motivate other OEMs. • To develop a supply chain analysis framework for analyzing quality management system in supply chain.
Research Objective • To identify major quality systems in complete supply chain of an automotive OEMs in highly competitive automotive sector. • To identify key success factors through AHP calculation for sustaining quality management system in supply chain.
Case Study Introduction : • Analyzing the supply chain and quality management helps provide a baseline of success for the businessorganization. • The assessment of these two key areas will reveal how the position of company among competitors.
Case Study Company Profile : • This study is done on ABC Ltd, that is word leading automotive two-wheeler and has collaboration of A & B • A- Word leading two-wheeler manufacturing business of bicycle. • B-Two Wheeler leader in Japan
Case Study Capitalization of ABC Ltd :
Case Study Product Range :
Case Study Market Results :
Case Study Achievements :
Supplier Manufacturing Dealer/ Customer Case Study-Frame Work Supply Chain of ABC Ltd.
Supply Chain Management Transportation and logistic Strategic Management Marketing Relationship & Partnership Supplier Management Best Practices Inventory Management Case Study-Frame Work Supply Chain Management of ABC Ltd. Source: Croom et al. (2000) and Tan (2001) review of supply chain research
Case Study Supply Chain Management of ABC Ltd • Strategic Management -Innovation in Product and Process • Logistic –Focus to minimize transportation and its cost • Marketing –Emphasize on relation management. • Supplier Management - Low cost and high quality. • Inventory Management – Optimal Inventory • Best Practice – Lean Manufacturing, JIT, Self Inspection • Relation and Partnership -20years of Partnership.
Empowerment and Team work System & Techniques Innovation Management Quality Management Continuous Improvement & learning Culture and People Measurement & feed back Customer focus & Orientations Case Study Quality Management in ABC LTD: Source: Evans et al. (2000) and Mehra et al. (2001) review of TQM research
Case Study Quality Management of ABC Ltd • System& Techniques –IMS and high technology M/cs • Improvements & Learning –Quality circle and Suggestion • Innovation Management –New Ideas and Kaizens. • Customer Focus – Customer relation program . • Culture and People – High equipped training center • Empowerment – Self manage team concept • Measurement and Feed Back –Using Balanced scorecard.
Case Study- Q M Factors Prioritization by AHP Analytical Hierarchy Process (AHP) • AHP was developed by Dr Saaty in 1982 as a practical approach in solving relatively complex problems . • AHP is a mathematical framework to Prioritize the factors as per group rating in a complex situation.
Case Study- Q M Factors Prioritization by AHP Analytical Hierarchy Process (AHP)
Number Of factors 2 3 4 5 6 7 8 9 10 Random Index (RI) 0 0.58 0.90 1.12 1.24 1.32 1.41 1.45 1.51 Case Study- Q M Factors Prioritization by AHP Random Index Table
Case Study- Q M Factors Prioritization by AHP Steps in AHP Calculation Step-1 Make the hierarchy of factors & sub factors Step-2 Calculate an Individual-level matrix. Step-3 Normalize the comparisons. Step-4 Calculate the Priority score and consistency score. Step-5 Determine consistency ratio.
Step-4 Calculate the Priority score and consistency score.
Step-5 Determine consistency ratio. max = Average of Consistency score Consistency index (CI) = (max - n)/(n - 1) Consistency Ratio (CR)= CI/RI less than 0.1 means rating is acceptable. Where n is no. of factors or sub factors
Case Study Q M Factors Prioritization by AHP
Case Study Q M Sub Factors Prioritization by AHP
Case Study Q M Sub Factors Prioritization by AHP
Case Study Selection of Best Area in SCM by AHP
Case Study Overall Prioritization by AHP
Case Study Selection of Best Area in SCM by AHP The Overall rating of all three areas are calculated and shown in above Table. The supplier has the maximum rating i.e. 0.503 The supplier has the best quality management in ABC Ltd.
Results & Discussion • The approach, as followed and analyzed the factors of quality management and supply chain in this case study will give better understanding regarding long-term competitiveness of the organization. • Present study has tried to bridge the gap in the literature on quality management and supply chain
Results & Discussion • ABC Ltd has focused on proliferation, price, technology, R&D facilities and IT applications to improve its product and process development capability. • By applying advance management systems such as IMS, TPM, Vendor development and inventory management, ABC Ltd has improved its performance in terms of productivity, cost, quality, delivery.
Results & Discussion This study has demonstrated that even a Indian automotive OEM organization, facing many pressures and constraints due to globalization of markets can maintain and implement quality not only in manufacturing but also in complete supply chain
Conclusion • As the ABC Ltd is facing tough competition due to others two wheeler OEMs are continuously reducing price of their product and doing proliferation in product • To be remained most competitive the two wheeler manufacturer is giving priorities in cultural and people development and measurement and feed back to reduce product cost and enhance quality.
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