Total Quality Management Chapter 6: Supplier Partnership Atit Patumvan Faculty of Management and Information Sciences, Naresuan University 1
Agenda • Principles of Customer/Supplier Relations • Partnering • Sourcing • Supplier Selection • Supplier Rating • Relationship DevelopmentAtit Patumvan, Faculty of Management and Information Sciences, Naresuan University
Principles of Customer/Supplier Relations • Fully responsible for the control of quality • Be independent of each other and respect each other’s independent • The customer is responsible for providing the supplier with clear and sufﬁcient requirements. • Enter into a nonadversarial contract with respect to quality, quantity, price, delivery method, and terms of payments. • The supplier is responsible for providing the quality that will satisfy the customer and submit necessary data upon the customer request.
Principles of Customer/Supplier Relations • They should be decide the method to evaluate the quality of the product or services. • They should establish in the contract the method. • They should continually exchange information. • They should perform business activities • They should always have the best interest of the end user in mind.
Partnering• Long-term commitment -> provides enough time to work together.• Trust -> to eliminate an adversarial relationship• Share Vision -> to understand the need to satisfy the ﬁnal customer
Sourcing• Sole: the organization is forced to use only one supplier• Multiple: the use of two or more supplier for an item• Single: the organization prefer to one supplier for an item when several source are available
Supplier Selection• How critical is the item to design of the product or service?• Does the organization have technical knowledge to produce the items internally? If not, should that knowledge be developed?• Are there suppliers who specialize in producing the item? If not, is the organization willing to develop such a specialized supplier?
Supplier Rating• Obtain overall rating of supplier performance.• Ensure complete communication with suppliers concerning their performance.• Provide each supplier with detailed and factual record of problems.• Enhance the relationship between customer and the supplier.
Factors for Supplier Rating• an internal structure to implement and sustain rating program• a regular and formal review process• a standard measurement system for all supplier
Relationship Development• Inspection• Training• Team Approach