Total Quality Management involves supplier certification, rating, and performance measurement strategies. [1] Supplier certification requires suppliers to meet certain quality standards over a period of time before being certified. [2] Customer rating of suppliers helps evaluate supplier performance in quality, delivery, and other areas to improve relationships and communication. [3] Performance measurement uses metrics in various areas like human resources, customers, production, and marketing to establish trends, identify improvement needs, and make informed decisions.

1. Total Quality Management
Made By Talha jalal

2. Presentation Topic
 Supplier Certification
 Supplier Rating
 Performance measure
 Strategy

3. Supplier Certification
It is start after the supplier begins shipment of the
product. This process has been described by the
customer/supplier technical committee of ASQ.
 The customer and supplier shall have agreed upon
specifications that are mutually developed and
justifiable.
 The supplier shall have no product related lot
rejection for a significant period of time.
 The supplier shall have no nonproduct-related
rejection for a stated period of time. Nonproduct
related such as the wrong count or a billing error
are not as serious as product related once and are
usually correctable in a short period of time.

4.  The supplier shall have a fully documented quality
system ISO 9000.
 The supplier must conduct inspection and test.
 The supplier shall have the ability to provide timely
inspection and test data. Because this
documentation is necessary when the product
arrives. It must be sent by computer or courier.

5. Occasionally it may be necessary to decertify a supplier as a
result of a major problem. It is suggested that a supplier is
allowed one failure before decertification.
There are a number of benefits to certification. First it
eliminates receiving inspection, which allows the supplier to
ship directly to stock. Second, a customer/supplier
partnership is created. The number of supplier is reducing to
a manageable level. Thus further reducing overhead costs

6. Supplier Rating
The customer rates supplier to:
 Obtain an overall rating of supplier performance.
 Ensure complete communications with suppliers
concerning their performance in the areas of
quality, services, delivery, and any other measure
the customer desires.
 Provide each supplier with a detailed and factual
record of problems for corrective action.
 Enhance the relationship between the customer and
the supplier.

7. Performance measure
Performance measure are used to achieve one or
more of the following seven objectives:
 Establish baseline measure and reveal trends.
 Determine which processes need to be improved.
 Indicate process gains and losses.
 Compare goals with actual performance.
 Provide information for individual and team
evaluation.
 Provide information to make informed decisions.
 Determine the overall performance of the
organization.

8. Typical measurement:
1.Human Resources:
Lost time due to accident, absenteeism, turnover,
employee’s satisfaction index, and number of
suggestion for improvement, number of suggestion
implemented.
2.Customer:
Number of complaints, number of on time
deliveries,
warranty data such as parts replacement, time to
resolve complaints.
3.Production:
Inventory turns, amount of scrap/rework, number of
products return, cost per unit.

9. 4.Research and development:
New product time to market, design change
order. Recall data.
5.Supplier:
On time delivering, service rating, quality
performance, billing accuracy, just in time delivery
targets. Percent of supplier that are error free.
6.Marketing/Sales:
Sales expense to revenue, order accuracy,
introduction cost to development cost, new product
sales to total sales, new customers.
7.Administration:
Revenue per employee, expense to revenue,
Cost of poor quality, percent of payroll distributed
on time, number of days accounts receivable past due
Etc.

10. StrategyStrategy
The quality council has the overall responsibility for
the performance measure. It ensures that all the
measures are integrated into a total system of
measure.
1.Quality:
 Percent reduction in cost of poor quality.
 Percent of certified supplier.
 Percent reduction in corrective action cycle time.
2.Cost:
 Percent increase in inventory turnover
 Percent increase in material shipped directs to
work in process by the supplier.

11. 3.Flexibility:
 Percent reduction in setup time
 Percent increase in common material used per
product
4.Reliability
 Percent increase in on time delivery
 Percent reduction in design changes
5.Innovation:
 Percent reduction in new product introduction time
 Percent increase in new product sales revenue as a
percent of total sales revenue

12. THE END