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Int. J. Production Economics 96 (2005) 315–337

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Defining the concept of supply chain quality management andits relevance to academic and industrial practice

Carol J. Robinson, Manoj K. Malhotra�

Department of Management Science, The Moore School of Business, University of South Carolina, Columbia, SC 29208, USA

Received 1 July 2003; accepted 15 June 2004

Available online 12 October 2004

Abstract

Even though much attention has been focused on supply chain management (SCM) concepts in recent years, its

interlinking with the quality management perspective is often limited and tangential in nature. While the importance of

quality management is universally recognized, academic researchers need a more focused approach in evaluating

quality management issues within the internal and external supply chain contexts. Consequently, in this study we define

the concept of supply chain quality management (SCQM), and evaluate its relevance in academic and industrial practice

by comprehensively reviewing prior quality and SCM literature in major journals and inductively identifying the themes

that emerge within it. In particular, we take a more critical look at those published studies that specifically lie at the

interface of quality and external SCM, and argue that quality practices must advance from traditional firm centric and

product-based mindsets to an inter-organizational supply chain orientation involving customers, suppliers, and other

partners. We also show that SCQM across inter-organizational supply chains has received scant research attention,

even though that perspective is sorely needed in delivering value to customers in often globally scattered supply chains.

A case study of a firm that is a first-tier supplier in an offshoot of automotive supply chain is presented to better

illustrate the SCQM themes and their treatment in industrial practice. Based on our research, the case study, and

experience of working with firms in the domain of quality management and the ISO 9001 certification processes, we

propose a Quality-SCM framework that can be used to place prior work in perspective, as well as identify three specific

opportunities for future SCQM research.

r 2004 Elsevier B.V. All rights reserved.

Keywords: Quality management; Supply chain management; Survey; Conceptual frameworks; Integrative process management

e front matter r 2004 Elsevier B.V. All rights reserve

e.2004.06.055

ng author. Tel.: +1-803-777-2712; fax: +1-

ss: [email protected] (M.K. Malhotra).

1. Introduction

In the struggle for marketplace advantage,organizations, consultants, practitioners and aca-demics have attempted to organize and integrate

d.

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C.J. Robinson, M.K. Malhotra / Int. J. Production Economics 96 (2005) 315–337316

supply chain management (SCM) concepts andpractices into their business processes. As a result,many discovered that this subject is neitherwell defined nor easily implemented, but encom-passes an enormous breadth of topics requiringradical new thinking. Moreover, SCM involveschallenges such as developing trust and collabora-tion among supply chain partners, identifying bestpractices that can facilitate supply chain processalignment and integration, and successfully im-plementing the latest collaborative informationsystems and Internet technologies that driveefficiencies, performance, and quality throughoutthe supply chain.Much like the recent emergence of SCM

initiatives, the topic of quality management andimprovement has dominated most manufacturingand service organizations since the early 1970s.During this era, foreign competition challengedthe ingrained beliefs of organizations whosequality programs consisted primarily of traditionalintra-organizational tools and strategies thatresulted in limited success. Deming (1986) citedseveral ‘‘diseases and obstacles’’ for the inability oforganizations to compete globally during thisperiod, including the lack of constancy of purpose,performance measurement and evaluation, em-phasis on short-term profits, and lack of manage-ment support. Garvin (1983) conducted a studycomparing practices in US and Japanese firms andconcluded ‘‘superior levels of performance comenot from national traits or cultural advantages,but from sound management practices deliberatelyand systematically applied.’’ Although much hasbeen written about the successful total qualityresurrection in the 1980s of companies such asHarley–Davidson motorcycles (Reid, 1989) andXerox (Howard, 1992), empirical studies that haveinvestigated the process of total quality manage-ment (TQM) or quality initiatives on operationalperformance have produced mixed results (Kay-nak, 2003; Samson and Terziovski, 1999). Kaynak(2003) commented that research design may be theculprit for the inconsistency of results, but afundamental review of the varying definitions ofquality and the ‘‘broad assortment of analyticaltools and quality issues’’ from well-known qualitygurus such as Crosby, Deming, Feigenbaum,

Ishikawa, Juran, Shewhart and Taguchi (Hoyerand Hoyer, 2001) may have also contributed to thevaried success of early organizational attempts toestablish and launch quality programs. Garvin(1984) further supported this multifaceted conceptof quality by identifying five major approaches todefining the ideal meaning of quality (e.g. trans-cendent, product-based, user-based, manufactur-ing-based and value-based) that generateperceptual differences and attitudes among man-agers, functional departments, academics, andeven customers. It is simple to recognize fromGarvin’s analysis how organizations that strive tocompete on the quality playing field may pursuequality initiatives that fail to show real results andsustain competitiveness in the global market,simply because they fail to communicate preciselywhat they mean by the term ‘‘quality.’’ Moreover,the relevance of the impact of the quality move-ment in the international marketplace for the last30 years is well established and documented by theloss of manufacturing jobs to those competitorswho successfully understand and translate custo-mer requirements to final products and services.Malhotra et al. (1994) conducted a survey ofAmerican manufacturing Vice Presidents andreported that quality management was a keystrategic issue facing most manufacturing compa-nies in the 1990s.In the past decade however, companies have

begun to recognize not only the need for continualquality improvement and meeting the needs oftheir immediate customers, but also the necessityof competing quickly and efficiently in ever-changing global markets. As a result, SCM hascome to the forefront as a philosophy by whichfirms can operate inter-organizationally, andmerge both strategic initiatives and upstream anddownstream processes in order to achieve businessexcellence. Traditional quality programs focusingon approaches such as TQM, the MalcolmBaldrige National Quality Award (MBNQA) andISO 9001 (international quality managementsystem standard), must now transform to a supplychain perspective in order to simultaneously makeuse of supply chain partner relationships andquality improvement gains essential to market-place satisfaction.

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C.J. Robinson, M.K. Malhotra / Int. J. Production Economics 96 (2005) 315–337 317

In the reality of intense global competition,SCM principles and technologies are taking centerstage as a means to achieve business excellence.This SCM movement embraces quality manage-ment initiatives, further supporting the notion thatproduct quality is only one aspect of quality-oriented continual improvement programs leadingto competitive leadership. Highly publicized com-panies such as Wal-Mart and Dell Computer(Table 1) have integrated their supply chains tomake efficient use of information and technologieswhile orchestrating all activities of the chain (Lee,2000; Kinsella, 2003). Satisfying final customerscan only be achieved when the whole chaincommits, integrates, and coordinates to pursuecoherent and innovative practices (Simchi-Levi etal., 2000).

Table 1

Excellence in supply chain management

Dell computer

Inventory management Dell manufactures more than 50,000 co

every day, but carries only four days o

inventory (competition carries 20–30 d

Supplier management Only about 30 Dell suppliers provide

direct material purchased. If supplier

exceed 10 days, Dell works with the su

lower inventory.

Production

management

Dell took a make-to-stock (MTS) indu

shifted it to make-to-order (MTO). O

pulled through manufacturing based o

orders.

Information

management

More than 50,000 orders come throug

Internet. Dell’s legacy order managem

system records all the orders and relea

to manufacturing. Production lines ar

scheduled every two hours.

Technology

management

Technology in Dell’s supply chain pro

provides efficiencies, immediate

communication with suppliers and im

operations internally.

Quality management To address quality issues Dell launche

Critical Supplier Partnership Program

in improvement in quality metrics and

continuity of supply. This program re

early field failures by 37% and manuf

line failures fell from 15,000 to 3000 d

parts per million (dppm).

Sources: Jacobs (2003), Supplier Selection & Management Report (20

In order to further examine the role of quality ina supply chain framework, our focus in this paperis to rigorously analyze prior work that integratesquality management principles within the supplychain arena. Subsequently, we identify dominantthemes and gaps within this literature base, anduse it to define future research opportunities andagendas in this area. We also show how the pursuitof this research agenda can help practicingmanagers improve their operations and bottomline performance. This paper illustrates thatcompartmental and departmentalized qualityfunctions of the past are obsolete and must nowintegrate with the overall strategic business direc-tion of the entire marketplace.This paper is organized in the following manner.

In Section 2, we present the research that intersects

Wal-Mart

mputers

f

ays)

Wal-Mart uses cross-docking and hub-and-

spoke distributions centers to eliminate

unnecessary handling and storage of product

while targeting a large geographical area.

75% of

levels

pplier to

Wal-Mart gives better payment terms to

suppliers for their use of electronic ordering

and information sharing between Wal-Mart

and the supplier. (e.g. Proctor & Gamble).

stry and

rders are

n actual

Wal-Mart initiated the practice of ‘‘everyday

low prices’’ in which there’s no need for weekly

sales or special promotions (now almost

standard in the retail industry).

h the

ent

ses them

e

Wal-Mart launched its own satellite creating a

communication network to monitor orders and

shipments with all stores and suppliers ensuring

the quality of data.

cess

proved

Wal-Mart issued a RFID technology mandate

to the top 100 suppliers by 2005 (Wal-Mart

technology standard).

d the

resulting

duced

acturing

efective

Wal-Mart achieves a very high degree of quality

with respect to loading pallets and merchandise

in correct condition on its trucks that

accurately match the bill of lading. High

quality procedures minimize loss or damage

during material handling within the

warehouses and during transportation.

02), and Moore (1993).

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the topic of quality in the supply chain and presenta definition of ‘‘supply chain quality management(SCQM)’’. In Section 3, we introduce a case studyof a US Southeastern firm engaged in an industrythat is an offshoot of the automotive sector.Section 4 breaks out the thematic linkages relatedto the SCQM definition, and discusses each streamthus identified with respect to both the extantliterature as well as quality practices as evidencedat the case firm. Section 5 introduces ourtaxonomy. Section 6 discusses a future researchframework, after which we conclude in Section 7with some closing thoughts and comments.

2. Quality management and supply chain research

Several research studies considered some aspectof quality management within a supply chainperspective. The research domain for our paperspans across journals primarily consisting ofleading journals from the field of Productionsand Operations Management (Barman et al., 2001)such as Journal of Operations Management(JOM), International Journal of Operations andProduction Management (IJOPM), Productionand Operations Management (POM), Interna-tional Journal of Production Economics (IJPE),Decision Sciences, Omega, International Journalof Production Research (IJPR) and EuropeanJournal of Operational Research (EJOR). Otherjournals included in this review include Interfaces,International Journal of Physical Distribution andLogistics Management (IJPDLM), Total QualityManagement (TQM ), Journal of Supply ChainManagement (JSCM) and Integrated Manufactur-ing Systems (IMS). The directed purpose of thisinvestigation is to identify those papers that lie onthe intersection of quality and supply chain topics,so that we can focus upon and examine qualityresearch positioned strictly in the supply chaincontext. Each article selected encompasses a themeor body of knowledge relevant and helpful tounderstanding a topic we identify as ‘‘SCQM.’’We find that even though the philosophies of

quality management and SCM have been re-searched extensively in the literature, few studiesexamine these agendas jointly. Rather, the topic of

quality management in the supply chain is largelyfragmented and dispersed across many otherdisciplines such as supplier–buyer activities, stra-tegic management, manufacturing practices, andprocess integration. In fact, the term ‘‘SCQM’’ isnot a term or phase that is found to be used in theliterature, thus supporting our view that researchabout quality management in the supply chain ishighly disjointed and lacks treatment as a sig-nificant dimension of SCM. As discussed above inthe introduction section, principles of qualitymanagement stem from the writings of qualitygurus around a variety of subjects such as productconformance, quality control and analysis, orga-nizational culture, business excellence, customersatisfaction, performance measurement and theprocesses that unite them. Evans and Dean, (2000)contend that there are as many different ap-proaches to TQM as there are businesses, but thatmost share the basic elements of (1) customerfocus, (2) strategic planning and leadership, (3)continuous improvement and learning, and (4)empowerment and teamwork. In addition, Mehraet al. (2001) compiled an extensive review of TQMresearch and suggested that there are at least 45elements that affect TQM implementation cate-gorizing these topics into the five key areas of (1)human resource focus, (2) management structure,(3) quality tools, (4) supplier support and (5)customer orientation.Similarly, various literature reviews and analysis

of SCM literature reveal that this evolving body ofknowledge stems from the research disciplines ofphysical distribution, transportation and net-worked systems of materials, logistics and trans-portation, services, supply base integration andinformation (Croom et al., 2000; Tan, 2001).Fig. 1 portrays the principle components reflect-

ing the background of quality management andsupply chain research. As a result of the integra-tion of these two bodies of knowledge, we believethat the merger of quality management and SCMperspectives requires some type of definition sothat it may be looked upon as an emerging andviable area of research. For the purposes of thispaper, we provide below our definition of‘‘SCQM’’ which builds upon the related definitionby Ross (1997) and extends it further into the

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Customer focus& orientation

Managementstructure

Strategic planning and

leadership

Quality Management

Empowermentand teamwork

Continuous Improvement &

learning

Human resourcefocus

Qualitytools

Supplier support

Transportation& Logistics

Bestpractices

Marketing

Supply Chain Management Continuous

Improvement &learning

Organizationalbehavior

Relationships& partnerships

Strategic Management

Supply baseintegration

Source: Evans et al. (2000) and Mehra et al. (2001) review of TQM researchCroom et al. (2000) and Tan (2001) review of supply chain research

Fig. 1. Principle components of quality management and supply chain research.


process centric view of SCQM that we examinethroughout this study.

SCQM is the formal coordination and integra-tion of business processes involving all partnerorganizations in the supply channel to measure,analyze and continually improve products,services, and processes in order to create valueand achieve satisfaction of intermediate andfinal customers in the marketplace.

We use a comprehensive review of extantliterature and this definition to provide an agendafor the future study of SCQM principles. We alsoleverage our understanding of these principlesthrough our experience of working with an actualcompany in an All Terrain Vehicle (ATV)component supply chain, which we describe next.Lessons learned from this case study are integratedinto the thematic analysis of SCQM theories andpractices.

3. Case study of ABC Technologies

As a means to illustrating our SCQM themesand resulting taxonomy, and also to explore thedynamics of a supply network, we present a casestudy of a firm named as ABC Technologies(company name has been changed to protect theconfidentiality of the firm). This firm, located inthe southeastern United States, is a Tier 1 supplierto Honda America. It manufactures ATV suspen-sion arms, steering shafts, catalytic converters, and

motorcycle disc brakes. Owned 70% by Honda,the parent company is a global firm with nineoverseas divisions in China, India, Indonesia,Philippines, Thailand, and the United Kingdom.Although Honda is the primary customer, ABCTechnology does business with approximately 100suppliers on the inbound side, all of which are alsoHonda-approved sources. ABC Technology’s an-nual sales are approximately 80 million dollars. Itemploys 250 people, and became registered to ISO9001:2000 in 2003. Throughout the course ofgathering data during a quality audit at the casefirm, as well as an interview with the Assistant VicePresident, the subjects of quality conformance,customer satisfaction, and delivery reliability wereconveyed as the most emphasized, reinforced, andarticulated beliefs at the company. This internalconviction stems from Honda’s marketplace mis-sion to ensure quality products while deliveringvalue and innovation to the final customer. In thatregard, our case firm represents many cutting edgesupply chain quality practices prevalent in theindustry today.ABC Technology managers are actively in-

volved in product quality by promoting andhighlighting the importance of customer require-ments and the critical nature of manufacturedcomponents to all employees. ABC managersconsider it essential for employees to understandthe ‘‘functionality and use’’ of the product and allpossible liability issues that are relevant to theproduct. This message is consistently reinforced inemployee orientation, daily departmental kick-off

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meetings, and weekly management meetings.Further, ABC Technology involves its employeesin problem-solving teams and customer site visitsto understand these liability concerns and resolvequality issues. Specifically, ABC actively utilizesthe ‘‘five principles of problem solving’’ method toresolve quality concerns. The steps of this processinclude (1) problem discovery information andproblem statement, (2) identification and selectionof root cause(s), (3) countermeasure(s) defined andimplemented, (4) countermeasure(s) confirmationand evidence of effects, and (5) feedback and feedforward. Cross-functional teams composed ofmanagers and associates conduct this problemsolving activity that is focused on improvingprocesses that span departments and supply chainpartners.Information for this case study was gathered

during a ISO 9001:2000 pre-assessment audit bythe local NIST sponsored manufacturing technol-ogy center. In addition, a detailed structuredinterview (Appendix A) was conducted with theAssistant Vice President of the firm. ABC Tech-nologies was selected as an ideal case firm for thisarticle due to its demonstrated quality-orientedculture and inter-organizational activities thatspan the customer and supply base. During theaudit, the authors observed progress towardsquality performance objectives, management sys-tem and manufacturing process activities, andcontinual improvement initiatives. The Presidentand key managers in the facility were interviewedregarding the quality management system activ-ities, customer requirements, and quality programinitiatives.

4. Supply chain and quality themes

We specifically reviewed those SCM and qualitymanagement articles from the journals mentionedearlier that integrate quality perspectives into asupply chain focus. Criteria emphasizing the keyconcepts of ‘‘supply chain’’ and ‘‘quality’’ gov-erned our search of articles, which we conceptuallycluster and organize by thematic linkages withcommon and similar patterns among topics. Thesethematic linkages are shown in Table 2. We find

inductively that this literature can be logicallycategorized into the themes of (1) communicationand partnership activities, (2) process integrationand management, (3) management and leadership,(4) strategy, and (5) best practices. As shown inboth Table 2, the thematic organization of extantliterature that intersects both quality and supplychain domains illustrates that several papers over-lap and cut across more than one theme, but allfocus on some aspect of quality or qualitymanagement from a supply chain perspective.We summarize the main contributions of thisresearch in Table 3, and discuss it next in thecontext of these themes.

4.1. Communications and partnership activities

Several authors in the above body of workresearched the premise of supply chain commu-nication and partnership activities. In essence, themain theses of this work involved organizationsworking closely together and nurturing relation-ships with other members of the supply channel inorder to share goals, coordinate activities, andimprove performance. Tan et al. (1999) discussedthe commitment involved to integrate channelsuppliers, manufacturers, and customers in orderto achieve both long-term growth and financialobjectives. Collaborative relationships are alsotopics reviewed by Choi and Hartley (1996), Forzaand Filippini (1998), Waterson et al. (1999), Wongand Fung (1999), Mangiameli and Roethlein(2001), Stanley and Wisner (2001), Fynes andVoss (2002), Mehra et al. (2001), and Wong(2003). This research reinforces the concept thatstrong, structured and mutual supply chainpartner relations result in breaking down thesometimes intangible characterizations of quality,and create definitions that support final customerquality (Mangiameli and Roethlein, 2001).Additional research investigated the implemen-

tation of ISO 9001 as a partnering program.Romano (2002) found among Italian firms thatalthough ISO 9001 registration has no significanteffect on product quality or cost performance, themere fact that a supplier is registered resulted in ahigher level of trust in suppliers’ internal qualitysystems. However, Romano and Vinelli (2001)

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Table 2

Thematic linkages in quality and supply chain management research

Communication and partnership activities Management and leadership Best practices

Effective customer relations [1] [29] [31]

Management of supply base activities

[19] [30]

Co-management of goals by partners [2]

Building trust [12]

Collaborative relationships (e.g. custo-

mer involvement) [9] [15] [17] [19]

Relationship strengthening [33]

Supplier selection criteria [32]

Management involvement, commitment

and attitudes [1] [24] [31]

Management understanding of TQM

tools/systems [1] [24]

Effective management of upstream and

downstream operations [1] 31]

Innovation/knowledge-creating leader-

ship [31]

Materials management [4]

Supplier management [4] [8]

Customer relationships [4]

Logistics [4]

Supplier certification/reduction [18]

Strategic partnership [9]

Design for quality [18]

Process control and improvement

[18]

Inspection [18]

JIT capability [5] [9] [28]

TQM implementation [9] [16] [26]

ISO 9001 implementation [12] [21]

[22] [23] [24]

Role of Quality Department [8]

Information sharing [18]

Training [8]

Reporting and analysis of quality

data [8]

Team-based groups [9]

Computer-based technology [9]

Manufacturing cells [9]

Process integration and management Strategy

Redefined process definitions extended

to supply chain [2] [10] [31]

Process improvement in conjunction

with partners [2] [10] [31]

Tying internal work practices to custo-

mer/supplier interactions [6] [7] [34] [35]

Process measurement and control in

supply chain [11] [31]

Vertical integration [27]

Link and align business practices and

activities to performance, partner goals

and customer needs [1] [3] [5] [14]

Pursue quality initiatives and

approaches [4] [18]

Supply chain integration [5] [13] [20]

Supplier management orientation [1] [3]

[18] [25]

Multi-directional communication [13]

[17]


concluded that ISO 9001 registration alone doesnot become a driver for customer–supplier co-operation and that joint collaborative programsmay require other characteristics such as commonstrategic visions and asset sharing.Communication and partnership activities at

ABC Technologies are strategically integratedwith their customer, and are what we describe asinter-organizational (e.g. externally focused).Every quarter, ABC Technologies attends aninternational ‘‘Four Region Summit’’ to discussbusiness plan results, performance metrics, pro-duct innovation, value analysis and quality withthe customer. One of the greatest benefits ofattending these meetings is the collaboration andexchange of information with other Honda sup-pliers in the supply network. The open exchange ofinformation about quality issues and value-addedprojects has resulted in the initiation of continualimprovement opportunities at ABC Technologies.Many times, as a result of topics that wereintroduced and discussed at these quarterly meet-ings, managers may organize and deploy project

teams to analyze the feasibility of internal processchanges and improvements to improve flexibility,responsiveness or delivery performance. The for-mal interaction at the quarterly meeting creates acooperative environment among Honda suppliersto talk not only with the customer, but also witheach other about activities that add value, improvecompetitiveness and ultimately enhance the ex-perience of the final customer.In contrast, partnership and communication

activities with ABC Technology’s own suppliersare integrated, yet can be described as moretraditionally structured and formally organizedaround the objectives of product quality assuranceand delivery reliability. In this supply chain,Honda R&D in Japan is involved in all phases oftechnical development and every supplier must beHonda approved in order to supply parts. SinceTier 1 suppliers manage Tier 2 suppliers, ABCTechnologies must in turn define common objec-tives and communicate quality performance me-trics, delivery schedules, and other information toits suppliers.

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Table 3

Thematic summary of quality and supply chain management research

Category Authors Main findings

Communication and

partnership activities

[1] Tan et al. (1999) Effective customer relations positively affects performance

[2] Romano and Vinelli

(2001)

Joint definitions and co-management of goals by partner organizations

(customers/suppliers) improve supply networks ability to meet the

expectations of the final consumer

[9] Waterson et al.

(1999)

Survey reveals that supply chain partnering predicted for future use by

more than 60% of companies

[12] Romano (2002) ISO 9000 certified suppliers tend to be more reliant and viewed by

customers as more trustworthy

[15] Wong and Fung

(1999)

Collaborative and structured relationships with suppliers in meeting

quality objectives (case study)

[17] Mangiameli and

Roethlein (2001)

Multi-directional communication between channel partners (case

study)

[19] Stanley and Wisner

(2001)

Implementation of cooperative purchasing/supplier relationships had a

significant association with purchasing’s ability to deliver service

quality to internal customers

[29] Forza and Filippini

(1998)

Obtaining customer satisfaction (caused construct) requires greater

attention to factors which concern downstream relations with

customers such as the involvement in quality improvement programs

(causing construct=TQM link with customers)

[30] Wong (2003) Application of the supply chain excellence model (see Kanji and Wong

1999) applying TQM principles (7 themes) that provides insight into

success factors of managing supply partners

[31] Mehra et al. (2001) Study of future role of TQM in businesses facing global markets.

Literature review grouped into 5 categories include ‘‘supplier support’’

and ‘‘customer orientation’’ (customer focus)

[32] Choi and Hartley

(1996)

Supplier selection practices suggest that quality conformance is most

important factor

[33] Fynes and Voss

(2002)

Strong buyer-supplier relationships will improve design quality.

Process integration and

management

[2] Romano and Vinelli

(2001)

Define and develop new product/process solutions at both the

operative and strategic level in order to meet final consumer

requirements (case study)

[6] Salvador et al.

(2001)

Interacting with customers on both quality and materials flow issues

generally affect an organization’s time-related performance as partially

mediated by changes to/improvements to internal practices

[7] Gotzamani and

Tsiotras (2001)

Use of ISO 9001 offers good first step towards TQM (standard includes

process management) Work practices tied to close interactions with

customers and suppliers ISO 9001’s most important contribution is

process management

[10] Segars et al. (2001) Formalization of process boundaries extending to suppliers and

customers (Value-added processing)

[11] Beamon and Ware

(1998)

System process quality model for identification, measurement and

control of supply chain system

[27] Singer et al. (2003) Cost model analyzing how vertical integration improves quality for the

end customer while increasing cost (mutually beneficial transfer

contract)


Literature review grouped into 4 categories of management

concentration including customer focus, process focus, innovation

focus and environmental focus

[34] Park et al. (2001) Process management found to be a practice employed by ‘‘high


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Table 3 (continued )


performers’’ thus having effect on quality, delivery, cost performance

(as evaluated by customer). Processes include statistical techniques,

cycle time reduction, continuous improvement

[35] Ahire and Dreyfus

(2000)

Process quality management (involvement of customers/suppliers in

process design) has a positive effect on external quality (enables final

quality)

Management and

leadership

[1] Tan et al. (1999) Management responsiveness to firm’s competitive environment,

involvement and effectiveness and management understanding of and

use of TQM tools, management of supply base and customer-focus

positively affects performance

[24] Yeung et al. (2003) Quality management (ISO 9001, customer focus, supplier management)

effectiveness is dependent on the attitudes and commitment (also

confidence of understanding the requirements) of senior management


Literature review grouped into 4 categories of management

concentration including customer focus (customer partnership),

process focus, innovation focus (knowledge-creating leadership) and

environmental focus

Strategy [1] Tan et al. (1999) Effective management of supply base activities and customer-focus

positively affects performance (use of TQM tools and practices, link

business practices to performance, alignment of business practices to

strategy)

[3] Narasimhan and

Jayaram (1998)

Causal framework that suggests that supplier integration, strategic

integration and customer integration across the supply chain

determines customer responsiveness

[4] Ulusoy (2003) Strategies supporting quality is fundamental requirement for sustaining

existence in market (survey of Turkish firms)

[5] Tan et al. (2002) Link business practices to performance. Factors studied SC

integration, info sharing, SC characteristics, customer service

management, JIT, geographical proximity. Integration requires

massive commitment from all supply chain members

[13] Olhager and

Selldin (2004)

Survey of supply chain strategies including supply chain (SC) design,

SC integration, SC planning and control and SC communication (e.g.

supplier selection based on quality most important)

[14] Kanji and Wong

(1999)

Development of SCM model. Principles and concepts include

leadership, customer focus, cooperative relationship, integrated process

and information management, continuous improvement and business

excellence

[17] Mangiameli and

Roethlein, (2001)

Multi-directional quality awareness and communication between

channel partners (case study) can be a competitive advantage

[18] Tan et al. (1998) Firm’s internal quality approach and supply base management

practices can play a significant role in achieving corporate objectives if

implemented concurrently

[20] Rosenzweig et al.

(2003)

Integration intensity and positive performance effects (quality,

delivery, reliability, flexibility, cost leadership) of highly integrated

supply chains

[25] Shin et al. (2002) Supplier management orientation positively associated with business

performance (both buyers and suppliers)

Best practices [4] Ulusoy (2003) Best practices from benchmarking survey and supply chain analysis are

logistics, supplier relations, customer relations and production

[5] Tan et al. (2002) SCM factors JIT capability and supply chain characteristics have


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Table 3 (continued )


positive relationship with overall product quality Delivery and

communications improve overall customer service levels Six constructs

of SCM practices

[8] Forker et al. (1997) Practices positively related to performance: (1) Supplier QM, (2) Role

of the Q. Dept., (3) Training, (4) Q. Data and reporting. Product/

service design varied among firms

[9] Waterson et al.

(1999)

Most successful practices for quality improvement: TQM, Team-based

groups, Manufacturing Cells and Integrated computer-based

technologies (survey). Most common practices: SC partnering, TQM,

JIT, team-based working and integrated computer-based technology

(survey)

[12] Romano (2002) ISO 9001 certified suppliers are characterized by better level of quality

system, greater top-management involvement in formulating,

supporting and communicating quality strategy, and larger diffusion

and use of quality management procedures (e.g. more advanced

internal quality system)

[16] Choi and

Rungtusanatham

(1999)

Comparison of TQM practices at different levels of the supply chain

[18] Tan et al. (1998) Operational quality practices (design for quality, inspection, process

control, process improvement) Supply-base management practices

(decentralized purchasing, supplier certification, info sharing, etc.)

[21] Anderson et al.

(1999)

Investigates firms’ motivation for ISO 9001 adoption such as improved

product quality, internal improvements, communication value to

external parties (public signal of credible quality attainment)

[22] Johnson (2002) QS-9000 adoption in the supply-base to evaluate organizational

variables and performance outcome results (quality ppm, delivery

performance) to 1st tier customers

[23] Terziovski et al.

(2003)

ISO 9001 certification and positive impact on performance. Individual

element found to provide largest contribution is customer focus.

Principle motivation found to be customer pressure

[24] Yeung et al. (2003) ISO 9000 as an operational-based program serves as foundation for

continuous improvement (extension to supplier management, customer

focus and satisfaction, process control)

[26] Choi and Eboch

(1998)

TQM practices have positive impact on customer satisfaction and plant

performance

[28] Khouja (2003) Two-stage supply chain inventory model investigating quality output

and JIT production


ABC Technologies works closely with itssuppliers making site visits with cross-functionalteams for the purpose of reviewing key character-istics, processes, quality data, and progress to-wards annual goals. We view these upstreamalliances as more traditional only because thecooperative relationship ABC Technologies haswith its suppliers may not embrace the collabora-tive possibilities as illustrated by the Honda-sponsored ‘‘Four Region Summit’’ where informa-tion, sometimes amongst competitors, flows freely.

The managers at ABC Technologies realize thatthis type of collaboration occurs only if thesuppliers believe that they are true businesspartners. They plan to begin holding suppliermeetings twice a year to discuss quality issues andvalue analysis in a format similar to the ‘‘FourRegion Summit.’’ The company perceives formalsupplier meetings as a means of creating open andshared channels with suppliers for the purpose ofenhancing capabilities and improving quality, butalso understands that a high level of commitment

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and effort is required to successfully involvesuppliers as business partners.

4.2. Process integration and management

Process integration and the management ofsupply chain linkages is another theme that wediscovered within the prior literature. The ‘‘pro-cess’’ depicted here refers to linked activities bothinside and outside of a firm. A smooth andsynchronized linkage between dissimilar processesand/or operations is critical to an efficient andoperative supply chain. A subject often discussed byresearchers is the close interaction of customers andsuppliers through the coordination of work prac-tices as they extend across customer and supplierboundaries (Salvador et al., 2001; Romano andVinelli, 2001; Singer et al., 2003). Specifically,Salvador et al. (2001) studied how time perfor-mance can be improved as a result of supply chaininter-organizational interactions leading to changeand improvement. Segars et al. (2001) reviewed theimportance of extending firm boundaries andtransitioning processes to a system-orientationencompassing customers and suppliers. Theseauthors conducted an in-depth case study of amajor electronics firm and looked at the imple-mentation of quality initiatives through ‘‘processlinking’’ or transfer of the process view to supplychain partners. Beamon andWare (1998) developeda process-quality model termed ‘‘PQM,’’ to providea systematic methodology for implementing a newquality program or improving a new one in order tobridge gaps between members of the supply chain.These authors support the objective that qualityinitiatives can no longer be static and localized, butmust interact and synchronize across the entirenetwork of firms in the supply chain. Moreover,Gotzamani and Tsiotras (2001) researched the roleof ISO 9001 implementation on firm performanceand concluded that ‘‘process management’’ is thestandard’s most important contribution.ABC Technologies manages processes that

extend both externally across supply chain bound-aries and which internally integrate departmentsand functions. As an example, production sche-duling is always done in harmony with thecustomers and suppliers. Amendments to the

annual production plan requested by the customerare thoroughly reviewed by ABC Technologies forinput. Once approved, the revised plan is updatedand distributed by Honda to both ABC Technol-ogies and its other suppliers. ABC Technologies inturn communicates and manages productionschedule updates with its own suppliers. In thesecases, the schedule changes are typically no morethan 3% of the established annual production planthat are driven by an established 3-year plan.Another well-integrated process that extends bothto suppliers and customers is the material lottraceability process that is universally required inthe automotive industry and by ISO 9001.ABC Technologies also employs a process

approach to its internal operations. For example,materials management is the department thattakes responsibility for reporting final shipmentquantities for a given day and manages thecompleteness and reliability of deliveries. Thematerials manager must communicate and workwith production control and other internal func-tions on issues such as quality, maintenance,engineering, and order fulfillment in order toreport final shipping information. The ordercompletion process for shipped orders whollyencompasses many functional areas, as opposedto a compilation of fragmented departmentalinformation. The final measurement of this dis-tinctly integrated process is a report that delineatesall variances from the production plan.Lastly, the ‘‘process-approach’’ to achieving

quality and ultimately customer satisfaction isthe premise of the ISO 9001 standard as revised inthe year 2000. Each department at ABC Technol-ogies establishes criteria for managing and con-trolling processes (e.g. inputs transformed tooutputs) by means of departmental ‘‘ki plans.’’Variances from ki plans are measured, monitored,and communicated to management on a weeklybasis to make certain that ABC Technology’smidterm plan is accomplished and that correctiveaction is initiated as necessary.

4.3. Management and leadership

Management and leadership is the third themeidentified in the SCQM literature. In supply

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chains, top management must now guide anddirect not only individual company efforts, butalso encourage participation and cultivate qualitymeasurement and performance among all channelmembers. Management and leadership in thiscategory imply that management influences rela-tionships and operations with supply chain part-ners. Tan et al. (1999) conducted a survey ofquality directors and vice presidents from a broadrange of industries, and concluded that successfulmanagement and well-defined linkages betweenTQM practices and performance is the key tolong-term success. Additionally the results of thesurvey found that organizations must face thereality that they no longer exist in isolation, butare a piece of a sometimes very intricate supplychain. Similarly, Yeung et al. (2003) found that theeffectiveness of an ISO 9001 quality managementprogram is highly dependent on the attitudes andcommitment of senior management. Lastly, Mehraet al. (2001) carried out a literature review toidentify the future role of TQM in businessesfacing global markets. They commented thatknowledge-creating leadership is essential forglobally positioned companies.ABC Technologies provides an excellent exam-

ple of the importance of management commitmentto supply chain quality. As previously stated, allemployees are educated and made aware of eachcomponent’s functional qualities and how theseattributes contribute to the design and use of thefinal product. ABC Technology receives an im-mediate feedback from Honda on an Internetportal regarding quality issues (called a ‘‘troublereport’’). This information is disseminated to allemployees at daily kick-off meetings and at weeklymanager meetings. ABC Technology utilizes cross-functional teams to conduct problem resolution(e.g. ‘‘5P problem solving analysis’’) and formalcorrective action procedures to resolve productand process quality issues. Measures have been putin place by Honda and ABC to monitor bothquality and delivery results of its suppliers in theform of defects in parts per million (ppm). In 2004,Honda kicked-off its ‘‘Outstanding Quality In-itiative’’ that entails a 50% improvement in qualitythis year and 90% improvement the followingyear. Interestingly, ABC Technology regards mis-

takes and errors to be acceptable as long as thesemistakes ‘‘don’t reoccur.’’ Its management en-courages discussion and utilizes an open officeenvironment so that the system problems and rootcauses are analyzed and addressed. ABC Technol-ogy management recognizes that they must pro-vide the proper tools (instructions, data,equipment, performance measures, etc.) and ne-cessary support so that employees can properly dotheir jobs.

4.4. Strategy

Strategies that specify the means and activitiesto realize supply chain opportunities and achievecompetitive advantage are also a premise exam-ined in supply chain quality literature. Althoughthere are some overlapping concepts, the pertinentstrategy papers can be segregated by (a) sharedgoals and strategies among channel partners,including supply base orientation, (b) use andimplementation of quality initiatives, and (c)integrative focus and communication.Several authors have investigated the impact of

aligning supply chain and quality managementstrategies and activities with manufacturing goalsand business performance (Tan et al., 1999, 2002;Kanji and Wong, 1999). Other research extendsthe scope of business performance beyond a firm’sown borders and discuss the importance ofbonding goals and strategies of upstream anddownstream channel members. Tan et al. (1998)studied the effect of operational quality initiativesand supply base management on firm perfor-mance, concluding that both approaches should beimplemented concurrently to secure significantcompetitive benefits. Tan et al. (1999) and Shinet al. (2002) also examined supplier managementorientation. Shin et al. (2002) concluded thatfocused supply base orientation is a means toachieving positive business performance by bothbuyer and supplier partners.Ulusoy (2003) and Yeung et al. (2003) have

studied quality-based supply chain strategies. In asurvey of Turkish firms, Ulusoy (2003) commentedthat firms are aware that a quality strategy is themost fundamental requirement for sustaining theirexistence in the market. Lastly, the strategy of

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supply chain integration and communication as itrelates to customer responsiveness or positiveperformance has been investigated by Narasimhanand Jayaram (1998), Tan et al. (2002), Olhager andSelldin (2004), Rosenzweig et al. (2003), andMangiameli and Roethlein (2001).Our interview with the case firm revealed that

the common strategy for this entire supply chain isan orientation revolving around final customervalue and quality. This strategy is communicatedby 3-year plans that govern the formation of ‘‘kiplans’’ documenting strategies, criteria, and goalsfor every supplier operation in the network. Whenquality performance is unacceptable, the customerinitiates ‘‘trouble reports’’ providing immediatefeedback. Suppliers are expected to respondquickly and concisely to the needs of the customer(e.g. site visits, ‘‘5P problem-solving analysis’’,corrective action). ABC Technology’s commit-ment to this supply chain strategy becomesapparent when reviewing their behavior regardingunbudgeted expenses. Even in difficult financialperiods, ABC Technology does not hesitate toexpend funds to improve manufacturing quality.Additionally, Honda’s R&D integration strat-

egy and dominant role in the production structureis evident at ABC Technologies. The core pro-cesses and process equipment are typically provenin Japan before they are distributed to ABCTechnologies and other suppliers. This transferof research and development activities bonds thesupply network to Honda and strategically sup-ports focused channel production and designactivities and exclusive long-term relations.

4.5. Best practices

The last theme recognized in the literatureexamined involves the use of activities thatpromote quality in the supply chain framework.We classify these programs or activities as ‘‘bestpractices’’. The ones that are highlighted in theextant research (e.g. supplier relations, customerrelations, TQM, team building, adoption of ISO9001) contribute to the discussion and analysis ofSCQM. In the widely diverse set of articlescategorized in Tables 1 and 2, the authorsinvestigated types of supply chain or quality

practices. The research may involve implementa-tion of the practice and the resultant impact onorganizational or supply channel performance, orsimply compare and contrast practices that areexamined in a literature review (Mehra et al., 2001)or in a research setting (Johnson, 2002; Watersonet al., 1999).Several articles have reviewed and identified

significant activities relevant to improved supplychain performance. Forker et al. (1997) concludedthat (1) supplier quality management, (2) role ofthe quality department, (3) training, (4) qualitydata and reporting and, (5) product/service designare practices that resulted in positive performance.Similarly, Waterson et al. (1999) conducted asurvey of the current use and effectiveness ofmodern manufacturing practices and found themost common practices to be supply chainpartnering, TQM, team-based working, and inte-grated computer-based technology. Tan et al.(2002) concluded that two SCM factors—JITcapability, and supply chain characteristics suchas communication and trust, have a positiverelationship with overall product quality. Ulusoy(2003) investigated operational performance interms of logistics, supplier relations, customerrelations, and production in a survey of manufac-turing firms in Turkey, and concluded that thecloser a company is to best practice, the morelikely it is for that company to achieve higherbusiness performance. Lastly, Olhager and Selldin(2004) studied supply chain practices in Swedishmanufacturing firms and focused on supply chainissues related to integration, design, communica-tion, and planning and control. These authorsconcluded that while firms place overall value onresource utilization and cost minimization whenconsidering supply chain design, quality is thesingle most important criteria when selectingsupply chain partners.Another sub-theme acknowledged in the ‘‘best

practice’’ literature is the globally recognizedquality management standards. Several articlesstudied the impact of registered quality manage-ment programs such as ISO 9001 and QS-9000(automotive standard-now known as TS 16949) onsome aspect of performance. Johnson (2002) andTerziovski et al. (2003) investigated the adoption

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and benefits of ISO 9001 and QS-9000 implemen-tation with varying results. Terziovski et al. (2003)concluded that an organization will realize benefitsfrom implementation, while Johnson (2002) dis-covered conversely that QS-9000 will still allow theproduction of poor quality products and unac-ceptable delivery performance. Romano (2002)and Yeung et al. (2003) reported on ISO 9001 asan operational program that creates a foundationfor not only improved internal operations andquality systems, but also as a practical conduit tosupplier and customer processes.Our case study firm, ABC Technologies, em-

ploys many of the best practices described in Table2. For example, they recognize the value andimportance of ISO 9001 as a management systemto administer continual improvement, and conse-quently achieved registration in 2003. Also, theorganization makes use of the following practices:supplier management, benchmarking, quantitativeanalysis, cross-functional teams, JIT philosophywith Kanban containers, FMEA (failure modeand effects analysis), PPAP (production partapproval process), capability analysis, TQM, ‘‘5Pproblem solving analysis’’, automation and man-ufacturing cells (robotic welding, vision systems,etc.) and workforce training and education. ABCTechnologies has not yet formalized a SPC(statistical process control) program on the shopfloor, but is planning to do so in 2004.

4.6. Summary of themes

Organizing the journal articles within these fivethemes illuminates the diverse coverage that hasbeen given to the topic of SCQM within thisdomain. Although fragmented, the research sup-ports the premise that satisfying the customer canonly take place when product quality, service, andvalue are coupled at every node in the chain.Linking quality at these nodes involves not only acommitment to quality intra-organizationally, butquality initiatives that extend beyond the firm toupstream and downstream channel partners. ABCTechnologies, as a leading edge SCQM firm,supports the application of these ideas in practice.In their study, Olhager and Selldin (2004) com-ment that even though companies show a rela-

tively high awareness of modern supply chainplanning and control tools, they tend to utilizethem at a relatively low level. While this may notbe the case at ABC Technologies, this finding byOlhager and Selldin (2004) reinforces the need forpractitioners and researchers to continue tofurther define and explore the subject of SCQM.

5. Taxonomy

While organizing the literature into the manythemes and topics discussed above in Section 3 hasbeen useful in defining and furthering our under-standing of SCQM, we need a further distinctionto fully evaluate how the past researchers haveapproached this area. In particular, we proposethat the SCQM literature themes have historicallybeen separated by both academics and practi-tioners between (1) intra-organizational coordina-tion (or traditional quality management) within aninternal supply chain context and focus and, (2)inter-organizational integration interfacing supplychain and quality methodologies from an externalsupply chain context and focus. This distinctioncreates a taxonomy that not only provides a betteroverview of past SCQM research and its attendantthemes, but also highlights needs and opportu-nities for future research in SCQM.To help in further justifying and establishing

this taxonomy, it is advantageous to review andrecognize the SCOR model (see Fig. 2) endorsedby the not-for-profit, Supply Chain Council(www.supplychain.org). The membership of thisorganization includes over 800 multi-industryworldwide companies, consulting firms, softwareproviders, government organizations and educa-tional institutions. This framework, devoted to thetopic of SCM, defines a supply chain as integratedprocesses of ‘‘plan,’’ ‘‘source,’’ ‘‘make’’ and‘‘deliver,’’ that span the value chain from thesupplier’s supplier upstream to the customer’scustomer downstream. SCOR’s prescribed analy-sis of supply chain processes can be employed bymanagers to characterize, analyze, configure, anddescribe the depth and breadth of a supply chain,as well as form the foundation for decisionsleading to improvement.

http://www.supplychain.org

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Fig. 2. SCOR model.


The SCOR model illustrates the linking ofvalue-adding processes that exist in supply chainnetworks within a firm’s departments (intra-organizational), and between firms (inter-organi-zational). This model reinforces the idea that eachlinkage and node in the chain must performwithout any disruption to eventually satisfy finalcustomers. Further, the model visually demon-strates that only a single weak link in the supplychain is needed to result in detrimental perfor-mance such as late deliveries, incomplete orderfulfillment, and/or poor product quality.The SCOR model thus supports the intra-

organizational and inter-organizational distinctionthat drives our own taxonomy. Research andindustrial implementation that is focused ontraditional quality programs stems from a primar-ily ‘‘internal supply chain’’ perspective. Suchtraditional quality management programs areconcerned with integrating the enterprise andunifying all organizational functions such asmarketing, design, materials, purchasing, manu-facturing, and management. The SCOR modelreinforces the view that the activities of conven-tional quality management programs, althoughcustomer driven, are constrained for the most partto individual firms within the supply channel. Incontrast, quality management functions and activ-ities that merge practices and initiatives beyondenterprise boundaries for the purposes of buildingupon existing competencies or coevolving newcompetitive advantages reflect an ‘‘external supplychain’’ perspective.The taxonomy developed in Fig. 3 divides the

targeted research articles into either traditionalquality management (intra-organizational supply

chain) or SCQM (inter-organizational supplychain) perspectives. Articles examining predomi-nantly intra-organizational supply chain issuesand strategies are categorized in the taxonomy as(1) internally focused process integration andmanagement, (2) strategy, (3) quality leadership,and (4) quality practices. These articles focus ontopics, issues and behavior that we perceive asprimarily intra-organizational, yet also includesresearch perspectives that may peripherally exam-ine the expansion of quality improvement initia-tives beyond organizational borders into theexternal supply chain space. For example, researchinvestigating ISO 9001 can be considered relevantto supply chain quality because the ISO 9001standard emphasizes the continual improvementof business processes while interacting with sup-pliers and customers (see Fig. 4). ISO 9001research is placed on the intra-organizational sideof the framework, and includes research examininginternal work practices and processes that areinfluenced externally by suppliers or customers,but does not concentrate on integrative processesor strategies with these suppliers or customers(Johnson, 2002; Terziovski et al., 2003).Articles researching external supply chain qual-

ity activities move beyond this internally focusedperspective with the goal of integrating notonly their processes, but also creating formalenvironments for enhancing collaboration. Theseactivities may involve the redesign of conven-tional quality or management practices, thusconverging quality management processes andexternal supply chains. The taxonomy on this sideof the model is categorized by (1) externallyfocused process integration and management

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Note: In the external supply chain framework, strategy and process integration are highly interconnected and are therefore combined as a single theme.

InternallyFocused Process

Integration &Management

[6][7][10][11] [31][34][35]

ExternallyFocused Process

Integration,Management, &

Strategy[1][2][3][5][10][11][13][14][17]

[18][20][25] [27][31]

Strategy[1][3][4][5] [18][20][25]

QualityLeadership [1][24][31]

Quality Practices[8][9][12][16]

[18][21][22][23][24][26]

Communication and Partnership

[1][2][9][12][15][17][19][29][30]

[31][32][33]

Quality & SupplyChain Practices

[4][5][12] [18][28]

Traditional quality management research “Supply chain qualitymanagement” research

Supply Chain and QualityManagement Themes

Intra-Organizational (Internal) Focus

Inter-Organizational (External) Focus

Internal SupplyChain

External SupplyChain

Supply ChainQuality

Leadership [1][31]

Fig. 3. Taxonomy of supply chain quality management themes.

Source: ISO 9001:2000

3.0 Terms and definitions

For the purposes of this International Standard, the terms and definitions given in the ISO 9000 apply.

The following terms, used in this edition of ISO 9001 to describe the supply chain, have been changed to reflect the vocabulary currently used:

supplier organization customer

Fig. 4. ISO 9001:2000 supply chain reference.


strategy, (2) communication and partnership, (3)supply chain quality leadership, and (4) qualityand supply chain practices. The journal articlesthat combine both quality management and SCMtheories can be interpreted as a necessary exten-sion of fundamental quality management programactivities that are optimized to take advantage ofthe external supply chain environment. Research-ers within this SCQM arena recognize the sig-nificance of how supply channel quality mustintegrate both service and production processes

across the supply network and beyond the bound-

aries of individual firms.The taxonomy proposed by us is useful in that it

exhibits the existing stage in the evolution ofSCQM. This evolution is schematically shown inFig. 5, and supports the need for organizations toofficially and fundamentally reengineer qualitymanagement agendas in order to meet andimprove the never-ending demand for superiorproducts and services. The development of thistaxonomy has practical value in that it identifiesthe need to formalize and examine the processesand activities of SCQM. The taxonomy clearly

shows that this arena is multi-dimensional andinvolves not only the development of commonprocess methodologies encompassing inter-organi-zational courses of action, but emphasizes thenecessity for creation of channel-wide value thatcan be effectively measured and continuallyimproved. The establishment of programs andtactics to manage and monitor supply chainquality is a fundamental step towards maximizingthe competitiveness and market leadership ofsupply chains, yet the extant literature or theguidance from practicing managers does notprovide a comprehensive examination of this

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- Acceptance sampling

- Control charts - Statistical quality

control - Inspection

1920-1960 1960-1980 1980-1990

- Zero defects - Problem solving- Quality circles - Statistical process

control - Design of experiments

- TQM- ISO 9001 - Baldrige Award - Six-sigma

Supply chain management

1990-present

Focus

Programs

Years

InternalOrganization

InternalOrganization

- Supply-base - Organization - Customer expectations

All supply channel members and mostlyinternal organization

Supply Chain Quality Management (SCQM)

2004 and beyond

All supply channel members and mostlyexternal organization

Fig. 5. Evolutionary timeline and focus of supply chain quality management (SCQM).


subject. In order to promote better understandingof SCQM as well as the usefulness of this concept,several gaps in the research that are also relevantto academic and industrial practice are identifiedand examined in Section 5.

6. Research framework

The review of this literature illustrates that thedevelopment of SCQM is in very early stages ofunderstanding and development. In a review ofproduct quality and quality management litera-ture, Sousa and Voss (2002) concluded that as awhole, quality management practices have asignificant and strong impact on quality andoperational performance, but that the impact ofquality management on business performance isweaker and not always significant. This discoveryhelps us to fully recognize that achieving highquality is no longer a function relying solely uponinternal resources. Rather, quality practices mustadvance from traditional and product-based mind-sets to an inter-organizational supply chainorientation involving customers, suppliers, andother partners. Perhaps the most essential differ-

ence in this transition of traditional activities is a

shift from a product to a process orientation. In asupply chain environment, processes represent acontinuous series of actions or operations condu-cing to an end. Management of these processesmay lead not only to improved quality, but also tothe creation of innovative businesses and newmarket opportunities. As a result of our research

and work with actual organizations, we haveidentified three significant opportunities for futureSCQM research that we outline below, along withthe research methodologies that can be used topursue such an agenda.

6.1. Fostering of a process orientation

The extension of organizational processes intothe supply chain space provides us with a researchagenda. What ‘‘processes’’ are organizations in-tegrating with suppliers and/or customers (e.g.product design, transportation and warehousing,product realization, purchasing, etc.) across multi-ple partners to improve and impact upstream anddownstream quality performance? If one firm’sactivities can be observed as a sub-process ofanother firm, what are the integration activitiesand specific action plans that support theseimplementation efforts? How must the processesbe reengineered and do the results truly benefit thechannel while eliminating process sub-optimiza-tion? How will the focus change be managed as itevolves from the dimension of finite productquality to service value and process quality? Howwill this focus on externally aligned processesinvolve business process reengineering (BPR) andbusiness network reengineering (BNR)? In exam-ining the evolution of BPR and BNR theory,Peppard (1996) comments ‘‘redesigning businessprocesses has profound implications in an organi-zation above and beyond the focus on process.’’A case study of Bose (Segars et al., 2001) focuses

on how an organization improves performance by

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concentrating on processes within and across thesupply chain utilizing ‘‘process-linking.’’ Thisstudy touches only briefly on this last and finalstep of integrating business partners. Similarly,Ahire and Dreyfus (2000) developed a frameworkfor identifying the linkages of design and processmanagement to the operational quality outcomesof a manufacturing process (internal quality) andupon field usage of the products (external quality).They find that to attain superior quality outcomes,firms need to balance both design and processmanagement efforts with long-term implementa-tion activities. However, their study is restricted toproduct quality and process quality managementwithin organizational borders and customer per-ceptions of final product. While these studiesprovide a good starting reference for the value ofinternal process management, they do not invokeor answer research questions that involve processextension and management beyond organizationalborders into the supply chain space.ABC Technologies clearly utilized inter-organi-

zational processes (e.g. supplier relations, perfor-mance measurement, R&D), which is a majorreason it was selected for this study. However, it isnot evident whether or not the existence of theseboundary-spanning activities is primarily due toJapanese company inter-firm practices and Japa-nese manufacturing processes in general. Can non-Japanese firms also practice and become compe-tent in supply chain process orientations? Finally,what is the role played in this context by adominant and highly involved customer such asHonda?

6.2. Development of channel quality performance

measurements and standards

Many of the research articles evaluated in thisstudy engage some aspect of performance mea-surement. For example, what performance mea-sures can a supply chain utilize to consistentlymonitor supply chain processes and degree of theiralignment with end-customer desires? How willthis fairly confidential information be shared? Ifcompanies merge and align or integrate organiza-tional processes, do they also incorporate specificmeasures of performance, goals, and analysis tools

that are consistent and common across both ormultiple firms? Also, how do these organizationsdetermine what function is responsible for thecreation of supply chain measurements and main-taining a possible common database to documentand record performance information such as costs,conformance to specifications, process variance,reliability, timeliness or responsiveness and custo-mer expectations? Lastly, how can this informa-tion be analyzed to assist companies in improvingbusiness processes to ensure positive results? It isimportant to note that the SCOR model men-tioned above proposes the implementation ofsuitable measures at each of the frameworkconfiguration levels.There seems to be no universal consensus

regarding suitable measures of supply chainquality performance. For example, Tan et al.(1999) study whether specific TQM and SCMpractices, such as quality practices, customerrelations practices, and supply base managementpractices affect firm performance as measured bycorporate indices such as ROA, market share, andoverall competitive position. Other researchers(Holmberg, 2000; Brewer and Speh, 2000) lookat the application of the balanced scorecard, or asystems perspective on supply chain measure-ments. These authors agree that commonly im-plemented supply chain measurements arefragmented and virtually unknown, hence alsosuggesting that measurement activities will facil-itate the supply channel integration process.Additionally, Lapide (2000) comments that finan-cial accounting measures are important to asses-sing financial health, but are insufficient tomeasure supply chain performance because theyare at a functional level and do not driveimprovement across cross-functional processes.He states that the two most important andfundamental measures of overall supply chainperformance should relate to (1) availability ofproducts at the point of consumption and (2) totallanded costs to get product to the point ofconsumption.A recent study by Gunasekaran et al. (2004)

develops a supply chain performance measurementframework utilizing a balance between financialand non-financial measures as they relate to the

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decision-making levels of strategic, tactical andoperational. The authors validate the frameworkby means of a small sample of companies, yetconclude that the ‘‘framework is only a startingpoint.’’ We believe there is much research that isneeded to study metrics that measure customer-focused quality and process performance collec-tively and at various levels within the entire supplychannel utilizing techniques such as the balancedscorecard, critical success factors (Van Veen-Dirksand Wijn, 2002) and the SCOR configurationframework.

6.3. Impact of ISO 9001

Many of the extant research involved companiesregistered to the international standard, ISO 9001.Is the mere presence of ISO 9001 sufficient toachieve higher supply chain integration, or dosome other contingent factors also have to be inplace to achieve this outcome? If so, what are thesefactors? Conversely, can firms that have notundergone ISO 9001 registration achieve SCQMintegration and business success?Not unlike other quality management directives

such as TQM and Malcolm Baldrige, the researchconcerning ISO 9001 implementation and registra-tion concentrates mostly on the effect of qualitymanagement system standards on ‘‘internal’’company activities and processes. Yeung et al.(2003) studies how gaining ISO 9001 registrationaffects the development of a quality managementsystem and how it subsequently affects organiza-tional performance. Gotzamani and Tsiotras, 2001look at the importance of the ISO 9001 standardas an entry key to TQM and performanceimprovement. However, in both these studies, theimpact of ISO 9001 implementation and its effecton downstream and upstream supply chain opera-tions is virtually unknown. Understanding SCQMand the implication of ISO 9001 as a supply chainprocess-oriented standard (see Fig. 4), is an arearipe for future research.

6.4. Research methodologies

We have proposed a variety of research ques-tions and studies in this section that can be utilized

for pursuing this research agenda in SCM that alsoencompasses quality perspectives. Several differenttypes of methodological approaches can be used tofurther these objectives. Due to the broad-basednature of SCQM, analytical modeling approachesmay be less directly applicable, and we have notseen much use of such methodologies in the extantresearch. However, empirical modeling ap-proaches have been used before (e.g. Narasimhanand Jayaram, 1998; Shin et al., 2002; Rosenzweiget al., 2003). Overall, we do believe that empiricalfield studies (including survey-based approachesand case research) would be more appropriate, asis also evidenced by the preponderance of paststudies reported in this paper that lie at theintersection of this SCQM research domain (e.g.Choi and Hartley, 1996 Forker et al., 1997; Tan etal., 1998; Salvador et al., 2001; Gotzamani andTsiotras, 2001). Irrespective of methodologieseventually selected, we hope that researcherswould pay particularly close attention to studyingseveral conventional quality topics in the contextof external supply chain contexts. This researchwill help in better understanding and expandingour knowledge of quality perspectives in SCQM.

7. Conclusion

It was the goal of this paper to define SCQMand to create a research agenda for a better andmore rigorous understanding of SCQM. Thereview of literature that intersects quality andsupply chain research supports the need for futureresearch to provide further insights on practices,strategy and performance measurement revolvingaround a continuing shift from product-orientedinternally driven supply channel quality manage-ment practices to externally focused process-basedapproaches to SCQM.As this paper demonstrates, it is easy to see how

future research in SCQM that seeks to integratequality and process improvement strategies acrossthe entire supply chain will benefit the practitioner.A case study conducted by Romano and Vinelli(2001) found conclusively in a textile-apparelnetwork that the entire supply chain improved itsability to meet the expectations of the final

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customer by creating joint definitions of qualityand co-managing integrated quality practices andprocesses. Leveraging the traditional TQM toolkitwith formal process improvement methodologiesand process-oriented performance metrics canbestow organizational practitioners with funda-mental building blocks to reexamine their processesand spearhead continual improvements in theirproducts and services that surpass the competitionand exceed their customers’ expectations.

Appendix A. Interview instrument

1.
Overview: Review the SCQM concept 2. General information: Product produced, em-
ployees, SIC/NAICS codes, customer/supplierinformation, ownership, annual sales.

A.1. Quality leadership and management

1.
How is quality perceived and managed at ABCTechnologies? How are quality goals andobjectives formalized throughout the facility?How are they measured? Is improvementmanaged continually? Or upon crisis? How?
2.
What is ABC Technology’s ‘‘quality culture?’’How is it instituted and maintained? How areemployees indoctrinated to quality issues/cus-tomer requirements?
3.
What kinds of business plans/targets/objectivesare in place? How are they created/distributed?What is the length of the planning horizon? Arethey measurable? Are internal plans createdjointly among various functions?
4.
Describe management commitments, attitudesand involvement towards quality objectives andimprovement.
5.
Who is responsible for quality? Is there areliance on the Quality Assurance Department?
6.
What are the strengths and/or weaknesses ofquality leadership?
A.2. Internally focused process integration &

management (traditional)

1.
What is the organizational structure at ABCTechnologies? Is it a traditional functional/
departmental structure or a cross-functionalstructure?

2.
How are the departments/functions/activitiesorganized within the facility? What are theadvantages/disadvantages of this structure?How is it different from the typical SC orsoutheastern firm? Is the structure classicalJapanese (as in the parent company) or a typeof hybrid (since located in US)?
3.
What makes this organizational structure dis-tinctive/advantageous in terms of managing andmeasuring quality? Ensuring customer satisfac-tion?
4.
Can ABC Technology’s organizational struc-ture be defined as collaborative/partnering ormutually beneficial among functional depart-ments/activities?
5.
How does ABC Technologies develop a new/revised product model? Are the activitiesintegrated? Collaborative? Concurrent? Areteams involved?
6.
What integrative processes are in place internally
and how integrated are these processes? Are theresponsibilities shared? Are the performancemeasures shared? How is information/datashared?

7.
How are employee duties/jobs/work practicestied to quality objectives/customer satisfaction?
A.3. Supply chain quality leadership—externally

focused process integration, management and

strategy

1.
What does ABC Technologies understandabout the topic and activities of supply chainthinking that has evolved in the past decade?Do managers discuss the supply chain as anemerging business methodology/new concept(or is it just necessary and routine to doingbusiness)?
2.
How often does ABC Technologies meet withcustomers and suppliers? What are the reasonsfor meeting? Who is involved (e.g. uppermanagement, engineers, production)?
3.
Are the members of the supply chain workingtoward mutual goals (collaborating)? Arealliances win-win situations? Are there anyestablished ‘‘rules of engagement?’’

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4.
What information systems are used to relay/communicate information between partners?Is it real time? Is it effectively implemented?How? (The web? Internet, extranet or intra-net?)
5.
What company ‘‘processes’’ link to eithersuppliers or customers? Are they seamless?Complicated? Successful? Do they benefitquality (e.g. errors reduced, quality improved,cycle times reduced, safety stocks removed,reduced inspection, minimized paperwork,etc.)?
6.
Partnership and communication (how doesABC Technologies involve customers andsuppliers in business objectives, customersatisfaction?). What are some benefits thatABC Technologies has realized as a result ofpartnering (e.g. reduction of redundancy)?
7.
Are there any activities that occur betweenABC Technologies and suppliers/customersthat can be described as essential to ‘‘trustbuilding’’ or ‘‘relationship strengthening?’’What are they? Do you believe the strengthof the relationship(s) affects negotiations? Doyou think the strength of the relationship(s)could affect future investment opportunities?How?
8.
Are there weaknesses or obstacles in ‘‘ABCTechnology’s supply chain?’’ If so, what arethey? What would you change or improve?
9.
Would you describe any of the partnerrelationships as adversarial? Risky? Too manybarriers?
10.
Who do you believe is the most ‘‘powerful’’partner in your supply chain? Why?
A.4. Quality practices

What quality and/or other practices/programsare utilized?

�
Benchmarking � Quantitative methods/graphical tools to analyzedata (Pareto, fishbone, etc.)
�
Teams, Cross functional? Linked to manage-ment? Represent all organizational levels? For-mal? Results-oriented?
�
JIT/Kanban
�
FMEA � PPAP � DOE � TQM � Six sigma � ISO 9001 � Process improvement � Capability analysis � SPC/Inspection practices (detection vs. preven-tion), receiving inspection
�
Problem-solving � Performance/reward appraisals systems in placefor individuals vs. organization
�
Technology/automation/manufacturing cells � Workforce training and education � Supplier certification � Other
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