OCTOBER 19-20, 2012 - YMCA University of Science & Technology

Proceedings of the National Conference on
Trends and Advances in Mechanical Engineering,
YMCA University of Science & Technology, Faridabad, Haryana, Oct 19-20, 2012
SUPPLIER QUALITY ASSURANCE IN SUPPLY CHAIN
MANAGEMENT (SCM) THROUGH QUALITY TOOLS AND
TECHNIQUES
P.P. Shah 1 , R.L. Shrivastava 2
1 Acharya Shrimannarayan Polytechnic, Wardha(M.S.), India
2 Yeshwantrao Chavan College of Engineering, Nagpur (M.S.), India.
e-mail: pps1971@rediffmail.com
Abstract:
Fierce competition forces organizations to implement different business improvement methodologies to improve
the business performance. A Supply chain is an association of different facilities and distribution channels that
includes the procurement of raw materials, production, assembly and delivery of finish products or services to
the final user i.e. customer. The management of supply chain and the role and responsibilities of various persons
involved differ from industry to industry. Due to which Supply chain management (SCM) has become a vital
issue for manufacturer, professionals and researchers. It is felt that to manage the supply chain effectively,
entire structure of supply chain must be understood properly. This paper attempts to provide a manufacturer,
professionals and researchers a complete picture of supply chain management and explains the role of supplier
in supply chain, describes the various quality tools and techniques if implemented properly assurance the quality
of suppliers.
Keywords: Supply Chain Management, Quality Management System, Supply Chain Integration, ISO 9001
Introduction:
Industrial world over are trying to improve efficiencies in their operations. There is a need to re-evaluate
business plans especially with respect to investments in new faculties, markets and products. Rising input
resource prices and the economic uncertainty are forcing organizations to thing about the optimum utilization of
resources to maximize the productivity and the profit. However, achieving operational efficiencies requires more
than reducing costs, high utilization mandates, strict inventory control and rationalizing capacity or manpower.
There is a single objective of the supply chain – right product at the right place in the right quantity at the right
time, which requires all operational units within the organization to be integrated through business processes and
technological enablers.
The aim of Supply Chain Management is to satisfy customers at the optimum cost. Due to globalization,
liberalization and advancement in new technologies, supply chains have become more complex, more global and
a more critical business function than ever before. At the same time, many leading firms have realized that a well
run supply chain can be a source of distinct competitive advantage in the marketplace, and have been in the
forefront in adopting practices that deliver superlative efficiencies in their supply chain functions.
Supply Chain Management:
The term “supply chain management” arose in the late 1980s and came into widespread use in the 1990s. Prior to
that time, businesses used terms such as “logistics” and “operations management” instead. The one of the
definition of a supply chain Management is given below:
“Systemic, strategic coordination and cooperation of the usual business functions within a particular
organization and across organizations within the supply chain, for the purposes of improving the performance of
the individual one and the supply chain which includes not only the manufacturer and suppliers, but also
warehouses, transporters, retailers, and customers themselves as a whole .”
There is a basic pattern to the practice of supply chain management. The Five Major Supply Chain Drivers are:
1. Production— what products does the market want
2. Inventory—what inventory should be stocked at each stage in a supply chain
3. Location—where should facilities for production and inventory storage be located
4. Transportation—how should inventory be moved from one supply chain location to another
5. Information—how much data should be collected and how much information should be shared
Every time company has to carry out the 5WH analysis for effective management of the supply chain drivers to
enhance the utilization to maximize the productivity and profit. The right combination of responsiveness and
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