1. Global Supply Chain Quality and International Quality Standards
Chapter 3
Global Supply Chain Quality and
International Quality Standards
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2. Globalization
Difference market or region has difference requirement of quality level
Difference regions have difference quality approaches and quality award
Globalization (or globalisation) is the process of international integration arising from the interchange of world views, products, ideas and other aspects of culture.

3. Africa

4. Japan

7. Product Origin Made in Japan Made in Indonesia Made in Vietnam
Made in Malaysia
Made in Egypt

8. Global Supply Chain Quality and International Quality Standards
Chapter 3
Managing Quality for the Multinational Firm
Quality Improvement: The American Way
Quality Improvement: The Japanese Way
Quality Improvement: The European Way
Quality Improvement: The Chinese Way
ISO 9000:2000
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9. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Firm must cope with more diversity because of diversity challenge has been increased on international trade (Import and exports)
Mechanisms that firms use in globalizing:
Licensing
Partnering
Globalization
What mechanism for going globalizing?
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10. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Allow foreign firms to sell by using the design of the original designer
Sales products with another trademark in different countries
Reach international market without international supplier chains or marketing arms.
Licensing
Partnering
Globalization
Naza-kia
Produa and dihatsu
Proton and mistubishi
The verb license or grant license means to give permission.
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11. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Licensing
Partnering
Globalization
Joint ventures
Two firms have technology, products or access to market that each others wants. Example: Produa and Daihatsu
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13. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Licensing
Partnering
Globalization
Firm fundamentally changes the nature of its business by establishing production and marketing facilities in foreign countries
Multinational corporations (MNC)
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15. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
By globalization, firm has to change;
The Physical Environment
The Task Environment
The Social Environment
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16. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Globalization
The Physical Environment
The Task Environment
The Social Environment
Location from natural resource
Manufacturers should view the total cost such as component costs, supplier chains and wages. Often overemphasized on labor cost. Compare us to Mexico.
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17. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Globalization
The Physical Environment
The Task Environment
The Social Environment
Review operating structure or procedure when globalization.
Economic structure, skills, technologies and governments, international law are vary when globalizing.
Regulatory structure must be based on international law.
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18. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Globalization
The Physical Environment
The Task Environment
The Social Environment
Cultural factors such as language, customs, customer needs and communication.
Company must adapt their products to the markets they are serving through culture-specific research and development (R&D)
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19. Comment by customer: Sound system is weak
Comment by customer: Noise sound

20. Export Quality Model Based on export quality model (Barringer, 1999)
Quality leads to lower price and greater export success. Thus, quality is important in globalization.
Meet international standards of quality.

21. Quality Improvement. The American Way Japanese Way European Way
Chinese Way

22. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
Quality Improvement: The American Way
Important model for quality management
The Malcolm Baldridge National Quality Award (MBNQA)
America-Birthplace of modern quality. Many gurus come from us such as Shewhart, Deming, Juran.
The main interest quality in America is in application of statistics
Team based approach
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23. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
The Malcolm Baldridge National Quality Award
Management needs a tool for assessing the approaches it has employed to improve operating performance.
Self assessment mechanisms
Influence and as basis for several international award
For small and large companies: Manufacturing, health care, education and service sectors.
Not open to public sectors and not for profit organizations.
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24. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
MBNQA characteristics of quality award:
Focus on business results (25% to 45%). Must outstanding in financial, CS, quality, productivity, supplier performance.
Viewed as strategically prescriptive such as benchmarking or analyzing of customer data
Alignment of goals and processes based on the strategy. Consistency of purpose.
Goal based diagnosis and assessment (based on the criteria and scoring guidance). By assessing approach, deployment and results, firms are able to assess their current strength and areas for improvement.
Definitions of prescriptive
adjective
of or relating to the imposition or enforcement of a rule or method.
"these guidelines are not intended to be prescriptive"
synonyms: dictatorial, narrow, rigid, authoritarian, arbitrary, repressive, dogmatic
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26. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
The Malcolm Baldridge National Quality Award
Seven Categories
Leadership
Strategic Planning
Customer and Market Focus
Measurement, Analysis and Knowledge Management
Human Resource Focus
Process Management
Business Results
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27. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
1. Leadership:
Leadership
The extent of top management in creating and reinforcing goals, values,
direction, mission, visions.
Fulfill its responsibility as a corporate citizen
Definition of 'Corporate Citizenship'
The extent to which businesses are socially responsible for meeting legal, ethical and economic responsibilities placed on them by shareholders. The aim is for businesses to create higher standards of living and quality of life in the communities in which they operate, while still preserving profitability for stakeholders. 
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28. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
2. Strategic Planning:
Strategy Development (how to establish strategy and action plan)
Strategy Deployment (how they deploy the strategy and action plan)
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29. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
3. Customer and Market Focus:
Must understand the product or service that are important to customers. Listening and learning from customers.
Improve customer satisfaction: gather and analyze customer satisfaction data.
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30. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
4. Measurement, Analysis and Knowledge Management:
Measurement, Analysis and Review of Organizational Focus: relates to the firm’s selections, management and use of information to support process and to improve performances such as financial data and non-financial data.
People must deploy the data in information system to achieve action-plan
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31. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
5. Workforce Focus:
Work Systems : Develop and use its full potential, aligned with company objective. Create Internal conducive environment.
Employee Learning and Motivation: Skill sharing and open communication for understanding customer needs and requirement. Compensation and recognition.
Monitor employee Well-Being and Satisfaction
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32. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
6. Process Management
Value Creation Processes : Design must be changed and upgraded to reflect changes in customers needs. Example: Digital broadcasting
Support Processes and Operational Planning
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33. Global Supply Chain Quality and International Quality Standards
The Malcolm Baldridge National Quality Award
Seven Categories
7. Business results
Customer Focused Results
Financial and Market Results
Human Resource results
Organizational Effectiveness Results
Leadership and Social Responsibility Results
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34. Global Supply Chain Quality and International Quality Standards
The Japanese Way -- The Deming Prize
Deming Prize
Deming prize was established in 1951 by Japanese Union of Scientists and Engineers (JUSE)
Awarded to individual or groups who have contributed to the field of quality
More focus to process compare to MBNQA, rather than business results.
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35. Global Supply Chain Quality and International Quality Standards
The Japanese Way -- The Deming Prize
Deming Categories
Policy Deployment
New product development
Maintenance and improvement
Information analysis
Human resource development
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36. Global Supply Chain Quality and International Quality Standards
The Japanese Way -- Lean Production
Anything that does not add value
for the customer should be eliminated.
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37. Global Supply Chain Quality and International Quality Standards
The Japanese Way -- Shingo’s seven wastes
Lean Production: Productive system whose focus is on optimizing processes through continuous improvement.
Waste of overproduction
Waste of waiting
Waste of transportation
Waste of processing itself
Waste of stocks
Waste of motion
Waste of making defective products
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39. Global Supply Chain Quality and International Quality Standards
The Japanese Way
TQC: Everybody in the company is responsible to secure and improve quality in every aspect of process
Visibility: Problem must be made visible before they can be addressed. Example: andon (warning lights). Team are used to identify and eliminate the cause and improve. Line will be stoped when problem occured.
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40. Global Supply Chain Quality and International Quality Standards
The Japanese Way
In process Inspection: All work is inspected at each stage of the process and the workers inspect their own work.
N=2 technique: Only a sample size of 2 is needed for acceptance inspection. When supplier processes are in control and capable.
Total involvement of workforce: Gaining organization commitment to quality. Horizontal deployment (all departments) and Vertical deployment (all level of workers)
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41. Global Supply Chain Quality and International Quality Standards
The Japanese Way -- The Five S’s
Seiri: Organizing by getting rid of the unnecessary
Seiton: Neatness that is achieved by straightening offices and work areas
Seiso: Cleaning Plant and Equipment
Seiketsu: Standardized locations for tools and equipment
Shetsuke: Discipline in maintaining the four prior S’s
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47. Global Supply Chain Quality and International Quality Standards
The Japanese Way
Quality control circles (QCC): Teams made up of workers who are identify problem at work place and improve it.
Preventive Maintenance (PM): Machine can work well by maintaining scheduled maintenance and improve equipment's.
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48. Global Supply Chain Quality and International Quality Standards
The Worldwide Way ISO 9000:2000
ISO: Organization for international standards of Geneva, Switzerland.
International standards for documentation of quality systems.
ISO 9000:2008 ver has three standards:
ISO 9000: 2008-Fundamental and vocabulary
ISO 9001: 2008-Requirements
ISO 9004:2008-Guidelines for performance improvement
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49. Global Supply Chain Quality and International Quality Standards
The Worldwide Way ISO 9000:2000
Five Clauses:
Quality Management Systems
Management System
Resource Management
Product Realization
Measurement Analysis and Improvement
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50. Global Supply Chain Quality and International Quality Standards
The Worldwide Way IS0 9000:2000
Eight Principles:
Customer focus
Leadership
Involvement of people
The Process approach
A systems approach to management
Continual Improvement
Factual Approach to Decision Making
Mutually beneficial supplier relationship
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51. Global Supply Chain Quality and International Quality Standards
The Worldwide Way IS0 9000:2000
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52. Global Supply Chain Quality and International Quality Standards
Chapter Summary
Quality Models
Baldridge
Deming
European Quality Award
ISO 9000
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