1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 1 - 13 - 1 Chapter 3 Global Supply Chain Quality and International Quality Standards

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 2  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 Global Supply Chain Quality and International Quality Standards Chapter 3

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 3  Licensing  Partnering  Globalization Global Supply Chain Quality and International Quality Standards Managing Quality for the Multinational Firm

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 4  Globalization  The Physical Environment  The Task Environment  The Social Environment Global Supply Chain Quality and International Quality Standards Managing Quality for the Multinational Firm

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 5  Quality Improvement: The American Way  The Malcolm Baldridge National Quality Award Global Supply Chain Quality and International Quality Standards Quality Improvement: The American Way

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 6 The Malcolm Baldridge National Quality Award Seven Categories 1. Leadership 2. Strategic Planning 3. Customer and Market Focus 4. Measurement, Analysis and Knowledge Management 5. Human Resource Focus 6. Process Management 7. Business Results Global Supply Chain Quality and International Quality Standards Quality Improvement: The American Way

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 7 Seven Categories 1. Senior Leadership: A. Senior Leadership B. Governance and Social Responsibilities Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 8 Seven Categories 2. Strategic Planning: A. Strategy Development B. Strategy Deployment Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 9 Seven Categories 3. Customer and Market Focus: A. Customer and Market Knowledge B. Customer Relationships and Focus Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 10 Seven Categories 4. Measurement, Analysis and Knowledge Management: A. Measurement, Analysis and Review of Organizational Focus B. Information and Knowledge Management Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 11 Seven Categories 5. Human Resource Focus: A. Work Systems B. Employee Learning and Motivation C. Employee Well-Being and Satisfaction Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 12 Seven Categories 6. Process Management A. Value Creation Processes B. Support Processes and Operational Planning Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 13 Seven Categories 7. Business results A. Customer Focused Results B. Financial and Market Results C. Human Resource results D. Organizational Effectiveness Results E. Leadership and Social Responsibility Results Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 14 Seven Categories 7. Business results A. Customer Focused Results B. Financial and Market Results C. Human Resource results D. Organizational Effectiveness Results E. Leadership and Social Responsibility Results Global Supply Chain Quality and International Quality Standards The Malcolm Baldridge National Quality Award

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 15 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize  Policy  Organization and operations  Collecting useful Information  Analysis  Planning for the Future  Education and training  Quality assurance  Quality effects  Standardization  Control

16. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 16 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize  Policy  Organization and operations  Collecting useful Information  Analysis  Planning for the Future Management of Quality Policy, Correctness and Consistency

17. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 17 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize  Policy  Organization and operations  Collecting useful Information  Analysis  Planning for the Future Document processes for clarifying authority and responsibility

18. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 18 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize  Policy  Organization and operations  Collecting useful Information  Analysis  Planning for the Future Document how data is passed through divisions and how it is transmitted.

19. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 19 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize  Policy  Organization and operations  Collecting useful Information  Analysis  Planning for the Future Use of prioritizing, analytical methods, statistical methods

20. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 20 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize  Policy  Organization and operations  Collecting useful Information  Analysis  Planning for the Future Understand present condition, Plan for the future, promote Total Quality Control (TQC)

21. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 21 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize Document plans and accomplishments relate to education and training  Education and training  Quality assurance  Quality effects  Standardization  Control

22. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 22 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize Design, safety and reliability issues, process inspection, use of statistical analysis  Education and training  Quality assurance  Quality effects  Standardization  Control

23. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 23 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize Documentation of benefits, outcomes and results of quality improvement – both tangible and intangible  Education and training  Quality assurance  Quality effects  Standardization  Control

24. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 24 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize Setting standards, monitoring performance and revision of standards  Education and training  Quality assurance  Quality effects  Standardization  Control

25. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 25 Deming Categories Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Deming Prize How are Statistical Quality Control, control points, control items used?  Education and training  Quality assurance  Quality effects  Standardization  Control

26. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 26 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.

27. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 27 Global Supply Chain Quality and International Quality Standards The Japanese Way -- Shingo’s seven wastes 1.Waste of overproduction 2.Waste of waiting 3.Waste of transportation 4.Waste of processing itself 5.Waste of stocks 6.Waste of motion 7.Waste of making defective products

28. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 28 Global Supply Chain Quality and International Quality Standards The Japanese Way -- The Five S’s 1.Seiri: Organizing by getting rid of the unnecessary 2.Seiton: Neatness that is achieved by straightening offices and work areas 3.Seiso: Cleaning Plant and Equipment 4.Seiketsu: Standardized locations for tools and equipment 5.Shetsuke: Discipline in maintaining the four prior S’s

29. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 29 Global Supply Chain Quality and International Quality Standards The Worldwide Way ISO 9000:2000 Five Clauses:  Quality Management Systems 1.Management System 2.Resource Management 3.Product Realization 4.Measurement Analysis and Improvement

30. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 30 Global Supply Chain Quality and International Quality Standards The Worldwide Way IS0 9000:2000 Eight Principles: 1.Customer focus 2.Leadership 3.Involvement of people 4.The Process approach 5.A systems approach to management 6.Continual Improvement 7.Factual Approach to Decision Making 8.Mutually beneficial supplier relationship

31. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 31 Global Supply Chain Quality and International Quality Standards The Worldwide Way IS0 9000:2000

32. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 32 Global Supply Chain Quality and International Quality Standards Chapter Summary Quality Models  Baldridge  Deming  European Quality Award  ISO 9000

33. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 3 - 33 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America.