1. Chapter 3
Global Supply Chain Quality and
International Quality Standards

2. 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
ISO 9000:2000
Quality Improvement: The Chinese Way
Are Quality Approaches Influenced by Culture?

3. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Licensing
Exporter
Partnering
Globalization
Physical Environment
Task Environment
Social Environment
U.S. Trade 1960–2010
Source: U.S. Department of Commerce

4. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Changing the Physical Environment
Wages and Costs in Mexico (Average Hourly Compensation
for Manufacturing Workers in U.S. Dollars)

5. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Global Factors that Affect Quality-related Decisions

6. Global Supply Chain Quality and International Quality Standards
Managing Quality for the Multinational Firm
Export Quality Model

7. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
The Baldrige Performance Excellence Program
Focuses on business results
Nonprescriptive and adaptable
Supports company-wide alignment of
goals and processes
Permits goal-based diagnosis
The Baldrige Award

8. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
The Baldrige Award Framework Seven Categories
Leadership
Strategic Planning
Customer Focus
Measurement, Analysis
and Knowledge
Management
Workforce Focus
Operations Focus
Results

9. Global Supply Chain Quality and International Quality Standards
Quality Improvement: The American Way
The Baldrige Process

10. Global Supply Chain Quality and International Quality Standards
Quality Improvement-The Japanese Way
Deming Prize
Policy Deployment
New Product Development
Maintenance and Improvement
Management System
Information Analysis
Human Resources Development

11. Global Supply Chain Quality and International Quality Standards
Quality Improvement-The Japanese Way
Lean Production
Anything that does not add value for the customer should be eliminated
Group of techniques or systems focused on optimizing quality processes
A productive system whose focus is on optimizing processes through the philosophy of continual improvement

12. Global Supply Chain Quality and International Quality Standards
Quality Improvement-The Japanese Way
Shingo’s seven wastes
Waste of overproduction
Waste of waiting
Waste of transportation
Waste of processing itself
Waste of stocks
Waste of motion
Waste of making defective products

13. Global Supply Chain Quality and International Quality Standards
Quality Improvement-The Japanese Way
Japanese Total Quality Control (TQC)
Visibility
In-process Inspection
N = 2 Technique
Total Involvement of the workforce
The five S’s
Preventive Maintenance

14. Global Supply Chain Quality and International Quality Standards
Quality Improvement-The European Way
Processes, Products, and Services
Customer Results
People Results
Society Results
Key Results
European Quality Award
Leadership
Strategy
People
Partnerships and Resources

15. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
Focus is for companies to document their quality systems in a series of manuals to facilitate trade through supplier conformance
Registration states a quality system is in place and being
adhered to
Standards are very broad and nonspecific, so they can be adapted to many different industries and cultures
Recognized international quality standard that businesses can follow

16. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
Three Standards:
ISO 9000:2008—Quality management systems: Fundamentals and vocabulary
ISO 9001:2008—Quality management systems: Requirements
ISO 9004:2008—Quality management: Guidelines for Performance Improvement

17. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
ISO 9000:2008 Five Clauses:
Quality Management System
Management System
Resource Management
Product Realization
Measurement Analysis and Improvement

18. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
ISO 9000:2008 Five Clauses:
Quality Management System
General Requirements- establish, document, implement, and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of the international standard
Documentation Requirements- include a quality policy and quality objectives; a quality manual; documented procedures; documents to ensure effective planning, operation, and control of processes; and records required by the international standard.

19. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
ISO 9000:2008 Five Clauses:
2. Management System
Top management shall ensure that customer requirements are determined and are met with the aim of enhancing customer satisfaction
Management shall establish a quality policy
Management shall ensure that quality objectives shall be established
Management shall ensure that responsibilities and authorities are defined and communicated.
Management shall review the quality management system at regular intervals

20. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
ISO 9000:2008 Five Clauses:
3. Resource Management
Determine and provide needed resources
Workers will be provided necessary education, training, skills, and experience
Determine, provide, and maintain the infrastructure needed to achieve conformity to product requirements
Determine and manage the work environment needed to achieve conformity to product requirements

21. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
ISO 9000:2008 Five Clauses:
4. Product Realization
Develop processes needed for product realization
Determine requirements as specified by customers
Plan and control the design and development for its products
Ensure that purchased product conforms to specified purchase requirements
Plan and carry out production and service under controlled conditions
Determine the monitoring and measurements to be undertaken and the monitoring and measuring devices needed to provide evidence of conformity of product to determined requirements

22. Global Supply Chain Quality and International Quality Standards
ISO 9000:2008
ISO 9000:2008 Five Clauses:
5. Measurement Analysis and Improvement
Plan and implement the monitoring, measurement, analysis, and improvement process as needed
Monitor information relating to customer perceptions
Ensure that product that does not conform to requirements is identified and controlled to prevent its unintended use or delivery
Determine, collect, and analyze data to demonstrate the suitability and effectiveness of the quality management system
Continually improve the effectiveness of the quality management system

23. Global Supply Chain Quality and International Quality Standards
IS0 9000:2008
ISO 9000:2008 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

24. Global Supply Chain Quality and International Quality Standards
IS0 9000:2008
An Example of the ISO Registration Process

25. Global Supply Chain Quality and International Quality Standards
IS0 9000:2008
ISO 14000:
International standard for environmental compliance
Adoption in many countries is slow
Firms with little environmental exposure will
adopt ISO first

26. Global Supply Chain Quality and International Quality Standards
IS0 9000:2008
ISO Eight Elements
General Requirements
Environmental Policy
Planning
Environmental Aspects
Legal and other Requirements
Objectives and Targets
Environmental Management Programs
Implementation and Operation
Structure and Responsibility
Training, Awareness, and Competence
Environmental Management System Audit
Communication
Environmental Management System Documentation
Document Control
Operational Control
Emergency Preparedness and Response
Checking and Corrective Action
Monitoring and Measurement
Nonconformance and Corrective and Preventative Action
Records
Management Review

27. Total Volume of Trade between the United
Global Supply Chain Quality and
International Quality Standards
Quality Improvement-The Chinese Way
Socialist market economy
Low quality goods due to:
Low Education of Workers
Lack of Experience
Unfamiliar with Goods
Short-term Workers
GUANXI or Influence
Personal Relationships
Bribery
Total Volume of Trade between the United
States and China

28. Global Supply Chain Quality and International Quality Standards
Are Quality Approaches Influenced by Culture?
United States
Command-and-Control Oriented
Results Oriented
Japanese
Based on Ethic of Consistency
Emphasis on Reduction of Waste
Europeans
adopted broad standards that can be adapted to the diverse nation-states in the European Union
Satisfy Employees
Care for the Environment

29. Global Supply Chain Quality and International Quality Standards
Chapter Summary
Managing Quality for the Multinational Firm
Quality Improvement: The American Way
Quality Improvement: The Japanese Way
Quality Improvement: The European Way
ISO 9000:2000
Quality Improvement: The Chinese Way
Are Quality Approaches Influenced by Culture?

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Printed in the United States of America.