Supply Chain Quality Management: a theoretical framework for integration measurement

Marcio Cardoso Machado1, Ana Cristina Fernandes2, Paulo Sampaio2, Maria do Sameiro Carvalho2, Henriqueta Nóvoa3, Sónia Duarte Silva2

1 Business Graduation Program, Paulista University, São Paulo, Brazil. 2 Systems and Production Department, University of Minho, Braga, Portugal 3 Department of Industrial Engineering and Management, Porto University, Porto, Portugal {[email protected], [email protected], [email protected], [email protected], [email protected], [email protected]}

Abstract. This paper aims to present a theoretical framework for performance measurement of supply chain quality management (SCQM). A review of the literature on supply chain quality management, supply chain and quality management was conducted to develop key performance measurements related to six areas of integration between quality management and supply chain management environment: leadership, continuous improvement and innovation, sustainability, stakeholder involvement and commitment, information, and management and strategic planning. The findings suggest that SCQM integration can be assessed by nine performance measurements. The study contributes to our understanding of quality management practices within a supply chain (SC) environment from an integrated perspective. It extends the concept of supply quality chain integration by focusing on key performance measurement that may help to improve the overall performance of the supply chain. Keywords: Supply Chain; quality, performance measurement, theoretical framework.

1 Introduction

Recent studies on performance in supply chain management have indicated the need to deepen the understanding of the integration of quality management [1–3]. The integration of quality management and supply chain management changes from a cost-based and competitive relations focus to a more cooperative approach between the different members of the supply chain, leading to cumulative capabilities that prepare organizations for a dynamic and global competition [4]. Performance measurements of the supply chain can facilitate inter-understanding and integration among the supply chain members [5], as well as the integration of quality management (QM) and supply chain management (SCM), quality-related tools and practices that are compatible with supply chain activities [6]. Therefore, it is important to deploy performance measures that help managers towards the integration of quality management through the supply chain. Previous studies identified the need for research on performance measurements in different contexts. For example, the positive association between hierarchy-like governance of transactions with quality was studied in fresh produce farms [7]. This governance is linked to the firm’s activities of supply chain quality management, in order to support collaboration and coordination along the value chain, such as hazard monitoring and training to implement quality assurance standards, providing logistics, sorting and packaging of the products [7]. Concerning information systems, performance measurements should support changes in processes of supply chain and information security [8]. Regarding relationships, improvements in performance can reinforce and consolidate supply chain relationships and generate even more product design and development collaboration [9]. In fact, although supply chain quality practices and maturity vary by industry sector [10], a key question remains: what are the key performance measurements to assess Supply Chain Quality Management (SCQM) integration? In this work we start from a set of six areas identified as critical to SCQM integration [11–14].For each of one of these areas a set of performance measurements for SCQM integration are proposed, based on the literature review.

- 1 - 6th International Conference on Information Systems, Logistics and Supply Chain ILS Conference 2016, June 1 – 4, Bordeaux, France

2 Supply Chain Quality Management overview

i i mm r imr frs i r firm r rii i i is m i ii mii is fi s “The formal coordination and integration of business processes involving all partner organizations in the supply channel to measure, analyze and continually improve products, services, and processes to create value and achieve the satisfaction of intermediate and final customers in the marketplace ”, ris an organization’s quality management practices to ssis i ri rs srs r is rs s ri s f ms imr s rs ri rr rfi mr ms mrms i rii rfrm r ssi i imrms i s i i mm is m rss is msri i is imri rs sris r rsss is risi s i mm i mm s frr rsr

3 Literature review and propositions development

iri f i mm s i mm is sim s r r sm sis ri risi f r ir s i m rsr sss fr r iri i is ssr iif simiriis s s irr m fr iri is rs ri ssifi si rs sir rii fr i mm s i mm m rsi is imrm ii ssiii im mmim f srs ifrmi mm sri i – f s rs s irr rsiis rfrm msrms i rs i mi rrs rs m is rs i i

Top management P1 P2 Relationship engagement strength

Leadership P3 Joint improvement Stra tegic ena blers P9 activities utilization Continuous Management improvement and strategic and planning innovation Suppliers and customer’s involvement in product P4 development SCQM Information P8 Integration system usage

Information Sustainability Suppliers and customer’s actions Information Stakeholders P5 involvement asymmetry P7 and commitment

P6 Collaboration and trust

Fig. 1. frmr fr rfrm msrms f

- 2 - 6th International Conference on Information Systems, Logistics and Supply Chain ILS Conference 2016, June 1 – 4, Bordeaux, France

Leadership. leaersip emerges rom a close relationsip eteen memers o te supply cain oeer, a close relationsip oes not come easily eaersip consists in a cooperatie culture, commitment to relationsip an commitment to quality ariales t may require some cultural canges among te people in te supply cain o eelop a close relationsip eteen te parties it is necessary tat someone in te supply cain soul assume te leaersip to integrate te arious parties ectie leaersip enances relationsips it suppliers, is positiely relate to supplier quality management an is essential in orer to cope it te cultural ierences eteen irms, as ell as te ierences concerning uman resource practices an processes along te supply cain eaersip implies tat management inluences relationsips an operations it supply cain partners en conucte y top management it sapes organizational quality culture, cultiating cooperatie uyer–supplier relationsips , creating enaling conitions an enancing trust or supply cain quality en top management estalises unity o purpose an irection or te organization, tey create an internal enironment in which people can become fully involved in achieving the organization’s objectives op management proies te necessary leaersip o enaling conitions or , en tere is a core enterprise in te , tis company must act as a leaer, to consier aequately te nees an epectation o te oter memers, estalis a clear, acieale an coincient olistic target, an lea an inspire te oter memers to strie ointly or te target ase on te literature reie, e propose tat P1. iger top management engagement leas to iger impact o leaersip on integration P2. stronger relationsip eteen te ierent memers o te leas to iger impact o leaersip on integration

Continuous improvement and innovation. rouction an operations actiities o te arious memers o te supply cain can eneit rom continuous improement programs ese programs inclue reucing setup times, increasing prouction capacity an eliminating reor as a result o learningase improements o eelop supply cain competence, continuous learning is important , it eeryone committe to e in a constant moe o selassessment in orer to aciee continuous improement an to eelop supply cain competence , e continuous improement minset must e cultiate in te mins o all te ierent memers o te supply cain us, tere soul e put in place proceures or cain memers to oice teir suggestions or to comine teir eorts to urter improe teir operations mproements may require oint planning an iscussion among memers ompanies can inole teir suppliers an customers in prouct eelopment an continuous improement y ocusing teir supply cains on te requirements o te inal customers , an y creating an enironment, enaling innoation entiying areas o potential cooperation eteen supply cain partners can elier alue an innoation to customers , ence e propose te olloing P3. ncreasing inolement o memers o te supply cain in oint improement actiities, increases te leel o inluence o integration on continuous improement P4. reater inolement o suppliers an customers in prouct eelopment, increases inluence o innoation on integration

Sustainability. supply cain ill e sustainale i it improes te social, enironmental an economic impacts o te ra materials an serice los tat lin suppliers, manuacturers an en users it regars to social issues, quality is not perectly integrate, i, or eample, uying companies see to gain an aantage in te purcase o supplies rom countries it poor oring conitions ccoring to aour et al , enironmental management practices ae a positie impact on quality management practices, proucing nolege tat is acquire an acilitating te aoption o goo enironmental practices rom an economic perspectie, quality is associate it sustainaility, i te organization is ale to maintain an eelop its perormance oer a longer perio ase on tis teoretical iscussion e propose P5. greater impact o te actions o suppliers an customers on social, enironmental an economic issues prouces a greater inluence o sustainaility on integration

- 3 - 6th International Conference on Information Systems, Logistics and Supply Chain ILS Conference 2016, June 1 – 4, Bordeaux, France

Involvement and commitment of stakeholders. ntensive cooperation of staeholders can coordinate and promote in a collaborative way rganizations should participate actively in their immediate environment in worthy causes that are important to the staeholders owever the degree of stakeholders’ participation in and is uite different focuses more on relationships with eternal business partners while places more emphasis on internal participation by employees negative perception of a company’s product/service quality can result in an erosion of trust of all staeholders or this reason a hinese company reuires its employees to taste every batch of mil leaving its factory not only for uality control but also to contribute to the longterm processes of improving informational visibility and building trust among all the internal and eternal staeholders in the company’s supply chain taeholders should be integrated and included to enhance mutual understanding and eventually to mae attempts to eliminate gaps in implementation of and to coordinate the flow of information between the proposed supply chain networ and staeholders hus we propose P6. reater collaboration and trust among supply chain staeholders increases the contribution of staeholder involvement and commitment for integration

Information. uyers and sellers in usually possess asymmetric information about product uality herefore it is important that buyers get and analyze as much information as possible about the capabilities and performance of suppliers his can give insight into the ability of the seller to meet the epected uality reuirements and whether control operations and management are carried out properly o facilitate obtaining relevant information both upstream and downstream the eistence of an efficient information system is reuired he lac of information technology and captured nowledge causes a handoff along the supply chain and opens the door for deception and other opportunistic behaviors artnerships with suppliers are also important and can bring results in the echange of information nterprise esource lanning systems can improve transparency and traceability by systematically monitoring and controlling the material and information flows along the ffective information sharing in supply chain uality management has been and will be supported by advances in information technology herefore we propose P7. ower the information asymmetry between members increases the contribution of information to integration P8. reater use of information system for sharing information in the increases the contribution of information to the integration

Management and strategic planning. trategic planning is the ey enabler of ne of the ey reuirements of is to find the weaest lin in the companysupply chain hen a has many suppliers it can face uality management and control problems oring with a few high uality suppliers and developing close strategic planning processes are the main characteristics of a strategic n the other handit is necessary to learn how to manage a few highuality suppliers uality management culture leadership sustainability information technology management supplier participation configuration design and strategic planning are important strategic enablers he success of the will depend on how well they are introduced and managed hus we propose P8. reater utilization of strategic planning increases the influence of management and strategic planning on integration

4 Conclusions

he integration of different management systems has presented managerial and practical challenges he integration of uality management to supply chain management has eperienced similar problems n this study we conducted a literature survey to review eisting nowledge of supply chain uality management and possibilities for integration owever the literature on the integration of is still scarce rom this research it was possible to develop a theoretical framewor for performance measurement of supply chain uality management integration n this process we have been identified nine possible performance measures that are aligned to the si integration areas identified in the literature his study etends the understanding of the integration of presenting a proposal for a set of performance measurements

- 4 - 6th International Conference on Information Systems, Logistics and Supply Chain ILS Conference 2016, June 1 – 4, Bordeaux, France

t fills out a ap in the current ody of knolede pplications of the proposed theoretical empirical structure are shon as an important etension of the research carried out so far e hope the findins of this study ill provide a comprehensive asis for future studies in the area of supply chain quality manaement interation

References

ar ahnali ahavi elationship eteen supply chain quality manaement practices and their effects on oranisational performance inapore ana ev – olumus ive trateies for mprovin erospace upply hain uality anaement and erformance nt erosp – anichchinchai he relationship eteen employee involvement partnership manaement and supply performance nt roduct erform ana – lynn lynn yneries eteen supply chain manaement and quality manaement emerin implications nt rod es – aemkhanlou hadi tudy of performance measurement practices in supply chain manaement n roceedins of the nternational onference on ndustrial nineerin and perations anaement pp – ellatarast upply chain quality manaement an interoraniational learnin perspective ana ci ett – ireieva iman acsens unin he role of cooperatives in food safety manaement of fresh produce chains ase studies in four straerry cooperatives ood ontrol – enolf rienekens van der orst a mta he role of overnance structures in supply chain information sharin hain et ci – ynes oss e rca he impact of supply chain relationship quality on quality performance nt rod con – ellana ros ellana ros n eploration of quality manaement practices perceptions and proram maturity in the supply chain nt per rod ana – ernandes ruon ampaio arvalho onceptual odel for upply hain and uality anaement nteration n roceedins of the nd ur onference p alermo Ford, M.W.: Supply Chain Quality Management and Environmental Uncertainty : A Contingency Perspective ual ana – ernandes ruon ampaio arvalho iterature revie of quality manaement and supply chain manaement a perspective of interation n roceedins of the st nternational onference on uality nineerin and anaement pp – uimares ernandes ampaio arvalho ruon upply hain anaement and uality anaement nteration a conceptual model proposal nt ual elia ana aper accepted imanadeh odelin interaction eteen uality anaement and upply hain e pproach ife ci – ie an ai uality improvement in competin supply chains nt rod con – an mta rienekens he oint impact of supply chain interation and quality manaement on the performance of pork processin firms in hina n nternational ood and riusiness anaement evie pp – oinson alhotra efinin the concept of supply chain quality manaement and its relevance to academic and industrial practice nt rod con – an han n approach of production plannin for aile supply chain quality manaement n roceedins of the merican ontrol onference pp – in uei adu inch dentifyin ritical uccess actors for upply hain cellence nt trate ecis ci – uei adu inch upply chain quality manaement simulation study nt nf ana ci – ernandes ampaio arvalho do uality anaement and upply hain anaement nteration a conceptual model n roceedins of the nternational onference on ndustrial nineerin and perations anaement pp – ali oltani adean iao hillips uality performance in a loal supply chain findin out the eak link nt rod es – ani on usiness cellence model for supply chain manaement otal ual ana –

- 5 - 6th International Conference on Information Systems, Logistics and Supply Chain ILS Conference 2016, June 1 – 4, Bordeaux, France

– – – – – – – – – – – – – – ernance on supplier’s compliance with SCC: An empirical – – – – – – – – – –

- 6 -