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 Supply hi nd uiy managemen r two importan factors i ry firm r rganiion [15]. pply chi ualiy is key mponen i hiving mpiiv advantag [16, . SCQM is dfined 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 [18]”, SCQM rnis an organization’s quality management practices to assis in ovrnig h exchang between uyrs d srs [12]. For is reason, CQM hs been recogni s on of th mos importan ways rsond rapily, rrectly, d rofily mrk demands [19]. Improvements i rganiina prformance r ssoid wih improvements i supply hin uity managemen [20] This complex process ivolvs measurig, alying, d coniuosly improvig rodus srvis and othr prcsss [21]. Th is why th rinshi etween supply in managemen and uity managemen needs furthr rsrch. 3 Literature review and propositions development Th itegrin f uity managemen and supply in managemen is o simp s. Thr r some studis ncerning h rinship etween and , ough few covr enir supply in [22] Som rsrch suggss tha for br itegrin i is ecssry ienif h simiriis between QM and M [15, 22, . Thus, s n irature, a conceptu mod for QM itegrin is roposed, athring and ssifyig the six reas considred rii oth fr qualit management and supply hain management nmely: rshi, ntiuous improvemen and inovatin, susiabiiy, ivolvemnt and ommitmnt of stakeholdrs, iformin, nd managemen and srategi planning [11–14]. Eac one of s reas has been eeply nalyzed e irature, d roposiins ou th prformance measuremens wi e developed and rsted i th coming ragraphs. h proposed mod is rsted in ig. 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. Conceptual framewr fr prformance measuremens f SCQM. - 2 - 6th International Conference on Information Systems, Logistics and Supply Chain ILS Conference 2016, June 1 – 4, Bordeaux, France Leadership. SCQ leaership emerges from a close relationship etween members of the supply cain However, a close relationship does not come easily. Leaership consists in a cooperatie culture, commitment to relationship and commitment to quality variales It may require some cultural canges among te people in te supply chain. To evelop a close relationship etween te parties it is necessary tat someone in the supply cain shoul assume te leaership to integrate te various parties [24]. Eective leaership enhances relationships with suppliers, is positiely related to supplier quality management [25] an is essential in order to cope with the cultural diferences etween irms, as well as te diferences concerning uman resource practices an processes along te supply cain [26]. Leadership implies tat management influences relationships and operations wit supply chain partners [18]. When conducte by top management it shapes organizational quality culture, cultivating cooperatie uyer–supplier relationships [27], creating enaling conditions and enhancing trust for supply chain quality [28]. When top management estalishes unity of purpose and irection for te organization, they create an internal environment in which people can become fully involved in achieving the organization’s objectives [29]. Top management provies te necessary leaership o enaling conditions or QM [, . Wen tere is a core enterprise in te SC, tis company must act as a leaer, to consier aequately the needs and epectation of te oter members, estalish a clear, achieale and coincient olistic target, and lea and inspire the oter members to strie ointly for the target [32]. Base on te literature reiew, e propose tat P1. igher top management engagement leas to igher impact of leaership on QM integration. P2. A stronger relationship etween the different members of te SC leas to igher impact of leaership on QM integration. Continuous improvement and innovation. Production and operations actiities o the arious memers of te supply cain can enefit rom continuous improement programs. ese programs include reucing set-up times, increasing production capacity and eliminating rework as a result of learning-based improements [33]. To eelop supply cain competence, continuous learning is important [34], ith eeryone committe to e in a constant mode of self-assessment in orer to achiee continuous improement an to eelop supply cain competence [, . Te continuous improvement mindset must be cultivate in te minds of all the diferent members of te supply cain Tus, there shoul e put in place procedures for cain members to oice their suggestions or to combine their eforts to furter improve teir operations. mprovements may require oint planning and iscussion among members [24] Companies can inole teir suppliers and customers in product deelopment and continuous improvement y ocusing teir supply cains on the requirements of the final customers [36], an y creating an enironment, enaling innovation Identiying areas of potential cooperation between supply chain partners can elier alue and innovation to customers [, ]. ence we propose