Supply chain quality management practices and performance: An empirical study

Abstract

This study proposed a conceptual framework to study the relationships among three dimensions of supply chain quality management (SCQM) – in-house quality management practices (internal QM), interaction for quality with suppliers on the upstream side of supply chain (upstream QM), and interaction for quality with customers on the downstream side of supply chain (downstream QM) – and their impact on two types of quality performance (conformance quality, and customer satisfaction). Survey data were collected from 238 plants in three industries across eight countries and structural equation modeling was used to test this framework. The results indicate a dominant role of the internal QM in SCQM which has a positive impact on the other SCQM dimensions and two types of quality performance. Downstream QM is found to mediate the relationship between internal QM and customer satisfaction, while there is a lack of direct impact of upstream QM on either type of quality performance.

Appendix: Question items of measurement scales

Factor loadings are given in parentheses following each item.

1.1 Top management leadership

• 1. All major department heads within the plant accept their responsibility for quality (0.721)

• 2. Plant management provides personal leadership for quality products and quality improvement (0.815)

• 3. The top priority in evaluating plant management is quality performance (0.522)

• 4. Our top management strongly encourages employee involvement in the production process (0.635)

• 5. Our plant management creates and communicates a vision focused on quality improvement (0.791)

• 6. Our plant management is personally involved in quality improvement projects (0.764)

1.2 Strategic Planning

• 1. Our plant has a formal strategic planning process, which results in a written mission, long-range goals and strategies for implementation (0.841)

• 2. This plant has a strategic plan, which is put in writing (0.849)

• 3. Plant management routinely reviews and updates a long-range strategic plan (0.789)

• 4. The plant has an informal strategy, which is not very well defined (0.689)

1.3 Quality Information

• 1. Charts showing defect rates are posted on the shop floor (0.758)

• 2. Charts showing schedule compliance are posted on the shop floor (0.754)

• 3. Charts plotting the frequency of machine breakdowns are posted on the shop floor (0.692)

• 4. Information on quality performance is readily available to employees (0.781)

• 5. Information on productivity is readily available to employees (0.726)

1.4 Process control

• 1. Processes in our plant are designed to be “foolproof” (0.581)

• 2. A large percent of the processes on the shop floor are currently under statistical quality control (0.815)

• 3. We make extensive use of statistical techniques to reduce variance in processes (0.825)

• 4. We use charts to determine whether our manufacturing processes are in control (0.734)

• 5. We monitor our processes using statistical process control (0.862)

1.5 Preventive maintenance

• 1. We upgrade inferior equipment, in order to prevent equipment problems (0.689)

• 2. In order to improve equipment performance, we sometimes redesign equipment (0.542)

• 3. We estimate the lifespan of our equipment, so that repair or replacement can be planned (0.748)

• 4. We use equipment diagnostic techniques to predict equipment lifespan (0.734)

• 5. We do not conduct technical analysis of major breakdowns (0.578)

1.6 Housekeeping

• 1. Our plant emphasizes putting all tools and fixtures in their place (0.698)

• 2. We take pride in keeping our plant neat and clean (0.811)

• 3. Our plant is kept clean at all times (0.856)

• 4. Employees often have trouble finding the tools they need (0.586)

• 5. Our plant is disorganized and dirty (0.791)

1.7 Small group problem solving

• 1. During problem solving sessions, we make an effort to get all team members’ opinions and ideas before making a decision (0.643)

• 2. Our plant forms teams to solve problems (0.805)

• 3. In the past three years, many problems have been solved through small group sessions (0.786)

• 4. Problem solving teams have helped improve manufacturing processes at this plant (0.775)

• 5. Employee teams are encouraged to try to solve their own problems, as much as possible (0.652)

• 6. We don’t use problem solving teams much, in this plant (0.710)

1.8 Task-related training for employees

• 1. Our plant employees receive training and development in workplace skills, on a regular basis (0.854)

• 2. Management at this plant believes that continual training and upgrading of employee skills is important (0.779)

• 3. Employees at this plant have skills that are above average, in this industry (removed)

• 4. Our employees regularly receive training to improve their skills (0.879)

• 5. Our employees are highly skilled, in this plant (0.608)

1.9 Employee suggestion

• 1. Management takes all product and process improvement suggestions seriously (0.809)

• 2. We are encouraged to make suggestions for improving performance at this plant (0.780)

• 3. Management tells us why our suggestions are implemented or not used (0.764)

• 4. Many useful suggestions are implemented at this plant (0.819)

• 5. My suggestions are never taken seriously around here (0.711)

1.10 Product design process

• 1. Direct labor employees are involved to a great extent before introducing new products or making product changes (0.635)

• 2. Manufacturing engineers are involved to a great extent before the introduction of new products (0.727)

• 3. There is little involvement of manufacturing and quality people in the early design or products, before they reach the plant (0.677)

• 4. We work in teams, with members from a variety of areas (marketing, manufacturing, etc.) to introduce new products (0.706)

• 5. We are not concerned about the number of parts in an end item (0.517)

• 6. Our engineers make an effort to simplify our product designs (0.529)

1.11 Upstream QM

• 1. We strive to establish long-term relationships with suppliers (0.649)

• 2. Our suppliers are actively involved in our new product development process (0.711)

• 3. Quality is our number one criterion in selecting suppliers (0.552)

• 4. We use mostly suppliers that we have certified (0.623)

• 5. We maintain close communication with suppliers about quality considerations and design changes (0.804)

• 6. We actively engage suppliers in our quality improvement efforts (0.779)

• 7. We would select a quality supplier over one with a lower price (removed)

1.12 Downstream QM

• 1. We frequently are in close contact with our customers (0.690)

• 2. Our customers seldom visit our plant (removed)

• 3. Our customers give us feedback on our quality and delivery performance (0.721)

• 4. Our customers are actively involved in our product design process (0.582)

• 5. We strive to be highly responsive to our customers’ needs (0.727)

• 6. We regularly survey our customers’ needs (0.706)

1.13 Quality performance

Please circle the number which indicates your opinion about how your plant compares to its competition in your industry in terms of quality of product conformance, on a global basis? 5 = Superior or better than average, 4 = better than average, 3 = Average or equal to the competition, 2 = Below average, 1 = Poor, low end of industry.