Quality Management: The Important of the Collaboration between Focal Firms and First-tier Supplier(s)

Abstract

The objective of the thesis is to find out the role of Quality and how important it is to the focal firm and supplier(s) relationship by dissecting Quality theory and studying Cases. The aim of the thesis is to guide the audience on how to recognize the role and the quality management strategies which are being used in each case. With the help of the explorative method of studying, both from case study and literature study, the important to have a proper quality system in place is also mentioned. Reader will be able to identify the effects of quality management collaboration between the company and suppliers and how the relationship could affect the customers’ consumption and satisfaction. Another aspect which the partnership usually forgets is the effects of setting up criteria for product design assessments and specifications. The necessity to have a leader in a partnership to guide the business to move forward, and the urge to develop a never-ending process of continuous improvement to Quality to maximize the advantages that it could bring onto the table is also pointed out. 3 Cases are presented: Tata Nano 1 lakh car, GM’s CEO vision of a fully automatic manufacture and zero defect cars components. Two of the cases will show what would happen if an aspect of quality which were overlooked and how it could affect the customer’s satisfaction but also the company image. The last case will display the continuous improvement characteristics of Quality and how could firm and suppliers’ collaboration effort could utilize their relationship to ameliorate the quality.