The significance of supplier performance management in quality improvement - a case of construction equipment manufacturing

摘要

The competitive market situation of today's global marketplace is undergoing changes. Customers demand more variety, better quality, and greater service in terms of reliability and response time. The success in this situation is very much determined by how a company forms the entire system, mainly focusing on supplier management. A supplier plays a very imperative role as the product cost, quality, and service deliverables as they are highly dependent on the supplier performance. Besides cost and quality, an efficient delivery that can respond quickly to the customer demand is also an important issue in the customer-oriented economics nowadays. The need for the development of rudimentary but effective supplier selection method and its implementation is required to improve the product quality and delivery performance, which in turns increases the customer satisfaction. This work presents a development of supplier selection and performance management framework in a construction equipment manufacturing company. The problem of customer rejection due to suppliers has been significantly reduced; almost 60% reduction whereas improvement in production delay due to non-availability of purchased material is excellent. In the past, almost production was stopped but after implementation, it has been seen hardly interrupted. The problem is reduced to only 1%.