AMBEDKAR UNIVERSITY

DELHI

SCHOOL OF BUSINESS, PUBLIC

POLICY AND SOCIAL
ENTREPRENEURSHIP

THE IMPACT OF TOTAL QUALITY

MANAGEMENT ON SUPPLY CHAIN Presented by:
GROUP 5
MANAGEMENT Mansi Pruthi
AND FIRMS SUPPLY PERFORMANCE Md. Tariq
Saif Ul Islam
Shivangi Verma
 CONTENTS

Introduction
Relationship between TQM and SCM in Automotive Industry
Hypothesis
Research methodology
Sample
Constructs for the study
Results
Findings and Discussion
Literature Review
Our Understanding
References
 INTRODUCTION

The relationships among total quality management practices

(TQMP), supply chain management practices (SCMP), and
firms supply performance (FSP) with respect to the internal
supply performance of the automotive part suppliers
Quality Management is the critical success factor for SCM to
deliver quality products to the customer(s) in time and at
competitive cost.
TQM could play a key role in improving SCM and TQM could be
implemented in a supply chain to enhance competitiveness,
especially in complex supply networks, such as the
automotive supply chain.
Study done by Assadej Vanichchinchai and Barbar Igel, 2011
RELATIONSHIP BETWEEN TQM AND SCM
IN AUTOMOTIVE INDUSTRY
15000 components on an average in an automobile
Price, quality and delivery of an automobile depend
significantly on those of its components, which in turn are
influenced by quality and ef ficiency of all partners along the
supply chain
SCM and TQM share similarities regarding philosophical
perspective, ultimate goal (customer satisfaction) and
ultimate integration (from internal functions and external
business partners);
Dif ference in primary goal (quality for TQM and delivery for
SCM) and primary integration
 HYPOTHESIS

H1- A firms TQM practices have a significant positive direct

ef fect on its SCM practices
H2- A firms TQM practices have a significant positive ef fect on
FSP
H3- A firms TQM practices have a significant positive indirect
ef fect on FSP through SCM practices
 RESEARCH METHODOLOGY

Questionnaire- SCM Measurement and TQM measurement

frameworks
Qualitative case studies of two large first -tier automotive
suppliers to obtain more in-depth information about the
linkages between SCM and TQM
Twelve companies were selected from the database of
Thailand Automotive Part Manufacturer Association (TAPMA)
and the directory of Thai
Convenience sampling
SAMPLE
CONSTRUCTS FOR THE STUDY
 RESULTS

IM
SCMP 0.76
CF 0.92 LS
0.79 0.71
0.71 0.89
CS PM
0.89 TQMP 0.42
0.93 SO
HR
0.93
0.51
IA
FSP 0.84 CT
0.69
0.85
FL
0.82
RL

RS
 FINDINGS AND DISCUSSION

TQM practices had strong relationship with SCM practices as

illustrated by the high standardized estimate 0.79 and t value
of 9.56, thus H1 was supported
A firms TQMP significantly and positively impacts its firms
supply performance (FSP). The standardized estimate of their
relationship was 0.51 with a t value of 5.46, thus H2 was
supported. TQM targets customer satisfaction as the ultimate
goal (Vanichchinchai and Igel, 2009) which also covers FSP
such as responsiveness
TQMP had a significant indirect positive ef fect on FSP through
SCMP. The standardized estimate of the indirect ef fect
between TQMP and FSP was 0.34 with a t value 4.15 which
supported H3
 SCMP emphasizes external partnership with customers and
suppliers, the SCMP implementation must be strongly
supported by internal collaboration among departments
because coordination within the organizations is a
prerequisite of SCM (Lambert and Cooper 2000).
Therefore, TQM which focuses on internal participation of all
employees is a critical foundation for SCM. In turn, both
contribute to the firms supply improvement
 LITERATURE REVIEW

The study conducted by Zaim et.al (2015) in Turkey analyzed

the critical factors of TQM in healthcare institutions and
measure the ef fect of those factors on their business
performance. It is found that TQM practices (Training, top
management, process management and employee relations)
in the healthcare supply chain influence financial
performance (revenue, profits, ROI, Cash flow and ROA)
indirectly by influencing non-financial performance (Capacity,
market development, service quality and market share).

Bandyopadhyay and Sprague (2003) analyzed the ef fect of

implementation of TQM and SCM in the US manufacturing
sector. They asserted that the US Manufacturing companies
could improve their quality performance and achieve greater
competitiveness by making TQM an integral part of their
supply chain.
 OUR UNDERSTANDING

Customer Focus
Leadership
Involvement of people
Process management
System management
Factual approach to decisional making
Mutually beneficial supplier relationship
 REFERENCES

Bandyopadhyay J.K. & Sprague D.A . (2003). Total Quality

Management in an Automotive Supply Chain in the United
States. International Journal of Management , Vol. 20, No. I,
pp. 17-22.
Chang, G. (2009). Total quality management in supply
chain. International Business Research , 2(2), 82.
Turkyilmaz, A ., Bulak, M. E., & Zaim, S. (2015). Assessment of
TQM Practices as a Part of Supply Chain Management in
Healthcare Institutions. International Journal of Supply Chain
Management, 4(4).
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