Supply Chain Management: Partnering, Suppliers, and Quality Tools

This assignment delves into key aspects of supply chain management, addressing the concept of partnering, including its advantages and disadvantages, and comparing single versus multiple supplier systems, highlighting the benefits of a single supplier in maintaining consistent quality. It also identifies essential information needed within a supply chain, such as tracking sales volume, product movement, warehousing, supplier base, and production processes. Furthermore, the assignment examines the four costs of quality: prevention, appraisal, internal failure, and external failure, and how these costs change with higher-quality products. Finally, it describes the seven tools of quality control—cause-and-effect diagrams, flowcharts, checklists, control charts, scatter diagrams, Pareto charts, and histograms—and discusses their combined application for effective quality management.

Running head: SUPPLY CHAIN MANAGEMENT
Supply Chain Management
Name of the Student
Name of the University
Author note

1SUPPLY CHAIN MANAGEMENT
Chapter 4
Question 10
Partnering is a step in business that brings together two different company in pursuit
of the same goal and hence they work together in partnership. The aim of partnering is to
create a situation in which both the companies benefit from an arrangement that will lead to
pursuance of a similar goal (Adamik). Partnering is done in order to ultimately benefit the
supply chain process of the both the companies involved. Fixation of prices of raw material
from the partner company during signing of clause for partnership allows the other company
to benefit as they keep getting the products in low price even other market suppliers may
charge significantly high. A disadvantage is that if one of the companies adapts changes in
their strategic planning then it can affect the deal, as they will start pursuing other goals that
will give them more benefit.
Question 11
The use of single supplier has many benefits when contrasted with multiple supplier
system. In case of orders that require production from the suppliers, it is advised to stick with
a single supplier system in order to maintain a quality level for all the products delivered
(Reid and Sanders). The use of such a system can enhance the quality of end-product by
making sure that the input material is consistence. When a single supplier is used it is known
to the supplier that they are responsible for the business and hence they will work more
dedicatedly to produce better and serve to the best of quality (Lawson, Krause and Potter).
However, this is not the case with multiple suppliers as they are know that others are also
responsible for production and hence room for mistakes on their part remains greater.

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Question 12
The kind of information that is needed in the supply chain are as follows-
 Tracking of sales volume
 The products and their movement
 Warehousing
 Supplier base
 Proper production process.
Chapter 5
Question 6
Prevention costs are those that are related to prevention of degraded quality. These
include training, designing and proper planning for the product. Appraisal costs include the
budget that is used up to determine the quality and trouble shooting of the products. The
quality checks are the one that cover up most part of this kind of cost. Internal failure costs
are the expenses that are related to checking the quality and problems within a product before
it is handed over to the customer (Guinot et al.). These costs include the reworks and
machinery repairing charges in a company. When a customer finds poor quality, the resultant
costs are the external failure costs. These include lawsuits, exchanges and refunds.
On production of a high quality product the external and internal failure costs will
reduce. The cost for appraisal will come down because audits and inspections will come
down but prevention costs will shoot up as high effort will be required to produce a product
of such high standards.
Question 10
The seven tools of quality control are-

3SUPPLY CHAIN MANAGEMENT
1. Cause-and-effect diagram – This tool allows finding the defect that needs to be
analyzed and the causes are separated into categories for further exploration.
2. Flowchart – It records the string of the materials or customers by the means of the
procedure.
3. The checklist - It creates a record for the type of deformities, alongside a tally of the
repetition of each sort.
4. Control Charts – It outlines the demonstrate plots of tests of a product or official
trademark taken up from the procedure after considerable amount of time.
5. Scatter diagram – These plots are on a x-y hub used to decide the connection of the
two factors.
6. Pareto charts- It demonstrates the repetition and aggregate amount of imperfection.
This graph shows which imperfection composes cause the maximum number of the
quality issues or dissensions (Beheshti et al.).
7. Histogram – It demonstrates the repetition of all the quality issues that are prevalent.
Using the Pareto chart and the diagram of cause and effect can be efficient as the Pareto
chart at first can identify the issue and then the diagram shall reflect the actual problem and
hence it can be worked upon efficiently.

4SUPPLY CHAIN MANAGEMENT
Reference
Adamik, A. N. N. A. "A partnering approach to extending the business base through
cooperation with competitors (coopetition)–is it an option for SMEs?." Recent Advances in
Management, Marketing and Finance, Business and Economics Series 4 (2013): 59-65.
Beheshti, M. H., et al. "Investigation of the most important direct cause of occupational
accidents based on the Pareto Chart." (2015): 38-45.
Guinot, Jeff, et al. "Cost consequence of failure in failure mode and effect
analysis." International Journal of Quality & Reliability Management 34.8 (2017): 1318-
1342.
Lawson, Benn, Daniel Krause, and Antony Potter. "Improving supplier new product
development performance: the role of supplier development." Journal of product innovation
management 32.5 (2015): 777-792.
Reid, Robert D., and Nada R. Sanders. Operations management: an integrated approach.
John Wiley & Sons Incorporated, 2005.