Investigating critical criteria for supplier quality development

Abstract

Identifying critical criteria for supplier quality development is vital for improving the performance of suppliers. In this paper, we determine critical criteria for supplier quality development based on review of literature and discussion with supplier quality experts from industry. The criticality of the criteria is determined based on: (a) Kano’s model (must haves, satisfiers, dissatisfiers); (b) Hill’s manufacturing strategy (order winners and order qualifiers); and (c) criteria weights. The results of the study yield the following as the must-be and order winning elements for supplier quality evaluation: price; delivery performance; service; environment; health and safety; ISO 9000; European Foundation for Quality Management; quality management policy; understanding of customer requirements; supplier product quality; process control; quality inspection programs; process for handling complaints; and a system for corrective action. For supplier quality development, the must-haves and order winning elements are: honoring outstanding suppliers; involving suppliers early in product and process development; and sending instructors and technical consultants to the supplier’s site. The proposed results have strong practical applicability and can be used by decision makers for supplier performance evaluation, setting targets for performance improvement, resource allocation for supplier quality development, and designing necessary operations for improving the performance of their suppliers.

Keywords:

• Supplier quality development
• Kano’s model
• order winners
• critical criteria
• expert ratings

JEL classification:

• M11
• L62
• D81
• D24
• C83