COMMERCE 4OD3 Lecture Notes - Lecture 4: Quality Management, Quality Costs, Management System

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Supplier evaluations: process-based evaluation, an assessment of the supplier"s production or service process, eg. Supplier on-site audit, iso 9001:2008 certification or malcom baldrige national. Quality awards: established by us congress in 1987 to raise awareness of quality management and recognize us companies that have implemented successful quality management systems. Awards can be given annually in sixx categories: manufacturing, service, small business, education, healthcare, and non-profit: performance based evaluations, an assessment of the supplier"s actual performance on a variety of criteria, eg. Delivery, relaiability, cost, and quality defect rate: most common approach, the three general types of supplier evaluation system in use today are, the categorical method, the cost-ratio method, the linear averaging method. Categorical method: a simple and informal system. Involves categorizing each supplier"s performance in specific areas as defined by a list of relavnt performance variables: eg. Cost, quality, speed: then the ratings are totaled for each vendor.

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