The fact, a supplier, for example, must be ISO

The need for a quality
control standard that enables the measurement of quality on the same basis
throughout the world becomes an essential approach (Huarng et al., 1999). After
all, in an international context, companies worldwide have accepted ISO 9000
certification (Mokhtar et al., 2005). In 1987, the International Standard
Organization (ISO), based in Switzerland, ISO is formulated in an effort to
extend a set of rules that give a framework for quality management during the
processes of manufacturing and distributing products and services for the
consumers (Arauz & Suzuki, 2004). This set of quality management is
considered to be an effective tool to provide limitations to ensure the quality
of production and delivery, and reduces waste, downtime, and lab our
inefficiencies, thereby increasing productivity (Leong et al., 2014).

As for exporting companies,
this quality management implementation, for instance, is a qualification for
them to sell across national borders into the markets. In fact, a supplier, for
example, must be ISO certified in order to do business with the European
Community industries. Therefore, domestic suppliers, especially for those who
sold to the public or large private buyers, seek ISO certification for the
purpose of marketing (Mo & Chan, 1997). In the early years, most of ISO
9000 was issued to organizations in the manufacturing-related sector (Conti,
1999). But in the case of SMEs, many manufacturers found that quality management
implementation is too impersonal and formalized, expensive and time-consuming
(Abdullah et al., 2013). Jang and Lin (2008) also found that some of them
contended that it is very much complicated and cost in implementing the
certificate is somehow a barrier for SMEs to register (Padma et al., 2008).

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Operation Strength: Good Material and Supplier Quality Management

The quality of products could affect the customer
satisfaction and loyalty. For a company to survive, customer satisfaction and loyalty
are important to affect a company’s financial performance. In order to maintain
the quality of material and supplier, Intel has introduced Materials Quality
Operating System (QOS).

There are four key modules in the Materials QOS. First of
all, Materials QOS module 1 is the supplier selection. Supplier selection is an
important step as they will affect the quality of the raw material that
supplied to Intel. As part of their development, the selected supplier will
receive appropriate training from Intel to close gaps in their systems in order
for them to be successful in meeting business expectations. To become a
supplier of Intel, the potential supplier must go through the supplier
selection process (Figure 1.1).

Material QOS module 2 is material and supplier
qualification. In this module, the Materials group verifies the abilities of the
supplier to maintain a high volume of production. Each Materials group sets their
business requirements and module target specifications (MTS). Specific
materials qualities must be satisfied to qualify a new material at Intel. They include
quality and reliability requirements, specification requirements validation,
and established equivalence if materials come from different suppliers or
sites. New materials must also engage in Intel manufacturing yield goals.

Material QOS module 3 is supplier process control system and
excursion management. In the high volume of production, the supplier must prove
their ability to control stable and predictable material quality and deal with
any excursions in an effective way. The purpose of Process Control System (PCS)
and excursion management is to prevent excursions, and identify and respond to
them when they do occur to reduce any impact on the customer.

Last but not least, Materials QOS module 4 is supplier
continuous improvement. The aim of this module is to increase the performance
of Intel suppliers. The supplier’s performance is evaluated in several areas,
including quality and opportunities for improvement. The Materials group and
the supplier jointly coordinate supplier improvement activities. The supplier
continuous quality improvement cycle is illustrated in Figure 1.2 on how Intel
and supplier work together to improve the quality of the products.

A good material and supplier quality management would affect
a company’s performance. By using a good quality management, it can increase
the quality of the products delivered to the customer and increase the customer
satisfaction and loyalty. In other words, a fully recognized and implemented
quality management system will satisfy the customer by meeting their
requirements, and will thus magnify the trust of the customer. Attaining
customer satisfaction is a great accomplishment for the company that will help
in gaining the market share, as existing customers act on the company’s behalf
to bring in more customers.

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