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Total Quality Management (TQM) and Supply Chain Management (SCM) have been considered to be
the two most important strategic approaches for the organizations like manufacturing, services and Small
and Medium Enterprises (SMEs). They have become the prerequisite for success and competitive
advantage in the global market. This paper compares and contrasts the issues of TQM and SCM related
to their similarities, and identifies the potential benefits by integrating them through an extant review of
literature. The paper adopted an extensive literature survey methodology on the concepts and themes of
TQM and SCM to explore how definitions, origin, goals, practices, development stages, focus area, tools
used and scope could benefit in their integration. Some potential benefits of TQM and SCM are also
identified from the extant literature review and are listed. The literature review suggested that TQM and
SCM strengthen the organizational competitiveness and improve customer satisfaction. Also, TQM is more
focused on continuous quality improvement and participation while SCM emphasizes on supplier relationship
and management, and timely delivery of products and services. This paper revealed eight potential benefits
of TQM and SCM and are discussed in detail. The literature review further showed that there are many
researches taken on TQM and SCM individually, dealing with different aspects and themes but
a comparative study of present type are still in its nascent stage that integrates the two concepts. This paper
could therefore, bring out some opportunities for managers and practitioners to integrate and implement TQM
and SCM in their organizations more effectively to achieve maximum benefits.
Introduction
As the global market is evolving and increasing worldwide competition with the
technological advancements, quality managers and supply chain managers are facing many
new challenges, as traditional approaches to managing quality and supply chains prove
increasingly inefficient. The adoption of ‘totality’ in Quality Management (QM)
principles can improve and manage these new challenges—both internal and external
functions and operations of the organization that is involving ‘all’ and thus moving from
QM to Total Quality Management (TQM). Supply Chain Management (SCM) is usually
seen as a way to improve competitive performance by combining the internal functions
of a company and linking them with external operations of suppliers, customers and other
chain members (Tutuncu and Kucukusta, 2008). This may lead to change the traditional
structure of the organization. Therefore, the integration of TQM principles offers
potential for broadening the perspective of SCM from its traditional narrow focus on costs
and competitive relationship to focusing on cooperative relationships between members
* Assistant Professor, Department of Mechanical Engineering, University Polytechnic, Aligarh Muslim University,
Aligarh, India; and is the corresponding author. E-mail: ftalib77@yahoo.co.in
** Associate Professor, Department of Management Studies, Indian Institute of Technology, Roorkee, India.
E-mail:yusuffdm@iitr.ernet.in
** * Associate Professor, Department of Mechanical Engineering, Faculty of Engineering and Technology, M S
University of Baroda, Vadodara, Gujarat, India. E-mail: mnqureshi@rediffmail.com
Literature Review
Little has been done to explore the integration of TQM and SCM. Few studies can be found
on TQM and SCM together. A study conducted by Tutuncu and Kucukusta (2008) determined
the possible role of supply chain integration in QM systems for hospitals. The results indicate
that there is a positive relationship between supply chain integration and QM systems in
healthcare organizations. Forker et al. (1997) in their analysis of QM-quality performance
relationship in the supply chain found that TQM practices are related to performance
throughout the supply chain and certain practices lead to better performance. Another study
by Wong and Fung (1999), aimed to delineate the SCM issues in total quality for construction
projects. An in-depth case study of Hong Kong construction companies on the TQM system
dealing with the strategy, structure and task for managing supplier or sub-contractor
relationships were analyzed. The study concluded with the identification of some SCM issues
in the construction industry, as well as scope of integration of SCM with TQM.
28 The IUP Journal of Supply Chain Management, Vol. VII, No. 4, 2010
suggestions for potential synergies between TQM and SCM. Most of them are focused on
prescriptive suggestions and case studies while others emphasized on supply chain
manager’s vision of the future. But there is no study which compares the similarities and
list out the potential benefits of TQM and SCM integration. Therefore, there is a need
of a study which will help in better understanding of the concept of integrating TQM and
SCM together with the knowledge of their similarities and benefits. The present study
tries to fill this void by exploring and comparing the similarities and potential benefits
between TQM and SCM. This paper provides theoretical evidence of these two issues
relating to the implications of the relationship between TQM and SCM.
Further, the scope of this paper is to provide thoughts on how organization can
improve integration of TQM and SCM by implementing them in a well organized manner
to get desired outcomes like improved customer satisfaction, reduced cost, on-time
delivery, improved/best quality products and services.
This paper presents the overview on the similarities between TQM and SCM followed
by the benefits of TQM and SCM. It also discusses the conclusions of the study together
with the implication and scope for future research at the end.
Ellram and Cooper 1990 An integrated philosophy to manage the total flow of the distribution
channel from supplier to ultimate customer.
Ganeshan and 1995 A supply chain is a network of facilities and distribution options that
Harrison performs the functions of procurement of materials, transformation of
these materials into intermediate and finished products, and the
distribution of these finished products to customers.
Christopher 1998 The management of upstream and downstream relationships with
suppliers and customers to deliver superior customer value at a lesser cost
to the supply chain as a whole.
Tan et al. 1998 The simultaneous integration of customer requirements, internal
processes, and upstream supplier performance.
Lambert et al. 1998 A supply chain is the alignment of firms that bring products or services
to market.
Chopra and Meindl 2001 A supply chain consists of all stages involved, directly or indirectly, in
fulfilling the customer’s request. The supply chain not only includes the
manufacturer and suppliers, but also transporters, warehouses, retailers,
and customers themselves.
Council of Supply 2007 SCM encompasses the planning and management of all activities involved
Chain Manage- in sourcing and procurement, conversion and all logistics management
ment Profession- activities as well as coordination and collaboration with channel partners.
als (CSCM)
(IMDS) (2007)
30 The IUP Journal of Supply Chain Management, Vol. VII, No. 4, 2010
in proper implementation of the integrated concept. During the literature review process,
as many as ten themes were identified that were responsible for creating similarities between
TQM and SCM. These themes are compared and summarized in Table 3.
Definition
One stream of literature focuses on different definitions of TQM and SCM. However,
there is still no universal agreement on these definitions. It is generally accepted that the
Origin
Next theme of categorization between TQM and SCM is the origin of these two concepts.
The original function of TQM is based on ‘quality’. TQM focuses more on quality by
aiming to deliver quality products and services to end-customers. The term that embraces
a wider scope for defining quality is the ‘big Q’, which includes a big domain like customer
requirement, product safety, flexibility, prompt delivery and esteem value.
Unlike TQM, SCM origin is developed from strategic logistics. SCM focuses more on
supply and delivery, shorter lead time, reduction in cost, strategic partnership with
suppliers, distributors and customers (Meehan and Muir, 2008), and above all creating
communication channels for information and improvement, i.e., logistics development.
32 The IUP Journal of Supply Chain Management, Vol. VII, No. 4, 2010
Development Stages
This category correlates TQM and SCM through development stages. Earlier QM focuses
only on Quality Inspection (QI) and then included Quality Control (QC), Quality
Assurance (QA) and finally TQM. QI deals with sorting, salvaging, grading and corrective
action to ensure that customers do not receive defective products. QC on the other hand
applies various statistical quality control techniques such as control charts, sampling
plans, self-inspection, full-time inspection and product testing to monitor processes
(Lau et al., 2004). QA emphasizes on process control and design, quality planning, costs,
system audits to conform to the customer requirement (Prajogo and Sohal, 2004).
The traditional QM approach was reactive and result-oriented, whereas the modern
approach to QM is broader and now also emphasizes quality at source or process control,
at every stage. Finally TQM was introduced which was received as a modern approach to
QM by the academicians and practitioners to prevent any errors that could cause defects.
This approach was termed as the proactive process oriented approach (Mehra and
Agrawal, 2003).
The development of SCM starts from logistics. Initially SCM focused on logistics
(Gilmour, 1999). Several SCM researchers defined SCM as an integrated logistics
management (Romano and Vinelli, 2001; Dotson et al., 2003; and Varma et al., 2006).
However, some of the researchers argue that the current scope of SCM goes beyond
logistics (Johnson and Wood, 1996; Cooper et al., 1997; and Mills et al., 2004). It evolved
to cover not only the operational level but also the strategic level of both internal
functions and external business partners. SCM starts from a weak coordination among the
internal functions, it matures into an ultimate integration among external business
partners. The entire supply chain becomes a single system called ‘a Seamless Supply Chain’
(SSC) (Towill et al., 2002, p. 89) and finally Global Supply Chain Management (GSCM)
was introduced which was received as a modern approach to SCM by the academicians and
practitioners. With increased globalization and offshore sourcing, GSCM is becoming an
important issue for many businesses. One of the major differences with GSCM is that it
involves a company’s worldwide interests and suppliers rather than simply a local or
national orientation (EPIQ, 2010). GSCM provides an integrated and seamless solution
at every point along the supply chain country to country. GSCM not only generates
significant cost savings, but also substantially simplifies the SCM process for clients (SCM
Global (2005)). If TQM represents a superior QM, GSCM could be a superior form of SCM.
The primary goals of QM and SCM are target quality and delivery.
Practices
Identification of TQM and SCM practices and their implementation is another important
theme that compares the two concepts and some similarities could be extracted out from
them. Although there is the availability of voluminous research literature on TQM
practices, till now there is no single set of practice which could be applied for better
results. Through the extant literature review, researchers identified six TQM
practices and they are: (1) top-management commitment; (2) customer focus; (3) training
and education; (4) continuous improvement and innovation; (5) supplier management;
and (6) employee involvement (Brah et al., 2000; Kanji and Wallace, 2000; Samat et al.,
2006; Talib and Rahman, 2010; and Talib et al., 2010).
In case of SCM, few studies are taken on SCM practices and identified different
practices to improve customer service and business performance. After going through
extant literature review on SCM practice, six major SCM practices were identified
(Chandra and Kumar, 2000; Kuei et al., 2001; Tan, 2001; Ulusoy, 2003; Chin et al., 2004;
and Koh et al., 2007). They are: (1) customer relationship; (2) material management; (3)
strategic supplier partnership; (4) information and communication technologies; (5)
corporate culture; and (6) close supplier partnership.
After going through these identified TQM and SCM practices critically for any similarity,
it was found that management support and commitment, customer focus and supplier
partnership are the most common practices found in both TQM and SCM literature and have
strongest impact on the integration of TQM and SCM across the organizations.
Scope
Scope as a theme to compare TQM and SCM is also an effective way to find out similarities
between them. Scope of TQM covers quality management issues, measurement of quality,
cost of quality, Quality Management Systems (QMS), quality excellence models, process
management and improvement, tools and techniques of QM, and strategic, tactical and
operational issues for TQM implementation and maintenance whereas SCM covers
marketing, development and commercialization, product return and recycling (Lockamy
and McCormack, 2004), buying, making, moving, selling and returning processes, product
designing, logistics and inventory management, purchasing, operations management and
customer relationship management.
Primary Integration
Finally, last theme through which TQM and SCM can further be integrated for their
similarities is the primary integration. TQM and SCM utilize unique frameworks for their
34 The IUP Journal of Supply Chain Management, Vol. VII, No. 4, 2010
integration. TQM focuses on integration through internal participation that includes
management (top and middle both) and employees while SCM emphasizes on integration
through external partnership which includes all suppliers and end customers. Therefore,
TQM and SCM can be integrated by participation and partnership, i.e., participation from
all internal functions and continuous collaboration with all external partners (Dean and
Bowen, 1994; Sohal and Anderson, 1999; and Gimenez, 2004).
Theme-wise similarities and comparative study of TQM and SCM can be beneficial for
the future researchers and practitioners when they are taking issues of integrating TQM and
SCM and implementing a synthesis of TQM and SCM in their organization. More research
is still needed to explore their implications.
TQM SCM
Increased financial performance More accurate costing
Long-term relations and affinity Reduction in risk, inventory and product develop-
ment cycle time processes
Benefits of SCM
More Accurate Costing
SCM tools such as e-procurement, e-marketing, ECR, JIT, QR would provide organization
more accurate costing for their product and service produced. This could be achieved
36 The IUP Journal of Supply Chain Management, Vol. VII, No. 4, 2010
Reduction in Risk, Product Development, Duplication of Process and Inventory
There is a lack of consistent opinion regarding these benefits. The literature shows that they
may be treated as benefits of SCM, though, they are less important as compared to the above
benefits. These benefits represent the harder side of SCM and are focused towards operations
management areas such as process, inventory management, manufacturing and production
systems, plant management, production control, industrial labor relations, systems analysis,
productivity analysis and cost control and materials planning.
Benefits of TQM
Improvement in Employee Involvement
By implementing TQM, employees will envision their jobs as more enjoyable resulting in
increasing levels of job involvement towards the organization through their participation
and involvement. Employees experienced more job satisfaction, reduction in absenteeism,
and less turn over. In general term, overall employee involvement was increased as a result
of TQM. The impact of employee involvement as TQM practice in the organizations has
further improved employee participation as well as employee morale. Hence, TQM helps
in improving performance in these matters.
Conclusion
This paper effectively presented the similarities and potential benefits of integrating TQM
and SCM and identified many synergies between TQM and SCM as well as useful benefits
which results in improved business performance and customer responsiveness. Understanding
and comparing these similarities and benefits could help in the development of an integrated
framework for TQM and SCM implementation and in identifying opportunities and
potential areas for further research as well. Hence, there is an urgent need of a
well-integrated framework to implement TQM and SCM together, especially SCM
framework, since there is still no well-specified SCM framework. However, the ultimate goal
of both is customer satisfaction and strengthening organizational competitiveness but their
approaches to achieve them are quite different. Therefore, there is a need for more research
into these contradictions to explore how they can be more compatible. Integration of TQM
and SCM also leads to complexity in both the business processes and the organizational
structure. Thus, more research needs to be conducted into the alignment of these aspects.
Although TQM and SCM require both internal and external integration, TQM emphasizes
participation of all internal members of the organization, whereas SCM focuses on the
external partnerships with the suppliers and customers.
38 The IUP Journal of Supply Chain Management, Vol. VII, No. 4, 2010
Further, this paper also concludes that there are number of benefits associated with the
integration of TQM and SCM, specifically the ability to improve customer responsiveness,
supply chain communications, company morale, continuous improvement and innovation,
and commitment of employer towards continuous change. Customer orientation and
involvement of top-management are the two positive outcomes of integration of TQM
and SCM in the organizations which are viewed as the fundamental business philosophy
rather than just tools or techniques. However, there are still a number of constraints that
exist which may prevent the adoption of TQM and SCM.
This study offers some managerial implications too. First, quality is an important
attribute in organization’s relationship with the customer and supplier. Therefore, to have
a sufficient focus on quality, managers must place more emphasis on involving the
suppliers in their quality initiatives. Secondly, managers need to seek more customer input
in developing quality specification, i.e., listening the voice of the customers and then
respond. Third, there is a need for the development of a systematic framework to deploy
TQM and SCM concept effectively by the managers. Lastly, implementation of TQM and
SCM principles and practices may have a significant impact on operational efficiency of
the organization.
This study reveals a number of similarities and benefits of integrated TQM and SCM
approach and still there is a scope for further research in this area. The future research
can be extended to studying the management’s role in TQM and SCM and understanding
the organizational structure in the integration of TQM and SCM for their implementation.
This will need further in-depth analysis of both the approaches and could be transformed
into a new management framework which may prove to be more effective than either of
them. Finally, this study may help researchers and practicing managers in generating
innovative ideas for further studies and can acquire better knowledge in linking integrated
TQM and SCM approach with organizational performance.
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