Aug 182017
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Deming’s 14 Points on Total Quality Management – TQM

  • “There is nothing so useless as doing efficiently that which should not be done at all.” ~Peter Drucker
  • “It is not necessary to change. Survival is not mandatory.” ~W. Edwards Deming
  • “There are no secrets to success. It is the result of preparation, hard work, and learning from failure.” ~Colin Powell
  • “Learning is not compulsory… neither is survival.” ~W. Edwards Deming
  • “Quality management is needed because nothing is simple anymore, if indeed it ever was.” ~Phil Crosby
  • “Quality is everyone’s responsibility.” ~W. Edwards Deming
  • “Excellent firms don’t believe in excellence – only in constant improvement and constant change.” ~Tom Peters
  • “If you can’t describe what you are doing as a process, you don’t know what you’re doing.” ~W. Edwards Deming
Aug 012017
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Supplier Management P&G

P&G has a world class supply chain.  This is a good overview of how P&G manages its supply base.

Supplier management from Ankit

Supply Chain and Procurement Training.

Jun 242017
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Deming, Juran and Crosby Quality Philosophies

Supply Chain and Leadership Information.

This is a good resource of a great deal of supply chain and business information.  If you like what you see please share it on social media.

Jun 242017
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Supplier Selection and Certification

Good overview of what goes into supplier selection and certification.

Supply Chain and Leadership Information.

Jun 242017
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Supplier Management and Development Training.

In order to get the most out of suppliers it is important to decrease the supplier base and work closely with existing suppliers.   Use the following information to evaluate supplier performance.


  • Price
  • Financial Feasibility
  • Attitude
  • Training Resources
  • Facility Location
  • IT Resources
  • Capacity
  • Speed
  • Delivery Performance
  • Damages
  • On Time Deliveries
  • PO Correctness
  • Stock Out Frequency
  • Perfect Orders
  • Product Availability
  • Dependability
  • Number of claims/discrepancies
  • Labor relations
  • Quality
  • Past History
  • Warranties
  • Costing Procedures
  • Information Sharing
  • Company Reputation
  • Packaging Abilities
  • Shipping Capabilities
  • Cycle Time
  • Facility locations
  • Product Availability
  • Flexibility
  • Reliability
  • Order Cycle Time
  • Lead Time
  • Convenience
  • Billing Errors
  • Quality control
  • Warranties


  • Supplier works closely to lower overall costs
  • Supplier provides market/product knowledge/information along with service and support
  • Supplier identifies opportunities to decrease costs and suggests ideas on ways to improve the supply chain.
  • Supplier performs joint cost-reduction/quality improvement programs
  • Supplier can deliver products across various geographic regions
  • Shares data and supplies resources to locate and solve problems.
  • Deliveries meet deadlines and do not need to be expedited to meet delivery time.
  • Supplier readily shares cost information.
  • Supplier recognizes potential opportunities to incorporate new ideas.
  • Supplier is involved with product in early stages of design
  • Supplier implements procedures for controlling fluctuations in raw material costs
  • Provides technical support for production/quality problems
  • Supplier gives ideas and suggestions during initial stages of product development
  • Proactive in offering innovative and alternative technologies
  • Supplier is proactive in finding problems and discovering solutions
  • Supplier gives feedback on quotations to reduce costs
  • High interest in joint problem solving.
  • Reacts quickly and effectively to problems and proactive to finding solutions
  • Supplier is flexible and adjust to special requests when needed
  • Supplier responds quickly and effectively under adverse situations.
  • Supplier keeps the lines of communication open and lets customers know when problems may occur
  • Expedites emergency orders in a timely manner
  • Suppliers do what they say and are trustworthy
  • Proactive in communicating forecasts for planning and deliveries
  • Suppliers’ technology roadmap aligns with the company’s current IT initiatives
  • Capable to exchange information through the Internet
  • Proactive in providing value added proposals
  • Supplier provides innovative suggestions for improvements and anticipates future problems
  • Participates in joint development efforts
  • Provides technological assistance and engineering support
  • Supplier is willing to provide rapid modeling and prototype capabilities
  • What is the financial feasibility of the company
  • What is the vendor’s reputation in the industry
  • Is the quality worth the price
  • Is the product over engineered
  • Does the supplier have a quality system in place
  • Is there a quality improvement plan in place
  • Does the vendor meet delivery and cycle time goals
  • Does the supplier try to reduce lead times
  • Are there processes for controlling and leveraging raw material cost

Jun 232017
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Strategic Cost Management

Strategic Cost Management contains supply chain analysis, strategic positioning analysis and cost driver analysis.  By evaluating each of these three and manager will be able to better manage and understand costs.

Supply Chain Analysis – management of the flow of information and products from earliest supplier to the ultimate consumer.  This also includes the disposal of the product.

Strategic Positioning Analysis – what is the value proposition of the company: cost leadership, innovation, niche, speed, etc.

Cost Driver Analysis – what processes or transactions create costs in the supply chain.  

Cost Analysis:

  •  Can a less expensive material/components be used while maintaining quality?

  • Are the costs reasonable?

  • Is a standard item in the market a suitable substitute?

  • Can the weight of the item be reduced?

  • Can the packaging be redesigned to reduce costs?

  • Are the correct costs being allocated to the project?  

  • Have the correct activity based costing methods been used?

  • Is the product over engineered?  Could a lower quality product be substituted?

  • Are other suppliers making a comparable product?

  • Which costs are necessary?