2.0 Literature Review
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).
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.
Other quality management system advantages include proper management of project risks and costs, and identification of development prospects. This also results in an improvement in market share and reputation, and ability to react to industry opportunities.
Implementing a quality management system can assist to achieve more flexibility in the project, and improve the effectiveness in the resources and time usage. Besides, improved production is attained due to proper evaluation methods being employed, and better training of the employees and suppliers. A strict process control is focused towards performance consistency and less scrap. This not only decreases the time required to fix errors but makes it less necessary to employ a team of quality assurance staff.
Besides reduces defects and waste, which reduces production costs in a business. As teams gather to identify and eliminate weaknesses in the business, the company continues to enjoy reduced costs and higher profit. Quality improvement teams can reduce defects and lead time, and identify repetitions in the production process that can significantly increase the profit the company gains.
The quality management system emphasizes the issues related to operations management. This supports regular communication between project departments or groups and promotes harmony. All these factors contribute to improved quality, and customer satisfaction.
Quality is measured continuously due to the proper procedures that make sure the immediate corrective efforts on the occurrence of defects. Since efforts are focused towards quality products, rework is minimized. This decrease in rework will increase the customer confidence and an increase in the market share.
An effective quality management system should determine the needs and wants of the consumers, and consequently, convert this into quality products that meet their demands. For the thriving implementation of a quality management system, it is necessary that the executive management give a full assistance and guidance, procurement of a proper quality policy, and the establishment of measurable goals. The project management team that involved in the quality system should be trained to improve the skills.
Furthermore, a useful system should be a tactical tool that is expected to promote the attainment of project goals. It is essential to evaluate the usefulness, efficiency, and ability of a quality management system. To audit the quality requirements, achievement of the project objectives, and ensuring customer satisfaction, Intel should regularly review and perform the examination. This review will ensure that the quality management system benefits are being fully realized, and improvements in the system are executed wherever needed.
Besides, continuously attempting for excellence is a fundamental strategy for a quality management system. In order to encourage Intel to accomplish that goal, the federal government should require Intel to update their quality management system to satisfied with current regulations.