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A Supplier Quality Performance Tool -­‐ An integration of Costs of Quality into future supplier selections at Sony Mobile Communication

Johansson, Niklas LU and Zell, Isabella (2012) TMA820 20121
Department of Business Administration
Abstract (Swedish)
The suppliers are very important to a company due to the fact that they most likely are contributing to the company’s core business. This makes the process of selecting suppliers central. Many parameters can be included and taken into consideration in order to make as correct decisions as possible. The supplier selection process at Sony Mobile Communication indicates that except for technical requirements, the major aspects to investigate are commercial conditions and especially purchase price. The employees have a notion that quality faults imply a lot of additional costs, which in the end can lead to one supplier being more expensive than another despite lower purchase price. Sony Mobile Communication has paid more and more attention to... (More)
The suppliers are very important to a company due to the fact that they most likely are contributing to the company’s core business. This makes the process of selecting suppliers central. Many parameters can be included and taken into consideration in order to make as correct decisions as possible. The supplier selection process at Sony Mobile Communication indicates that except for technical requirements, the major aspects to investigate are commercial conditions and especially purchase price. The employees have a notion that quality faults imply a lot of additional costs, which in the end can lead to one supplier being more expensive than another despite lower purchase price. Sony Mobile Communication has paid more and more attention to this problem and has a wish to integrate costs of quality into the supplier selection process. No existing theory has been found on integrating costs of quality into supplier selections.

However, the purpose of the thesis is to develop a tool that integrates historical data of suppliers’ quality performances into future supplier selections with a cost focus. A constructive research approach has been used in order to fulfill the purpose. Quality cost drivers identified in theory were searched for at Sony Mobile Communication. The available cost drivers were connected to costs and included in the Supplier Quality Performance Tool. The Supplier Quality Performance Tool was consequently developed in excel and was based on historical data and can only be used on existing suppliers. It is possible to perform analyses at both supplier and component level. An instruction document was developed in order to make it easy for the user of the tool to know where to gather the reports from as well as where to collect the correct data from and register it into the Supplier Quality Performance Tool. A test of the tool has been performed on two suppliers. The strategic buyers’ intuition regarding the suppliers’ quality performances was confirmed. (Less)
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author
Johansson, Niklas LU and Zell, Isabella
supervisor
organization
course
TMA820 20121
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Supplier quality performance, supplier selection, cost drivers, Total Cost of Ownership, Sony Mobile, Supplier Quality Performance Tool, Cost-ratio plan, Costs of Quality.
report number
230
ISSN
1651-­‐0100
language
English
id
2612882
date added to LUP
2014-12-22 10:41:10
date last changed
2014-12-22 10:41:10
@misc{2612882,
  abstract     = {The suppliers are very important to a company due to the fact that they most likely are contributing to the company’s core business. This makes the process of selecting suppliers central. Many parameters can be included and taken into consideration in order to make as correct decisions as possible. The supplier selection process at Sony Mobile Communication indicates that except for technical requirements, the major aspects to investigate are commercial conditions and especially purchase price. The employees have a notion that quality faults imply a lot of additional costs, which in the end can lead to one supplier being more expensive than another despite lower purchase price. Sony Mobile Communication has paid more and more attention to this problem and has a wish to integrate costs of quality into the supplier selection process. No existing theory has been found on integrating costs of quality into supplier selections.

However, the purpose of the thesis is to develop a tool that integrates historical data of suppliers’ quality performances into future supplier selections with a cost focus. A constructive research approach has been used in order to fulfill the purpose. Quality cost drivers identified in theory were searched for at Sony Mobile Communication. The available cost drivers were connected to costs and included in the Supplier Quality Performance Tool. The Supplier Quality Performance Tool was consequently developed in excel and was based on historical data and can only be used on existing suppliers. It is possible to perform analyses at both supplier and component level. An instruction document was developed in order to make it easy for the user of the tool to know where to gather the reports from as well as where to collect the correct data from and register it into the Supplier Quality Performance Tool. A test of the tool has been performed on two suppliers. The strategic buyers’ intuition regarding the suppliers’ quality performances was confirmed.},
  author       = {Johansson, Niklas and Zell, Isabella},
  issn         = {1651-­‐0100},
  keyword      = {Supplier quality performance,supplier selection,cost drivers,Total Cost of Ownership,Sony Mobile,Supplier Quality Performance Tool,Cost-ratio plan,Costs of Quality.},
  language     = {eng},
  note         = {Student Paper},
  title        = {A Supplier Quality Performance Tool -­‐ An integration of Costs of Quality into future supplier selections at Sony Mobile Communication},
  year         = {2012},
}