Analysis of Supplier Selection Process on Product Quality

This work presents a development of supplier selection processes in Construction Equipment manufacturing company using various quality improvement techniques and the ISO 9001 standard. Construction Equipment manufacturing industry mainly a still unorganized sector and their suppliers are very small units. This research indicates that the supplier performance measurement criteria most commonly used by these industries are quality, delivery and service. Also, depending on the corporate environment of these industries, the importance of these performance metrics can vary. In general, quality is the most important criterion in the organization studied. Delivery is a critical supplier's performance measure, since the reliability of the suppliers is affected in case of delivery failure in this sensitive market. Finally, need of development of basic but effective supplier selection method and its implementation is required to improve the product quality and delivery performance, which in turns increases the customer satisfaction.