Page 40 - QUALITY Magazine (Volume 03 - Issue I)

Productivity, Efficiency, and product reliability.

Effectiveness: Their Link Efficiency and Its

to Quality in Supply Chain Relationship with Quality
Efficiency is the ability to achieve desired outcomes
The concepts of productivity, efficiency, and with minimal waste, time, or resources. In supply
effectiveness are integral to the success of any supply chain management, efficiency is closely tied
chain management system. While these terms to operational excellence, and quality is a key
are often used interchangeably, they have distinct enabler of this efficiency. Poor quality often leads
meanings and implications. Productivity is a measure to inefficiencies such as delays, additional labor
of output relative to input, efficiency refers to costs, and excess material usage. Conversely, high-
achieving maximum results with minimum resources, quality processes streamline operations, eliminate
and effectiveness focuses on accomplishing bottlenecks, and reduce waste.
desired goals. When combined with quality, these
factors form the foundation of a high-performing One of the most effective ways to link quality and
supply chain. Understanding and optimising these efficiency is through process optimisation. Businesses
interdependencies can drive exceptional outcomes can use methodologies like Six Sigma to identify and
for businesses. eliminate inefficiencies in their supply chains. Six
The Interplay Between Sigma tools such as DMAIC (Define, Measure, Analyse,
Improve, Control) help organisations understand root
Quality and Productivity causes of inefficiencies and implement corrective

Productivity in a supply chain refers to the amount actions that enhance both quality and efficiency.
of goods or services produced in relation to the For instance, a food manufacturing company
resources used. High productivity is a desirable may implement IoT-enabled sensors to monitor
outcome, but it must be aligned with quality to ensure production lines in real time. These sensors detect
sustainability and customer satisfaction. A supply potential quality issues, such as deviations in
chain that prioritises output without considering temperature or pressure, and alert operators to take
quality risks producing defective products, resulting corrective action. This proactive approach prevents
in wasted resources, increased costs, and damaged defects, reduces downtime, and ensures efficient use
reputations. Quality management improves of resources.
productivity by minimising errors and defects. For
example, implementing robust quality assurance
processes ensures that products meet specifications
before moving to the next stage of the supply
chain. This reduces rework and scrap rates, allowing
businesses to maximise their output with the same
level of input.

Take the automotive industry as an example.
Automakers like Toyota emphasise quality at
every stage of their supply chain, from sourcing
components to assembling vehicles. By adhering to
Lean manufacturing principles and incorporating Just
in Case (JIC) strategies for inventory management,
they achieve high productivity without compromising
quality. Toyota’s JIC approach ensures that critical
components are available even during supply chain
disruptions, maintaining consistent production and