Analyzing Effective Supplier-Quality-Management Practices Using Simple Multiattribute Rating Technique and Value-Focused Thinking

Abstract

Supplier-quality-management (SQM) practices are important to ensure that supplied project materials are within quality specifications. However, not all SQM practices have similar impact on quality or are easy to perform within construction projects. This research describes applying simple multiattribute rating technique (SMART) to analyze a number of SQM practices that are consistent with the balanced scorecard (BSC) perspectives, namely, financial, customer (supplier), internal business, and innovation and learning. Each SQM practice is assessed in terms of its ease of implementation and impact on quality. In addition, the research describes important leadership principles that were found in the literature, and utilizes the value-focused thinking (VFT) method to derive important leadership objectives and practices for SQM. The SMART analysis identified SQM practices that are most important within each perspective, such as the practice of holding joint quality planning within the innovation and learning perspective of the BSC. The results of applying VFT show that having a quality director who establishes and supports the culture of SQM is the most important leadership practice. The research findings can benefit construction organizations wishing to improve their existing SQM by identifying practices that are easy to implement with high impact on quality, and by sharing organizations’ leadership objectives and practices necessary to develop strategic leadership and successfully implement SQM practices within construction projects.