In this globalized era, most industries will not be able to survive by simply optimizing internal structures and infrastructures based upon business strategy. The most successful manufacturers seem to be those that have carefully linked their internal processes to external suppliers and customers in unique supply chains. Quality management represents company-wide activities to improve the quality level of products and works through customer orientation, continuous quality improvement, employees’ involvement, etc. to establish and sustain a competitive advantage. From a perspective of competitive strategy, quality is often seen as a source of differentiation. Quality improvement is an important issue influencing long-term viability of any business enterprise, especially manufacturing companies producing physical goods.
A number of researchers suggest that better performance can be achieved by consolidating customer and supplier bases, removing unnecessary steps in the chain, speeding up information and material flows, and creating long-term partnerships with major customers and suppliers to leverage the capabilities of several companies in the chain. Recent years have seen growth in the importance of integration suppliers, manufacturers and customers. Effective integration of suppliers into supply chains serves as a key factor for some companies to gain competitive advantage. Supply chain integration refers to a formation of network encompassing elements of supply chain, which are the suppliers, customers and the company.
This paper presents results of an empirical study on effect of quality management practices upon supply chain integration in Aerospace Industry manufacturing companies. Analysis of variance (ANOVA) and regression analysis were conducted to test hypothesizes. This paper used six scales to measure different aspects of quality management including top management leadership for quality , small group problem solving , processes management, supplier involvement, information and feedback and customer forcus upon supply chain integration. Regression results indicated two external factors including supplier involvement, customer forcus have significant impact on supply chain integration, also will increase company competitive performance if all resourses have been adopted properly. For those four internal factors,such as management leadership for quality , small group problem solving , processes management, information and feedback doesn’t have significant impact on supply chain integration.