The impact of powerful and weak customers on quality assurance systems and quality improvement programs

Abstract

Contrasts idealised versions of quality assurance systems and quality improvement programs. Notes that only powerful customers such as defence procurement agencies can impose quality assurance systems; also points out that individual customers are weak customers whose only power is the ability to move from one supplier to another. Outlines the conditions under which a customer will be able to impose a quality assurance system on the supplier. These conditions include, for example, that there should be an excess of capable suppliers. Points out that quality improvement programs, on the other hand, are initiated and sustained by the supplier’s own top managers. Considers also the role of such factors as industry regulators.