Quality Management for
Organizational Excellence:
Introduction to Total Quality
Ninth edition
Chapter 8
Partnering and Strategic
Alliances
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Eight: Partnering and Strategic
Alliances (1 of 11)
• MAJOR TOPICS
– Partnering or Strategic Alliances
– Innovative Alliances and Partnerships
– Internal Partnering
– Partnering with Suppliers
– Partnering with Customers
– Partnering with Potential Competitors
– Global Partnering
– Education and Business Partnerships
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Eight: Partnering and Strategic
Alliances (2 of 11)
• Partnering means working together for mutual benefit.
• It involves pooling resources, sharing costs, and
cooperating in ways that mutually benefit all parties
involved in the partnership.
• Partnerships may be formed internally (among employees)
and externally with suppliers, customers, and potential
competitors.
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Eight: Partnering and Strategic
Alliances (3 of 11)
– The purpose of partnering is to enhance
competitiveness.
– The formation of partnerships should be a
systematic process involving such steps as
development of a partnering briefing,
identification of potential partners, identification
of key decision makers, implementation of the
partnership.
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Eight: Partnering and Strategic
Alliances (4 of 11)
• Internal partnering operates on three levels:
– Management-to-employees,
– team-to-team partnerships,
– and employee-to-employee partnerships.
The purpose of internal partnering is to
harness the full potential of the workforce and
focus it on the continuous improvement of
quality.
Internal partnering is also called employee
involvement and employee empowerment.
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Eight: Partnering and Strategic
Alliances (5 of 11)
– Successful internal partnering requires a
supportive environment, structured
mechanisms, and mutually supportive alliances.
• The goal of a supplier partnership is to create and
maintain loyal, trusting relationships that will allow
both partners to win while promoting the
continuous improvement of quality, productivity,
and competitiveness.
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Eight: Partnering and Strategic
Alliances (6 of 11)
– The requirements for success in supplier
partnerships include the following:
Supplier personnel should interact with
employees who actually use their products,
the price-only criteria in the buyer-supplier
relationship should be eliminated, the quality
of products delivered should be guaranteed
by the supplier, supplier should be proficient
in J I T, and both parties should be capable of
sharing information electronically.
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Eight: Partnering and Strategic
Alliances (7 of 11)
• Supplier partnerships typically develop in the
following stages:
• uncertainty and tentativeness,
• short-term pressure,
• realization of the need for new approaches,
• adoption of new paradigms,
• awareness of potential,
• adoption of new values, and
• mature partnering.
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Eight: Partnering and Strategic
Alliances (8 of 11)
• The rationale for forming customer partnerships is
customer satisfaction.
• The best way to ensure customer satisfaction is to
involve customers as partners in the product
development process.
• Doing so is, in turn, the best way to ensure
competitiveness.
• Customer-defined quality is a fundamental aspect
of total quality.
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Eight: Partnering and Strategic
Alliances (9 of 11)
• Small- and medium-sized enterprises or S M Es,
even those that compete in the same markets, can
benefit from partnering.
• The most widely practiced form of partnership
among S M Es is the manufacturing network.
• A manufacturing network is a group of S M Es that
cooperate in ways that enhance their quality,
productivity, and competitiveness.
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Eight: Partnering and Strategic
Alliances (10 of 11)
• Mutual need and interdependence are the
characteristics that make manufacturing networks
succeed.
• Widely practiced network activities include:
• joint production,
• education and training,
• marketing,
• product development,
• technology transfer,
• and purchasing. Copyright © 2021 Pearson Education, Inc. All Rights Reserved
Eight: Partnering and Strategic
Alliances (11 of 11)
• Education and business partnerships are formed to
help organizations continually improve their people
and how well they interact with process of
technologies.
• Services provided include on-site customized
training, workshops, seminars, technical
assistance, and consulting.
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