The need for a qualitycontrol standard that enables the measurement of quality on the same basisthroughout the world becomes an essential approach (Huarng et al., 1999). Afterall, in an international context, companies worldwide have accepted ISO 9000certification (Mokhtar et al.

, 2005). In 1987, the International StandardOrganization (ISO), based in Switzerland, ISO is formulated in an effort toextend a set of rules that give a framework for quality management during theprocesses of manufacturing and distributing products and services for theconsumers (Arauz & Suzuki, 2004). This set of quality management isconsidered to be an effective tool to provide limitations to ensure the qualityof production and delivery, and reduces waste, downtime, and lab ourinefficiencies, thereby increasing productivity (Leong et al., 2014).

As for exporting companies,this quality management implementation, for instance, is a qualification forthem to sell across national borders into the markets. In fact, a supplier, forexample, must be ISO certified in order to do business with the EuropeanCommunity industries. Therefore, domestic suppliers, especially for those whosold to the public or large private buyers, seek ISO certification for thepurpose of marketing (Mo & Chan, 1997). In the early years, most of ISO9000 was issued to organizations in the manufacturing-related sector (Conti,1999).

But in the case of SMEs, many manufacturers found that quality managementimplementation is too impersonal and formalized, expensive and time-consuming(Abdullah et al., 2013). Jang and Lin (2008) also found that some of themcontended that it is very much complicated and cost in implementing thecertificate is somehow a barrier for SMEs to register (Padma et al., 2008).

 Operation Strength: Good Material and Supplier Quality ManagementThe quality of products could affect the customersatisfaction and loyalty. For a company to survive, customer satisfaction and loyaltyare important to affect a company’s financial performance. In order to maintainthe quality of material and supplier, Intel has introduced Materials QualityOperating System (QOS).

There are four key modules in the Materials QOS. First ofall, Materials QOS module 1 is the supplier selection. Supplier selection is animportant step as they will affect the quality of the raw material thatsupplied to Intel. As part of their development, the selected supplier willreceive appropriate training from Intel to close gaps in their systems in orderfor them to be successful in meeting business expectations. To become asupplier of Intel, the potential supplier must go through the supplierselection process (Figure 1.

1). Material QOS module 2 is material and supplierqualification. In this module, the Materials group verifies the abilities of thesupplier to maintain a high volume of production. Each Materials group sets theirbusiness requirements and module target specifications (MTS). Specificmaterials qualities must be satisfied to qualify a new material at Intel.

They includequality and reliability requirements, specification requirements validation,and established equivalence if materials come from different suppliers orsites. New materials must also engage in Intel manufacturing yield goals.Material QOS module 3 is supplier process control system andexcursion management. In the high volume of production, the supplier must provetheir ability to control stable and predictable material quality and deal withany excursions in an effective way. The purpose of Process Control System (PCS)and excursion management is to prevent excursions, and identify and respond tothem when they do occur to reduce any impact on the customer. Last but not least, Materials QOS module 4 is suppliercontinuous improvement. The aim of this module is to increase the performanceof Intel suppliers. The supplier’s performance is evaluated in several areas,including quality and opportunities for improvement.

The Materials group andthe supplier jointly coordinate supplier improvement activities. The suppliercontinuous quality improvement cycle is illustrated in Figure 1.2 on how Inteland supplier work together to improve the quality of the products.A good material and supplier quality management would affecta company’s performance. By using a good quality management, it can increasethe quality of the products delivered to the customer and increase the customersatisfaction and loyalty. In other words, a fully recognized and implementedquality management system will satisfy the customer by meeting theirrequirements, and will thus magnify the trust of the customer. Attainingcustomer satisfaction is a great accomplishment for the company that will helpin gaining the market share, as existing customers act on the company’s behalfto bring in more customers.