Synopsis:

The quality of products is essential to gain customer satisfaction and competitive advantage of an organisation. Organisations attain higher quality through various activities such as continuous improvement, data collection, and improving products, for enabling them to achieve customer satisfaction. By implementing the ISO 9000 quality management system, companies can improve quality and organisational performance. Furthermore with rapid economic environmental changes, this leaves organisations with no choice but to improve performance by increasing the quality of their product and/or services. However, there is very little research performed in Malaysia, especially in the automotive industry relating to the impact on organisational performance of the ISO 9000 quality system adopted by their vendors or suppliers. In order to address this scarcity of research, this case study presents the impact resulting from the adoption of the ISO 9000 quality system among vendors. As a result, a local company Motosikal Dan Enjin Nasional Sdn. Bhd., better known as MODENAS, has improved performance in terms of productivity, final inspection straight pass, and warranty claimed.