Supplier quality improvement management is becoming more and more important with the growth of supplier chain,especially under the global market competitive surrounding.It is also a big challenge to the manufacturing cooperation with large range of product line.To increase the supplier quality,V Company initiated the supplier analysis based on the institution engineering and organizational behavior theory.The existing supplier quality management mechanism was redesigned according to the module implementation and quantitative calculation.By adjusting the monitoring method,behavior utility and behavior resource,and also by recomposing the behavior opportunity by AHP(analytic hierarchy process),the supplier quality improvement program of V Company was made more effective and higher efficient (defects rate decreased from 2.3% to 0.9% in nine months try-running).On this basis,the institution engineering is proved to be a good tool and method for the management improvement and optimization.It will be more and more mature and would become a popular solution in different organization management fields.