Abstract

Supplier selection in high-tech manufacturing industries has become more essential and has received considerable attention. In this paper, we consider a supplier selection problem with multiple characteristics in which we compare two-sided processes with multiple characteristics and select the better one with the higher capability. We first review an approach referred to as the division method. We then develop a new approach called the subtraction method. We compare the two methods in terms of their selection power. The results show that the proposed subtraction method is indeed more powerful than the division method. Two supplier-selection procedures are developed for practical applications. For practitioners’ convenience in applying our procedures, the various sample sizes required for designated selection powers are tabulated and discussed. For illustration purposes, a case is considered and solved for supplier selection evaluation.

References

1.
Krause
,
D. R.
,
Handfield
,
R. B.
, and
Scannell
,
T. V.
, “
Empirical Investigation of Supplier Development: Reactive and Strategic Processes
,”
J. Operations Manage.
, Vol.
17
,
1988
, pp.
39
58
. https://doi.org/10.1016/S0272-6963(98)00030-8
2.
Tracey
,
M.
and
Tan
,
C. L.
, “
Empirical Analysis of Supplier Selection and Involvement, Customer Satisfaction, and Firm Performance
,”
Supply Chain Management: An International Journal
, Vol.
6
(
4
),
2001
, pp.
174
188
.
3.
Wu
,
C. W.
,
Shu
,
M. H.
,
Pearn
,
W. L.
, and
Liu
,
K. H.
, “
Bootstrap Approach for Supplier Selection based on Production Yield
,”
Int. J. Prod. Res.
, Vol.
46
(
18
),
2008
, pp.
5211
5230
. https://doi.org/10.1080/00207540701278414
4.
Tseng
,
S. T.
and
Wu
,
T. Y.
, “
Selecting the Best Manufacturing Process
,”
J. Quality Technol.
, Vol.
23
(
1
),
1991
, pp.
53
62
.
5.
Chou
,
Y. M.
, “
Selecting a Better Supplier by Testing Process Capability Indices
,”
Qual. Eng.
, Vol.
6
(
3
),
1994
, pp.
427
438
. https://doi.org/10.1080/08982119408918738
6.
Huang
,
D. Y.
and
Lee
,
R. F.
, “
Selecting the Largest Capability Index from Several Quality Control Processes
,”
J. Stat. Plan. Infer.
, Vol.
46
,
1995
, pp.
335
346
. https://doi.org/10.1016/0378-3758(94)00114-B
7.
Hubele
,
N. F.
,
Berrado
,
A.
, and
Gel
,
E. S.
, “
A Wald Test for Comparing Multiple Capability Indices
,”
J. Quality Technol.
, Vol.
37
(
4
),
2005
, pp.
304
307
.
8.
Chen
,
K. S.
and
Chen
,
K. L.
, “
Supplier Selection by Testing the Process Incapability Index
,”
Int. J. Prod. Res.
, Vol.
44
(
3
),
2006
, pp.
589
600
. https://doi.org/10.1080/00207540500319419
9.
Pearn
,
W. L.
,
Hung
,
H. N.
, and
Cheng
,
Y. C.
, “
Supplier Selection for One-sided Processes with Unequal Sample Sizes
,”
Eur. J. Oper. Res.
, Vol.
195
(
2
),
2009
, pp.
381
393
. https://doi.org/10.1016/j.ejor.2008.01.050
10.
Lin
,
C. J.
and
Pearn
,
W. L.
, “
Process Selection for Higher Production Yield based on Capability Index Spk
,”
Qual. Reliab. Eng. Int.
, Vol.
26
,
2010
, pp.
247
258
. https://doi.org/10.1002/qre.1051
11.
Tai
,
Y. T.
,
Pearn
,
W. L.
, and
You
,
S. K.
, “
An Effective Test for Supplier Selection Evaluation with Multiple Characteristics
,”
J. Test. Eval.
, Vol.
39
(
6
),
2011
, pp.
1165
1173
.
12.
Pearn
,
W. L.
,
Hung
,
H. N.
,
Chuang
,
Y. S.
, and
Su
,
R. H.
, “
An Effective Powerful Test for One-sided Supplier Selection Problem
,”
J. Stat. Comput. Simul.
, Vol.
81
(
10
),
2011
, pp.
1313
1331
. https://doi.org/10.1080/00949655.2010.483475
13.
Boyles
,
R. A.
, “
Process Capability with Asymmetric Tolerances
,”
Commun. Stat.-Simul. Comput.
, Vol.
23
(
3
),
1994
, pp.
615
643
. https://doi.org/10.1080/03610919408813190
14.
Pearn
,
W. L.
and
Cheng
,
Y. C.
, “
Measuring Production Yield for Processes with Multiple Characteristics
,”
Int. J. Prod. Res.
, Vol.
48
(
15
),
2010
, pp.
4519
4536
. https://doi.org/10.1080/00207540903036313
15.
Kane
,
V. E.
, “
Process Capability Indices
,”
J. Quality Technol.
, Vol.
18
(
1
),
1986
, pp.
41
52
.
16.
Pearn
,
W. L.
and
Chang
,
C. S.
, “
An Implementation of the Precision Index for Contaminated Processes
,”
Qual. Eng.
, Vol.
11
(
1
),
1998
, pp.
101
110
. https://doi.org/10.1080/08982119808919216
17.
Wu
,
C. W.
,
Liao
,
M. Y.
, and
Shu
,
M. H.
, “
Process Performance Evaluation with Imprecise Information
,”
J. Test. Eval.
, Vol.
38
(
2
),
2010
, pp.
137
142
.
18.
Liao
,
M. Y.
,
Kang
,
H. Y.
,
Lee
,
A. H. I.
, and
Wu
,
C. W.
, “
Capability Testing based on Subsamples: A Case on Photolithography Process Control in Wafer Fabrication
,”
J. Test. Eval.
, Vol.
38
(
2
),
2010
, pp.
222
231
.
19.
Bothe
,
D. R.
, “
A Capability Study for an Entire Product
,”
45th ASQC Quality Congress Transactions
,
45th Annual Quality Congress Transactions
,
Wilwaukee, Wi
,
1991
, pp.
921
925
.
20.
Chen
,
K. S.
,
Pearn
,
W. L.
, and
Lin
,
P. C.
, “
Capability Measures for Processes with Multiple Characteristics
,”
Qual. Reliab. Eng. Int.
, Vol.
19
(
2
),
2003
, pp.
101
110
. https://doi.org/10.1002/qre.513
21.
Lee
,
J. C.
,
Hung
,
H. N.
,
Pearn
,
W. L.
, and
Kueng
,
T. L.
, “
On the Distribution of the Estimated Process Yield Index Spk
,”
Qual. Reliab. Eng. Int.
, Vol.
18
(
2
),
2002
, pp.
111
116
. https://doi.org/10.1002/qre.450
This content is only available via PDF.
You do not currently have access to this content.