Research Article

A Study of Multicriteria Decision Making for Supplier Selection in Automotive Industry

Table 10

Weight and level of importance of criteria 1 to 9 of 12. Major automotive manufacturers.

CriteriaLevel of importanceRespondentMean

(a) Delivery/lead time (DT)
On time delivery58124.83
No shipping error (incorrect shipment)53124.42
Able to deliver supplies within short lead time50124.17
Products delivered in good conditions 56124.67
Proper delivery record and followup58124.83
Applies JIT (just in time) concept50124.17

Total32572

Weightage (mean)4.5139σ0.31
Weightage (mean) (%)11.7247 Var0.10
Importance weight0.1175

(b) Support service (SS)
Handled by supplier technical experts56124.67
Supplier support readily available57124.75
Promptness of response56124.67

Total16936

Weightage (mean)4.6944σ0.05
Weightage (mean) (%)12.1937 Var0.002
Importance weight0.12194

(c) Quality factor (QF)
Meeting customer requirement and expectations55124.58
Reliability in supply quality58124.83
Product certification55124.58
Provide sample of supply before first ordering 53124.42
Proper record on complaints and followup 55124.58
Raw material quality and supply reliability57124.75
Special packaging and shipping requirement51124.25
Proper marking and labeling of materials 54124.50
Conformance to environmental standard specifications 53124.42
Safety and health record performance 53124.42

Total544120

Weightage (mean)4.5333σ0.17
Weightage (mean) (%)11.7753 Var0.03
Importance weight0.11775

(d) Technology (TE)
Availability of production facilities and capacity56124.67
Technological capabilities for future improvement48124.00
Innovativeness in product design and development47123.92
Technical support on product development51124.25
Intellectual property 45123.75
Information system capability (ICT, EDI, ERP, barcode)46123.83
Shorter product development lead time 50124.17

Total34384

Weightage (mean)4.0833σ0.31
Weightage (mean) (%)10.6064 Var0.10
Importance weight0.10606

(e) Price/cost (PR)
Competitive pricing56124.67
Additional discount for large volume purchase52124.33
No charges to distribution/logistic costs 44123.67
No charges after sales services costs 46123.83
No additional costs for small volume order46123.83

Total24460

Weightage (mean)4.0667σ0.42
Weightage (mean) (%)10.5631 Var0.18
Importance weight0.10563

(f) Factory capacity and capability (FC)
High production capacity51124.25
Capability to cope with any order changes 49124.08
Maintain workforce competency49124.08
Reliable production facilities54124.50
Reliable maintenance programme52124.33
Apply OEE concept51124.25

Total30672

Weightage (mean)4.2500σ0.16
Weightage (mean) (%)11.0393 Var0.03
Importance weight0.11039

(g) Supplier background (SB)
Industry and technological knowledge on product54124.50
Having own transportation48124.00
Strong financial management and support 52124.33
Approved supplier to other established Tier 1 or 2 company50124.17
Available supply of skilled workforce 49124.08
Strategic geographical location of the supplier 50124.17

Total30372

Weightage (mean)4.2083σ0.18
Weightage (mean) (%)10.9311 Var0.03
Importance weight0.10931

(h) Flexibility (FL)
Flexible manufacturing system47123.92
Flexibility in operation and production50124.17
Flexibility in product design changes45123.75
Flexibility to respond on changes in requirement48124.00

Total19048

Weightage (mean)3.9583σ0.17
Weightage (mean) (%)10.2817 Var0.30
Importance weight0.10282

(i) Other management system requirements (MS)
Kanban52124.33
Kaizen53124.42
TPS (Toyota production system)50124.17
Six sigma42123.50
5S implementation53124.42
Failure modes and effect analysis (FMEA)50124.17
Statistical process control (SPC)46123.83
Production part approval process (PPAP)50124.17
Advanced product quality planning (APQP)45123.75
Measurement systems analysis (MSA)44123.67
TS16949 technical specification56124.67
ISO 9001 quality management system56124.67
ISO 14001 environmental management system54124.50
OHSAS 18001 safety and health management system53124.42

Total704168

Weightage (mean)4.1905σ0.32
Weightage (mean) (%)10.8847 Var0.56
Importance weight0.10885

Grand total weightage (mean)38.50