Research Article

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

Table 11

Weight and level of importance of nine (9) criteria of 4 major tyre suppliers.

CriteriaLevel of importanceRespondentMean

(a) Delivery/lead time (DT)
On time delivery1944.75
No shipping error (incorrect shipment)1744.25
Able to deliver supplies within short lead time1543.75
Products delivered in good conditions 1944.75
Proper delivery record and followup1944.75
Applies JIT (just in time) concept1644

Total10524

Weightage (mean)4.3750σ0.44
Weightage (mean) (%)11.6600 Var0.19
Importance weight0.11660

(b) Support service (SS)
Handled by supplier technical experts1944.75
Supplier support readily available1744.25
Promptness of response1844.5

Total5412

Weightage (mean)4.5000σ0.25
Weightage (mean) (%)11.9931 Var0.06
Importance weight0.11993

(c) Quality factor (QF)
Meeting customer requirement and expectations1944.75
Reliability in supply quality1944.75
Product certification1543.75
Provide sample of supply before first ordering 1543.75
Proper record on complaints and followup 1543.75
Raw material quality and supply reliability1944.75
Special packaging and shipping requirement1443.5
Proper marking and labeling of materials 1543.75
Conformance to environmental standard specifications 1543.75
Safety and health record performance 1744.25

Total16340

Weightage (mean)4.0750σ0.50
Weightage (mean) (%)10.8605 Var0.25
Importance weight0.10860

(d) Technology (TE)
Availability of production facilities and capacity1644
Technological capabilities for future improvement1644
Innovativeness in product design and development1644
Technical support on product development1944.75
Intellectual property 1243
Information system capability (ICT, EDI, ERP, barcode)1543.75
Shorter product development lead time 1644

Total11028

Weightage (mean)3.9286 0.51
Weightage (mean) (%)10.4702 Var0.26
Importance weight0.10470

(e) Price/cost (PR)
Competitive pricing1844.5
Additional discount for large volume purchase1543.75
No charges to distribution/logistic costs 1343.25
No charges after sales services costs 1343.25
No additional costs for small volume order1644

Total7520

Weightage (mean)3.7500σ0.53
Weightage (mean) (%)9.9943 Var0.28
Importance weight0.09994

(f) Factory capacity and capability (FC)
High production capacity1644.00
Capability to cope with any order changes 1644.00
Maintain workforce competency1744.25
Reliable production facilities1944.75
Reliable maintenance programme1744.25
Apply OEE concept1543.75

Total10024

Weightage (mean)4.1667σ0.34
Weightage (mean) (%)11.1048 Var0.12
Importance weight0.11105

(g) Supplier background (SB)
Industry and technological knowledge on product1644
Having own transportation1543.75
Strong financial management and support 1944.75
Approved supplier to other established Tier 1 or 2 company1644
Available supply of skilled workforce 1644
Strategic geographical location of the supplier 1644

Total9824

Weightage (mean)4.0833σ0.34
Weightage (mean) (%)10.8827 Var0.12
Importance weight0.10883

(h) Flexibility (FL)
Flexible manufacturing system1744.25
Flexibility in operation and production1844.50
Flexibility in product design changes1744.25
Flexibility to respond on changes in requirement1844.50

Total7016

Weightage (mean)4.3750σ0.14
Weightage (mean) (%)11.6600 Var0.02
Importance weight0.11660

(i) Other management system requirements (MS)
Kanban1744.25
Kaizen1844.50
TPS (Toyota production system)1744.25
Six sigma1644.00
5S implementation1944.75
Failure modes and effect analysis (FMEA)1644.00
Statistical process control (SPC)1543.75
Production part approval process (PPAP)1744.25
Advanced product quality planning (APQP)1844.50
Measurement systems analysis (MSA)1844.50
TS16949 technical specification1744.25
ISO 9001 quality management system1744.25
ISO 14001 environmental management system1744.25
OHSAS 18001 safety and health management system1744.25

Total23956

Weightage (mean)4.26790.25
Weightage (mean) (%)11.37450.06
Importance weight0.11374

Grand total weightage (mean)37.5214