Research Article

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

Table 16

Supplier selection criteria.

CategoryCriteria

Delivery(i) Applies JIT concept
(ii) Delivery lead time
(iii) Delivery quality
(iv) Packaging quality

Support service(i) Handled by expertise of the related field
(ii) Availability
(iii) Promptness
(iv) Applies OEE concept

Quality(i) Quality performance
(ii) Durability
(iii) Ergonomic qualities
(iv) Reliability

Technology(i) Collaboration with established R&D organization on referral designs
(ii) Product certification
(iii) High technology machines and processes
(iv) Align with current technology (product/process/design)
(v) Suppliers capable of modifying product/design/process
(vi) Material availability
(vii) Alternative material and technologies
(viii) EDI capability
   (a) inventory
   (b) logistics
   (c) production
   (d) transaction
(ix) Design capability
   (a) Flexibility to respond to design changes
   (b) Product innovativeness
   (c) Product performance
   (d) Ability to modify product/process
(x) R&D
   (a) Availability of testing laboratory
   (b) Reliability of testing laboratory
   (c) Calibration program

Price(i) Flexibility in price reduction
(ii) Competitive operating costs
(iii) Flexibility in payment

Factory capacity and capability(i) Level of capability to cope with rush orders
(ii) Sufficient product capacity
(iii) Sufficient product facilities

Supplier background(i) Industry knowledge (specifically on the related process or parts)
(ii) Geographical location of the supplier
(iii) Geographical condition such as labor cost and traffic congestion
  (a) suppliers have dedicated supply point
(iv) Flexibility in freight
  (a) suppliers have their own transportation
(v) Position in the industry and reputation
  (a) suppliers supply to other established car manufacturers
(vi) Performance history
  (a) suppliers have been blacklisted or not
(vii) Financial
  (a) Table financial management system
  (b) bankruptcy
(viii) Manning
  (a) sufficient workers
  (b) low turnover rate

Flexibility(i) Practices flexible manufacturing system in terms of design and process
(ii) Flexibility of operation
(iii) Flexibility in production
(iv) Flexibility in order frequency and amount
(v) Flexibility to respond requirement volume changes

Management
tool system
(i) Kanban
(ii) Kaizen
(iii) TPS (Toyota production system)
(iv) ISO 9000
(v) Six sigma
(vi) 5S
(vii) FMEA
(viii) SPC
(ix) Strong safety processes and culture
(x) Environmental performance