A Six Sigma DMAIC Process for Supplier Performance Evaluation using AHP and Kano's Model

The suppliers, which are one of the most important actors in the supply chain, have a significant effect on the performances of their customer firms. Hence, supplier performance evaluation has become a competitive tool in today's goods and service producing industries. This paper presents a supplier performance evaluation process developed using the Six Sigma Define – Measure – Analyse – Improve – Control (DMAIC) methodology. The proposed process has been applied in a central services company, where the suppliers had never been evaluated before. To this end, first of all, the evaluation criteria have been defined through brainstorming and meetings within the company, then weighted with Analytical Hierarchy Process (AHP), and categorized according to Kano's Model. Afterwards, suppliers have been scored and classified based on a proposed methodology using a modified version of Kano's model, and thus, the proposed process has proven to be useful in real life industrial applications.

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Analisis Evaluasi Kinerja Vendor Berdasarkan Penetapan Kriteria Vendor Performance Indicator (VPI) Menggunakan Metode Analytical Hierarchy Process (AHP) Pada PT. XYZ

JATI UNIK : Jurnal Ilmiah Teknik dan Manajemen Industri ◽

10.30737/jatiunik.v2i2.344 ◽

2019 ◽

Vol 2 (2) ◽

pp. 113

Author(s):

Nadya Uci Pramita ◽

Adhitomo Wirawan

Keyword(s):

Performance Evaluation ◽

Carbon Steel ◽

Analytical Hierarchy Process ◽

Pressure Vessel ◽

Performance Indicator ◽

Evaluation Process ◽

Raw Material ◽

Quality Cost ◽

Questionnaire Method ◽

Hierarchy Process

The purpose of this study is to analyze the process of performance evaluation of vendors especially in the vendor that provides a raw material for pressure vessel plate made of carbon steel. As for the evaluation process undertaken by PT. XYZ through performance indicators (KPI) where an evaluation that applied a focus on quality and delivery. In this study, researchers used the designation criteria vendor performance indicator (VPI) where the criteria used consist of quality, cost, delivery, flexibility and responsiveness (QCDFR). The methods used in the analysis process that is Analytical Hierarchy Process (AHP). Data collecting directionally by questionnaire method among 3 respondents on the procurement department that know the performance of the vendors over the years. The result showed that PT. RE has the best performance among the four vendors, as known PT.SS, PT. ST, PT. CH and PT. UN within value 0.540; The vendor with lowest performance owned by PT.CH within value 0.034.Keyword : Analytical Hierarchy Process (AHP), vendor performance indicator (vpi), plate pressure vessel, vendor performance evaluation Penelitian ini bertujuan untuk menganalisis proses evaluasi kinerja vendor khususnya pada vendor yang mensupplai bahan baku plate pressure vessel berbahan carbon steel. Adapun proses evaluasi yang dilakukan oleh PT. XYZ melalui key performance indicator (KPI) dimana evaluasi yang diterapkan hanya berfokus pada quality dan delivery. Dalam studi ini, peneliti menggunakan penetapan kriteria Vendor Performance Indicator (VPI) dimana kriteria yang digunakan yaitu quality, cost, delivery, flexibility dan responsiveness (QCDFR). Metode yang digunakan dalam proses analisis yaitu Analytical Hierarchy Process (AHP). Pengambilan data menggunakan kuisioner terhadap 3 informan pada departemen procurement yang dianggap mengetahui kinerja vendor selama ini. Adapun hasil penelitian menunjukkan bahwa PT. RE memiliki kinerja yang terbaik diantara keempat vendor yaitu PT. SS, PT. ST, PT. CH serta PT. UN dengan nilai bobot sebesar 0.540 sedangkan vendor dengan kinerja terendah dimiliki oleh PT. CH dengan nilai bobot sebesar 0.034.Kata kunci : Analytical Hierarchy Process (AHP), vendor performance indicator (VPI), plate pressure vessel, evaluasi kinerja vendor.

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INTEGRASI METODE ANP DAN TOPSIS DALAM EVALUASI KINERJA SUPPLIER DAN PENENTUAN PRIORITAS SUPPLIER BAHAN BAKU UTAMA CETAK KORAN PADA PT MASSCOM GRAPHY SEMARANG

J TI UNDIP JURNAL TEKNIK INDUSTRI ◽

10.14710/jati.11.3.151-160 ◽

2017 ◽

Vol 11 (3) ◽

pp. 151

Author(s):

Darminto Pujotomo ◽

Nia Budi Puspitasari ◽

Dwi Rizkiyani

Keyword(s):

Performance Evaluation ◽

Raw Materials ◽

Evaluation Criteria ◽

Raw Material ◽

Company Performance ◽

Ideal Solution ◽

Analytical Network Process ◽

Supplier Performance ◽

Network Process ◽

Priority Order

Salah satu faktor yang mempengaruhi kinerja perusahaan adalah keberadaan supplier yang berperan sebagai pemasok kebutuhan atau penyedia bahan baku. PT Masscom Graphy Semarang merupakan perusahaan percetakan yang telah menjalin kerjasama dengan beberapa supplier untuk menjamin kelangsungan produksinya. Oleh karena itu evaluasi kinerja supplier sangat penting dilakukan oleh perusahaan untuk mendapatkan supplier yang handal dalam memasok bahan baku. Tujuan dalam penelitian ini adalah mengidentifikasi kriteria evaluasi kinerja supplier dan penentuan prioritas supplier yang sesuai dengan kebutuhan perusahaan, dan menentukan urutan prioritas supplier untuk bahan baku utama cetak koran. Terdapat 17 subkriteria yang digunakan dalam evaluasi kinerja supplier dan penentuan prioritas supplier. Metode Analytical Network Process (ANP) dapat dijadikan alternatif untuk suatu permasalahan yang memiliki banyak subkriteria yang saling berkaitan dalam pengambilan keputusan. Selanjutnya metode Technique For Orders Preference by Similarity to Ideal Solution (TOPSIS) digunakan untuk perankingan supplier. Berdasarkan pembobotan subkriteria dengan menggunakan ANP, subkriteria yang paling besar pengaruhnya dalam evaluasi supplier adalah harga penawaran sebesar 0,17227. Selanjutnya, penentuan prioritas supplier dilakukan dengan menggunakan metode TOPSIS dan didapatkan urutan supplier untuk bahan baku kertas CD roll adalah supplier A, B, C, dan D, sedangkan untuk bahan baku tinta web adalah supplier L, N, O, dan M. ABSTRACT One of the factors that influence the company performance is the presence of suppliers which supplies raw materials. PT Masscom Graphy Semarang is a printing company which has cooperated with several suppliers to ensure continuity of production. Therefore, supplier performance evaluation conducted by the company is very important to obtain a reliable supplier in the supply of raw materials. The purpose of this research was to identify the supplier performance evaluation criteria and priorities of suppliers in accordance with the company's needs, and determined the priority order of the main raw material supplier for newspaper print. There was 17 sub-criteria used in evaluating the performance of suppliers and prioritization of suppliers. Analytical Network Process (ANP) can be used as an alternative to solve a problem that had many interrelated sub-criteria or influence in decision making. Furthermore, the method Technique For Orders Preference by Similarity to Ideal Solution (TOPSIS) was used for ranking suppliers. Based on the weighted sub-criteria by using ANP, the most influence subcriteria in determining the priority of suppliers offering price of 0.17227. Furthermore, to the supplier prioritization was done by using the TOPSIS method and obtained the order suppliers for raw materials paper roll was a supplier A, B, C, and D, while the raw material for the ink web was a supplier of L, N, O and M.

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A new supplier performance evaluation model

Kybernetes ◽

10.1108/03684921011021264 ◽

2010 ◽

Vol 39 (1) ◽

pp. 37-54 ◽

Cited By ~ 18

Author(s):

He‐Yau Kang ◽

Amy H.I. Lee

Keyword(s):

Performance Evaluation ◽

Integrated Circuit ◽

Evaluation Model ◽

Pairwise Comparison ◽

Evaluation Process ◽

Supplier Evaluation ◽

Content Type ◽

Supplier Performance ◽

Performance Evaluation Model ◽

Proposed Model

PurposeMost industries have become increasingly competitive nowadays, and a good supply chain relationship is essential for a company to survive and to acquire reasonable profit. Therefore, supplier selection is very important. The purpose of this paper is to propose a novel model for evaluating the performance of suppliers.Design/methodology/approachA supplier performance evaluation model based on analytic hierarchy process (AHP) and data envelopment analysis (DEA) is constructed. DEA is applied first to evaluate quantitative factors, and the results are transformed into pairwise comparison values for AHP analysis. Qualitative factors are also evaluated through AHP analysis, and a final ranking of suppliers can be obtained by combining the quantitative and qualitative results.FindingsThe proposed model can be applied to evaluate and select the most appropriate integrated circuit packaging company for outsourcing. With the incorporation of experts' opinions and the consideration of qualitative and quantitative factors, the model can provide a both subjective and objective supplier performance ranking.Practical implicationsThe proposed model can be tailored and applied to supplier evaluation and selection in other industries.Originality/valueAlthough many models are available for supplier evaluation, this paper considers both the subjective and objective performance characteristics simultaneously in the evaluation process.

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Analytical Hierarchy Process Approach for Improvement of Automotive Part Supplier Performance Evaluation

Advanced Science Engineering and Medicine ◽

10.1166/asem.2016.1941 ◽

2016 ◽

Vol 8 (10) ◽

pp. 831-835

Author(s):

Chalermkwan Kongmunee ◽

Parames Chutima

Keyword(s):

Performance Evaluation ◽

Analytical Hierarchy Process ◽

Process Approach ◽

Supplier Performance ◽

Automotive Part ◽

Hierarchy Process

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Design of The Performance Evaluation of Suppliers at UKM Weedang Uwuh Based on Multi Attribute Decision Making (MADM)

Angkasa: Jurnal Ilmiah Bidang Teknologi ◽

10.28989/angkasa.v12i2.570 ◽

2020 ◽

Vol 12 (2) ◽

Author(s):

Marni Astuti ◽

Riani Nurdin

Keyword(s):

Performance Evaluation ◽

Performance Appraisal ◽

Industrial Ecology ◽

Performance Indicator ◽

Raw Materials ◽

Evaluation Model ◽

Evaluation Process ◽

Good Judgment ◽

Supplier Performance ◽

And Performance

The development of small business is increasing with the presence of global competition. The current industrial ecology demands a continuous evaluation process to be able to survive and strive to improve quality products. Weeka Wedang Uwuh continuously improves its business system by paying attention to suppliers of raw materials. Supplier evaluation is carried out to guarantee sustainable quality and performance. Sustainable performance evaluation can produce good judgment if it is supported by a performance appraisal instrument. Supplier performance assessment will be useful to build a good and sustainable relationship between entrepreneurs and suppliers. The design of supplier performance evaluation is carried out using the QCDFR model approach namely, Quality, Cost, Delivery, Flexibility and Responsibility. The sub-criteria study that forms the QCDFR model is carried out using the interview method. QCDFR and Sub Criteria hereinafter referred to as KPI (Key Performance Indicator). KPI is an indicator of ongoing evaluation of the relationship between suppliers and entrepreneurs. The assessment of suppliers from entrepreneurs is carried out using the AHP approach which is able to show the weight of the entrepreneur's assessment of the ability of suppliers. The results of the Weeka Wedang Uwuh supplier performance evaluation model design results in a formulation to measure KPIs with criteria: quality of raw materials (size and condition of raw materials), ease of service (payment tolerance and information on availability and price changes, experience (average transaction value and average) average number of transactions), speed of response (changes in the amount and change in time and price of raw materials). Evaluation of the supplier's weight assessment for raw materials of ginger, sugar and sapphire resulted in the values of Mr. Sarno 0.501, Sugeng 0.709 and Mbak Wang 0.690. KPI measurement reinforces the results of the evaluation of weight assessment using AHP.

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PARTNER PERFORMANCE EVALUATION PROBLEM FOR CONSTRUCTION PROJECTS

Journal of Applied Science, Engineering and Technology for Development ◽

10.33803/jasetd.2017.2-1.1 ◽

2017 ◽

Keyword(s):

Performance Evaluation ◽

Construction Projects ◽

Group Decision ◽

Evaluation Process ◽

Study Groups ◽

Construction Sector ◽

New Techniques ◽

Evaluation Problem ◽

Hierarchy Process

A team of contractors with varied specializations collaborate in construction projects. Each member's performance determines the success of these projects. These collaborations' competitiveness can be jeopardized if indications of how partners perform are not determinable. This is attributable to stepwise nature of human evaluations. Few research works have investigated techniques for evaluating contractors’ performance. This study defined partners performance evaluation problem (PaPEP) in the construction sector as a multi attribute represented in a hierarchical structure. Analytical Hierarchy Process (AHP) a Multi-Criteria Decision Making (MCDM) algorithm was designed and used by different project consultants to evaluate the performance of partners to implement a mechanical engineering works for a building. Six case study groups were used to verify the results. PaPEP is a MCDM problem, solvable using AHP. Using AHP, it has been shown how evaluation preference and consensus can be attained if a group decision-evaluation process is used in the PaPEP. It can be stated that AHP can be incorporated in the design and development of new techniques for the PaPEP for construction projects. AHP algorithm can be used when evaluators' judgements is precise.

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A FUZZY APPROACH TO BUSINESS TRAVEL AIRLINE SELECTION USING AN INTEGRATED AHP-TOPSIS-MSGP METHODOLOGY

International Journal of Information Technology & Decision Making ◽

10.1142/s0219622013500065 ◽

2013 ◽

Vol 12 (01) ◽

pp. 119-137 ◽

Cited By ~ 10

Author(s):

CHIN-NUNG LIAO

Keyword(s):

Analytical Hierarchy Process ◽

Real Life ◽

Evaluation Process ◽

Multi Criteria Decision Making ◽

Ideal Solution ◽

Business Travel ◽

Or Organization ◽

Hierarchy Process ◽

A Company

Airline selection is a multi-criteria decision-making (MCDM) problem faced in business travel. The evaluation process primarily involves the evaluation of several complex factors for selecting an airline that will best meet business travel needs. Previous studies have proposed several different methods that a company or organization can use to evaluate or select an airline. In its proposed approach to solving airline selection, this study integrates the analytical hierarchy process (AHP) with a type of preference ordering involving the determination a solution's similarity to an ideal solution (TOPSIS) and multi-segment goal programming (MSGP). A real-life case study on selecting an airline is also presented.

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