Outsourcing Partner Selection for Process with Two-Sided Specification Based on Capability Index Cpm and Manufacturing Time  
Author Kuen-Suan Chen

 
Co-Author(s) Yun-Tsan Lin; Tsang-Chuan Chang

 
Abstract This research developed an outsourcing partner selection model in hopes of helping firms select better outsourcing partners for long-term collaborations. Process quality and manufacturing time are vital when evaluating outsourcing partner. We therefore used process capability index Cpm and manufacturing time performance index Ih in the proposed model. Sample data from random samples are needed to calculate the point estimates of indices, however, it is impossible to obtain a sample with a structure completely identical to that of the population, which means that sampling generates unavoidable sampling error. The reliability of point estimates are also uncertain, which inevitably leads to misjudgment in some cases. Thus, to reduce estimate errors and increase assessment reliability, we calculated the 100(1 − α)% confidence intervals of the indices Cpm and Ih , then constructed the joint confidence region of Cpm and Ih to develop an outsourcing partner selection model that will firms select better outsourcing partners for long-term collaborations.

 
Keywords Outsourcing partner selection, Process quality, Manufacturing time, Confidence interval
   
    Article #:  2421
 
Proceedings ISSAT International Conference on Reliability and Quality in Design 2018
August 2-4, 2018 - Toronto, Ontario, Canada