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Title Developing an Outsourcing Partner Selection Model for Process with Two-Sided Specification Using Capability Index and Manufacturing Time Performance Index
ID_Doc 17863
Authors Chen, KS; Chang, TC; Lin, YT
Title Developing an Outsourcing Partner Selection Model for Process with Two-Sided Specification Using Capability Index and Manufacturing Time Performance Index
Year 2019
Published International Journal Of Reliability Quality And Safety Engineering, 26, 3
Abstract In the face of fierce global competition, firms are outsourcing important but nonessential tasks to external professional companies. Corporations are also turning from competitive business models to cooperative strategic partnerships in hopes of swiftly responding to consumer needs and enhancing overall efficiency and industry competitiveness. 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 C-pm and manufacturing time performance index I-h 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 errors. 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 - alpha)% confidence intervals of the indices C-pm and I-h, then constructed the joint confidence region of C-pm and I-h to develop an outsourcing partner selection model that will help firms select better outsourcing partners for long-term collaborations. We also provide a case as an illustration of how the proposed selection model is implemented.
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