Abstract
In the competitive global business environment, enterprises should effectively respond to and satisfy customer needs. Outsourcing manufacturing is an effective method of adjusting the flexibility of production capability. To ensure final product quality, evaluating and selecting a contract manufacturer is essential. Process capability indices are extensively adopted in manufacturing to determine whether a process meets capability requirements. This study attempts to determine the score index Ri and then apply it to assess the process performance of contract manufacturer by using the process incapability index C pp . The formulae for C pp and Ri are simple to understand and to apply. The procedure developed in this paper is also an easy and convenient tool for practitioners to assess contract manufacturer quality performance and make more reliable decisions regarding contract manufacturer.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
References
Lee H, Billington C (1992) Managing supply chain inventory: pitfalls and opportunities. Sloan Manage Rev 33(3):65–73
De Kok TG (2000) Capacity allocation and outsourcing in a process industry. Int J Prod Econ 68:229–239
Lee H, Tang CS (1998) Managing supply chains with contract manufacturing, in global supply chain and technology management. In: Lee HL, Ng SM (eds) Production and operations management society, pp 141–151
Kim B, Leung JMY, Park KT, Zhang G, Lee S (2002) Configuring a manufacturing firm’s supply network with multiple suppliers. IIE Trans 34:663–677
Dickson GW (1966) An analysis of vendor selection systems and decisions. J Purch 2(1):5–17
Weber CA, Current JR, Benton WC (1991) Vendor selection criteria and methods. Eur J Oper Res 50:2–18
Pearson JN, Ellram LM (1995) Supplier selection and evaluation in small versus large electronics firms. J Small Bus Manage 33(4):53–65
The Outsourcing Institute Membership (2003) Survey of current and potential outsourcing end-users, http://www.outsourcing.com
Kane VE (1986) Process capability indices. J Qual Technol 18(1):41–52
Chan LK, Cheng SW, Spiring FA (1988) A new measure of process capability: Cpm. J Qual Technol 20:162–175
Choi BC, Owen DB (1990) A Study of a new Capability index. Commun Stat Theory Methods 19:1231–1245
Boyles RA (1991) The Taguchi capability index. J Qual Technol 23:17–26
Pearn WL, Kotz S, Johnson NL (1992) Distributional and inferential properties of process capability indices. J Qual Technol 24:216–231
Boyles RA (1994) Process capability with asymmetric tolerances. Commun Stat Simul Comput 23:615–643
Chen KS (1997) Incapability index with asymmetric tolerances. Stat Sin 8(1):253–262
Chou YM (1994) Selecting a better supplier by testing process capability indices. Qual Eng 6(3):427–438
Greenwich M, Jahr-Schaffrath BL (1995) A process incapability index. Int J Qual Reliab Manage 12:58–71
Kotz S, Johnson NL (2002) Process capability indices–a review, 1992–2000. J Qual Technol 34(1):2–34
Chen KS (1998) Estimation of the process incapability index. Commun Stat Theory Methods 27(4):1263–1274
Pearn WL, Chen KL, Chen KS (2002) A practical implementation of the incapability index C pp . Int J Ind Eng 9(4):372–383
Huang ML, Chen KS, Li RK (2002) Process capability evaluation for a PVC pipe product family. Asian J Qual, in press
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
About this article
Cite this article
Chen, K., Chen, K. & Li, R. Contract manufacturer selection by using the process incapability index C pp . Int J Adv Manuf Technol 26, 686–692 (2005). https://doi.org/10.1007/s00170-003-1886-5
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00170-003-1886-5