TOTAL-COST ORIENTED SUPPLIER PERFORMANCE EVALUATION

摘要

This research establishes a cost-effectivenessrnbased performance evaluation system for suppliersrnand operations. The purpose is to provide arnmethodology for “integrating supplier andrnmanufacturer capabilities through a common goal –rn“profitability improvement” based on lowering therncost of purchased materials. This study investigatedrnthe interactions and mutual movements among thernthree groups in the supply chain: “suppliermanufacturer-rncustomer”, integrated the results fromrndifferent stages: incoming inspection, internalrncustomers, external customers, and severity levelsrnfor quality events: rejects, sorting, rework, shutdown,rnscrap, and customer returns. A total involved qualityrncost (TIQC) along with a pre-determined costrnstructure and the principle of Management ByrnObjectives (MBO) were developed and utilized inrnplanning and establishing this evaluation system forrnsupplier performance. The evaluation system asrnproposed in this study can be very beneficial forrnmanufacturers in selecting the best suppliers andrndriving operational quality improvements.