Contract manufacturer selection by using the process incapability index C-pp

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 R-i 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 R-i 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.