Strategic sourcing:a combined QFD and AHP approach in manufacturing

Purpose ��� This paper aims to develop an integrated analytical approach, combining quality function deployment (QFD) and analytic hierarchy process (AHP) approach, to enhance the effectiveness of sourcing decisions. Design/methodology/approach ��� In the approach, QFD is used to translate the company stakeholder requirements into multiple evaluating factors for supplier selection, which are used to benchmark the suppliers. AHP is used to determine the importance of evaluating factors and preference of each supplier with respect to each selection criterion. Findings ��� The effectiveness of the proposed approach is demonstrated by applying it to a UK-based automobile manufacturing company. With QFD, the evaluating factors are related to the strategic intent of the company through the involvement of concerned stakeholders. This ensures successful strategic sourcing. The application of AHP ensures consistent supplier performance measurement using benchmarking approach. Research limitations/implications ��� The proposed integrated approach can be principally adopted in other decision-making scenarios for effective management of the supply chain. Practical implications ��� The proposed integrated approach can be used as a group-based decision support system for supplier selection, in which all relevant stakeholders are involved to identify various quantitative and qualitative evaluating criteria, and their importance. Originality/value ��� Various approaches that can deal with multiple and conflicting criteria have been adopted for the supplier selection. However, they fail to consider the impact of business objectives and the requirements of company stakeholders in the identification of evaluating criteria for strategic supplier selection. The proposed integrated approach outranks the conventional approaches to supplier selection and supplier performance measurement because the sourcing strategy and supplier selection are derived from the corporate/business strategy.

Strategic logistics outsourcing: an integrated QFD and AHP approach

Third-party logistics service providers (3PLs) play a vital role in contemporary supply chain management. Evaluation and selection of the right 3PLs depends on a wide range of quantitative and qualitative criteria rather than cost-based factors. Although various multi-criteria decision making approaches have been proposed, they have not considered the impact of business objectives and requirements of company stakeholders on the evaluating criteria. To enable the "voice" of company stakeholders is considered, this paper develops an integrated approach for selecting 3PL strategically. In the approach, multiple evaluating criteria are derived from the requirements of company stakeholders using a series of house of quality (HOQ). The importance of evaluating criteria is prioritized with respect to the degree of achieving the stakeholder requirements using analytic hierarchy process (AHP). Based on the ranked criteria, alternative 3PLs are evaluated and compared with each other using AHP again to make an optimal selection.

A fuzzy AHP based integer linear programming model for the multi-criteria transshipment problem

Purpose ��� The purpose of this research is to develop a holistic approach to maximize the customer service level while minimizing the logistics cost by using an integrated multiple criteria decision making (MCDM) method for the contemporary transshipment problem. Unlike the prevalent optimization techniques, this paper proposes an integrated approach which considers both quantitative and qualitative factors in order to maximize the benefits of service deliverers and customers under uncertain environments. Design/methodology/approach ��� This paper proposes a fuzzy-based integer linear programming model, based on the existing literature and validated with an example case. The model integrates the developed fuzzy modification of the analytic hierarchy process (FAHP), and solves the multi-criteria transshipment problem. Findings ��� This paper provides several novel insights about how to transform a company from a cost-based model to a service-dominated model by using an integrated MCDM method. It suggests that the contemporary customer-driven supply chain remains and increases its competitiveness from two aspects: optimizing the cost and providing the best service simultaneously. Research limitations/implications ��� This research used one illustrative industry case to exemplify the developed method. Considering the generalization of the research findings and the complexity of the transshipment service network, more cases across multiple industries are necessary to further enhance the validity of the research output. Practical implications ��� The paper includes implications for the evaluation and selection of transshipment service suppliers, the construction of optimal transshipment network as well as managing the network. Originality/value ��� The major advantages of this generic approach are that both quantitative and qualitative factors under fuzzy environment are considered simultaneously and also the viewpoints of service deliverers and customers are focused. Therefore, it is believed that it is useful and applicable for the transshipment service network design.

A method for solving LSM problems of small size in the AHP

The Analytic Hierarchy Process (AHP) is one of the most popular methods used in Multi-Attribute Decision Making. It provides with ratio-scale measurements of the prioirities of elements on the various leveles of a hierarchy. These priorities are obtained through the pairwise comparisons of elements on one level with reference to each element on the immediate higher level. The Eigenvector Method (EM) and some distance minimizing methods such as the Least Squares Method (LSM), Logarithmic Least Squares Method (LLSM), Weighted Least Squares Method (WLSM) and Chi Squares Method (X2M) are of the tools for computing the priorities of the alternatives. This paper studies a method for generating all the solutions of the LSM problems for 3 �� 3 matrices. We observe non-uniqueness and rank reversals by presenting numerical results.

Solving the Least Squares Method problem in the AHP for 3 X 3 and 4 X 4 matrices

The Analytic Hierarchy Process (AHP) is one of the most popular methods used in Multi-Attribute Decision Making. The Eigenvector Method (EM) and some distance minimizing methods such as the Least Squares Method (LSM) are of the possible tools for computing the priorities of the alternatives. A method for generating all the solutions of the LSM problem for 3 �� 3 and 4 �� 4 matrices is discussed in the paper. Our algorithms are based on the theory of resultants.

Effektiv lagerstyrning med AHP och tv��dimensionell artikelklassificering : En fallstudie p�� Permobil AB, Timr��

Costs related to inventory are usually a significant amount of the company���s total assets. Despite this, companies in general don���t pay a lot of interest in it, even if the benefits from effective inventory are obvious when it comes to less tied up capital, increased customer satisfaction and better working environment. Permobil AB, Timr�� is in an intense period when it comes to revenue and growth. The production unit is aiming for an increased output of 30 % in the next two years. To make this possible the company has to improve their way to distribute and handle material,The purpose of the study is to provide useful information and concrete proposals for action, so that the company can build a strategy for an effective and sustainable solution when it comes to inventory management. Alternative methods for making forecasts are suggested, in order to reach a more nuanced perception of different articles, and how they should be managed. Analytic Hierarchy Process (AHP) was used in order to give specially selected persons the chance to decide criteria for how the article should be valued. The criteria they agreed about were annual volume value, lead time, frequency rate and purchase price. The other method that was proposed was a two-dimensional model where annual volume value and frequency was the criteria that specified in which class an article should be placed. Both methods resulted in significant changes in comparison to the current solution. For the spare part inventory different forecast methods were tested and compared with the current solution. It turned out that the current forecast method performed worse than both moving average and exponential smoothing with trend. The small sample of ten random articles is not big enough to reject the current solution, but still the result is a reason enough, for the company to control the quality of the forecasts.

Una introducci��n al proceso de jerarqu��a anal��tica AHP

El AHP, correspondiente a la sigla en ingl��s de Analytic Hierarchy Process que en espa��ol ser��a Proceso de Jerarqu��a Anal��tica, fue dise��ado en 1980 por el matem��tico norteamericano Thomas Saaty, profesor de la Universidad Pittsburg. La toma de decisiones implica adoptar prioridades; el AHP, en t��rminos generales es un soporte valioso para los tomadores de decisiones, dado que mediante este m��todo se obtienen las jerarqu��as o prioridades ponderadas, tanto de cada participante involucrado como de todo el grupo de trabajo para quienes es de inter��s el problema de estudio.

Functionality of the approach of hierarchical analysis in the full cost accounting in the IRP of a metropolitan airport

This work shows the application of the analytic hierarchy process (AHP) in the full cost accounting (FCA) within the integrated resource planning (IRP) process. For this purpose, a pioneer case was developed and different energy solutions of supply and demand for a metropolitan airport (Congonhas) were considered [Moreira, E.M., 2005. Modelamento energetico para o desenvolvimento limpo de aeroporto metropolitano baseado na filosofia do PIR-O caso da metropole de Sao Paulo. Dissertacao de mestrado, GEPEA/USP]. These solutions were compared and analyzed utilizing the software solution ""Decision Lens"" that implements the AHP. The final part of this work has a classification of resources that can be considered to be the initial target as energy resources, thus facilitating the restraints of the IRP of the airport and setting parameters aiming at sustainable development. (C) 2007 Elsevier Ltd. All rights reserved.

Definition of priority areas for forest conservation through the ordered weighted averaging method

The general objective of this study was to evaluate the ordered weighted averaging (OWA) method, integrated to a geographic information systems (GIS), in the definition of priority areas for forest conservation in a Brazilian river basin, aiming at to increase the regional biodiversity. We demonstrated how one could obtain a range of alternatives by applying OWA, including the one obtained by the weighted linear combination method and, also the use of the analytic hierarchy process (AHP) to structure the decision problem and to assign the importance to each criterion. The criteria considered important to this study were: proximity to forest patches; proximity among forest patches with larger core area; proximity to surface water; distance from roads: distance from urban areas; and vulnerability to erosion. OWA requires two sets of criteria weights: the weights of relative criterion importance and the order weights. Thus, Participatory Technique was used to define the criteria set and the criterion importance (based in AHP). In order to obtain the second set of weights we considered the influence of each criterion, as well as the importance of each one, on this decision-making process. The sensitivity analysis indicated coherence among the criterion importance weights, the order weights, and the solution. According to this analysis, only the proximity to surface water criterion is not important to identify priority areas for forest conservation. Finally, we can highlight that the OWA method is flexible, easy to be implemented and, mainly, it facilitates a better understanding of the alternative land-use suitability patterns. (C) 2008 Elsevier B.V. All rights reserved.

Does management accounting play role in planning process?

This study examines the relationship between management accounting and planning profiles in Brazilian companies. The main goal is to understand the consequences of not including a fully structured management accounting scheme in the planning process. The authors conducted a field research among medium and large-sized companies, using a probabilistic sample from a population of 2281 companies. Using analytic hierarchy process (AHP) and statistical cluster analysis, the authors grouped the entities` strategic budget planning processes into five profiles, after which the authors applied statistical tests to assess the five clusters. The study concludes that poor or fully implemented strategic and budget-planning processes relate to the management accounting profiles of the Brazilian organizations studied. (C) 2009 Elsevier Inc. All rights reserved.

Conceptual model for decomposing the value for the customer

Value has been defined in different theoretical contexts as need, desire, interest, standard /criteria, beliefs, attitudes, and preferences. The creation of value is key to any business, and any business activity is about exchanging some tangible and/or intangible good or service and having its value accepted and rewarded by customers or clients, either inside the enterprise or collaborative network or outside. ���Perhaps surprising then is that firms often do not know how to define value, or how to measure it��� (Anderson and Narus, 1998 cited by [1]). Woodruff echoed that we need ���richer customer value theory��� for providing an ���important tool for locking onto the critical things that managers need to know���. In addition, he emphasized, ���we need customer value theory that delves deeply into customer���s world of product use in their situations��� [2]. In this sense, we proposed and validated a novel ���Conceptual Model for Decomposing the Value for the Customer���. To this end, we were aware that time has a direct impact on customer perceived value, and the suppliers��� and customers��� perceptions change from the pre-purchase to the post-purchase phases, causing some uncertainty and doubts.We wanted to break down value into all its components, as well as every built and used assets (both endogenous and/or exogenous perspectives). This component analysis was then transposed into a mathematical formulation using the Fuzzy Analytic Hierarchy Process (AHP), so that the uncertainty and vagueness of value perceptions could be embedded in this model that relates used and built assets in the tangible and intangible deliverable exchange among the involved parties, with their actual value perceptions.

Utiliza����o de metodologias multicrit��rio de apoio �� decis��o como ferramenta de suporte numa empresa de servi��os energ��ticos

Atualmente e devido ��s conjunturas s��cio econ��micas que as empresas atravessam, �� importante maximizar tanto os recursos materiais como humanos. Essa consci��ncia faz com que cada vez mais as empresas tentem que os seus colaboradores possam desempenhar um papel importante no processo de decis��o. Cada vez mais a diferen��a entre o sucesso e o fracasso depende da estrat��gia que cada empresa opte por envergar. Sendo assim cada atividade desempenhada por um seu colaborador deve estar alinhada com os objetivos estrat��gicos da empresa. O contexto em que a presente tese se insere tem por base uma pesquisa aos v��rios m��todos multicrit��rio existentes, de forma a que o servi��o que seja adjudicado possa ser executado de forma transparente e eficiente, sem nunca descorar a sua otimiza����o. O m��todo de apoio �� decis��o escolhido foi o Analytic Hierarchy Process (AHP). A necessidade de devolver aos decisores/gestores a melhor solu����o resultante da aplica����o de um m��todo de apoio �� decis��o numa empresa de servi��os energ��ticos foi a base para a escolha da tese. Dos resultados obtidos conclui-se que a aplica����o do m��todo AHP foi adequada, conseguindo responder a todos os objetivos inicialmente propostos. Foi tamb��m poss��vel verificar os benef��cios que adv��m da sua aplica����o, que por si s��, ajudaram a perceber que �� necess��rio haver uma maior entreajuda e consenso entre as decis��es a tomar.

An��lise dos modos de falha e seus efeitos (FMEA) aplicada a um secador industrial

Trabalho Final de Mestrado para obten����o do grau de Mestre em Engenharia Mec��nica

Supplier's selection model based on an empirical study

The problem of selecting suppliers/partners is a crucial and important part in the process of decision making for companies that intend to perform competitively in their area of activity. The selection of supplier/partner is a time and resource-consuming task that involves data collection and a careful analysis of the factors that can positively or negatively influence the choice. Nevertheless it is a critical process that affects significantly the operational performance of each company. In this work, there were identified five broad selection criteria: Quality, Financial, Synergies, Cost, and Production System. Within these criteria, it was also included five sub-criteria. After the identification criteria, a survey was elaborated and companies were contacted in order to understand which factors have more weight in their decisions to choose the partners. Interpreted the results and processed the data, it was adopted a model of linear weighting to reflect the importance of each factor. The model has a hierarchical structure and can be applied with the Analytic Hierarchy Process (AHP) method or Value Analysis. The goal of the paper it's to supply a selection reference model that can represent an orientation/pattern for a decision making on the suppliers/partners selection process

Modelo de sele����o de fornecedores baseado em dados reais ��� plataforma inform��tica e dados de suporte ao modelo

Atualmente, as estrat��gias que as empresas optam por seguir para a maximiza����o de recursos materiais e humanos, podem representar a diferen��a entre o sucesso e o fracasso. A sele����o de fornecedores �� um fator bastante cr��tico para o desempenho da empresa compradora, sendo por vezes necess��ria a resolu����o de problemas que apresentam um elevado grau de complexidade. A escolha dos m��todos a ser utilizados e a elei����o dos crit��rios mais relevantes foi feito com base no estudo de diversos autores e nas repostas obtidas a um inqu��rito online difundido por uma amostra de empresas portuguesas, criado especificamente para compreender quais os fatores que mais peso tinham nas decis��es de escolha de parceiros. Al��m disso, os resultados adquiridos desta forma foram utilizados para conceder mais precis��o ��s pondera����es efetuadas na ferramenta de sele����o, na escolha dos melhores fornecedores introduzidos pelos utilizadores da mesma. Muitos estudos liter��rios prop��em o uso de m��todos para simplificar a tarefa de sele����o de fornecedores. Esta disserta����o aplica o estudo realizado nos m��todos de sele����o, nomeadamente o Simple Multi-Attribute Rating Technique (SMART) e Analytic Hierarchy Process (AHP), necess��rios para o desenvolvimento de uma ferramenta de software online que permitia, a qualquer empresa nacional, obter uma classifica����o para os seus fornecedores perante um conjunto de crit��rios e subcrit��rios.