Improvement of Automotive Part Supplier Performance Evaluation

Abstract

This research investigates the problem of the part supplier performance evaluation in a major Japanese automotive plant in Thailand. Its current evaluation scheme is based on experiences and self-opinion of the evaluators. As a result, many poor performance suppliers are still considered as good suppliers and allow to supply parts to the plant without further improvement obligation. To alleviate this problem, the brainstorming session among stakeholders and evaluators are formally conducted. The result of which is the appropriate evaluation criteria and sub-criteria. The analytical hierarchy process is also used to find suitable weights for each criteria and sub-criteria. The results show that a newly developed evaluation method is significantly better than the previous one in segregating between good and poor suppliers.