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Cost-Effectiveness Based Performance Evaluation for Suppliers and Operations

Cost-Effectiveness Based Performance Evaluation for Suppliers and Operations

Publication:
Quality Management Journal
Date:
October 2002
Issue:
Volume 9 Issue 4
Pages:
pp. 59-73
Author(s):
Chen, Chee-Cheng, Yang, Ching-Chow
Organization(s):
Chung-Yuan Christian University

Abstract

[This abstract is based on the authors' abstract.]
A method is proposed for evaluating cost-effectiveness in suppliers' and manufacturers' performance. Movement of materials between supplier, manufacturer, and customer at three stages is studied, and various events that undermine quality are considered, to arrive at a total involved quality cost (TIQC). TIQC is an important factor in the supplier performance evaluation system, which optimizes supplier selection and improves overall operational quality.

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