An integrated contract manufacturer selection and product quality optimization methodology for the mechanical manufacturing industry

Abstract

Outsourcing is a crucial strategy of the mechanical manufacturing industry. When outsourcing, it is necessary for companies to carefully inspect the performance of contract manufacturers (CMs) to ensure high-quality products and satisfactory services. This study presents an integrated methodology for the quality performance assessment and optimization of products with multiple quality characteristics for CM selection in the mechanical manufacturing industry. First, we present a novel process capability analysis chart (PCAC) using the 100(1–α)% upper confidence limits of Cpmh, Cpuh, and Cplh to gauge the process capabilities of products with multiple quality characteristics and reduce the influence of sampling errors. Second, we apply Pareto optimality to reexamine eligible CMs under the objectives of maximizing performance in individual quality characteristics and minimizing variance in overall performance. A feedback mechanism is included to advise ineligible CMs on means of improvement. Finally, we present a case study to demonstrate the feasibility and effectiveness of the proposed methodology.