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Process Capability And Price Evaluation Chart For A Pharmaceutical Company

Year 2015, Volume 3, Issue 1, 2015, 51 - 57, 27.04.2015
https://doi.org/10.17093/aj.2015.3.1.5000114455

Abstract

Supplier selection is a critical decision process in a company. Since, gaining a competitive advantage is a great challenge in today’s economy; firms need a well-managed supply chain to compete in these circumstances. Supply chain is an integrated system in which individual companies perform interdependent activities. Therefore, the success of a supply chain is highly dependent on establishing a longer-term working relationship among members of the supply chain community. Supplier selection process is a multi-criteria problem which includes different attributes such as quality, delivery, price, supply variety, distance etc. In our study, we consider two major criteria price and quality together with using incapability index Cpp and price advantage chart in order to evaluate supplier performance. In this paper a case study of the pharmaceutical industry is illustrated. The results obtained in this study show that capability and price advantage chart is useful to the practitioners in choosing the best supplier.

References

  • Bowersox, D. J., Closs, D. J. & Cooper, B. M. (2002). Supply Chain Logistics Management, McGraw-Hill, New York.
  • Chan, L.K., Chen, S.W. & Spring, F.A. (1988). A new measure of process capability: Cpm, Journal of Quality Technology, Vol. 20, 162-175.
  • Che, Z.H. & Wang, H.S. (2008) Supplier selection and supply quantity allocation of common and non-common parts with multiple criteria under multiple products, Computers & Industrial Engineering, Vol. 55, 110–133.
  • Chen, K.L., Chen, K.S.& Li, R.K. (2005). Suppliers capability and price analysis chart, International Journal of Production Economics, Vol. 98, 315-327.
  • Chen, K. S., Chen, K. L. & Li, R. K. (2005). Contract manufacturer selection by using the process incapability index Cpp, The International Journal of Advanced Manufacturing Technology, Vol. 26, 686-692.
  • Chen, K.S. a& Chen, K.L. (2006). Supplier selection by testing the process incapability index, International Journal of Production Research, Vol.44, 589-600.
  • Chen K. S., Huang M. L. & Hung Y. H. (2008). Process capability analysis chart with the application of Cpm”, International Journal of Production Research, Vol. 46, 4483-4499.
  • Greenwich, M. & Jahr-Schaffrath, B. (1995). A process incapability index, International Journal of Quality& Reliability Management, Vol.12, 58-71.
  • Gonzalez, Marvin E., Quesada, G. & Mora Monge Carlo A. (2004). Determining the importance of the supplier selection process in manufacturing: a case study, International Journal of Physical Distribution & Logistics Management, Vol.34, 492-504.
  • Huang, D. Y. & Lee, R. F. (1995). Selecting the largest capability index from several quality control processes, Journal of Statistical Planning and Inference, Vol. 46, pp. 335–346.
  • Hui-ming, Z. (2007 September). Supplier selection using process capability and price information chart, In Wireless Communications, Networking and Mobile Computing, 2007, WiCom 2007, International Conference on IEEE, 4855-4858.
  • Juran, Joseph M. & Blaclick, OH. (1998). Quality in supplier selections, McGraw-Hill Professional, USA.
  • Kahraman, C. & Kaya, İ. (2009). Fuzzy process capability indices for quality control of irrigation water, Stochastic Environmental Research and Risk Assessment, Vol. 23, 451-462.
  • Linn R.J., Tsung F. & Ellis L.W.C. (2006). Supplier Selection Based on Process Capability and Price Analysis, Quality Engineering, Vol. 18, 123-129.
  • Pearn, W.L. & Chen, K.S. (1997). Multiprocess performance analysis: a case study, Quality Engineering, Vol. 1, 1-8.
  • Pearn, W.L. & Lin, G.H. (2001). On the reliability of the estimated incapability index, Quality and Reliability Engineering International, Vol. 17, 279-290.
  • Ramanathan, R. (2007). Supplier selection problem: integrating DEA with the approaches of total cost of ownership and AHP, Supply Chain Management: an International Journal, Vol. 12, 258-261.

BİR İLAÇ FİRMASI İÇİN SÜREÇ YETENEK ANALİZİ VE FİYAT DEĞERLENDİRME GRAFİĞİ

Year 2015, Volume 3, Issue 1, 2015, 51 - 57, 27.04.2015
https://doi.org/10.17093/aj.2015.3.1.5000114455

Abstract

Tedarikçi seçimi,  firmalardaki kritik karar verme süreçlerinden biridir. Günümüzün ekonomik şartlarında rekabet avantajı elde etmek firmalar için oldukça zorlu bir süreç olduğundan, firmaların bu şartlarda başarılı olabilmeleri için iyi yönetilmiş bir tedarik zincirine ihtiyaçları vardır. Tedarik zinciri, içerisinde birden fazla bağımsız firmanın birbirinden bağımsız birçok aktiviteyi gerçekleştirdiği bütünleşik bir yapıdır. Bu nedenle, bir tedarik zincirinin başarılı bir şekilde yönetilmesi tedarik zincirini oluşturan firmalar arasında uzun süreli ve başarılı bir ilişki kurulması ile doğrudan ilişkilidir. Tedarikçi seçim süreci kalite, teslimat, fiyat, ürün çeşitliliği, uzaklık vb. birbirinden farklı birçok kriteri içeren çok kriterli bir karar verme problemidir. Bu çalışmada, tedarikçi performanslarını değerlendirmek için, süreç yetenek indeksi Cpp ve fiyat avantaj grafiği kullanılarak en temel iki kriter olan fiyat ve kalite kriterleri ele alınmıştır. Çalışmanın uygulama bölümünde geliştirilmiş olan model bir ilaç firmasının tedarikçi seçim sürecinde uygulanmıştır. Uygulamada elde edilen sonuçlar göstermiştir ki, süreç yetenek analizi ve fiyat değerlendirme grafiği karar vericiler tarafından tedarikçi seçim süreçlerinde kullanılabilecek basit ve etkili bir araçtır

References

  • Bowersox, D. J., Closs, D. J. & Cooper, B. M. (2002). Supply Chain Logistics Management, McGraw-Hill, New York.
  • Chan, L.K., Chen, S.W. & Spring, F.A. (1988). A new measure of process capability: Cpm, Journal of Quality Technology, Vol. 20, 162-175.
  • Che, Z.H. & Wang, H.S. (2008) Supplier selection and supply quantity allocation of common and non-common parts with multiple criteria under multiple products, Computers & Industrial Engineering, Vol. 55, 110–133.
  • Chen, K.L., Chen, K.S.& Li, R.K. (2005). Suppliers capability and price analysis chart, International Journal of Production Economics, Vol. 98, 315-327.
  • Chen, K. S., Chen, K. L. & Li, R. K. (2005). Contract manufacturer selection by using the process incapability index Cpp, The International Journal of Advanced Manufacturing Technology, Vol. 26, 686-692.
  • Chen, K.S. a& Chen, K.L. (2006). Supplier selection by testing the process incapability index, International Journal of Production Research, Vol.44, 589-600.
  • Chen K. S., Huang M. L. & Hung Y. H. (2008). Process capability analysis chart with the application of Cpm”, International Journal of Production Research, Vol. 46, 4483-4499.
  • Greenwich, M. & Jahr-Schaffrath, B. (1995). A process incapability index, International Journal of Quality& Reliability Management, Vol.12, 58-71.
  • Gonzalez, Marvin E., Quesada, G. & Mora Monge Carlo A. (2004). Determining the importance of the supplier selection process in manufacturing: a case study, International Journal of Physical Distribution & Logistics Management, Vol.34, 492-504.
  • Huang, D. Y. & Lee, R. F. (1995). Selecting the largest capability index from several quality control processes, Journal of Statistical Planning and Inference, Vol. 46, pp. 335–346.
  • Hui-ming, Z. (2007 September). Supplier selection using process capability and price information chart, In Wireless Communications, Networking and Mobile Computing, 2007, WiCom 2007, International Conference on IEEE, 4855-4858.
  • Juran, Joseph M. & Blaclick, OH. (1998). Quality in supplier selections, McGraw-Hill Professional, USA.
  • Kahraman, C. & Kaya, İ. (2009). Fuzzy process capability indices for quality control of irrigation water, Stochastic Environmental Research and Risk Assessment, Vol. 23, 451-462.
  • Linn R.J., Tsung F. & Ellis L.W.C. (2006). Supplier Selection Based on Process Capability and Price Analysis, Quality Engineering, Vol. 18, 123-129.
  • Pearn, W.L. & Chen, K.S. (1997). Multiprocess performance analysis: a case study, Quality Engineering, Vol. 1, 1-8.
  • Pearn, W.L. & Lin, G.H. (2001). On the reliability of the estimated incapability index, Quality and Reliability Engineering International, Vol. 17, 279-290.
  • Ramanathan, R. (2007). Supplier selection problem: integrating DEA with the approaches of total cost of ownership and AHP, Supply Chain Management: an International Journal, Vol. 12, 258-261.
There are 17 citations in total.

Details

Primary Language English
Journal Section Articles
Authors

Sündüz Dağ

Nihan Kabadayı

Publication Date April 27, 2015
Submission Date April 27, 2015
Published in Issue Year 2015 Volume 3, Issue 1, 2015

Cite

APA Dağ, S., & Kabadayı, N. (2015). Process Capability And Price Evaluation Chart For A Pharmaceutical Company. Alphanumeric Journal, 3(1), 51-57. https://doi.org/10.17093/aj.2015.3.1.5000114455

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