UNIVERSITY OF REGINA FACULTY OF ENGINEERING W I S E LAB Process of Supplier Selection for New Product Development Diego A. Carrera Dr. Rene V. Mayorga.

UNIVERSITY OF REGINAUNIVERSITY OF REGINAFACULTY OF ENGINEERINGFACULTY OF ENGINEERING

W I S E LABW I S E LAB

Process of Supplier Selection for Process of Supplier Selection for New Product DevelopmentNew Product Development

Diego A. CarreraDiego A. CarreraDr. Rene V. MayorgaDr. Rene V. Mayorga

20032003

The system was constructed in three macro groups:

1. One connected with all the information concerned with the firm, to obtain the strategic option which meet the project characteristics.

2. The other related to the making decision problem showing the actual performance of the suppliers.

3. The third one analyzes the project details and supplier offers.

Fuzzy Inference System

First Group – Supplier Characteristics

INPUTS

Technological Level: refers to plants, equipments and machinery available.

Economical Situation: evaluation of economic-financial risk factors.

Production Capacity: is the evaluation of the provider potential to produce the part at the required volume.

Market Share: refers to the market share at the moment of the project development.

OUTPUT

Strategic Option.

First Group – Fuzzy System Characteristics

TypeType MamdaniMamdani

Number of Inputs Number of Inputs 44

Number of OutputsNumber of Outputs 11

Number of RulesNumber of Rules 2222

Defuzzification Defuzzification MethodMethod

mommom

First Group – Inputs

First Group – Output

Strategic Option

First Group – Rules

Second Group – Supplier Performance

INPUTS

Quality Level: it refers to the consistency of the supplier to deliver high-quality products.

Delivery Rate: evaluate if the products arrive on time, to the correct location, in the proper quantity and with the correct information.

Cost Reduction: evaluate the cost reduction objectivesaccomplishment.

OUTPUT

Supplier Performance.

Second Group – Fuzzy System Characteristics

TypeType MamdaniMamdani

Number of Inputs Number of Inputs 33

Number of OutputsNumber of Outputs 11

Number of RulesNumber of Rules 3535

Defuzzification Defuzzification MethodMethod

mommom

Second Group – Inputs

Second Group – Output

Performance

Second Group – Rules

Third Group – Supplier Quotation

INPUTS

Part Quotation: refers to the price quoted by the supplier.

Investment Cost: it is the initial investment the firm has to incur if it decides to go on with the project.

Project Time: is the evaluation of the time needed since the purchase order placement until the first part is produced.

OUTPUT

Percentage of provision.

Third Group – Fuzzy System Characteristics

TypeType MamdaniMamdani

Number of Inputs Number of Inputs 33

Number of OutputsNumber of Outputs 11

Number of RulesNumber of Rules 1111

Defuzzification Defuzzification MethodMethod

mommom

Third Group – Inputs

Third Group – Output

Percentage of Provision

Third Group – Rules

INPUTS OUTPUTS

Technological Level

Economical Situation Strategic Option

Production Capacity

Market Share

Quality Level

Delivery Rate Supplier Performance Final Decision

Cost Reduction

Part Quotation

Investment Cost Percentage of Provision

Project Time

Cha

ract

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tics

Per

form

ance

Cha

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tics

Fuzzy Inference System

Final Decision

INPUTS

Strategic Option.

Percentage of Provision.

Performance.

OUTPUT

Final Decision.

Final Decision – Fuzzy System Characteristics

TypeType MamdaniMamdani

Number of Inputs Number of Inputs 33

Number of OutputsNumber of Outputs 11

Number of RulesNumber of Rules 1616

Defuzzification Defuzzification MethodMethod

mommom

Final Decision – Inputs

Final Decision – Output

Final Decision – Rules

Interface

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