Evaluating Supply Chain Performance Based on Delivery Performance Analysis Chart Approach

On-time delivery is a primary determinant of customer satisfaction in a supply chain. Measuring and improving delivery performance for a supply chain is always desirable to increase competitiveness in the modern business environment. To assess delivery performance of each stage in a supply chain, in this paper, we integrate the process capability index Cpk and Motorola six-sigma quality levels to present a delivery performance analysis chart (DPAC). Based on the plotting points on the DAPC, practitioners can simultaneously visualize some important information such as the delivery accuracy and precision of each stage and provide improvement directions of delivery performance in a supply chain. The proposed methodology is illustrated by an example of an apparel-industry supply chain.

[1]  Subhash C. Singhal.  A NEW CHART FOR ANALYZING MULTIPROCESS PERFORMANCE , 1990 .

[2]  Victor E. Kane,et al.  Process Capability Indices , 1986 .

[3]  Dong Li,et al.  Integrated decision modelling of supply chain efficiency , 1999 .

[4]  F. Chan,et al.  An innovative performance measurement method for supply chain management , 2003 .

[5]  Rakesh Nagi,et al.  Economics of Managerial Neglect in Supply Chain Delivery Performance , 2006 .

[6]  Greg Brue,et al.  Six Sigma For Managers , 2002 .

[7]  A. Gunasekaran,et al.  Performance measures and metrics in a supply chain environment , 2001 .

[8]  Subhash C. Singhal,et al.  Multiprocess Performance Analysis Chart (MPPAC) With Capability Zones , 1991 .

[9]  Madeleine E. Pullman,et al.  AN ANALYSIS OF THE SUPPLIER SELECTION PROCESS , 1998 .

[10]  A. Gunasekaran,et al.  A framework for supply chain performance measurement , 2004 .

[11]  Felix T.S. Chan,et al.  Performance Measurement in a Supply Chain , 2003 .

[12]  G. Clark,et al.  Reference , 2008 .

[13]  William H. Woodall,et al.  Introduction to Statistical Quality Control, Fifth Edition , 2005 .

[14]  Benita M. Beamon,et al.  Measuring supply chain performance , 1999 .

[15]  Wen Lea Pearn,et al.  Production quality and yield assurance for processes with multiple independent characteristics , 2006, Eur. J. Oper. Res..

[16]  Kevin McCormack,et al.  Linking SCOR planning practices to supply chain performance: An exploratory study , 2004 .

[17]  Stephan Vachon,et al.  An exploratory investigation of the effects of supply chain complexity on delivery performance , 2002, IEEE Trans. Engineering Management.

[18]  E. L. Nichols,et al.  Supply Chain Redesign: Transforming Supply Chains into Integrated Value Systems , 2002 .

[19]  Y. Narahari,et al.  Design of six sigma supply chains , 2004, IEEE Transactions on Automation Science and Engineering.