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The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
Keywords: Supply chain, performance measurement, qualitative measures, quality, and fuzzy logic controller
1. INTRODUCTION
2. LITRATURE REVIEW
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
measurement is establishing a performance measurement
system (PMS). Tangen (2003) declared that PMS has
some characteristics which are classified in:
1)
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
Table 1. Quality performance Measure in SCM (Chan, 2003; Aramyan et al., 2007)
Factor
Definition
Customer Complaints
Lead Time
The time required once the product began its manufacture until the item it is
completely processed.
On Time Delivery
Fill Rate
Accuracy
3. METHODOLOGY
Quality performance measurement of SCM for Malaysian
rubber glove manufacturers was done in five steps.
Following the process of methodology will be described.
First step in the methodology was choosing the criteria and
modification of them for performance measurement
purpose which was explained in previous section. The next
step was designing the questionnaire for gathering true
required information from Malaysian rubber glove
industry. The information was used to construct the
proposed framework of performance measurement in
SCM. The answers contain the most interesting criteria
which were used as input variable of the framework. The
researcher assumed that the management would like to
evaluate the performance of the criteria in terms of the
criteria. Moreover, the questionnaire was designed in a
way that it would help the researcher to define the correct
membership function and fuzzy rules based on the range
of answers. Therefore, role of the questionnaire in the
research is to obtain the robust data of the Malaysian
rubber glove industries which can be applied in the
proposed FLC.
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
cover four types of membership function. Figure 1 shows
the membership functions for mentioned factors.
done for better decision making for each output state and
easy understanding for find out the relationships between
the factors. In the last step of the methodology, the fuzzy
logic toolbox of MATLAB was applied to entering the
membership functions and fuzzy rules. Furthermore, the
software helped to show the result and analyze the output
performance in rubber glove companies. The following
section shows the result of the research and discuss about
the output analysis in the quality performance
measurement in SCM.
Quality
Performance
Output
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
Table 2. Actual Test Case Data
Case Number
Accuracy
Customer
Complaints
Lead
Time
Fill Rate
Case A
Case B
90
95
10
7
2
1
50
60
The company received on average 10 complaints of thecustomer per month and would response to the orders
within 10 days averagely. By the way, the production may
last two days on average. The supply 50 percent orders
from their orders. The framework would measure their
performance as 76.9 from 100. Company B delivered 90
percent of products to the customer accurately and
received seven complaints from the customer in a month
on average. Company B produces one unit of product in a
one day. In addition to, company B, for fulfill the demands
from customer used 60 percent from the stock for
fulfillment immediately. Moreover, company B has 12
days between receiving and order until delivery through
the customer and finally 92 percent of orders delivered to
the customers on time. According to the mentioned
companies performance measurement, this note is
understandable that some criteria is more sensible in
comparison with other criteria. For example, accuracy and
customer complaints are more sensitive compare to fill rat
and customer response time because when the company
cannot provide ordered products accurately, it cause to the
dissatisfaction and reduce output performance. Mentioned
problem may not always cause to the complaints because
customers prefer to change the company and provide the
requirement from the competitors. Figure 3 and Figure 4
show two states of analysis between criteria which are
provided by means of software and illustrates the effect of
interaction between the criteria. The framework have some
advantages such as ability to implementing in any situation
and also is a better approach compare to other approach
such as Multi Criteria Decision Making (MCDM) models,
linear and integer programming. The weakness of the
MCDM models is their flexibility in changing the
qualitative terms into the linguistic variables in contrast of
FLC and also about integer and linear programming the
weakness are constraints in this approach equally weighted
and they have significant problems in considering
qualitative factors. The main disadvantage of the FLC
approach is decreasing the accuracy between the rules
when the numbers of rules increase. However, number of
criteria should
Customer
Response
Time
10
12
On-Time
Delivery
Output
Performance
90
92
76.9
83.4
5. CONCLUSION
Performance measurement of SCM has an important role
to determine the goals and achieving performances.
Hence, companies strive to control the activities by means
of mentioned tool. Performances metrics in SCM can be
The 11th Asia Pacific Industrial Engineering and Management Systems Conference
The 14th Asia Pacific Regional Meeting of International Foundation for Production Research
Melaka, 7 10 December 2010
REFERENCES
Aramyan, L.H., Oude Lansink, A.G.J.M., Van der
Vorst, J.G.A.J. and Van Kooten, O. (2007). Performance
measurement in agri-food supply chains: a case study.
Supply Chain Management: An International Journal,
12(4), 304-315.
Beamon, B.M., (1999), Measuring Supply Chain
Performance, International Journal of Operations and
Production Management, 19(3), 275-292.