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A performance evaluation matrix (PEM) is an evaluation tool for assessing customer satisfaction and the importance of service items across various services. In addition, inferences based on point estimates of sample data can increase the risk of misjudgment due to sampling errors. Thus, this paper creates a decision-making model for a performance evaluation matrix based on upper confidence limits to provide various service operating systems for performance evaluation and decision making. The concept is that through the gap between customer satisfaction and the level of importance of each service item, we are able to identify critical-to-quality (CTQ) service items requiring improvement. Many studies have indicated that customer satisfaction and the importance of service items follow a beta distribution, and based on the two parameters of this distribution, the proposed indices for customer satisfaction and the importance of service items represent standardization. The vertical axis of a PEM represents the importance index; the horizontal axis represents the satisfaction index. Since these two indices have unknown parameters, this paper uses the upper confidence limit of the satisfaction index to find out the CTQ service items and the upper confidence limit of the importance index to determine the order of improvement priority for each service item. This paper then establishes a decision-making model for a PEM based on the above-mentioned decision-making rules. Since all decision-making rules proposed in this paper are established through upper confidence limits, the risk of misjudgment caused by sampling errors can be reduced. Finally, this article uses a practical example to illustrate how to use a PEM to find CTQ service items and determine the order of improvement priority for these service items that need to be improved. [ABSTRACT FROM AUTHOR]

Industry 4.0 has fostered innovation in industries around the world. Manufacturing industries in particular are advancing towards smart manufacturing by integrating and applying relevant technologies. The output value of machine tools in Taiwan is among the top of the world and the central region is a key area for this industry chain, which supplies manufacturers in Taiwan and their international downstream customers. To support innovation in this industry, the current study used the Six Sigma quality indices for smaller-the-better, larger-the-better, and nominal-the-best quality characteristics to construct a fuzzy decision-making model. Based on this model, we propose a process quality fuzzy analysis chart (PQFAC) for process quality improvement. Our use of fuzzy decision values to replace lower confidence limits decreases the probability of misjudgment made by sampling errors. The proposed fuzzy model also offers a more accurate assessment of process improvement requirements. We provide a real-world example to demonstrate the applicability of the proposed approach. Machine tool manufacturers can apply the platform and proposed model to evaluate their process capabilities for the vital parts suppliers and downstream customers, determine optimal machine parameter settings for processes with inadequate accuracy or precision, establish more suitable machine repair and maintenance systems, and combine the improvement experiences of customers to create an improvement knowledge base. This will enhance product value and industry competitiveness for the entire machine tool industry chain. [ABSTRACT FROM AUTHOR]