Fuzzy Supplier Selection Method Based on Smaller-The-Better Quality Characteristic

Many important parts of tool machines all have the important smaller-the-better (STB) quality characteristics. The important STB quality characteristics will impact on the quality of the end-product. At the same time, supplier quality influences the quality and functionality of the end-product, so suppliers must be selected with caution. The six sigma quality index for the STB quality characteristics can directly reflect process quality levels. Besides, this index possesses a mathematical relationship with process yield. Nevertheless, the point estimation will cause the risk of misjudgment, due to sampling errors. As a result, this study applies the confidence interval of the index to a two-tailed fuzzy testing method, in order to select appropriate suppliers. Now that this method is on the basis of the confidence interval, the possibility of misjudgment caused by sampling errors will be reduced, while the precision of the selection will be enhanced. The method can help companies increase product quality, as well as the competitiveness of the industry chain as a whole. Finally, a numerical example is presented to show how to approach this method and its efficacy.