To construct a monitoring mechanism of production loss by using Fuzzy Delphi method and fuzzy regression technique – A case study of IC package testing company
Introduction
The development of information technology and internet over the years has been a series of challenge-intense global competitions as markets become keener than ever. Think global but decide local has become the basis for decision making in business management with expectations running high regarding the use of digital-information. This has had tremendous impact on business, requiring management to design performance management systems that monitor performance efficiently and provide data consolidation and integration, especially when the data was generated from diversity systems, e.g. Enterprise Resource Planning (ERP), Supply Chain Management (SCM), and Manufacturing Execution System (MES).
Our goal was to efficiently monitor business operations; provide useful managerial information; highlight undesired symptoms in business operation; then design KPIs (more useful than inspecting all Performance Indicators (PIs)). To complete the above tasks, we first focused on finding out important issues facing enterprise. This was done by the distribution of surveys to the top management level of different departments, to collect and correlate their observations to define the most concerning production problems. Secondly, we constructed the relationships between KPIs through the application of data mining techniques and a regression model was defined.
The remainder of this paper is organized as follows; Section 2 presents the related studies with regard to this research; Section 3 presents the proposed architecture for constructing a monitoring mechanism of production loss; Section 4 illustrates a case study of a semiconductor assembly and testing through a company in Taiwan; Section 5 offers the summary and conclusions of this paper.
Section snippets
Literature review
Performance measurement is a management system which enables organizations to operate effectively and efficiently. The Balanced Scorecard (BSC) developed by Kaplan and Norton (1996) can help an organization to evaluate performance and to reach long-term success. PIs can provide personnel performance appraisal standards, supply criteria for evaluation of human source development, identify valid interventions and define new organizational goals. All PIs should have some kind of linkages, i.e.
The framework of fuzzy regression based monitoring mechanism
Based on the previous discussion, this paper proposed a framework to construct an efficient management mechanism for enterprise that has an implemented ERP system. Enterprise demands multiple objectives be met, by applying Fuzzy Delphi Method and LSP, an experts’ questionnaire was used to extract the critical symptoms that exist in production. Lin, Lai, and Wu (2004) developed an E-solution selection model for small-and-medium enterprise. The goal of this selection strategy is achieved through
A case study of a semiconductor assembly and testing company
In this paper, a semiconductor assembly and testing company was used to demonstrate the effectiveness of the proposed fuzzy regression model. Fourteen surveys were performed and the values of Cronbach’s α of the previous three dimensions (i.e. order processing and management, production control and management, vendor and material management) and KPIs are shown in Table 3. The summarized Cronbach’s α value shows that the questionnaires offer high reliability.
For example, after assessing the
Discussion and conclusions
In the face of global competition in the supply chain, performance management enables enterprise to control efficiently and effectively, so that decision makers can take corrective actions promptly. Instead of the time consuming task of inspecting each performance indicator, performance management allows decision makers to highlight the problems in business operations and identify their corresponding key performance indicators. When an electronic environment has been introduced to the internal
Acknowledgements
The authors acknowledge the financial support from the Minghsin University of Science and Technology, Taiwan, ROC, with the Project No. MUST-95-IEM-11 and MUST-96-IEM-08.
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