Developing an information system to integrate a manufacturing firm and its supplier base

A manufacturing firm is encouraging their suppliers to achieve the goal of zero-defects. However, due to the high expectations set by the manufacturing firm, the suppliers are finding it quite challenging to be able to immediately react to the quality requirements of the manufacturing firm. The manufacturing firm wants to ensure that the suppliers take the necessary actions to eliminate the reoccurrence of specific non-conformities. This thesis illustrates the application of an information system that integrates the manufacturing firm with their supplier base. The information system is developed based on the framework of Failure Modes and Effects Analysis (FMEA). It utilizes the concept of Grey theory and Defective Opportunities per Part (DOPP) to rank the non-conformities based on the priorities of the manufacturing firm. This will align the supplier’s response to the requirement of the manufacturing firm. The information system will not only provide transparency in the flow of information between the manufacturing firm and its suppliers but will also ensure that the manufacturing firm will be able to easily monitor the effectiveness of supplier’s action. A future worth cost analysis demonstrates the benefit of employing the new approach.