Literature review of key performance indicators for Supplier Quality Management in Automotive Electronics Industry

Quality management in the electronic field is critical to ensuring that electronic products are manufactured to meet the needs and expectations of customers. It involves a set of practices and procedures designed to ensure that products meet defined quality standards and are produced consistently, with minimal defects. The goal of this paper is to find the most sufficient key performance indicators (KPIs) in the supply chain management system in automotive industry. As a starting point towards achieving the goal has been made some literature review of the specific area, especially for the selection criteria of electronic components in automotive industry. The defined key performance indicators in the Automotive Standard International Automotive Task Force (IATF) 16949 have been accounted, and KPIs used in worldwide electronics manufacturing company for automotive and household industry during the supplier evaluation process, have been included in this research as well. Two approaches – 1) “Weight to Correlation” in order to identified the most important KPIs separately from the reviewed literature, IATF Standard and the manufacturing company and 2) Principal Component Analysis (PCA) for the all criteria of KPIs pyramid of suppliers selection and evaluation process have been applied and resulted into a finally set of KPIs. This final set will be validated as the most sufficient indicators for prediction of riskiness of new and already approved vendors for automotive industry in our future work.