Sustainable supplier selection criteria classification for Indian iron and steel industry: a fuzzy modified Kano model approach

Figures & data

Table 1. Traditional Kano model questionnaire (single and crisp response) vs. Fuzzy Kano model (multiple response).

		Like	Must Be	Neutral	Live with	Dislike
Functional form of question	Traditional Kano model	✓
	Fuzzy Kano model	40%	60%
Dysfunctional form of question	Traditional Kano model				✓
	Fuzzy Kano model			20%	20%	60%

Table 2. Modified Kano evaluation table.

	Dysfunctional form of question
	I like this feature omitted		I need this feature omitted		I am neutral about this feature		I can live with omitting this feature		I dislike omitting this feature
Functional form of question	Traditional Kano table	Type IV Table	Traditional Kano table	Type IV Table	Traditional Kano table	Type IV Table	Traditional Kano table	Type IV Table	Traditional Kano table	Type IV table
I like this feature included	Q	Q	A	A3	A	A2	A	A1	O	O
I need this feature included	R	RA3	I	Q	I	I	I	I	M	Ma
I am neutral about this feature	R	RA2	I	I	I	I	I	I	M	Mb
I can live with including this feature	R	RA1	I	I	I	I	I	Q	M	Mc
I dislike including this feature	R	R0	R	R	R	R	R	R	Q	Q

Figure 1. Modified Kano model Shahin et al. (2013).

Table 3. Economic criteria for sustainable supplier evaluation.

Economic criteria	Supplier’s activity/action expected by industry for the achievement of the criterion	Beneficial/Non-Beneficial
Quality (E1)	The supplier should supply goods of high-quality meeting the quality requirements of the industry.	Beneficial
Delivery (E2)	Suppliers should deliver the right quantity of goods in the shortest possible time.	Non-Beneficial
Performance history (E3)	The supplier should have good past performance history in earlier contracts full filled.	Beneficial
Warranties and claim policies (E4)	The supplier should provide products to the industry with well-defined and valid Warranties and claim policies.	Beneficial
Production facilities (E5)	Suppliers are expected to have a modern production facility to full fill the contract.	Beneficial
Net price (E6)	The supplier should supply the raw material at a most competitive price.	Non-Beneficial
Technical capability (E7)	The supplier should have the ability to acquire modern technologies and technical resources for research and development practices and processes.	Beneficial
Financial position (E8)	The supplier should have a strong financial position and there should not be any interruption in supplies due to bankruptcy.	Beneficial
Procedural Compliance (E9)	The supplier for the industry should have an understanding of the compliance of the industry and should work accordingly.	Beneficial
Communication system (E10)	The supplier should have an open and transparent means of communication-basedon modern means.	Beneficial
Reputation and position in the industry (E11)	Suppliers should have a good reputation and should have good customer feedback, good and reliable business references.	Beneficial
Desire to do business (E12)	suppliers should have a strong and positive desire for business with industry.	Beneficial
Management and organization (E13)	The supplier should have a good understanding with management and should try to have a long-term relationship with industry.	Beneficial
Operating controls (E14)	The supplier should have clear operational Controls for controlling and managing the activities, processes, products, and services associated.	Beneficial
Repair services (E15)	The supplier should provide the repair services for product supplied in shortest possible time.	Beneficial
Attitude (E16)	Suppliers having the positive attitude can have a better and long-term relationship with the industry.	Beneficial
Flexibility (E17)	Suppliers should possess the flexibility to respond to short-term changes in demand and supply situations, external disruptions together with the adaptability in the new environment.	Beneficial
Geographical location (E18)	Suppliers should have a geographical location nearby the industry for fast delivery of the raw materials.	Non-Beneficial
Amount of past business (E19)	Suppliers with a large amount of past business are preferred as industry considers them to have a better reputation.	Beneficial
Training aid (E20)	Suppliers should have modern training aids.	Beneficial
Reciprocal arrangement (E21)	Suppliers should have reciprocal and contingency framework to have un irrupted supply of raw materials.	Beneficial
Reliability (E22)	Industries consider a supplier to be reliable when the supplier demonstrates the ability to meet performance expectations as set up by the industry. Hence reliable suppliers are preferred by industry.	Beneficial
Impression (E23)	Suppliers should have a positive impression on the industry.	Beneficial
Packaging ability (E24)	Suppliers should have good packaging ability while delivering the raw materials.	Beneficial
Professionalism (E25)	The supplier should have the expected level of competence and skill required for the work. The supplier is expected to conduct all the activities in a respectful, reliable and in a consistent manner which will preserve and strengthen the relationship with industry.	Beneficial
Process Improvement (E26)	Suppliers should have the ability to modify the manufacturing process needed in the future.	Beneficial
Product Development (E27)	The supplier should have the capability to contribute in the development of a new product along with the industry.	Beneficial
JIT (Just in Time) (E28)	The supplier should have the ability to work with JIT to reduce waste and inventory cost.	Non-Beneficial
Commitment (E29)	The committed supplier believes in the relationship with the industry and works to ensure that the relationship endures indefinitely hence suppliers should be committed for contract fulfillment.	Beneficial
Integrity (E30)	Suppliers should be honest and should show a high level of ethical behavior in business.	Beneficial
Long-Term Relationship (E31)	Suppliers should work with industry to have a long-term relationship with industry.	Beneficial
Political Situation (E32)	Suppliers should have the least political influence in the contract.	Beneficial

Table 4. Social criteria for sustainable supplier evaluation.

Social criteria	Supplier’s activity/action expected by industry for the achievement of the criterion	Beneficial/Non-Beneficial
Social responsibility (S1)	The extent to which supplier contributes towards the welfare and interest of the society	Beneficial
Ethical issues and legal complaint (S2)	The supplier should do ethical practices and should not be under legal prosecution	Beneficial
Human rights (S3) (Interests and rights of the employee)	The supplier should safeguard the interests and rights of its employees	Beneficial
Rights of stakeholders (S4) (Involvement of stakeholders)	The supplier should provide the moral rights to all its stakeholders.	Beneficial
Health and safety of employees (S5) (Health and safety) (Commitment to health and safety of employees)	The supplier should ensure safe working conditions and provide medical and health facilities	Beneficial
Information disclosure (S6)	Suppliers should have an open disclosure policy regarding the raw materials, emissions, and hazardous material management for its stakeholders.	Beneficial
Respect for the policy (S7)	The supplier should abide by the laws laid down by the government and should respect the policies	Beneficial
Employment practices (S8)	Suppliers should not discriminate between employees on the basis of caste, gender, sex, race, color, national origin or disability.	Beneficial
Local community influence (S9)	The supplier should look after the health, education, service infrastructure, mobility infrastructure, housing, regulatory and public services, supporting educational institutions, cultural properties of the society.	Beneficial
Stakeholders influence (S10) (stakeholder relations)	The supplier at his end should have a procurement standard, consumer’s education, decision influence potential, stakeholder empowerment and stakeholder engagement.	Beneficial
Enterprise Resource Planning (ERP) system (S11)	Availability of ERP system at the supplier’s side which can enhance business performance, and helps in adhering to regulatory compliance.	Beneficial
Human resource capability (S12)	Skills (human, conceptual and managerial) enhancement practices through training and education activities carried out by suppliers for its human resource.	Beneficial
Child and bonded labor (S13)	Suppliers should not employ children for employment or practice bonded labor	Non-Beneficial
Wages (S14)	Suppliers payment of wages should be in accordance with the nature of the job and according to policies of the government	Beneficial
Society (S15)	Philanthropic activities took up by suppliers	Beneficial
Regulatory responsibility (S16)	Suppliers compliance to follow local regulatory laws	Beneficial
Annual number of accidents (S17)	The supplier should provide safe working conditions and should aim for zero accidents.	Non-Beneficial

Table 5. Environmental criteria for sustainable supplier evaluation.

Environmental criteria	Supplier’s activity/Action expected by industry for the achievement of the criterion	Beneficial/ Non-Beneficial
Green Image (EN1) (Green corporate social image)	Efforts and activities took up by suppliers to reduce environmental impacts of operational processes,	Beneficial
Eco-design (EN2) (Green design)	Suppliers ability to supply a product which has maximum utilization of sustainable materials	Beneficial
Environmental management system (EMS) (EN3) (Environmental responsibility) (Environment adaptability) (Environmental competencies) (Environmental code of conduct) (Environmental control certification)	Extent of adherence to environmental policies and environmental certification like ISO: 14000	Beneficial
End-of-pipe (EN4)	Product/recovery initiatives by a supplier to collect them at the end of economic or useful life.	Beneficial
Pollution control (EN5) (Pollution production) (Pollution Prevention)	Initiatives taken up by suppliers for controlling of pollution and prevention of contamination of air, water, and soil.	Beneficial
Resource consumption, (EN6)	The extent of resource used by the supplier for producing the product such as raw materials, etc.	Non-Beneficial
Greenhouse emission (EN7) (Greenhouse effect)	The ability of the supplier to control and prevent the generation of greenhouse gases.	Non-Beneficial
Green Packing and Labelling (EN8)	Efforts showed by suppliers to produce a green product and environmentally friendly packing	Beneficial
Green warehousing (EN9)	Activities of the suppliers to cut down the costs and warehousing of materials based on carbon footprints.	Beneficial
Green technology (EN10) (Green R&D) (Green manufacturing) (Green process planning)	The capability of suppliers to use green technology to minimize the impact on natural resources	Beneficial
Green transportation (EN11) (Green logistics)	Supplier’s transportation means should have minimum environmental pollution contribution during contract fulfillment.	Beneficial
Energy management system (EN12) (Energy consumption)	Supplier’s initiatives for reducing energy consumption and the ability to adopt energy efficient methods.	Beneficial
Hazardous material management (EN13) (Harmful chemical) (Waste Material management) (Waste Production) (Solid waste management)	Availability of framework at suppliers ends for management (usage, collection, treatment, and disposal) of hazardous waste.	Beneficial
Recycling/Reuse/Remanufacture (EN14)	Ability of the supplier to rebuild the product with the use of reused and repaired parts.	Beneficial
Noise EN15)	The ability of the supplier to minimize the noise produced during the operational process	Non-Beneficial
Carbon footprint tax (EN16)	Financial penalty imposed over suppliers for emissions of each ton of GHG emitted	Non-Beneficial
Environmental training (EN17)	Training facility and practices carried out by suppliers for awareness of environmental conservation among employees.	Beneficial

Figure 2. Flow chart of the proposed work.

Table 6. Details of decision makers.

Decision maker	Department	Experience in years	Designation
Decision maker 1	Materials management	13	Senior manager
Decision maker 2	Materials management	21	Deputy general manager
Decision maker 3	Materials management	17	Assistant general manager
Decision maker 4	Materials management	9	Manager
Decision maker 5	Materials management	17	Assistant general manager
Decision maker 6	Finance	13	Senior manager
Decision maker 7	Stores management	17	Assistant general manager
Decision maker 8	Quality control	9	Manager

Table 7. Total level of the quality attribute for decision makers.

Decision makers	M	O	A	I	R	Q
DM 1	0.540	0.360	0.040	0.060	0.000	0.000
DM 2	0.680	0.170	0.030	0.120	0.000	0.000
DM 3	0.585	0.450	0.050	0.065	0.000	0.000
DM 4	0.640	0.160	0.040	0.160	0.000	0.000
DM 5	0.525	0.023	0.075	0.175	0.000	0.000
DM 6	0.488	0.263	0.088	0.163	0.000	0.000
DM 7	0.420	0.280	0.120	0.180	0.000	0.000
DM 8	0.455	0.245	0.105	0.195	0.000	0.000

Table 8. Classification of common consensus of decision-makers for the quality criterion for threshold value of 0.3.

Decision makers	M	O	A	I	R	Q
DM 1	1	1	0	0	0	0
DM 2	1	0	0	0	0	0
DM 3	1	0	0	0	0	0
DM 4	1	0	0	0	0	0
DM 5	1	0	0	0	0	0
DM 6	1	0	0	0	0	0
DM 7	1	0	0	0	0	0
DM 8	1	0	0	0	0	0
Frequency	8	1	0	0	0	0

Table 9. Classification of sustainability criteria into Kano categories.

Kano categories
	Must be	One dimensional	Attractive	Indifferent
Economic criteria	Quality Delivery Production facilities Net Price Technical capability Repair services	Performance history Financial Position Communication system Reputation and position in the industry Flexibility Geographical location Reliability Process improvement	Warranties and claim policies Amount of past business Training Aid Reciprocal arrangement Packaging ability Product development JIT Long term relationship Political situation	Procedural compliance Desire to do business Management and organization Operating controls Attitude Impression Commitment Integrity professionalism
Environmental criteria	Eco-design Environmental management system Pollution control Green technology Energy management system Hazardous material management	Green image Resource consumption Greenhouse emissions Green packing and labelling Recycling/Reuse/Remanufacture	End of pipe Green warehousing Green transportation Carbon footprint tax Environmental training	Noise
Social criteria	Social responsibility Human rights Rights of stakeholders. Health and safety of employees Employment practices Stakeholder influence	Information disclosure Respect for the policy Ethical issues and legal complaints Local community influence Enterprise resource planning system Child and bonded labour Regulatory responsibility Annual number of accidents.	Human resource capability Wages Society

Table 10. Subcategorised sustainability criteria.

Kano categories
	Must be			Attractive criteria
	Less must be (Ma)	Must be (Mb)	High Must be (Mc)	Less attractive (A1)	Attractive (A2)	Highly attractive (A3)
Economic criteria	Production facilities Repair services	Net Price Technical capability	Quality Delivery	Training Aid Political situation	Warranties and claim policies Amount of past business Long term relationship	Product development JIT Reciprocal arrangement Packaging ability
Environmental criteria	Hazardous material management	Eco-design Pollution control Green technology	Environmental management system Energy management system	End of pipe Environmental training	Green warehousing	Carbon footprint tax Green transportation
Social criteria	Employment practices	Stakeholder influence Health and safety of employees	Social responsibility Rights of stakeholders. Human rights	Society	Wages	Human resource capability

Shahin, A., M. Pourhamidi, J. Antony, and S. H. Park. 2013. “Typology of Kano Models: A Critical Review of Literature and Proposition of A Revised Model.” International Journal of Quality and Reliability Management 30 (3): 341–358. doi:10.1108/02656711311299863.

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