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Evaluating and selecting key performance indicators: An ANP-based model
Abstract
Purpose
– Selecting the most meaningful performance indicators, i.e. key performance indicators (KPIs), represents one of the major challenges that companies have to face for developing an effective performance measurement system (PMS). Selecting KPIs can be interpreted as a multiple criteria decision‐making (MCDM) problem, involving a number of factors and related interdependencies. The purpose of this paper is to propose a model, based on the analytic network process (ANP), for driving managers in the selection of KIPs. The model draws upon the consideration that KPIs can be evaluated and selected on the basis of a set of criteria, theoretically founded, and the feedback dependencies between the criteria and performance indicators as well as among indicators.
Design/methodology/approach
– Based on a review of management literature regarding the information quality required by performance measures, the paper identifies a set of criteria for selecting KIPs. The criteria form the building blocks of the proposed ANP model. The feasibility of the model is proved through its application to a real case.
Findings
– The paper proposes and illustrates the practical application of an ANP‐based model for selecting KPIs. The use of the ANP makes it possible to extracts weights for setting the priorities among indicators, by taking account of mutual dependencies among indicators and criteria. This enhances the quality of the selection process.
Originality/value
– Often managers choose KPIs without an accurate approach. The paper offers a novel model for driving managers towards the choice of KPIs through a rigorous approach, based on the ANP method. The model draws on a solid theoretical foundation and has been proven in practice.
... The initial set of identified KPIs is often rather large. To end up with a manageable set, it is necessary to select KPIs from the pool of identified KPIs that are the most relevant to the considered business model [33,34]. Whether a KPI is suitable for an organization's specific business model may depend on certain selection criteria, such as relevance, measurability, and measurement costs [34]. ...
... To end up with a manageable set, it is necessary to select KPIs from the pool of identified KPIs that are the most relevant to the considered business model [33,34]. Whether a KPI is suitable for an organization's specific business model may depend on certain selection criteria, such as relevance, measurability, and measurement costs [34]. Accordingly: ...
... First, the criteria for selecting the KPIs need to be considered. We recommend using existing KPI selection criteria from the literature (e.g., [34]). To determine the relative importance of each criterion, we use the pairwise comparison technique [47]. ...
To make informed business model decisions, organizations measure the Key Performance Indicators (KPIs) most relevant to the success of their business models. However, in today’s dynamic and networked environment, organizations face challenges in defining KPIs that fully capture the unique aspects of their business models. The existing literature offers limited support for defining KPIs relevant to business models. To address this research gap, in this paper, we propose a method to support the definition of business model KPIs. We follow the design science research methodology to develop the method and demonstrate its use in a collaborative business case in the automotive domain. This study contributes to business model research by providing a novel method for defining KPIs as a core part of business model performance management. From a practical perspective, it provides organizations with a systematic approach to identifying, selecting, and operationalizing KPIs for their business models.
... Often managers select KPIs without accurate understanding of the shop floor operations. Selecting right KPIs from the literature can be inferred as a complex decision making process also termed as Multi Criteria Decision Making (MCDM) problem because it involves numerous factors and associated interdependencies [17], [18]. Undeniably, it is observed that a set (finite) of KPIs can be estimated and carefully chosen by means of predetermined conditions [18], [19]. ...
... Selecting right KPIs from the literature can be inferred as a complex decision making process also termed as Multi Criteria Decision Making (MCDM) problem because it involves numerous factors and associated interdependencies [17], [18]. Undeniably, it is observed that a set (finite) of KPIs can be estimated and carefully chosen by means of predetermined conditions [18], [19]. ...
... Reliability: it deals with the quality of KPIs assuring that it is equitably free from inaccuracies and truly indicates its purpose. Similarly, other criteria like consistency, understandability, comparability, predictive, quantifiable, traceable, inexpensive and verifiability are critical when selecting and measuring optimal KPIs [18], [26]- [28]. The manufacturing shop floor holistic approach is carefully developed considering all of the above mentioned measurement features. ...
... Selection activities that have high standards will have a positive effect on performance government employees. Xenikou and Simosi (2006), Carlucci (2010) and Guo et al. (2014) reported that selection is significantly correlated with employee performance. In other words, in this study the selection variable measured by indicators is a measurement tool that should really be used as a standard system. ...
... These agencies more often use non-standardized instruments making it difficult to explore in depth the capabilities of prospective employees in a comprehensive manner. The national personnel agency prioritizes the hierarchy by using a representative system (officials) from each of the relevant institutions without considering the ability of the selection team members so that it becomes biased in producing employees who are highly qualified (Carlucci, 2010). ...
... Generally, the performance measurement process begins by defining the key performance indicators according to the nature of the organizational activity, whether it is commercial, service, or non-profit (Ishaq Bhatti et al., 2014;Singh et al., 2019). According to Carlucci (2010), key performance indicators include five main characteristics: accountability, assimilation, timely, relevant, and consistent. Accountability means that key performance indicators should be connected with the manager or team responsible for the test result. ...
... Relevant means that key performance indicators should promote strategic organizational objectives. Finally, consistent means that key performance indicators should not interfere with any other measure of success (Carlucci, 2010 The contemporary view of safety explains that organizations must be able to proactively assess and manage the safety of their activities (Sarkheil, 2021). Various safety indicators significantly provide information on current organizational safety performance (Donnelly, 2022). ...
Performance management helps organizations to ensure that they are on the right path. Thus, this requires increasing the ability of organizations to understand their own key indicators to manage and measure their performance. The purpose of this study is to determine the key performance indicators used in Saudi Arabian tele-communication companies. Moreover, it examines whether these indicators impact the overall performance of Saudi Arabian telecommunication companies. This study adopted a quantitative method based on a survey questionnaire. Participants were reached through human resources officers in the telecommunication companies. Questionnaires were distributed to 247 employees at middle and top management levels in Saudi Arabian telecommunication companies using a convenience sampling technique. However, 212 responses were returned completely filled with a response rate of 85.8%. This study used statistical software of SPSS and SmartPLS for data analysis. The results revealed that customer satisfaction, delivery reliability , learning and growth, employee satisfaction, cost, financial performance, flexibility , and quality are the key indicators used in Saudi Arabian telecommunica-tion companies to measure performance. The results also revealed that customer satisfaction, delivery reliability, learning and growth, employee satisfaction, cost, financial performance, flexibility, and quality have an impact on the overall performance of Saudi Arabian telecommunication companies. These indicators can be used to determine the state of organizations, help measure the implementation of strategies, evaluate the organization's current performance, design strategies for improvement, and evaluate organization's departments and employees.
... This section presents the most widely accepted GSCM practices (i.e., published papers within the literature). All aspects of the supporting literature are summarized and presented in Table 2. [38,[99][100][101][102][103][104] MCDM Applications in GSCM [38,91,[105][106][107][108][109][110][111][112][113] Justifications for the Selected Methods [106,[114][115][116][117][118][119][120][121][122] ...
... The ANP, in particular, is a best fit tool that can discover, handle, and quantify such relationships [114,115]. This point has also been discussed and validated in many ANP-based research works [116][117][118]. RQ2 aims to evaluate eight different GSCM practices with respect to the five criteria (i.e., the five Vs). ...
This paper presents a strategic roadmap to handle the issue of resource allocation among the green supply chain management (GSCM) practices. This complex issue for supply chain stakeholders highlights the need for the application of supply chain finance (SCF). This paper proposes the five Vs of big data (value, volume, velocity, variety, and veracity) as a platform for determining the role of GSCM practices in improving SCF implementation. The fuzzy analytic network process (ANP) was employed to prioritize the five Vs by their roles in SCF. The fuzzy technique for order preference by similarity to ideal solution (TOPSIS) was then applied to evaluate GSCM practices on the basis of the five Vs. In addition, interpretive structural modeling (ISM) was used to visualize the optimum implementation of the GSCM practices. The outcome is a hybrid self-assessment model that measures the environmental maturity of SCF by the coherent application of three multicriteria decision-making techniques. The development of the Basic Readiness Index (BRI), Relative Readiness Index (RRI), and Strategic Matrix Tool (SMT) creates the potential for further improvements through the integration of the RRI scores and ISM results. This hybrid model presents a practical tool for decision-makers.
... Other scholars recommend the application of differently formulated criteria for selection of performance indicators, yet the basic sense of the majority of them matches to a large extent with the SMART criteria. For example, a review by Carlucci (2010), suggests that elements should be characterized by the following features: relevance, reliability, comparability and consistency, understand-ability and representational quality [20]. ...
... Other scholars recommend the application of differently formulated criteria for selection of performance indicators, yet the basic sense of the majority of them matches to a large extent with the SMART criteria. For example, a review by Carlucci (2010), suggests that elements should be characterized by the following features: relevance, reliability, comparability and consistency, understand-ability and representational quality [20]. ...
Despite very intense research, lots of efforts are focused on discovering what safety culture really is and what key elements make up a safety culture. However, there still remains very little consensus with regard to selection of most of the elements and no definitive set of elements exists. This paper aims to develop a conceptual model of selecting the key elements of safety culture and to demonstrate the application of the Analytical Hierarchy Process (AHP) for the selection of key elements for safety culture. The concept of safety culture, review on elements of safety culture, methods of elements selection and AHP are discussed in the second part. Method for selection of elements from literature based criteria of a safety culture and method of AHP-based decision model is discussed in the third part. An AHP-based decision-making matrix for a set of SMART (Specific, Measurable, Achievable, Relevant and Time-bound) criteria analysis of the key elements is presented at the end of the paper.
... They need information about the different destinations, services or experiences from people like them with the same interests and they want to share their professional experiences with the others. Moreover, travelers trust on the others feedback and reviews more than the travel agent itself (Carson, 2014). That reflects the importance of social media for both the user and business. ...
... Based on the above definition, key performance indicators explain and show how the organization performs according to the organization's strategic goals and objectives, or in the broadest sense, KPIs provide the information that achieves the goals and to be sure that the organization is on track (Marr,2010). The measurement process is a complicated process and needs a lot of time and efforts to quantify all the corporation aspects (Carlucci, 2010). USA International Development (USAID) (2010) determines seven key criteria for the selection of key performance indicators; direct, objective, useful, practical, attributable, adequate, and disaggregated. ...
... Numerous studies have been conducted for determining relevant KPIs for organizations [3,4,14,15,28]. In these studies, relevant KPIs are either defined from scratch or selected from a set of KPIs (e.g., a KPI library) for each organization. Moreover, in these studies, the identified reasons that make certain KPIs relevant for one organization are not usually reusable at determining the KPIs for another. ...
... Therefore, that KPI subset selection process needs to be repeated for many organizations. To deal with that, Analytic Network Process (ANP) is utilized [3,14,17,28]. In particular, certain characteristics of KPIs such as reliability, comparability, and understandability are taken into account to determine the priorities of a set of existing KPIs in organizations. ...
Organizations utilize Key Performance Indicators (KPIs) to monitor whether they attain their goals. For this, software vendors offer predefined KPIs in their enterprise software. However, the predefined KPIs will not be relevant for all organizations due to the varying needs of them. Therefore, software vendors spend significant efforts on offering relevant KPIs. That relevance determination process is time-consuming and costly. We show that the relevance of KPIs may be tied to the specific properties of organizations, e.g., domain and size. In this context, we present our novel approach for the automated prediction of which KPIs are relevant for organizations. We implemented our approach and evaluated its prediction quality in an industrial setting.
... Finding and monitoring key performance indicators (KPIs) is one of PMS's main characteristics (Ante et al., 2018;Cruz Villazón et al., 2020). These metrics-financial health, operational effectiveness, customer satisfaction, loyalty, and staff productivity, among others-serve as quantifiable measures of organizational performance (Franceschini et al., 2007;Carlucci, 2010;Ghimire & Karki, 2022). Organizations may make data-driven choices by defining and tracking key performance indicators (KPIs), which provide them with insights into their opportunities, risks, weaknesses, and strengths (Parmenter, 2015). ...
This study presents a thematic review of the Direction of Business Performance Metrics through a bibliometric analysis framework to map the multidimensionality of research in this vital area. Sourcing data from the Dimensions database spanning from 1965 to 2024, the study utilizes the VosViewer tool for visualization and analysis. Its approach includes co-authorship analysis, citation analysis, and bibliographic coupling, offering a multifaceted view of the field's research dynamics. It identified significant trends, influential studies, and core themes that have indicated a notable shift toward integrating sustainability and technological advancements in performance metrics. By emphasizing the significance of Key Performance Indicators (KPIs), the study provides crucial insights into the historical evolution of research and emerging areas of interest, guiding directions for future investigation. This study serves as a crucial resource for scholars, practitioners, and policymakers seeking to deepen their understanding of business performance metrics and their impact on organizational success.
... There are also examples that suggest different methodologies to identify the relevant energy-related KPIs in the energy management for manufacturing industries [54] and in the energy efficiency management for the sustainability for hotel buildings. In addition, multi-criteria decision-making methods have been used in KPI identification in many studies such as [55][56][57][58]. These methodologies may be sufficient in some cases, but the results may be biased as the expert opinions are always somewhat subjective. ...
... In relation to ANP applications in PMS projects, Carlucci (2010) proposed a model, based on the ANP method, to guide managers in the selection of KPIs in the manufacturing process in a sofa company. The model was applied to assess the importance of the existing performance indicators and to prioritize a set of indicators capable of providing adequate information to guide and evaluate management decisions and actions. ...
The development of a Performance Measurement System (PMS) in an organization is essential in order to adequately monitor operations and enable correct and timely decision-making. However, many organizations implement PMSs and are not successful, mainly because they neglect the design phase, which informs what has to be measured. Designing a PMS is a complex decision problem that involves multiple stakeholders. The objective of this research is to identify and prioritize the commercial performance indicators most valued by the stakeholders in this area in a company in the metal-mechanical segment. The research was divided into two stages, the first being a PO Soft (constructivist) approach: Value Focused Thinking - VFT, to identify performance indicators; and, in the second stage, the application of the PO Hard (Rationalist) Multicriteria Decision Support Method: Analytic Network Process - ANP, for modeling and prioritizing these. As a result, 30 performance indicators were identified, the most important ones being: percentage of target achievement, sales to new customers and percentage of growth for each customer. The results found proved to be capable of assisting the definition of strategy and business management in addition to the identification of indicators not monitored by the organization.
... However, the study did not examine KPIs in real estate practice. Carlucci (2010) undertook an in-depth study of management literature so as to identify appropriate criteria that will assist managers in developing appropriate performance measures for the organization. Making the point that KPIs might be reviewed and chosen based on a theoretically established assessment criteria, and also the feedback relationships of both the criteria and performance measures, the author developed a methodology for guiding managers in the determination of KIPs built on the analytic network process (ANP). ...
The paper evaluated key indicators adopted by practitioners to drive the performance of real estate consulting firms of estate surveying and valuation in Lagos, Nigeria. Using probabilistic sampling technique, the study empirically found that, to achieve effective performance, estate firms considered annual revenue and return on investment crucial to their operations (financial indicators). The study also found that the non-financial indicators that were key to performance in the real estate business included improved standards, workplace satisfaction, and prompt payments for executed jobs; clients’ satisfaction, referrals, and revenue increase. Established and aspiring real estate professionals will find the study beneficial in defining performance strategies for their respective firms. In other words, this study will assist real estate practitioners in determining where they should focus their efforts in order to prosper in business today and through the next decade. The study was an exploratory evaluation of the use of KPIs as a major driver of performance in the business of estate surveying and valuation.
... However, the study did not examine KPIs in real estate practice. Carlucci (2010) undertook an in-depth study of management literature so as to identify appropriate criteria that will assist managers in developing appropriate performance measures for the organization. Making the point that KPIs might be reviewed and chosen based on a theoretically established assessment criteria, and also the feedback relationships of both the criteria and performance measures, the author developed a methodology for guiding managers in the determination of KIPs built on the analytic network process (ANP). ...
... Therefore, an effective CSCM can influence positively hospitals (Toba et al., 2008). Choosing significant performance indicators, are important to have an effective framework with a clear definition of performance evaluation (Carlucci, 2010). Managers are following appropriate procedures to evaluate the processes and identify improvement opportunities (Supeekit et al., 2016). ...
This study presents a multi-layer fuzzy-based decision-making approach to enhance the hospital Circular Supply Chain (CSC) performance by focusing on intensive care units (ICU) via key performance indicators analysis. In this regard, a Systematic Literature Review (SLR) and Institution Fuzzy Delphi (IFD) are employed to extract the relevant and prominent KPIs. After, a hybrid Fuzzy Cognitive Mapping (FCM) and Fuzzy Decision Making Trial and Evaluation Laboratory (FDEMATEL) have been applied to illustrate a conceptual framework for the CSC performance management of the healthcare sector in the emerging economy of Iran. As a result, eight critical indicators emanated from the SLR-IFD approach. Furthermore, sixteen relationships amongst the performance indicators were identified via hybrid FCM-FDEMATEL. Inventory availability, information availability, innovation, and technology were selected as the most influential indicators. Besides, changing the information technology category, including information availability and Innovation and technology, had the most impact on the performance of the entire CSC. This study attempts to evaluate hospitals’ circular supply chain performance, by designing the circular evaluation framework. Hospital managers can use the results of this research to improve their internal circular supply chain performances in the intensive care units by understanding the different scenarios.
... There are also examples that suggest different methodologies to identify the relevant energy-related KPIs in the energy management for manufacturing industries [54] and in the energy efficiency management for the sustainability for hotel buildings. In addition, multi-criteria decision-making methods have been used in KPI identification in many studies such as [55][56][57][58]. These methodologies may be sufficient in some cases, but the results may be biased as the expert opinions are always somewhat subjective. ...
The EU has several directives aiming toward carbon neutrality and is attempting to promote and encourage individual electricity consumers to participate in this endeavor. The key idea behind consumer awakening and activation is to push consumers to become aware of their electricity consumption behavior. The purpose of this paper was to examine the current consumption behavior of Finnish electricity consumers and their intention to support the goals of carbon neutrality through energy efficient consumption. The aim was to reveal how far the consumption behavior of people was from the intention to tackle climate change. To reach this goal, a qualitative research method was applied to evaluate the consumer awareness and intentions. A consumer survey was conducted to enable standardized and consistent data collection. The research utilized a key performance indicator (KPI) approach to evaluate the results: the social KPIs connected with qualitative values provide a comprehensive approach. According to the results, the awareness of consumers of their consumption behavior was not very high, and some data needs can be identified. In addition, clear intentions can be detected among the residents to support the environment and to save energy. However, the consumers did not seem to be aware of the available data and existing services that could help them to improve their energy efficiency. Therefore, more motivation and communication is still required to affect the electricity consumption behavior.
... Finally, scores or weights are assigned to each indicator and sub-indicators. To enhance the selection of the quality KPIs Daniela (2010) developed the model which based on the analytic network process. The model considered weights and dependencies in setting priorities among the key criteria and indicators. ...
The study identified the key performance indicators used to measure compliance in public procurement and its measurement approach. It further examined the efficiency of the indicators to measure procurement compliance. The study adopted an exploratory sequential mixed method. The qualitative data were first collected and then analysis was performed. The results of qualitative data were used to plan for the collection of quantitative data. The qualitative data were collected using the documentary review while the quantitative data were collected using surveys. The structural equation modelling and content analysis were used to analyse quantitative and qualitative data. The study revealed that compliance in public procurement is assessed by using seven performance indicators and 92 sub-indicators. The key performance indicators are measured on a ratio scale. Using the confirmatory factor analysis, the study confirms that the key performance indicators are efficient to measure public procurement compliance.
... Stoilova and Kunchev [25] used the DEMATEL method to analyze the importance of and the relationship between the criteria for assessing intermodal transport. A number of other models have been used to assess and compare key elements of logistics processes [26][27][28][29][30]. ...
Optimization of logistics processes and activities in the function of supply-chain sustainability is a great challenge for logistics companies. It is necessary to rationalize processes in accordance with the strict requirements of the market, while respecting aspects of sustainability, which is not an easy task. Multicriteria decision making can be a tool that contributes to the optimization of logistics processes in terms of making the right decisions and evaluating different strategies in different logistics subsystems. In this paper, we considered the warehousing system as one of the most important logistics subsystems in a company. Conditions and the possibility of implementing barcode technology in order to optimize warehousing processes were evaluated. We formed a strengths, weaknesses, opportunities, and threats (SWOT) matrix consisting of a total of 27 elements. In order to determine the weights of all factors at the first level of decision making and its indicators at the second level of the decision making hierarchy, an original model was developed. This model involved the creation of a novel grey full-consistency method (FUCOM-G) and integration with a SWOT analysis. Since it was a matter of group decision making, we developed a novel grey Hamy aggregator that, by adequately treating uncertainties and ambiguities, contributed to making more precise decisions. The original grey FUCOM-SWOT model based on the grey Hamy aggregator represents a contribution to the entire field of decision making and optimization of logistics processes. Based on the applied model, the obtained results showed that Weaknesses, as part of the SWOT matrix, are currently the most dominant indicators, and that the implementation of barcode technology in a warehousing system is justified.
... An acceptable performance measure is first filtered based on different characteristics such as being quantitatively measurable (Meier et al., 2013), efficient in measuring the degree of reaching the organization target, can be used to compare actual to expected values (Kaganski et al., 2014), and reflect the true performance either success or failure. It represents the repeatability and reproducibility of the measuring system (Rusaneanu, 2014), and have to be easy to understand by different users (Carlucci, 2010). ...
Small and medium-sized enterprises (SMEs) are facing barriers to grow due to the lack of structured procedures for upgrading and allocating the limited resources. To overcome these drawbacks and to improve business capabilities, a structured framework to conduct a comprehensive diagnostic and upgrading study is presented in this paper. The proposed framework involves four phases. First, the external and internal strategic factors, which can affect the enterprises' performance are evaluated using strategic planning and assessment tools. Second, key upgrade performance indicators are developed and evaluated using multi-attribute rating techniques to guide, evaluate, and track progress of upgrading process. Third, a set of upgrade strategies are generated and evaluated using resource allocation model. Finally, a periodic re-evaluation plan is introduced to monitor the implementation progress. The developed framework for performance evaluation and upgrading is suitable to be used as a structured know-how procedure in manufacturing enterprises and can support entrepreneurs in their strategic decisions. To validate the proposed framework, a data set was collected from a local housecore company. As a result, one package of the efficient frontier strategies that represents the best use of resources was proposed for implementation.
... It is essential for organizations to identify groups of indicators (Aleksander and Armand, 2013;Allaoui and Choudhary, 2015;Amzat, 2017;Carlucci, 2010;Chae, 2009;Chan and Chan, 2004;Wolniak, and Skotnicka-Zasadzień, 2014;Wolniak et al., 2019;Gajdzik and Wolniak, 2021;Stecuła, 2018): ...
... In the scientific literature, different [30]. However, one of the most famous sets of criteria to select indicators in the field of management performance is SMART (specific, measurable, achievable, relevant, and time-bound) as mentioned previously by Kjellen (2009), Rockwell (1959), and Carlucci (2010) [31][32][33]. ...
Background:
Health and safety performance measurements aimed to provide information on the progress and current situation of organizational strategies and activities.
Objectives:
We developed a model to determine and select safety key performance indicators in order to assess safety management systems.
Methods:
This study has been designed in six steps aiming at defining a model of leading performance indicators (LPIs) and selecting key performance indicators (KPIs) using the AHP method.
Results:
According to the results analysis, 116 structural and operational indicators were defined based on the components of the OHSAS 18001 management system. For this purpose, 19 structural, 27 operational and 33 active KPIs were selected by AHP and BN techniques.
Conclusion:
Development of LPIs is influenced by various organizational, managerial, and operational factors. LPIs extracted from the components of the OHS-MS deployed in an organization are often passive and cannot show the changes in the safety status of a workplace in a short period. The model presented in this study was designed with an emphasis on extraction of active and operational indicators, as they were capable of detecting performance changes in construction industries.
... The model provided a total cost distribution for project budget boundaries. Carlucci (2010) developed a decision support tool by combining of SCOR and ANP techniques to determine the key performance indicators in order to measure companies' supply chain performance. The research highlighted that the determination of the key performance indicators was one of the most complex multiple-criteria decision making problem. ...
Supply chain management covers suppliers, manufacturers, distributors, and retailers linked by financial and information frameworks that require analysis, monitoring, and improvement of the performance regularly. This study presents a hybrid model of strategical and operational metrics to support managers through a clear and risk-free decision making process based on performance. Four methods which are Analytic Network Process (ANP), Technique for Order Preference by Similarity to Ideal Solution (TOPSIS) and Decision-Making Trial and Evaluation Laboratory (DEMATEL) are proposed as an integrated approach. All performance metrics are taken from the latest version of Supply Chain Operations Reference (SCOR) model for standardisation. A real-world construction management example is applied as case study and results of application show that the proposed model is superior to the traditional models in terms of its improved decision quality. Cash Cycle Time, Return on Working Capital and Perfect Order Fulfilment were the most important performance metrics.
... Previous literature has mainly focused on manufacturing industries when providing the empirics of supply chain integration, particularly the study of performance metrics (e.g., Chow, Heaver, & Henriksson, 1994;Esper, Defee, & Mentzer, 2010;Andersen, Henriksen, & Aarseth, 2006;Carlucci, 2010;Chae, 2009). One of the few examples adopting other sample industries is Hong et el (2010) who investigate the supply chain integration and the practices for manufacturers as well the distributors and other services providers. ...
Purpose The purpose of the study is to propose a consolidated and comprehensive operational level framework of performance metrics to facilitate the supply chain integration in the service industry. Design/methodology/approach In order to do so, we rely on a systematic review procedure to delineate and thus integrate the measures into factors. This paper draws upon prior work done on performance measure in supply chain integration. Findings These measures will then be assigned by incorporating industrial practice to various factors that we believe are relevant to the measure of performance in the integrated supply chain system in the service industry. Research limitations/implications The manuscript is a conceptual paper so there is a need to test the generalizability of the framework in the broader service industry by conducting empirical study. Practical implications This analysis will enable the identification of the problems that surround outcome assessment within and across single supply chains and extend existing knowledge in the end-to-end supply chain performance measurement in the service industry. Further this analysis should provide some vital insights as to how service organizations can improve their performance evaluation systems to become more effective in supply chains. Originality/value This study aims to not only identify the gaps present in the service supply chain performance measurement at the operational level but tries to fill the knowledge gap to suggest operational level performance metrics in facilitating the supply chain integration in the service industry.
... Saaty and Vargas (2006) suggest using the Super Decisions software to perform comparisons and algebraic calculations, referring to the matrix of judgments between related nodes and clusters that present interrelated elements. Carlucci (2010) used the ANP to select key performance indicators in a case study at a sofa maker. The model assessed the importance of the existing performance indicators in the manufacturing process and prioritized a set of indicators to provide adequate information with which to evaluate and make decisions. ...
Several Performance Measurement Systems (PMS) are referred to in the literature, but there is little mention of the design stage in the construction of a PMS. The purpose of this paper is to design a performance measurement system capable of assisting management and continuously improving the production process of a manufacturer of food production equipment and maintenance service provider headquartered in the state of São Paulo. It is based on the method proposed by Piratelli (2010) called The Performance Prism (TPP) framework. It has two phases, and the first is based on the Strategic Options Development and Analysis (SODA) methodology; the second uses the Analytic Network Process (ANP), a Multiple Criteria Decision Making (MCDM) method. Nine performance indicators were created to meet the needs presented by the stakeholders: the directors, quality coordinator, and production manager, given the faces of The Performance Prism. The construction of a PMS allowed the company being studied to draw up strategy and management plans for the production process. The proposed method was shown to be effective when applied.
... According to literature analysis, performance measurement is useful when it corresponds to the external and internal environment of the organization. On the other hand, efficiency and effectiveness of performance measurement depends on organizations ability to apply theoretical method into practices, ability to incorporate information to decision making process, ability to improve and change processes according to changing external conditions and internal potential of organization (Kloviene, 2013;Fukushima & Peirce, 2011;Mathur et al., 2011;Carlucci, 2010). According to different authors (Bourne et al., 2003;Tung et al., 2011;Bititci et al., 2012) could be stated that performance measurement system is understood as a multidimensional set of performance measures, methods used for planning, measuring, controlling, and improving business performance (decision making). ...
To manage and cope with significant, radical changes of business processes and activities in the context of Industry 4, it is necessary for organizations to have a rapid reactive ability. This requirement may be fulfilled by performance measurement system (PMS) which should be aligned with and could reflect the current digitalization and innovative trends. According to this PMS should be developed due to changes in technology, business environment and organizational processes. But the main uncertainty here is to understand what are the main changes and development trends of PMS needed in the context of Industry 4?To solve this problem, the research presents how PMS can be developed facing industrial revolution using qualitative research method - case study with multiple sources of evidence from semi-structured interviews and documents analysis. According to research results a comprehensive framework for changes in PMS due to the alterations of Industry 4 was developed. Case study results show that technological developments and digitalization processes lead to a more intensive use of predictive methods in planning processes as well as faster control and decision making processes. The main contribution of this paper is to highlight the scientific literature of performance measurement by providing a comprehensive view of developments in PMS in the context of Industry 4. From a practical perspective, the study provides specific practical insights in order to support the reaction processes within organization.
... Some global assessment methods use subjective weights to calculate subsystem weights, such as the AHAS-Analytic Hierarchy Process (Saaty 2013), ARAS-Additive Ratio Assessment (Zavadskas et al. 2010) and ANP-Analytic Network Process (Carlucci 2010), among others. These methods present certain drawbacks, such as a non-standardized rating system and results that may be inconsistent with actual data due to subjective weights. ...
Environmental sanitation is one of the main causing factors of water use conflicts at the Rio Grande Basin, Brazil. The precariousness of sanitation conditions in the area degrades water resources and affects the health and quality of life of the local population, as well as regional economic development. In this context, this study aims to assess the environmental sanitation sustainability condition in two Rio Grande Basin (BHRG) water management units. An evaluation index system grouped into three subsystems (economic, social and environmental) was applied to this end, carried out for the years of 2008, 2010, 2012 and 2014. The indicator and subsystem weights were based on the Entropy Information concept. The empirical results of this study indicated unacceptable environmental sanitation sustainability conditions for both assessed water management units. This study, thus, demonstrates the impacts of economic development and environmental quality on the human subsystem. In addition, it provides theoretical implications and practical approaches for assessing sanitation conditions under the sustainable development scenario, and may assist in planning actions and decision-making processes to meet the goals of Objective for Sustainable Development 6 stipulated for 2030 by the United Nations.
By integrated management system (IMS) based on integrated main indicators (IMI), the quality of health, safety and environmental management specifically for chemical industries was well increased. This study aimed to evaluate and compare integrated and efficient indicators in two chemical industries in Iran by health, safety, and environment (HSE) management system (MS). The integrated indicators were divided into HSE domains in the form of a questionnaire by proposed method and the weight of each of them was calculated from 101 features in the field. A list of criteria, sub-criteria, and integrated indicators was first prepared for assessing the performance of the HSE-MS system, and Delphi was finalised with the help of experts, and then the results were weighed by ANP and DEMATEL methods for two companies. Finally, 101 integrated and efficient indicators were extracted for performance evaluation to demonstrate the application of the DEMATEL, ANP method to select effective indicators in measuring HSE-MS performance in two chemical industries. In this study, the mean scores per weight of HSE indicators for chemical industries A and B increased from 2.38 to 2.79 and 1.84 to 2.056 in the beginning of 2017 up to the end of 2018. The mean score of HSE indicators for companies A and B were archived (2.65 and 2.93) and (1.95 and 2.16), respectively, in the spring/winter of 2017 and 2018. So, HSE-MS and IMS help chemical industries to improve HSE and management systems to achieve high-quality industry in different options, especially in human sources. Although in this study all trends of HSE indicator had a moderate phase with positive rate from spring 2017 up to winter 2018 for two companies A and B but company B moved slowly as compared to company A.
The management of municipal solid waste (MSW) in cities is one of the most complex tasks facing local administrations. For this reason, waste management performance measurement structures are increasingly implemented at local and national levels. These performance structures usually contain strategic objectives and associated action plans, as well as key performance indicators (KPIs) for organizations investing their resources in action plans. This study presents the results of applying a methodology to find a quantitative-based prioritization of MSW action plans for the City Council of Castelló de la Plana in Spain. In doing so, cause-effect relationships between the KPIs have been identified by applying the principal component analysis technique, and from these relationships it was possible to identify those action plans which should be addressed first to manage public services more efficiently. This study can be useful as a tool for local administrations when addressing the actions included in their local waste plans as it can lead to financial savings.
Due to the increasing relevance and importance of sustainable development pursuit, it can be assumed that organizations are striving to develop in a green direction. This is not only related to raising awareness of modern society but also to legal regulation and strategic documents for achieving the goals of sustainable development at the international level, especially affecting certain fields of activity such as energy or manufacturing. It is noticed that there is still a lack of definition in the scientific literature of what kind of organization is considered green. Therefore, it is appropriate to create a green organization benchmark against which organizations can assess their current level of greenness and identify areas for improvement. This research aimed to choose the most suitable approach for developing a green organization benchmark by examining the methods for evaluating an organization’s performance in terms of greenness according to defined attributes. Applying the methods of systematic and comparative analysis of scientific literature and strategic documents, content analysis, grouping, and synthesis, it was determined that the approach of resources of an organization can be considered the most suitable for creating a green organization benchmark. However, it is reasonable to supplement it with an evaluation of external environmental factors.
RESUMO: A ergonomia está relacionada à proteção da saúde dos trabalhadores involucrando os domínios físico, cognitivo e organizacional atingindo uma abordagem sistêmica em todos os aspectos da atividade humana. No mesmo sentido das atividades do Sistema de Gestão de Segurança e Saúde Ocupacional (SGSST). Essas atividades de prevenção precisam ser avaliadas para verificar sua eficácia e consequentemente estabelecer estratégias confiáveis de melhoria. Consequentemente, a avaliação de desempenho é considerada essencial no avanço do sistema e seus indicadores devem mensurar as particularidades dos riscos no contexto da empresa permitindo definir os planos de ação. Por tanto, caracterizar o tipo de avaliação e os indicadores de desempenho foi o objetivo deste artigo. Na pesquisa utilizou-se o ProKnow-C, realizando a análise sistêmica que identificou e explorou as características dos métodos aplicados. Foi verificado que 11 artigos utilizaram indicadores individuais ou isolados para medir o desempenho, 14 aplicaram um conjunto de indicadores. Os sistemas de avaliação aplicados consideram-se genéricos, por não se ajustar às particularidades da organização. Identificou-se uma lacuna de pesquisa em relação aos indicadores usados para avaliar o SGSST, por ser genéricos podem não oferecer informação precisa da situação do SGSST, isso pode levar a erros na definição de estratégias de melhoria. Igualmente, há ausência de estruturas para definir indicadores de desempenho ajustados às características da organização. Além disso, é necessário definir procedimentos de monitoramento para os indicadores, permitindo responder de forma eficaz ao controle dos riscos ocupacionais e contribuir na melhoria contínua da organização. A ergonomia busca adaptar o trabalho ao ser humano, abrangendo não apenas as atividades realizadas com máquinas e equipamentos utilizados para transformar os materiais. Além disso, toda a relação entre a pessoa e a atividade produtiva. Isso envolve, além do ambiente físico, aspectos cognitivos e organizacionais. Portanto, para alcançar os resultados desejados do trabalho, tanto nas atividades de planejamento e projeto quanto nas de controle e avaliação devem incluir a ergonomia com seus domínios físico, cognitivo e organizacional de forma a se obter um sistema de gestão completo (Iida & Buarque, 2016). Obter áreas de trabalho seguras, proporcionar a saúde física, psicológica e social de seus trabalhadores é uma preocupação constante das organizações. Para atingir esses objetivos foi desenvolvido Sistema de Gestão da Segurança e Saúde no Trabalho (SGSST). Entre 1970 e 1980, três desenvolvimentos fazem do sistema de gestão da segurança um tema de interesse geral: o aumento da demanda por regulamentos de segurança nos países europeus; os relatórios
In the last few decades, the fast technological development has caused high competitiveness among companies, encouraging a pursuit for strategies that allow them to gain competitive advantage, such as the monitoring of performance by using key performance indicators (KPIs). However, its selection process is complex since there are several KPIs available to evaluate performance and different relationships between them. To overcome this challenge, the use of a multiple criteria decision-making model (MCDM) was proposed, namely the analytic network process (ANP) through which a reduced number of them are prioritized. To identify which KPIs are suitable for the press cast and die manufacturing industry, a literature review was made, and 58 unique KPIs were identified. Thus, to validate the proposed methodology, a case study was carried out in an automotive press molding industry. With the implementation of the proposed ANP model it was possible to identify 9 KPIs that ensure the correct molding process monitoring, while being aligned with the Balanced Scorecard criteria. The results show that the proposed model is suitable for selecting KPIs for the molding industry.
This study discusses building the concept of weighting performance indicators based on respondents' opinions. The opinion of respondents has the power to provide an assessment. So far, the performance appraisal is determined based on the Balanced Scorecard method, AHP, Topics, and others where the dimensions of this method are limited. In companies, performance appraisals are carried out by the HR Department. The specified indicator is sometimes too high, therefore it is considered achieved. The most flexible approach in which the determination of indicators is determined by the respondent who will implement the rule. Weighted performance indicators are constructed by developing an association rule method and ranking method. Performance appraisal structures in the form of multi values and multidimensional can be built using this concept. Items that meet the support value and minimum weight are determined based on the higher frequency. This concept is a new proposal from a mining method developed to produce a performance appraisal model that can be applied to various needs.
This paper presents a method that supports a process for the generation of performance indicators for manufacturing areas within companies. The existing literature in the area of performance management presents frameworks to guide the selection of performance indicators. Particularly, the literature shows the use of multicriteria decision making methods (MCDM) for selecting indicators from a set of predefined ones. This paper goes beyond by developing a method to support the generation of the performance indicators for the manufacturing area. This process is supported by the Analytic Network Process (ANP). The network model, which is based on a Balanced Scorecard (BSC) framework, includes nodes that are grouped into five clusters: long-term objectives, strategic business units, critical success factors, manufacturing decision areas, and human resource management. The proposed method consists of the following major steps: assigning weights to the manufacturing decision areas, diagnosing these areas, and generating performance indices ranked from high to low. The proposed method allows managers to define performance indicators for the manufacturing area that are aligned with the company’s long-term strategic objectives. This is done by the use of an ANP model that captures the complex relationships that exist between the various strategic objectives of the strategy map of a company. As an illustration, an application in a company that produces pork-based food is described. The managers found that the proposed method was easy to understand and easy to follow, and that it was useful for defining performance measures.
Anahtar performans göstergeleri iş performansının ölçülmesinde ve izlenmesinde kullanılan önemli parametrelerdir. İşletmelerde iş süreçlerinin denetlenmesi ve iyileştirilmesi bu göstergeler aracılığı ile yapılmaktadır. Ancak işletmelerin kullandığı anahtar performans göstergelerinin bu süreçlerin yönetilmesi için uygun araçlar olup olmadığı veya daha uygun anahtar performans göstergeleri kullanılıp kullanılamayacağı sorusu her zaman yanıtlanamamaktadır. Bu çalışmada su armatürü üretimi yapan bir işletmenin döküm süreci analiz edilmiştir. Döküm sürecinde kullanılan mevcut göstergelerin zenginleştirilmesi amaçlanmıştır. Bu amaçla, mevcut durumda kullanılan anahtar performans göstergelerinin yanı sıra literatür taraması ve beyin fırtınası sonucunda ortaya çıkan yeni alternatiflerden oluşan bir kümeden seçim yapılmıştır. Çok kriterli karar verme problemine dönüşen bu problemin çözümünde uzmanlardan alınan dilsel ifadeler bulanık sayılarla ifade edilmiştir. En iyi en kötü yöntemi ile ağırlıklandırılan değerlendirme kriterleri ile MOORA yöntemi kullanılarak anahtar performans göstergeleri sıralaması elde edilmiştir. Sonuç olarak takip edilmesi durumunda işletmeye bir katma değer sunmayan mevcut KPI’lar çıkartılmıştır ve süreç performansına etkisi düşük olan KPI’lar alt sıralara gerilemiştir. Bu çalışma ile işletmede kullanılan KPI’ların işletme performansı açısından önemi ortaya konmuştur.
Anahtar performans göstergeleri iş performansının ölçülmesinde ve izlenmesinde kullanılan önemli parametrelerdir. İşletmelerde iş süreçlerinin denetlenmesi ve iyileştirilmesi bu göstergeler aracılığı ile yapılmaktadır. Ancak işletmelerin kullandığı anahtar performans göstergelerinin bu süreçlerin yönetilmesi için uygun araçlar olup olmadığı veya daha uygun anahtar performans göstergeleri kullanılıp kullanılamayacağı sorusu her zaman yanıtlanamamaktadır. Bu çalışmada su armatürü üretimi yapan bir işletmenin döküm süreci analiz edilmiştir. Döküm sürecinde kullanılan mevcut göstergelerin zenginleştirilmesi amaçlanmıştır. Bu amaçla, mevcut durumda kullanılan anahtar performans göstergelerinin yanı sıra literatür taraması ve beyin fırtınası sonucunda ortaya çıkan yeni alternatiflerden oluşan bir kümeden seçim yapılmıştır. Çok kriterli karar verme problemine dönüşen bu problemin çözümünde uzmanlardan alınan dilsel ifadeler bulanık sayılarla ifade edilmiştir. En iyi en kötü yöntemi ile ağırlıklandırılan değerlendirme kriterleri ile MOORA yöntemi kullanılarak anahtar performans göstergeleri sıralaması elde edilmiştir. Sonuç olarak takip edilmesi durumunda işletmeye bir katma değer sunmayan mevcut KPI'lar çıkartılmıştır ve süreç performansına etkisi düşük olan KPI'lar alt sıralara gerilemiştir. Bu çalışma ile işletmede kullanılan KPI'ların işletme performansı açısından önemi ortaya konmuştur. ABSTRACT Key performance indicators are important parameters used in measuring and monitoring business performance. Controlling and improving business processes in businesses are carried out through these indicators. However, the question of whether key performance indicators used by businesses are suitable tools for managing these processes or whether more appropriate key performance indicators can be used is not always answered. In this study, the casting process of an enterprise was analyzed. It is aimed to enrich the existing key performance indicators used in the casting process. For this purpose, a selection was made from a set of new alternatives emerging as a result of literature review and brainstorming, as well as key performance indicators currently used. In the solution of this problem, which turns into a multi-criteria decision making problem, linguistic expressions taken from experts are expressed with fuzzy numbers. Using the MOORA method with the evaluation criteria weighted with the best and the worst method, the ranking of key performance indicators was obtained. As a result, the existing KPIs that do not offer added value to the business, have been removed and the KPIs that have a low impact on
The recent trend towards collecting large amounts of data potentially allows organisations to identify previously unknown data patterns that can lead to significant improvements in their performance. However, carrying on collecting this data over time and across numerous locations is expensive. Consequently, when monitoring performance, organisations can be faced with a dichotomy between continuing to collect large amounts of data or whether to use a much reduced set of data. This is a particular problem with Key Performance Indicators (KPIs). Additionally, too many indicators can lead to difficulty in data interpretation and significant overlaps between the indicators, making the understanding and managing of changes in performance more difficult. In this paper, a novel statistical approach is introduced based on the use of Principal Component Analysis (PCA) to reduce the number of KPIs, followed by TOPSIS (Technique for Order Performance by Similarity to Ideal Solution) for validating the results. It is applied to the case of a multinational automotive component manufacturer where 28 KPIs were reduced to 8. The performance of the original set of 28 KPIs was compared with that of the reduced set of 8 KPIs. The peaks of the two TOPSIS time-series coincided, and there was a high correlation between them. Therefore, having the extra 20 indicators provided little extra precision for the considered time interval. Hence, the approach is a valuable tool in helping to reduce a large number of KPIs down to a more practical and useable number.
Car industry is one of the most important sectors in Romania with a significant impact on country’s GDP. This paper presents the construction and the evaluation of an Analytical Network Process (ANP) market share model, which emerged from extended in-depth interviews with top managers of the main Romanian car industry producers. ANP model was used to estimate the market share and compare the results with the actual values, expressed by Saaty’s compatibility index, then validate this model and offer comparative numerical weights of importance car industry in Romania. The conclusions of the article are in line with the research in the field and show that the automotive market shares in Romania estimated by the ANP model are confirming the companies’ calculations. The software we have used in our analysis was Super Decision 3.2 software.
The water crisis of the twenty-first century is caused by mismanagement,
increased demand and inadequate planning of land use and occupation. The
water is a vital and fundamental to the maintenance of environmental quality
and socio-economic development of a country. Thus, because it is a very
complex issue, the water issues must be addressed in a systematic and
integrated manner. Many researchers recognize sustainability as the best
approach to portray current and future issues related to water. In 2015, the
United Nations Summit on Sustainable Development created an agenda (Global
Goals and Sustainable Development Goals – SDG) with 17 goals and 169
global targets to be reached by 2030. The SDG 6, ensuring the availability and
sustainable management of water and sanitation for all. In this context,
indicators point to robust tools to analyze and monitor the sustainability of
development and is strongly recommended by researchers, managers,
international institutions and policy makers. Since the methods of analysis of
sustainability must be flexible and applicable in different scales of work,
transparent throughout the process of measurement and also enable the
monitoring space-time. Thus, the main objective of this research is to analyze
the condition of sustainability of water resources at the River Grande (BHRG),
Brazil. The sustainability analysis relied on the Barometer of Sustainability tool
and entropy weight method. The results showed unacceptable condition of
sustainability for BHRG and high environmental stress for the maintenance of
human well-being. This is a disaggregated socio-economic development of
ecosystem conservation. Thus, this research highlighted the fragmentation of
public policies
Manufacturing and maintenance processes significantly benefit from effective and integrated Supply Chain Management (SCM). Recently, hospitals start to recognize the importance of these logistics initiatives to improve their operational performance while also maintaining high quality of patient care. Patient care processes are supported by a range of supply chain activities including inventory management and distribution of medical supplies to point-of-care locations. At the operating room for instance, the logistics staff’s goal is managing materials and information flows to have the requested materials at the right operating room at the right time, in the most efficient way. However, poor inventory management, lack of standardization and lack of coordination between departments complicate healthcare logistics processes, and hence result in many waste. Opportunities for efficiency gains in these logistics processes can be identified by measuring the performance of the internal supply chain. This paper presents a rigorously defined logistics performance measurement framework to evaluate the efficiency of logistics processes in operating rooms. The Analytic Network Process (ANP) is utilized as a popular Multi-Criteria Decision-Making (MCDM) technique to provide effective decision-support models. The proposed ANP-based framework is a first step towards measuring the performance of operating room supply chain processes by selecting and prioritizing logistics objectives and associated Key Performance Indicators (KPIs). Further research is required to validate the ANP framework by including multiple stakeholders’ preferences, as they may have conflicting views on performance definitions. The final goal of the framework is to support hospital logistics managers in making transparent and informed decisions to improve inventory and distribution policies in the operating room while considering all stakeholders’ preferences.
The strategy is most resources for organizational long term improvement and if it doesn’t deployment successfully, this process is ineffective even if appropriate strategies are released. The most stage in strategic deployment is resource allocation for implementation of strategic initiatives. With regard to resource restriction in the deployment of strategy, a ranking of strategic objectives with cause and effect relationships in the strategy map is important. I n this paper after drawing of strategy map with DEMATEL method and identifying cause and effect relations between strategic objectives as network relations, the weight of each criterion is defined with analytic network process and strategic objectives in the National Iranian Oil Refining & Distribution Company are ranked and according to this ranking strategic initiative are assigned.
The design of a building is a decision problem with multiple stakeholders and several often conflicting criteria. Multi-Criteria Decision-Making (MCDM) methods are capable of handling decision problems with the abovementioned specific features. This paper focuses on the application and comparison of some of the most well-known and widely applied MCDM methods; namely AHP, TOPSIS, ELECTRE III, and PROMETHEE II. For this purpose, a framework that incorporates the decision-makers’ preferences and the use of dynamic simulation of the potential building forms is developed and applied to a real-life case study. This procedure provides a holistic approach through which the design team arrives at a more appropriate decision. The examined methods yield similar results, showing broad agreement on the top ten alternatives, amongst which the decision-makers can decide. In particular, the majority of the examined methods (all except TOPSIS) concluded with the same optimal solution, a situation that provides confidence in the final decision. Furthermore, an investigation of four “what-if” scenarios indicates that TOPSIS is the most sensitive method to the examined changes in the subjective preferences.
Development and ranking of safety performance indicators using Bayesian network and analysis hierarchical process: Case of work at height of the oil and gas refinery construction phase
Many of the concepts and procedures of product quality control can be applied to the problem of producing better quality information outputs. From this perspective, information outputs can be viewed as information products, and many information systems can be modeled as information manufacturing systems. The use of information products is becoming increasingly prevalent both within and across organizational boundaries.
This paper presents a set of ideas, concepts, models, and procedures appropriate to information manufacturing systems that can be used to determine the quality of information products delivered, or transferred, to information customers. These systems produce information products on a regular or as-requested basis. The model systematically tracks relevant attributes of the information product such as timeliness, accuracy and cost. This is facilitated through an information manufacturing analysis matrix that relates data units and various system components. Measures of these attributes can then be used to analyze potential improvements to the information manufacturing system under consideration.
An illustrative example is given to demonstrate the various features of the information manufacturing system and show how it can be used to analyze and improve the system. Following that is an actual application, which, although not as involved as the illustrative example, does demonstrate the applicability of the model and its associated concepts and procedures.
Conceptual measurement system models have been developed and used by many industries in order to quantify, compare and manage their performance. Also, increased level of competition in the business environment and higher customer requirements forced construction industry to create a new philosophy to measure its performance beyond the existing financial-based performance indicators and quantitative determinants of project success. In this paper, a conceptual performance measurement framework that takes into account company-level factors (objectives, strategies, resources) as well as project-level (risks, opportunities) and market-level factors (competition, demand) is presented. In order to use the conceptual framework for measuring performance, a methodology that takes into account both quantitative and qualitative factors and the interrelations between them should be utilized. For this purpose, Analytic Network Process (ANP) which is the most effective tool in those cases where the interactions among the elements of a system form a network structure is selected as the most appropriate technique.
This paper explores and illustrates an analytical framework to assess an organization’s logistics strategy. The optimum logistical system is evaluated based on three primary levels: the organizational/supply chain relationship involved, the principles of logistics required, and the attributes of these principles. The principles of logistics are defined and developed as strategies for achieving coordination and integration of the logistics network and supply chain. The analytic network process, a systemic analytical model, will be utilized to evaluate logistics strategies for an organization that seeks to be adaptive to dynamic competitive environments.
This article presents an analytical method for quantifying Heskett’s “Strategic service vision”. The model, which is based on quality function deployment (QFD), and benchmarking, starts with two matrices in series to relate market segments, service concepts, and various processes, as rows and columns of interconnected QFD matrices. In addition, analytic hierarchy process (AHP), a decision-making tool, is used to determine the intensity of the relationship between the row and column variables of each matrix, while analytic network process (ANP), an extension of AHP, is used to determine the intensity of synergy effects among column variables. Finally, benchmarking is used to suggest potential breakthroughs in service delivery. Ultimately, the goal of these matrices and benchmarking is to add fine-tuning and precision to an otherwise qualitative strategic decision making process. To demonstrate the applicability of our proposed model to service organizations we develop its basic concepts within the framework of a specific example serving as a background.
The concept of public service, which is too often approached simplistically, is worthy of both support and serioui reexamination. Contributors to this symposium provide four distinct perspectives which, taken as a whole, provide an optimistic view of possibilities for solving problems associated with this necessary and productive link in our social fabric.
Balanced Scorecard (BSC), which is used as a strategic evaluation tool, is a method of determining business performance using lagging and leading indicators on the basis of vision and strategies. The method suggests that business performance should be evaluated not only by using financial indicators but also simultaneously considering non-financial indicators. It has been revealed in the review of relevant literature that despite the satisfying levels achieved in conceptual and theoretical dimension of Balanced Scorecard, the method has some deficiencies in terms of implementation on a quantitative basis and that there remain some problems to be resolved. Subject of this study covered the measurement and evaluation dimension of BSC. In the scope of the study, BSC approach was integrated with fuzzy ANP technique so as to determine the performance level of a business on the basis of its vision and strategies. Proposed model has shown that performance indicators with different structures included in BSC approach can be consolidated with the help of fuzzy ANP technique.
This paper revisits the recent works of Suwignjo, Bititci and Carrie (SBC) (Int. J. Prod. Econom. 64 (2000) 231) and Bititci, Suwignjo and Carrie (BSC) (Int. J. Prod. Econom. 69 (2001) 15). We show how a generalizable analytical hierarchy technique based on Saaty's systems-with-feedback approach, also known as the analytical network process (ANP), can be applied, as an alternative methodology, to SBC's quantitative model for performance measurement system. The proposed enhancement to SBC's approach can be completed through the utilization of a supermatrix that can arrive at a solution where the necessary combined weights of the factors influencing the performance measure are a result. In addition, we also show how the ANP approach could be used to enhance the dynamic evaluation of BSC's manufacturing strategy performance evaluation model.
Healthcare organisations have been operating in a competitive environment for years. Pressures from government and competition as well as escalating costs have driven executives to search effective performance assessment systems to help them achieve their missions or improve competitiveness. The balanced scorecard (BSC), combination of both financial and non-financial perspectives and criteria, creates a more accurate performance measurement system because it offers a more complete view of a business and can lead to better business decisions. After reviewing the literatures about the BSC and interviewing the 64 executives retains 12 important criteria, including training, satisfaction, turnover, resource, safety, new service, quality, revisiting, patient satisfaction, budget, cost and revenue to construct the hierarchy for hospital performance assessment. Measuring perspectives and criteria of BSC are interrelated. Due to the interdependent relations in decision making, we apply analytic network process (ANP) that captures the outcome of dependency between the perspectives and criteria to handle such problems.
Poor data quality (DQ) can have substantial social and economic impacts. Although firms are improving data quality with practical approaches and tools, their improvement efforts tend to focus narrowly on accuracy. We believe that data consumers have a much broader data quality conceptualization than IS professionals realize. The purpose of this paper is to develop a framework that captures the aspects of data quality that are important to data consumers.A two-stage survey and a two-phase sorting study were conducted to develop a hierarchical framework for organizing data quality dimensions. This framework captures dimensions of data quality that are important to data consumers. Intrinsic DQ denotes that data have quality in their own right. Contextual DQ highlights the requirement that data quality must be considered within the context of the task at hand. Representational DQ and accessibility DQ emphasize the importance of the role of systems. These findings are consistent with our understanding that high-quality data should be intrinsically good, contextually appropriate for the task, clearly represented, and accessible to the data consumer.Our framework has been used effectively in industry and government. Using this framework, IS managers were able to better understand and meet their data consumers' data quality needs. The salient feature of this research study is that quality attributes of data are collected from data consumers instead of being defined theoretically or based on researchers' experience. Although exploratory, this research provides a basis for future studies that measure data quality along the dimensions of this framework.
This paper describes the application of the so-called supermatrix technique of the analytic hierarchy process to a complex energy decision problem. Practical problems related to the method are discussed and a generalization, where elements of the network are allowed to have multiple levels, is suggested. The model considered describes a nuclear power plant licensing problem in Finland.
Qualitative Characteristic of Financial Information
- Accounting Standard
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