Development of A Multi-Level Performance Measurement Model for Manufacturing Companies Using A Modified Version of the Fuzzy TOPSIS Approach

Abstract

This paper aims to develop a comprehensive hierarchical performance measurement model. The proposed model not only determines a manufacturing company's overall performance within its industry but also obtains its strengths and weaknesses in critical activities. It lets one to combine a company's performance scores in seventeen critical activities with important industry-specific objectives to obtain a single overall performance score by using a 4-Point Fuzzy Scale and a modified fuzzy version of the Technique for Order Preference by Similarity to Ideal Solution approach. The calculated overall performance scores provide a ranking order among manufacturing companies within their industry. In addition, it also enables each company to compare its performance in critical activities with respect to other companies in its industry. Furthermore, the performance measurement model has the capability to determine what a company should do to improve its performance in critical activities. This paper provides an example to illustrate the application of the proposed model.