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South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46 32 Development of A Framework For Manufacturing Supply Chain Performance Management K.Selvaraj a , P.Janarthanan a , P.Manuneethi Arasu a , P.Krishnan a , N.Senniangiri b b Department Of Mechanical Engineering, KSR College Of Engineering, Tiruchengode 637 215. b Department Of Mechanical Engineering, Nandha College Of Technology, Erode638052. Abstract In recent decades competitiveness is the major issue for all the manufacturing industries. The performance of the companies should be improved to withstand against stiff competitions. The overall performance of an industry can be improved by evaluating and analysing their current performance with the performance level of their counterparts. Supply chain management maintains a good relationship between the customers and manufacturers. In customer’s point of view, performance level is rated, based on product quality, time, cost, service, relationship and so on. The aim of the paper is to collect feedbacks about the various parameters from the customers and sorting out the key parameters is ranked based on priority. The feedbacks recorded by the customers will be vague and uncertain. All the parameters are evaluated and the alternative solutions are collected for each parameter and recorded. The particular parameters with a very low rank as compared to other parameters will be given more priority and fuzzy tools like Delphi, AHP, TOPSIS and QFD can be utilized to study by these key parameters and alternative solutions can be obtained to wipe out the problems, thereby improving the performance index. In this project work, the above mentioned tools are being used to study the problems faced by a forging industry and resolving it. Index Terms- Performance measurement, Manufacturing companies, Fuzzy Delphi, Analytical Hierarchy Process, TOPSIS. I .Introduction Now a days manufacturing industries are finding it really difficult to withstand the competitiveness the global market. Various factors such as cost, quality and time to delivery of products, service and relationships with customers are of major concern. The company is identified for this paper is a primary manufacturing industry that produces metal castings and forged products. SCM organizes and manages the whole process of activities of supply network from customers through manufacturers. The success of an industry can be clearly depicted based on the length of their chain and it is possible by adopting an effective SCM achieve customer satisfaction. Fuzzy tools are used to evaluate and improve the performance criteria’s. Fuzzy tools such Delphi to shortlist the performance criteria, AHP used to rank the criteria, TOPSIS used to rank the alternative solutions. SCM is a strategy where business partners jointly commit to work closely together, to bring greater value to the consumer and/or their customers for the least possible overall supply cost. This coordination includes that of order generation, order taking and order fulfilment/distribution of products, services or information. Effective supply chain management enables business to make informed decisions along the entire supply chain, from acquiring raw materials to manufacturing products to distributing finished goods to the consumers. At each link, businesses need to make the best choices about what their customers need and how they can meet those requirements at the lowest possible cost. The supply chain network demand problem consists of making the above-mentioned decisions to satisfy customer demands while minimizing the sum of strategic, tactical, and operational costs. The importance of the interactions between these decisions, important benefits can be obtained by treating the network as a whole and considering its various components simultaneously. Supplier Relationship Management (SRM) is the discipline of strategically planning for, and managing, all interactions with third party organizations that supply goods and/or services to an organization in order to maximize the value of those interactions. In practice, SRM entails creating closer, more collaborative relationships with key suppliers in order to uncover and realize new value, and reduce risk. Customer Relationship Management (CRM) is a widely implemented model for managing a company’s interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and synchronize business processes principally sales activities, but also those for marketing, customer service, and technical support. The overall goals are to find, attract, and win new clients, service and retain those the company already has, entice former clients to return, and reduce the costs of marketing and client service.

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  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    32

    Development of A Framework For Manufacturing Supply Chain

    Performance Management

    K.Selvaraja, P.Janarthanan

    a, P.Manuneethi Arasu

    a, P.Krishnan

    a, N.Senniangiri

    b

    b Department Of Mechanical Engineering, KSR College Of Engineering, Tiruchengode – 637 215.

    b Department Of Mechanical Engineering, Nandha College Of Technology, Erode– 638052.

    Abstract

    In recent decades competitiveness is the major issue for all the manufacturing industries. The performance of the companies should be improved to withstand against stiff competitions. The overall performance of an industry can be improved by evaluating and analysing their current performance with the performance level of their counterparts. Supply chain management maintains a good relationship between the customers and manufacturers. In customer’s point of view, performance level is rated, based on product quality, time, cost, service, relationship and so on.

    The aim of the paper is to collect feedbacks about the various parameters from the customers and sorting out the key parameters is ranked based on priority. The feedbacks recorded by the customers will be vague and uncertain. All the parameters are evaluated and the alternative solutions are collected for each parameter and recorded. The particular parameters with a very low rank as compared to other parameters will be given more priority and fuzzy tools like Delphi, AHP, TOPSIS and QFD can be utilized to study by these key parameters and alternative solutions can be obtained to wipe

    out the problems, thereby improving the performance index. In this project work, the above mentioned tools are being used to study the problems faced by a forging industry and resolving it.

    Index Terms- Performance measurement, Manufacturing companies, Fuzzy Delphi, Analytical Hierarchy Process, TOPSIS.

    I .Introduction

    Now a days manufacturing industries are finding it really difficult to withstand the competitiveness the global

    market. Various factors such as cost, quality and time to delivery of products, service and relationships with customers are of major concern. The company is identified for this paper is a primary manufacturing industry

    that produces metal castings and forged products. SCM organizes and manages the whole process of activities of

    supply network from customers through manufacturers. The success of an industry can be clearly depicted based

    on the length of their chain and it is possible by adopting an effective SCM achieve customer satisfaction. Fuzzy

    tools are used to evaluate and improve the performance criteria’s. Fuzzy tools such Delphi to shortlist the

    performance criteria, AHP used to rank the criteria, TOPSIS used to rank the alternative solutions.

    SCM is a strategy where business partners jointly commit to work closely together, to bring greater value to

    the consumer and/or their customers for the least possible overall supply cost. This coordination includes that of

    order generation, order taking and order fulfilment/distribution of products, services or information. Effective

    supply chain management enables business to make informed decisions along the entire supply chain, from

    acquiring raw materials to manufacturing products to distributing finished goods to the consumers. At each link,

    businesses need to make the best choices about what their customers need and how they can meet those

    requirements at the lowest possible cost. The supply chain network demand problem consists of making the

    above-mentioned decisions to satisfy customer demands while minimizing the sum of strategic, tactical, and

    operational costs. The importance of the interactions between these decisions, important benefits can be

    obtained by treating the network as a whole and considering its various components simultaneously.

    Supplier Relationship Management (SRM) is the discipline of strategically planning for, and managing, all interactions with third party organizations that supply goods and/or services to an organization in order to

    maximize the value of those interactions. In practice, SRM entails creating closer, more collaborative

    relationships with key suppliers in order to uncover and realize new value, and reduce risk.

    Customer Relationship Management (CRM) is a widely implemented model for managing a company’s

    interactions with customers, clients, and sales prospects. It involves using technology to organize, automate, and

    synchronize business processes principally sales activities, but also those for marketing, customer service, and

    technical support. The overall goals are to find, attract, and win new clients, service and retain those the

    company already has, entice former clients to return, and reduce the costs of marketing and client service.

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    33

    Customer relationship management describes a company-wide business strategy including customer-interface

    departments as well as other departments. Measuring and valuing customer relationships is critical to

    implementing this strategy.

    2. Proposed Hybrid Fuzzy Methodology

    The proposed methodology consists of four stages to select network uncertainty metrics and to apply the

    fuzzy Delphi method, fuzzy AHP and Fuzzy Hierarchical TOPSIS techniques. These stages are shown in Fig. 1.

    2.1 Network Uncertainty Metrics

    Grounded on management, production and operations literature, the metrics of network uncertainty

    applied in this research originate from manufacturing product, service and relationship sources, as summarised

    in Table 1. These widely studied sources of uncertainty plague supply chains, business environments and

    industrial networks, and their use in the framework is to serve as a baseline for firms to evaluate uncertainty of

    industrial performances. Manufacturing product uncertainty refers to volatility in product performances caused

    by unreliable manufacturing and production processes. Relationship uncertainty is reflected in the adaptability

    of customer to specification changes at short notice and predictability of customer performance for next business

    cycles.

    2.2 Fuzzy Delphi method

    Following and steps for executing the fuzzy Delphi method were conceptualised as follow:

    Step 1: Organize an appropriate panel of experts and administer a questionnaire to allow the experts express

    their options regarding the significance of each criterion in the possible criteria set S in a range from 1 to 10. A

    score is then denoted as where the index of criteria i is rated by expert k.

    Step 2: Organize expert opinions collected from questionnaires and determine the triangular fuzzy numbers

    (TFNs) for index for each criterion i. Li indicates the minimum of all the experts’ rating

    value as:

    (1)

    is the geometric mean of all the criteria ratings for criterion i. It is obtained through Eq. (2).

    (2)

    indicates the maximum value of experts’ rating and is determined as follows:

    (3)

    A fuzzy number is a special fuzzy set, such that

    , where the value of x lies on the real line

    . We define a fuzzy number Ầ on R to be a triangular fuzzy number and the membership function

    can be described as:

    (4)

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    34

    Where , L and U stand for the lower and upper value of the support for Ầ respectively, and M

    denotes the most promising value.

    Step 3: Once the triangular fuzzy numbers are determined for all the criteria, the Centre of Area approach is

    used to defuzzify the triangular fuzzy number of each evaluation criterion to definite value as:

    (5)

    Step 4: Screen out the evaluation criteria by setting the threshold α. The principle of screening is as follow:

    If then No. i criterion is selected for the evaluation criteria:

    If then delete I criterion (6)

    C. Fuzzy AHP

    Next, the importance of a main criteria in relation to sub criteria was evaluated using Fuzzy AHP as follows:

    Step 1: Construct pairwise comparison matrices from the panel of experts. Linguistic variables are then used to

    construct a matrix per expert as shown in Eq. (7). For simplicity, reference to different experts is omitted (see

    Step 2):

    (7)

    Where

    Step 2: Since the evaluation of different experts would lead to different matrices, the opinions of different

    experts are integrated to form one synthetic pairwise comparison matrix. Obviously, this step can be skipped if

    there is only one expert in Step 1. The elements of the synthetic pairwise comparison matrix are

    calculated by using the geometric mean method proposed by specifically for Fuzzy AHP: if criterion i is

    relatively less important to criterion j.

    (8)

    The superscript in Eq. (8) refers to different experts where there is a total of E experts.

    Step 3: Make use of the synthetic pairwise comparison matrix from Step 2 to define the fuzzy geometric

    mean and fuzzy weights of each criterion ) using Eqs. (9) and (10) respectively:

    (9)

    (10)

    Step 4: Since the calculation so far involves linguistic variables, the next step involves defuzzifying the

    different weights from Step 3 to form meaningful values for analysis (e.g., ranking).

    Again, the COA method is used for defuzzification. Assume the fuzzy weights of each criterion can be

    expressed in the following form:

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    35

    (11)

    Where represent the lower, middle and upper values of the fuzzy weight of the ith criterion.

    Then, the non-fuzzy (i.e., defuzzified) is given as:

    (12)

    D. The fuzzy TOPSIS methodology

    To evaluate the criteria’s of a set of alternative solutions, a fuzzy decision matrix , is constructed based on a given set of categories and criteria. This requires l alternatives

    and n main categories.

    Each main category has criteria where the total number of criteria is equal to . In addition,

    represents the value of the criterion within main category of the alternative, which can be

    crisp data or appropriate linguistic variables which can be further represented by fuzzy numbers

    (e.g., ). A hierarchical MCDM problem can be concisely expressed in a fuzzy

    decision matrix as:

    Where is the fuzzy evaluation score of alternative with respect to criterion

    evaluated by expert from a total of S experts and

    In general, the criteria can be classified into two categories: benefit and cost. The benefit criterion means

    that a higher value is better while the cost criterion is valid for the opposite. The data of the decision matrix

    comes from different sources and it is necessary to normalize in order to transform it into a dimensionless

    matrix, which allows for the comparison of various criteria. In this research, the normalized fuzzy decision

    matrix is denoted by shown as:

    (14)

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    36

    The normalization process can then be performed by the following fuzzy operations:

    (15)

    Where and represent the largest and the lowest value of each criterion respectively. The weighted

    fuzzy normalized decision matrix is shown as:

    Where (16)

    is the final weight score for each criterion which is the product of the main category weight score and the

    criterion weight score with respect to the corresponding main category as follows:

    (17)

    Where and denote the ith main category weight score and the criterion weight score respectively. Both

    and are obtained through the Fuzzy AHP analysis method fuzzy addition principle is used to aggregate

    the values within each main criterion as follows: discussed in section

    Fig.1

    Main criteria Sub criteria Performance measurement

    Product performance Quality Consistent product properties and processibility

    Packing Quality of packing: type & quality meets your

    requirements

    New product Timely commitment on new and improved products

    Product appearancence Aesthetically good

    Complaint Promptness in handling & providing timely response

    Utilization Percentage of excess or lack of that particular

    resource within a period

    Efficiency Percentage of actual production time to the planed

    time

    Accuracy Percentage of accurate goods delivered to clients

    Manufacturing cost Labour, maintenance, cutting tools, scrapes, and

    rework costs

    Manufacturing type The ability to deal with different production process

    Flexibility The ability to meet customer requests for different

    product types in a variety of volumes

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    37

    Labour Performance of workers

    Service Order processing Timely response

    Delivery On time, as requested and in satisfactory condition

    Technical service Accessibilities, responsiveness and effectiveness

    Supply flexibility Response to urgent and special delivery requirements

    Documentation Documents are received on time

    Price Value for money

    Technical support Improve product characteristics and process

    Quick responsiveness Activeness

    Supply capacity Fulfill your orders

    Relationship Supplier integrity Credibility and integrity

    Personal relationships People to people relationships with your supplier

    Listening Listening and responding to your needs

    Customer visits Value of visit to our plant

    Supply constraint Overcome up struggles

    Buyer supplier constraint Economic flexibility

    Supplier profile Obey industrial ethics

    TABLE-1

    (18)

    The results of Eq. (16) can be summarized as: Subsequently, the fuzzy addition principle is used to aggregate

    the values within each main criterion as follows:

    (19)

    The matrix is thus converted into the final weighted normalized fuzzy decision matrix

    ,

    (20)

    This addition operation is important as the final weighted normalized fuzzy decision matrix becomes a one

    layer fuzzy TOPSIS model after the calculation of the final weight score for each criterion. Therefore, the

    hierarchical structure can be reflected only when aggregation of the weighted values within each main category

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    38

    is conducted. Now, let and denote the fuzzy positive ideal solution (FPIS) and fuzzy negative

    ideal solution (FNIS) respectively. According to the weighted normalized fuzzy-decision matrix, we have:

    (21)

    Where and are the fuzzy numbers with the largest and the smallest generalized mean respectively. The

    generalized mean for the fuzzy number , i is defined as:

    (22)

    For each column i, the greatest generalized mean of and the lowest generalized mean of can then be

    used to derive values for FPIS ) and the FNIS ) respectively. Then, the distances of each

    alternative from

    and can be calculated by the area compensation method as

    (23)

    (24)

    By combining the difference distances and , the relative closeness index is calculated as follows:

    (25)

    Using the index value, the set of alternatives can be ranked from the most preferred to the least preferred

    feasible solutions.

    III. Case study

    This section presents a case study of Foundry division, to illustrate how the proposed framework can be

    applied to evaluate the performance activities.

    A. Case Background

    The company is identified for this paper is a primary manufacturing industry that produces metal

    castings and forged products. A foundry is a factory that produces metal castings. Metals are cast into shapes by

    melting them into a liquid, pouring the metal in a mold, and removing the mold material or casting after the

    metal has solidified as it cools. The most common metals processed are aluminium and cast iron. However,

    other metals, such as bronze, brass, steel, magnesium, and zinc, are also used to produce castings in foundries.

    In this process, parts of desired shapes and sizes can be formed.

    B. Criteria Selection with Fuzzy Delphi Method

    To begin the evaluation, the fuzzy Delphi method was applied to derive evaluation criteria for foundry

    from the network uncertainty metrics listed in Table 2. The objective was to establish an appropriate list of evaluation criteria representing a consensus of experts’ opinion on sources of network uncertainty. A

    questionnaire was prepared to evaluate the importance of each criteria and distributed to the seven members of

    foundry management team. Table 2 shows the minimum, geometric mean, and maximum values of each item

    with respect to the network uncertainty metrics. These values were then converted to TFNs.

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    39

    Fuzzy

    Numbers

    Linguistic

    Variables

    Triangular

    Fuzzy

    Numbers

    9

    8

    7

    6

    5

    4

    3

    2

    1

    Extremely High

    Very High

    High

    Medium High

    Medium

    Medium Low Low

    Very Low

    Extreme Low

    (8, 9, 10)

    (7, 8, 9)

    (6, 7, 8)

    (5, 6, 7)

    (4, 5, 6)

    (3, 4, 5)

    (2, 3,4)

    (1, 2, 3)

    (1, 1, 1)

    was then calculated by defuzzifying the TFNs through the COA method outlined in Section 2.2 and the results are displayed in Table 2. In order to develop a comprehensive evaluation hierarchical model that reflects

    the complexity of evaluating the uncertainty of criteria’s that deliver an industrial performances, the geometric mean was set as the threshold to select an appropriate number of criteria. Through this process, 28 evaluation

    items were removed and 14 items were used as the eventual assessment criteria.

    C. Weights Estimation with Fuzzy AHP

    After selecting the evaluation criteria, it was essential to know how important one evaluation category was

    over other criteria. In other words, decision makers have to determine the weights between the main evaluation

    categories and the associated criteria. The different weights of evaluation categories and their associated criteria

    were calculated using the fuzzy AHP method discussed in Section II.C. Using the demand uncertainty category

    as an example, the fuzzy evaluation matrix was constructed by the pairwise comparison of three criteria using

    TFNs, as shown in Table 3.

    Fuzzy

    Numbers

    Linguistic

    Variables

    Triangular

    Fuzzy

    Numbers

    9

    8

    7

    6

    5

    4

    3

    2

    1

    Perfect

    Absolute

    Very good

    Fairly good

    Good

    Preferable

    Not bad

    Weak advantage

    Equal

    (8, 9, 10)

    (7, 8, 9)

    (6, 7, 8)

    (5, 6, 7)

    (4, 5, 6)

    (3, 4, 5)

    (2, 3,4)

    (1, 2, 3)

    (1, 1, 1)

    Using the table, the fuzzy geometric mean and fuzzy weights of three evaluation criteria were then calculated. Eq. (9) was then used to obtain the fuzzy weights of criteria for participants from foundry

    management team, i.e.

    r1 = (a11 × a12 × a13)1/3

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    40

    =(1×4.949×5.233)1/3,(1×5.958×6.236)1/3, (1×6.964×7.238)1/3

    = (2.959, 3.337, 3.694)

    Similarly, other values for ri can be obtained as follows:

    r2 = (0.524, 0.552, 0.587)

    r3 = (0.264, 0.291, 0.327)

    The weight of each criterion was then calculated using Eq. (10) as follow,

    w1 = r1 × (r1 + r2 + r3) -1

    = (2.959, 3.337, 3.694) × (1/ (3.694 + 0.587 + 0.327), 1/ (3.337 + 0.552 + 0.291), 1/ (2.959 +

    0.524 + 0.264))

    = (0.642, 0.798, 0.986)

    Likewise, the remaining fuzzy weights (w2 and w3) of the demand category were then obtained.

    w2 = (0.114, 0.132, 0.157)

    w3 = (0.057, 0.070, 0.087)

    Using the COA method (Eq. (12)), the non-fuzzy weight value for each uncertainty metric was then

    calculated. Using criterion C11 as an example, the calculation process was performed as follows:

    BNPW1 = (0.986–0.642) + (0.798–0.642) + 0.642

    3

    = 0.809

    The fuzzy weights of the remaining evaluation criteria and their normalised non-fuzzy values are displayed in

    Table 4.

    Using the same approach, the relative importance weights with respect to the main values propositions of

    the industrial performance evaluation approach and their associated criteria were computed and the results are

    summarized in Table 5.

    Main criteria Sub criteria Min Geometri

    c mean

    Max Gi Ave

    Product

    performance

    Quality 7 8.41 10 8.47 7.84

    Packing 7 8.41 10 8.47

    New product 6 7.98 10 7.99

    Product appearancence 6 8.26 10 8.09

    Complaint 6 8.12 10 8.04

    Utilization 6 8.12 10 8.04

    Efficiency 5 7.21 10 7.40

    Accuracy 6 7.56 9 7.52

    Manufacturing cost 6 8.26 10 8.09

    Manufacturing type 5 6.96 9 6.99

    Flexibility 5 7.11 9 7.04

    Labour 5 7.11 9 7.04

    Service Order processing 7 8.41 10

    8.47 7.69

    Delivery 7 8.70 10 8.57

    Technical service 7 7.83 10 7.94

    Supply flexibility 6 7.11 9 7.04

    Documentation 6 7.70 9 7.57

    Price 6 7.52 10 7.51

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    41

    C11 C12 C13

    C11 1 1 1 4.949 5.958 6.964 5.233 6.236 7.238

    C12 0.144 0.168 0.202 1 1 1 5.477 6.481 7.483

    C13 0.138 0.160 0.191 0.134 0.154 0.183 1 1 1

    TABLE 3

    Performance factors Lwi Mwi Uwi BNP

    W1

    Rank

    Product 0.642 0.798 0.986 0.809 1

    Service 0.114 0.132 0.157 0.134 2

    Relationship 0.057 0.070 0.087 0.071 3

    TABLE 4

    Main criteria Weights Sub criteria BNPW1 Rank

    C1 Product performance

    factor

    0.809 C11Quality 0.385 7

    C12 Packing 0.389 6

    C13 New product 0.403 5

    C14 Product appearance 0.417 4

    C15 Complaint 0.511 3

    C16 Accuracy 0.585 2

    C17 Manufacturing cost 1.029 1

    C2 Service performance

    factor

    0.134 C21 Order processing 0.713 8

    C22 Delivery 0.126 10

    C23 Supply flexibility 0.128 9

    C24 Supply capacity 0.053 11

    C3 Relationship performance

    factor

    0.071 C31 Supplier integrity 0.734 12

    C32 Personal relationships 0.216 13

    C33 Listening 0.066 14

    TABLE 5

    Technical support 6 7.25 9 7.08

    Quick responsiveness 6 7.11 9 7.04

    Supply capacity 6 7.96 10 7.99

    Relationship Supplier integrity 6 7.96 10 7.99 7.39

    Personal relationships 6 7.96 10 7.99

    Listening 6 7.54 10 7.85

    Customer visits 5 7.11 9 7.04

    Supply constraint 5 6.81 9 6.94

    Buyer supplier

    constraint 5 6.83 9

    6.94

    Supplier profile 5 6.96 9 6.99

    TABLE-2

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    42

    The final weight scores for the evaluation criteria were obtained by calculating the performance of criteria weight scores with respect to the corresponding evaluation category and the weight scores of its associated

    evaluation category. The final weight scores give an indication of the important factors that influence the

    industrial performance evaluation adoption decision.

    D.Fuzzy TOPSIS

    Next, questionnaires were given to four

    foundry customers for the evaluation of the

    alternative foundry performance value

    propositions. Participants were asked to give ratings

    to the alternative value propositions with respect

    to all the evaluation criteria. The qualitative

    explanation of rating levels and their

    corresponding TFNs are described below.

    Fuzzy

    Numbers

    Linguistic

    Variables

    Triangular

    Fuzzy

    Numbers 9

    8

    7

    6

    5

    4

    3

    2

    1

    Extremely High

    Very High

    High

    Medium High

    Medium

    Medium Low

    Low

    Very Low

    Extreme Low

    (8, 9, 10)

    (7, 8, 9)

    (6, 7, 8)

    (5, 6, 7)

    (4, 5, 6)

    (3, 4, 5)

    (2, 3,4)

    (1, 2, 3)

    (1, 1, 1)

    Value

    proposition d

    + d

    - CC Ranking

    Product

    A1 4.367 2.666 0.379 4

    A2 4.145 2.897 0.411 3

    A3 4.093 2.942 0.418 2

    A4 4.098 2.943 0.418 1

    Service

    A1 3.277 0.731 0.182 12

    A2 3.259 0.749 0.187 11

    A3 3.170 0.838 0.209 9

    A4 3.175 0.833 0.208 10

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    43

    Values from the responses were averaged to integrate the fuzzy judgement values of the different decision

    makers regarding the same evaluation criteria. The results were then used to construct a hierarchical decision making matrix D as illustrated in the appendix (Table A1). The hierarchical decision-making matrix was then

    normalized using Eq. (15). The result is displayed in the appendix (Table A2).

    Through computing the product, service, relationship of the normalized hierarchical decision matrix and

    the final weight scores for each evaluation criterion, the weighted normalized fuzzy decision matrix is

    obtained as presented in the appendix (Table A3). Since each element in is a fuzzy number, its generalized

    mean was then calculated according to Eq. (22). The largest generalized mean and the smallest

    generalized mean of each main criterion were then selected as FPIS and FNIS respectively. Next,

    the difference distances of each of the alternatives was calculated using Eqs. (23) and (24). Finally, combining the difference distances, the relative closeness index for each alternative solution was

    obtained. The results are presented in Table 6, together with the corresponding rankings based on the index

    values. Then sum of three main criteria closeness coefficient values and customers ranking are presented in

    Table 7.

    Closeness Coefficient

    Produ

    ct

    Servi

    ce

    Relations

    hip

    Sum Rank

    ing

    A

    1

    0.379 0.182 0.272 0.833 4

    A

    2

    0.411 0.187 0.240 0.838 3

    A

    3

    0.418 0.209 0.267 0.894 2

    A

    4

    0.418 0.208 0.286 0.912 1

    TABLE 7

    Relationship

    A1 2.192 0.817 0.272 6

    A2 2.286 0.723 0.240 8

    A3 2.207 0.802 0.267 7

    A4 2.147 0.862 0.286 5

    TABLE 6

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    44

    3. Conclusion

    A framework of performance measurement system, with an example of its application in a

    manufacturing company has been presented. The application of the model to evaluate the performance shows

    that the effects of different quantitative and qualitative factors on performance can be aggregated into a single

    indicator. The proposed system uses the fuzzy Delphi and the Analytical Hierarchy Process (AHP) to identify

    the performance and to evaluate alternative solutions / options using the fuzzy Technique for Order of Preference by Similarity to Ideal Solution (fuzzy TOPSIS) technique. Based on the model output, the proposed

    method provided an evaluation of performance of the different departments of the company. The measures were

    performed for each department to diagnose the strengths and weakness of the performance indicator. By

    addressing the individual weakness and finding complementary needs, the firms will increase the competitive

    advantage. The approach has been successfully applied in the manufacturing environment.

    4. References

    [1] M. Adel El-Baz (2011) “Fuzzy performance measurement of a supply chain in manufacturing companies”

    Expert Systems with Applications Vol.38 pp.6681–6688.

    [2] Xiaojun Wang and Christopher Durugbo (2013) “Analysing network uncertainty for industrial product-

    service delivery: A hybrid fuzzy approach” Expert Systems with Applications Vol.40 pp.4621–4636.

    [3] Metin Celik, Selcuk Cebi, Cengiz Kahraman and I.Deha Er (2009) “Application of axiomatic design and

    TOPSIS methodologies under fuzzy environment for proposing competitive strategies on Turkish container ports in maritime transportation network” Expert Systems with Applications Vol.36 pp.4541–4557.

    [4] Chen-Tung Chen (2000) “Extensions of the TOPSIS for group decision-making under fuzzy environment”

    Fuzzy Sets and Systems Vol.114 pp.1-9.

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    45

    Table A1

    The normalised fuzzy decision matrix

    Performance

    criteria’s

    CUSTOME

    R A

    CUSTOMER

    B

    CUSTOME

    R C

    CUSTOME

    R D

    Product C11 7 8 9 8 9 10 6 7 8 6 7 8

    C12 6 7 8 7 8 9 7 8 9 7 8 9

    C13 6 7 8 6 7 8 7 8 9 7 8 9

    C14 6 7 8 6 7 8 8 9 10 8 9 10

    C15 7 8 9 6 7 8 8 9 10 6 7 8

    C16 7 8 9 7 8 9 7 8 9 7 8 9

    C17 5 6 7 7 8 9 6 7 8 7 8 9

    Service C21 6 7 8 6 7 8 7 8 9 7 8 9

    C22 7 8 9 8 9 10 8 9 10 8 9 10

    C23 6 7 8 6 7 8 7 8 9 7 8 9

    C24 6 7 8 7 8 9 8 9 10 7 8 9

    Relationshi

    p C31 7 8 9 6 7 8 7 8 9 8 9 10

    C32 7 8 9 6 7 8 6 7 8 6 7 8

    C33 7 8 9 7 8 9 8 9 10 6 7 8

    Table A2

    The weighted normalised fuzzy decision matrix

    Performance

    criteria’s CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D Wt.

    Product C1

    1 0.7 0.8

    0.

    9 0.8 0.9 1 0.6 0.7 0.8 0.6 0.7 0.8 0.385

    C1

    2 0.6 0.7

    0.

    8 0.7 0.8

    0.

    9 0.7 0.8 0.9 0.7 0.8 0.9 0.389

    C1

    3 0.6 07

    0.

    8 0.6 0.7

    0.

    8 0.7 0.8 0.9 0.7 0.8 0.9 0.403

    C1

    4 0.6 0.7

    0.

    8 0.6 0.7

    0.

    8 0.8 0.9 1 0.8 0.9 1 0.417

    C1

    5 0.7 0.8

    0.

    9 0.6 0.7

    0.

    8 0.8 0.9 1 0.6 0.7 0.8 0.511

    C1

    6 0.7 0.8

    0.

    9 0.7 0.8

    0.

    9 0.7 0.8 0.9 0.7 0.8 0.9 0.585

    C1

    7 0.5 0.6

    0.

    7 0.7 0.8

    0.

    9 0.6 0.7 0.8 0.7 0.8 0.9 1.029

    Service C2

    1 0.6 0.7

    0.

    8 0.6 0.7

    0.

    8 0.7 0.8 0.9 0.7 0.8 0.9 0.713

    C2

    2 0.7 0.8

    0.

    9 0.8 0.9 1 0.8 0.9 1 0.8 0.9 1 0.126

    C2

    3 0.6 0.7

    0.

    8 0.6 0.7

    0.

    8 0.7 0.8 0.9 0.7 0.8 0.9 0.128

    C2

    4 0.6 0.7

    0.

    8 0.7 0.8

    0.

    9 0.8 0.9 1 0.7 0.8 0.9 0.053

    Relationship C3

    1 0.7 0.8

    0.

    9 0.6 0.7

    0.

    8 0.7 0.8 0.9 0.8 0.9 1 0.734

    C3

    2 0.7 0.8

    0.

    9 0.6 0.7

    0.

    8 0.6 0.7 0.8 0.6 0.7 0.8 0.216

    C3

    3 0.7 0.8

    0.

    9 0.7 0.8

    0.

    9 0.8 0.9 1 0.6 0.7 0.8 0.066

  • South Asian Journal of Engineering and Technology Vol.2, No.23 (2016) 32 – 46

    46

    Table A3

    The weighted normalised fuzzy decision matrix

    Performance

    criteria’s CUSTOMER A CUSTOMER B CUSTOMER C CUSTOMER D

    Product C11 0.27

    0 0.308

    0.34

    7 0.308 0.347 0.385 0.231 0.270 0.308 0.231 0.270 0.308

    C12 0.23

    3 0.272

    0.31

    1 0.272 0.311 0.350 0.272 0.311 0.350 0.272 0.311 0.350

    C13 0.24

    2 0.282

    0.32

    2 0.242 0.282 0.322 0.282 0.322 0.363 0.282 0.322 0.363

    C14 0.25

    0 0.292

    0.33

    4 0.250 0.292 0.334 0.334 0.375 0.417 0.334 0.375 0.417

    C15 0.35

    8 0.409

    0.46

    0 0.307 0.358 0.409 0.409 0.460 0.511 0.307 0.358 0.409

    C16 0.41

    0 0.468

    0.52

    7 0.410 0.468 0.527 0.410 0.468 0.527 0.410 0.468 0.527

    C17 0.51

    5 0.617

    0.72

    0 0.720 0.823 0.926 0.617 0.720 0.823 0.720 0.823 0.926

    Service C21 0.42

    8 0.499

    0.57

    0 0.428 0.499 0.570 0.251 0.185 0.128 0.251 0.185 0.128

    C22 0.83

    1 0.809

    0.78

    6 0.809 0.786 0.764 0.809 0.786 0.764 0.809 0.786 0.764

    C23 0.85

    2 0.829

    0.80

    6 0.852 0.829 0.806 0.829 0.806 0.783 0.829 0.806 0.783

    C24 0.93

    7 0.927

    0.91

    7 0.927 0.917 0.907 0.917 0.907 0.897 0.927 0.917 0.907

    Relationshi

    p C31

    0.51

    4 0.587

    0.66

    1 0.440 0.514 0.587 0.514 0.587 0.661 0.587 0.661 0.734

    C32 0.72

    0 0.684

    0.64

    9 0.758 0.720 0.684 0.758 0.720 0.684 0.758 0.720 0.684

    C33 0.91

    0 0.897

    0.88

    5 0.910 0.897 0.885 0.897 0.885 0.872 0.922 0.910 0.897