Study on performance evaluation of the production process - fuzzy MCDM approach

Abstract

Improvement of the production process presents a very important management task for both researchers and practitioners and enables a better market position of the enterprise. Key Performance Indicators (KPIs) of the production process can provide useful information on the current state of the ongoing process. In this paper, the relative importance of KPIs and their values at the enterprise level were assessed by the experts and decision-makers. Their estimates are described by the linguistic variables which were modeled by intuitionistic fuzzy numbers. The weights vector of KPIs at the level of the considered enterprise is given by the Fuzzy Analytic Hierarchical Process (FAHP) with Triangular Intuitionistic Fuzzy Numbers (TIFNs). The rank of enterprises with respect to KPIs’ values and their weights was calculated using the modified TOPSIS with TIFNs. The developed model was tested on 30 enterprises from Serbia, belonging to the sector of small and medium-sized (SME) production enterprises. The improvement strategies of KPIs should be proposed at the level of each enterprise, separately, respecting the KPIs’ values of the first-ranked enterprise.