An integration of BSC and AHP for sustainable growth of manufacturing industries
01 Jan 2013-International Journal of Business Excellence (Inderscience Publishers Ltd)-Vol. 6, Iss: 1, pp 77-92
TL;DR: In this article, the authors integrated Balanced Scorecard (BSC) and AHP for sustainable growth of manufacturing industries, which is a strategic management tool to decide the criterion of critical success factors for industries growth.
Abstract: Manufacturing industries are intense pressure to determine way to increase profit and sustain in the rapidly changing competitive market. Penetration of global market has forced industries to deliver what customers wants, and even further, what will delight them. Industries realise that delivering cost effective and high-quality products to customers in a timely manner is crucial for their today’s survival. Hence, industries seek a process that helps to organise, simplify, and expedite decision making process more accurate. Balanced scorecard is a strategic management tool to decide the criterion of critical success factors for industries growth. Analytic hierarchical process helps for evaluating various criteria to determine the best among the factors. This study is aimed to integrate BSC and AHP for a sustainable growth of manufacturing industries.
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TL;DR: In this article, the importance of Critical Success Factors (CSFs) to implement Green Supply Chain Management (GSCM) towards sustainability taking into account the automobile industry of India is explored.
217 citations
TL;DR: In this article, the authors present the assessment of sustainable manufacturing practices, and prioritisation of barriers, drivers, and indicators have become complex due to the involvement of existing existing stakeholders.
Abstract: At present sustainable development, assessment of sustainable manufacturing practices, and prioritisation of barriers, drivers, and indicators have become complex due to the involvement of existing...
60 citations
TL;DR: In this article, a fuzzy analytic hierarchy process-technique for order of preference by similarity to ideal solution (AHP-TOPSIS) approach is used to formulate a sustainable manufacturing strategy and then to map this strategy to established best practices.
Abstract: Food manufacturing is an important value-adding sector of both local economies and the global economy in terms of job creation, food security and participatory community development, among others. Along with highly relevant issues on energy consumption, unsustainable land-use patterns, waste generation associated with the industry, social issues in terms of health and safety of food products are part of the larger sustainability concerns. While maintaining economic stability at the firm level, there is a need to develop a sustainable manufacturing strategy that addresses competitiveness and sustainability. Emerging concerns for sustainable manufacturing are circulating, but focusing on a particular industry remains a gap. Thus, this paper attempts to formulate a sustainable manufacturing strategy and then to map this strategy to established best practices. The main departure of this work is: (1) identifying the content strategy of sustainable manufacturing strategy for food manufacturing firms, (2) determining the most relevant best practice that would largely address the content strategy and (3) providing guidelines for food manufacturing decision-makers and policy-makers in strategy formulation that aims to enhance the sustainability of their manufacturing firms. A fuzzy analytic hierarchy process–technique for order of preference by similarity to ideal solution (AHP–TOPSIS) approach is used to formulate the strategy and then rank the best practices. A case study is carried out in the Philippines, and results show the content strategy and total quality management is the best practice that supports the sustainability of food manufacturing firms followed by resource and material efficiency approaches.
50 citations
TL;DR: In this article, the authors present a set of critical factors for total quality management (TQM) and supply chain management (SCM) practices through an extensive literature review; and, identify the relationships among them by comparing the identified TQM and SCM practices in order to explore the concept of supply chain quality management.
Abstract: The purpose of this paper is twofold: first, to present a set of critical factors for total quality management (TQM) and supply chain management (SCM) practices through an extensive literature review; and, second, to identify the relationships among them by comparing the identified TQM and SCM practices in order to explore the concept of supply chain quality management (SCQM).,To meet the goals of this work, a review of published quality research papers was carried out. For this, the authors identified papers on TQM and SCM practices and observed how these practices improve the business performance of organizations. Further, on the basis of identified practices, a conceptual model of SCQM was developed.,The results presented a set of six critical factors each for TQM and SCM practices. Further, it was found that management support and commitment, customer focus, information and supplier partnership are the most common practices found in both TQM and SCM practices. The integration of TQM and SCM (SCQM) throughout the supply chain has the strongest impact on the organizational performance.,The study used data from various research papers of reputed journals which considered the study of India’s manufacturing industry as well as other countries, which may not provide a clear picture. However, this can be overcome by applying the findings of this paper to collect data from Indian manufacturing industry in future studies.,Indian manufacturing industry can improve its competitive image through the synergy of TQM and SCM. The result of this paper will help in providing a greater understanding of identified TQM and SCM practices that will lead to the successful implementation of TQM and SCM strategies to enhance business performance in terms of the improved levels of customer service.,Much of the attention is given on TQM and SCM practices, and very few studies have been undertaken to integrate TQM and SCM practices. But as far as the authors know, there is no study undertaken to integrate TQM and SCM practices in India for the manufacturing class. Therefore, this study compares TQM and SCM practices and considers their integration and can be thus treated as filling a gap in the extant literature. Therefore, the findings of this review paper will contribute in future research.
29 citations
TL;DR: In this paper, the authors investigate if ISO 9001 certified companies in an Iranian province (Kermanshah) perform better than non-certified ISO9001, i.e., internal or external motivations.
Abstract: Purpose – The purpose of this paper is threefold, first to investigate if ISO 9001 certified companies in an Iranian province (Kermanshah) perform better than non-certified ISO 9001. Second, what is the main motivation of the manufacturing companies of Kermanshah province on obtaining ISO 9001 certification, i.e., internal or external motivations. And finally, if ISO 9001 certified companies with high scores of internal motivations, show better levels of performance in comparison with certified companies obtaining low scores of internal motivations. Design/methodology/approach – A survey questionnaire was distributed to the 350 companies with ISO 9000 certification, and a total of 287 usable responses were returned. Using a structural equation model, this study empirically examines the relationship between ISO 9000 implementation and firm performance, and the moderating role of firm motivation on organizational performance. Findings – The results demonstrate that ISO 9001 certified companies show better o...
26 citations
References
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01 Jan 1985
TL;DR: Analytic Hierarchy Process (AHP) as mentioned in this paper is a systematic procedure for representing the elements of any problem hierarchically, which organizes the basic rationality by breaking down a problem into its smaller constituent parts and then guides decision makers through a series of pairwise comparison judgments to express the relative strength or intensity of impact of the elements in the hierarchy.
Abstract: This chapter provides an overview of Analytic Hierarchy Process (AHP), which is a systematic procedure for representing the elements of any problem hierarchically. It organizes the basic rationality by breaking down a problem into its smaller constituent parts and then guides decision makers through a series of pair-wise comparison judgments to express the relative strength or intensity of impact of the elements in the hierarchy. These judgments are then translated to numbers. The AHP includes procedures and principles used to synthesize the many judgments to derive priorities among criteria and subsequently for alternative solutions. It is useful to note that the numbers thus obtained are ratio scale estimates and correspond to so-called hard numbers. Problem solving is a process of setting priorities in steps. One step decides on the most important elements of a problem, another on how best to repair, replace, test, and evaluate the elements, and another on how to implement the solution and measure performance.
16,547 citations
Journal Article•
TL;DR: The concept of balanced scorecard was introduced by Robert S. Kaplan and David P. Norton as mentioned in this paper to measure performance from three additional perspectives: customers, internal business processes, and learning and growth.
Abstract: for competition that is based on information, their ability to exploit intangible assets has become far more decisive than their ability to invest in and manage physical assets. Several years ago, in recognition of this change, we introduced a concept we called the balanced scorecard. The balanced scorecard supplemented traditional fi nancial measures with criteria that measured performance from three additional perspectives – those of customers, internal business processes, and learning and growth. (See the exhibit “Translating Vision and Strategy: Four Perspectives.”) It therefore enabled companies to track fi nancial results while simultaneously monitoring progress in building the capabilities and acquiring the intangible assets they would need for future growth. The scorecard wasn’t Editor’s Note: In 1992, Robert S. Kaplan and David P. Norton’s concept of the balanced scorecard revolutionized conventional thinking about performance metrics. By going beyond traditional measures of fi nancial performance, the concept has given a generation of managers a better understanding of how their companies are really doing. These nonfi nancial metrics are so valuable mainly because they predict future fi nancial performance rather than simply report what’s already happened. This article, fi rst published in 1996, describes how the balanced scorecard can help senior managers systematically link current actions with tomorrow’s goals, focusing on that place where, in the words of the authors, “the rubber meets the sky.” Using the Balanced Scorecard as a Strategic Management System
5,251 citations
TL;DR: The meaning of value and the process of value creation are rapidly shifting from a product-and firm-centric view to personalized consumer experiences as discussed by the authors, and consumers are increasingly co-creating value with the firm.
5,141 citations
TL;DR: The Balanced Scorecard as mentioned in this paper was developed to measure both current operating performance and the drivers of future performance, and it has been used to measure customer, process, and employee satisfaction.
Abstract: The Balanced Scorecard was developed to measure both current operating performance and the drivers of future performance. Many managers believe they are using a Balanced Scorecard when they supplement traditional financial measures with generic, non-financial measures about customers, processes, and employees. But the best Balanced Scorecards are more than ad hoc collections of financial and non-financial measures. The objectives and measures on a Balanced Scorecard should be derived from the business unit's strategy. A scorecard should contain outcome measures and the performance drivers of those outcomes, linked together in causeand-effect relationships.
1,606 citations
TL;DR: The analytic hierarchy process AHP is flawed as a procedure for ranking alternatives in that the rankings produced by this procedure are arbitrary as discussed by the authors, and the key to correcting this flaw is the synthesis of the AHP with the concepts of multiattribute utility theory.
Abstract: The analytic hierarchy process AHP is flawed as a procedure for ranking alternatives in that the rankings produced by this procedure are arbitrary. This paper provides a brief review of several areas of operational difficulty with the AHP, and then focuses on the arbitrary rankings that occur when the principle of hierarchic composition is assumed. This principle requires that the weights on the higher levels of a hierarchy can be determined independently of the weights on the lower levels. Virtually all of the published examples of the use of the AHP to evaluate alternatives relative to a set of criteria have assumed this principle. The key to correcting this flaw is the synthesis of the AHP with the concepts of multiattribute utility theory.
1,030 citations