Combining Simple Multiple Attribute Rating Technique and Analytical Hierarchy Process for Designing Multi-criteria Performance Measurement Framework

Fentahun Moges Kasie
Fentahun Moges Kasie * § MSc in Industrial Engineering
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§ Hawassa University, Hawassa, Ethiopia.

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Combining Simple Multiple Attribute Rating Technique and Analytical Hierarchy Process for Designing Multi-criteria Performance Measurement Framework

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Abstract

The purpose of this article is to design specific type of multi-criteria performance measurement (MCPM) framework using the virtues of both simple multiple attribute rating technique (SMART) and analytical hierarchy process (AHP) notions. The article largely focuses on selection of key performance indicators (KPIs) using combined merits of these two methods. Identifying KPIs is one of the major challenges in designing of MCPM frameworks/models and it is one of causes of failure while firms are implementing performance measurement systems. The MCPM framework has been designed by considering the needs of all critical stakeholders as crucial input, namely customers, shareholders, environment & local community, employees and suppliers. Then the strategic objectives of the case studied company were outlined with help of strategy map; all potential performance measures were listed for each strategic objective. Six evaluation criteria were applied to identify 19 KPIs among 46 potential indicators. These criteria were compared each other using AHP; all possible performance indicators were evaluated against each criteria through SMART approach. The findings of this article reveal the importance of combining SMART and AHP for selection of KPIs during designing of MCPM framework. Besides, it also indicates how companies can apply the ideas of balanced scorecard (BSC) and performance prism in order to set strategic objectives. In general the findings are based on “Contingency Theory” which emphasizes that there is no one best approach to manage the whole and that it depends on various situational factors.

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Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

How to Cite This Article

Fentahun Moges Kasie. 1970. "Combining Simple Multiple Attribute Rating Technique and Analytical Hierarchy Process for Designing Multi-criteria Performance Measurement Framework". Global Journal of Research in Engineering - G: Industrial Engineering GJRE-G Volume 13 (GJRE Volume 13 Issue G1).

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Journal Specifications

Crossref Journal DOI 10.17406/gjre

Print ISSN 0975-5861

e-ISSN 2249-4596

Keywords
analytical hierarchy process (AHP)key performance indicators (KPIs)multi-criteria performance measimple multi-attribute rating technique (SMART)
Classification
GJRE-G Classification FOR Code: 290502
  • Submission ReceivedDecember 11, 2012
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 1, 2013
  • Published January 15, 2013
Version of record

v1.2

Language
English
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Combining Simple Multiple Attribute Rating Technique and Analytical Hierarchy Process for Designing Multi-criteria Performance Measurement Framework

Fentahun Kasie
Fentahun Kasie Hawassa University, Hawassa, Ethiopia.
Fentahun Kasie
Fentahun Kasie
Fentahun Kasie
Fentahun Kasie
  • Submission ReceivedDecember 11, 2012
  • Peer Review Double Blind
    Handling Editor
  • Accepted January 1, 2013
  • Published January 15, 2013