Performance measurement of supply chain management using the analytical hierarchy process

Performance measurement of supply chain management (SCM) is a rapidly growing multi-criteria decision-making problem owing to the large number of factors affecting decision-making. The right choice of performance metrics and measures is critical to the success and competitiveness of the firms in the era of globalisation. Recognising the multiple objective nature of the problem, this paper proposes the use of the analytical hierarchy process (AHP) methodology as aid in making SCM evaluation decisions. For pair-wise comparison in AHP, a survey methodology is used. The methodology presented can help firms to prioritise and formulate viable performance measurement strategies in the volatile and complex global decision environment from different balanced scorecard (BSC) perspectives. A demonstration of the application of this methodology in a real life problem is presented.     

An application of the integrated AHP-PGP model for performance measurement of supply chain management

The performance measurement problem has gained great attention in business and operations management literature. The first objective of this study is to determine the required performance measures and to develop a model for performance evaluation, based on these selected measures using analytical hierarchy process (AHP) methodology. The second objective is to explain how an integrated AHP-PGP (pre-emptive goal programming) model can be used in performance measurement while optimising the overall performance. An integration of AHP and multi-objective PGP is used to consider both quantitative and qualitative performance measures in optimising the overall performance of the system. The integrated model is presented with a real-world application using source data provided by a survey conducted in India. Findings demonstrate that the integrated AHP-PGP model can be useful to all supply chain industries in their day-to-day performance measurement decisions.     

Green supply chain performance measurement using fuzzy ANP-based balanced scorecard: a collaborative decision-making approach

The purpose of this paper is to delineate a green supply chain (GSC) performance measurement framework using an intra-organisational collaborative decision-making (CDM) approach. A fuzzy analytic network process (ANP)-based green-balanced scorecard (GrBSc) has been used within the CDM approach to assist in arriving at a consistent, accurate and timely data flow across all cross-functional areas of a business. A green causal relationship is established and linked to the fuzzy ANP approach. The causal relationship involves organisational commitment, eco-design, GSC process, social performance and sustainable performance constructs. Sub-constructs and sub-sub-constructs are also identified and linked to the causal relationship to form a network. The fuzzy ANP approach suitably handles the vagueness of the linguistics information of the CDM approach. The CDM approach is implemented in a UK-based carpet-manufacturing firm. The performance measurement approach, in addition to the traditional financial performance and accounting measures, aids in firm’s decision-making with regard to the overall organisational goals. The implemented approach assists the firm in identifying further requirements of the collaborative data across the supply-cain and information about customers and markets. Overall, the CDM-based GrBSc approach assists managers in deciding if the suppliers’ performances meet the industry and environment standards with effective human resource.     

A conceptual model for measuring supply chain's performance

In this article, a conceptual model for measuring supply chain (SC) performance is proposed which can be used for most organisations with the same class at various industries. The model has been developed according to performance metrics interdependencies and some existing shortcomings in the available literature of performance models. Furthermore, it has tried to see the key features of a performance evaluation model. The methodology which is used for solving and integrating the model is a combination of the analytical hierarchy process (AHP) and Decision Making Trial and Evaluation Laboratory (DEMATEL) methods. The DEMATEL and AHP are used for understanding the relationship between comparison metrics and integration to provide a value for performance, respectively.     

Flexible manufacturing systems performance in U.S. automotive manufacturing plants: a case study

Flexible manufacturing systems (FMS) philosophy is a key weapon in achieving global manufacturing competitiveness. It encompasses a wide range of dimensions to improve all aspects of operational performance metrics. The aim of the study is to examine the current state of flexibility adoption in U.S. automotive manufacturing facilities and its impact on operational performance metrics. It utilizes survey questionnaire developed based on previous work in U.S. manufacturing industry. The survey was originally distributed to 420 facility managers in the U.S. domestic automotive industry. It was revealed that 70% of the respondents had implemented all 15 flexibility dimensions listed in the questionnaire. The data analysis conducted shows that implementation of certain flexibility dimensions will lead to significant improvement in specific operational performance metrics. This considerable finding can be used as a guide for manufacturing managers to achieve certain objectives in operational performance improvement in a rapidly changing environment.     

Integrating sustainable supply chain practices with operational performance: an exploratory study of Chinese SMEs

Abstract

With growing regulatory and market pressure to implement green practices, SMEs are facing enormous challenges to simultaneously improve operational and green performances of their supply chains. The paper aims to understand the green practices adopted by Chinese SMEs in the packaging sector in order to assess the impact of these practices in improving the operational performance. Case study-based research methodology is adopted and semi-structured interviews are conducted to collect data from seven SMEs in this study. Both in-case and cross-case analyses are performed to understand the green practices being adopted with the focus on improving the operational performance. The findings of this study indicate that although most SMEs understand the importance of green practices, they have limited knowledge to integrate these practices to improve operational performance. Integration and alignment of green activities with the operational improvement measures are identified as critical factors to develop an efficient green supply chain.     

An integrated model of supply chain performance evaluation and decision-making using structural equation modelling and fuzzy AHP

This paper aims to propose a comprehensive evaluation tool and decision model, which can help the practitioners to gauge their supply chain performance and guide them in decision-making for further improvements. The model provides a salient notion of integrated supply chain performance evaluation approach distilled from the literature. The five important performance evaluation criteria (supply chain planning performance, supply chain partnership performance, production performance, delivery and logistic performance and customer service and satisfaction performance) and corresponding 19 sub-criteria have been identified. An integrated methodology of structural equation modelling (SEM) and fuzzy analytic hierarchy process (FAHP) have been applied to the proposed model to a real case study of Indian textile–apparel–retail supply chain network.     

Evaluation of the green supply chain management practices: a fuzzy ANP approach

Environmentally responsible manufacturing, green supply chain management (GSCM), and related principles have become important strategies for companies to achieve profit and gain market share by lowering their environmental impacts and increasing their efficiency. As environment has become a key strategic consideration in supply chains, this study examines the components and elements of GSCM and suggests a novel GSCM evaluation framework. It also provides a real-case study of Ford Otosan, one of the pioneering companies about environmental subjects in Turkey, to illustrate the industrial application of our theoretical assessment model. The identified components are integrated into a strategic assessment and evaluation tool using analytical network process (ANP). The dynamic characteristics and complexity of the GSCM analysis environment make the ANP technique a suitable tool for this study. Moreover, to cope with ambiguity and vagueness of the decision maker's evaluations, the fuzzy extension of the ANP method is preferred.     

Prioritising indicators in improving supply chain performance using fuzzy AHP: insights from the case example of four Indian manufacturing companies

Abstract

In this contribution, we aim to prioritise the indicators to enhance the organisational supply chain’s (SC) effectiveness from an industrial perspective. It will help industries to develop strategies for managing the SC effectively and ensuring improvement in performance continuously. To achieve this, this work proposes to use a two-phase research methodology. First, 36 SC performance improvement indicators are recognised from a literature survey and from field and industrial expert’s inputs. Secondly, a structural model is proposed using the fuzzy analytical hierarchy process (AHP) to prioritise the indicators strategically to improve the SC performance. The fuzzy AHP method helps determine the priority of concerns of the identified indicators under fuzzy surroundings. Inputs in this research are taken from four ancillary Indian plastic manufacturing firms. Research findings indicate that collaborations and information exchange dimension indicators obtained the highest priority in improving SC performance. The model proposed is considered very useful for the SC managers/practitioners/decision-makers to understand better and distinguish the essential SC performance improvement indicators and to take systematic decisions specifically to improve the performance of business in a SC context. Sensitivity analysis was conducted to examine the priority ranking of the indicators.     

Technology selection in the absence of standardised materials and processes: a survey in the UK composite materials supply chain

Composite materials is an industry where technology selection has major consequences as there is not a standard manufacturing process, nor are there standardised materials with defined or proscribed properties for companies to select as multiple solutions are technically viable. This research aims to identify key factors for manufacturing technology selection in the UK composite materials supply chain. Literature review and managers’ opinions were used to identify 18 factors affecting manufacturing technology selection. This was followed by a survey comprising the multi-tier supply chain of the composite materials industry. The results of the survey show ‘on time deliveries/service level to customers’, ‘improve quality’ and ‘reduce cycle time’ received the highest average ratings. In this study a correlation analysis was performed to identify the underlying dependencies between the factors investigated. The identification and use of underlying dependencies rather than highest average provided a more comprehensive picture of the factors that affect technology selection in the composite materials industry. For this study, experts in composite materials were asked to comment on the findings of the survey and their value to the industry. The results presented may assist companies in the composite materials industry with technology selection decision-making processes.     

Developing management capability within a horizontal supply chain in performance measurement deployment and evolution: a Dynamic Capabilities and Goal Theory perspective

Abstract

Complex collaboration in rapidly changing business environments create challenges for management capability in Utility Horizontal Supply Chains (UHSCs) involving the deploying and evolving of performance measures. The aim of the study is twofold. First, there is a need to explore how management capability can be developed and used to deploy and evolve Performance Measurement (PM), both across a UHSC and within its constituent organisations, drawing upon a theoretical nexus of Dynamic Capability (DC) theory and complementary Goal Theory. Second, to make a contribution to knowledge by empirically building theory using these constructs to show the management motivations and behaviours within PM-based DCs. The methodology uses an interpretive theory building, multiple case-based approach (n = 3) as part of a USHC. The data collection methods include, interviews (n = 54), focus groups (n = 10), document analysis and participant observation (reflective learning logs) over a five-year period giving longitudinal data. The empirical findings lead to the development of a conceptual framework showing that management capabilities in driving PM deployment and evolution can be represented as multilevel renewal and incremental Dynamic Capabilities, which can be further understood in terms of motivation and behaviour by Goal-Theoretic constructs. In addition, three interrelated cross-cutting themes of management capabilities in consensus building, goal setting and resource change were identified. These management capabilities require carefully planned development and nurturing within the UHSC.     

敏捷供应链供需协调绩效关联分析与实证研究

回顾了供应链协调管理与协调绩效评价的研究现状,分析了供应链协调绩效因子之间的相互关系,建立了一系列的供需协调绩效的关联关系的理论假设命题和一个综合分析模型,并且通过企业的问卷采样,对假设与模型进行了实证研究,验证了有关分析结论与假设命题.     

QoS in the internal supply chain: the next lever of competitive advantage and organisational performance

This article presents a research that examines the relationship of quality of service (QoS) and organisational performance in a manufacturing setting. There are few empirical studies that measure QoS in the manufacturing supply chain. A model linking QoS with organisational performance through intermediate variables of satisfaction, loyalty and competitive advantage is introduced and tested in the internal supply chain of three automotive organisations. The research design for this article includes a combination of literature review, exploratory interviews with scholars and practitioners, and a survey of 156 practitioners in three automotive companies in North India. Structural equation modelling has been used for data analysis. This research comes out with four factor scale for internal service quality and six-factor scale for external service quality. The research revealed that employee-driven QoS is a source of value addition that is positively linked with the organisational performance. This study would be of interest to manufacturing industry practitioners interested in internal and external service quality improvements. Future researchers could validate this scale, and empirically test the proposed model.     

An integrated lean and green approach for improving sustainability performance: a case study of a packaging manufacturing SME in the U.K.

Abstract

Competitive landscape, informed consumers and stringent regulations have forced many manufacturing small- and medium-sized enterprises (SMEs) to focus on operational efficiency along with sustainability issues in recent years. While many manufacturing organisations have been taking lean initiatives for the past few years for operational excellence, an impulsive rush to adopt lean without a strategic deployment vision has led to scattered implementation of lean tools and projects without desired success. Many researchers and practitioners prescribe value stream mapping as a foundation for lean transformation initiatives; however, little empirical work is available on the symbiosis of lean and green paradigms to reap maximum benefits. This research, through a systematic methodology and a novel tool called Green Integrated Value Stream Mapping (GIVSM), integrates both paradigms in a case study on a U.K. packaging-manufacturing SME. Applying the GIVSM demonstrates that simultaneous deployment of lean and green paradigms have synergistic effect for improving both operational efficiency and environmental performance. In addition, continuous improvement framework with sustainable procurement is proposed to overcome the lean-green misalignments. This study also provides a guiding reference for practitioners to undertake similar improvement projects and identifies opportunities to expand this academic research on integrated lean-green approach into other industry sectors.     

Measuring agri-food supply chain performance and risk through a new analytical framework: a case study of New Zealand dairy

Abstract

Many researchers and practitioners have long recognized the significance of measuring performance. Although general guidelines for measuring business performance are widely available, no appropriate measurement frameworks have been developed for measuring agri-food supply chain performance. Particularly, food quality and risk-related indicators have not been well integrated into existing performance measurement systems. Our research, therefore, addresses this knowledge gap by first providing an in-depth review of extant performance measurement systems and frameworks. It then develops an analytical framework by extending the Supply Chain Operations Reference (SCOR) model which has been extensively implemented across non-food industries. The analytical framework is further validated by utilizing a case study of 50 farmers and 10 dairy companies, operating in the New Zealand dairy industry.

Our pilot testing and subsequent findings show that the individual metrics interlocked with the analytical framework are in-line with the key industrial practices adapted by the New Zealand dairy industry. In addition, the framework is flexible and scalable to evaluate and benchmark other agri-food supply chains – ranging from fresh products such as fruits and vegetables to processed foods such as canned fruits. The findings further show that the detailed information required for measuring the level-3 SCOR metrics is not easily available in the industry, as researchers need to access specific company records that may be confidential. Consequently, this study provides how agri-food supply chain managers can employ our new analytical framework in-conjunction with the SCOR model for a deeper understanding of the complicated performance measurement indicators applied in their agri-food production systems and relevant supply chains.     

Exploring the factors of achieving supply chain excellence: a New Zealand perspective

The objective of the paper is to analyse supply chain (SC) excellence from the practitioners’ perspective in the New Zealand (NZ) context. The extant literature does not focus on achieving this excellence with the contemporary factors of this dynamic field. The study is an exploratory one using the structured Delphi technique to understand the ground level experience of the practitioners on the constructs of supply chain excellence. In this paper, we have administered three poll rounds to gather insights from the SC practitioners on the various enablers and barriers that impact supply chain excellence in the NZ environment. Seven supply chain management constructs are explored for their relationships with barriers and enablers in achieving the excellence in supply chains. The outcomes reveal that the people relevant issues (i.e. SCM knowledge education and supply chain culture) are more significant than other technical and operational factors. However, the influences from specific NZ business environment issues become far less important than a few years ago. This paper seeks the integration of practice-based views with the academic supply chain literature and original contributions from the NZ context.     

Improving operational plant performance in international manufacturing networks: the effects of integrative capabilities and plant roles

Abstract

This study adopts the resource-based view to examine how two integrative capabilities of a plant embedded in a manufacturing network enhance operational performance: the capability to connect with other plants in its manufacturing network (a networking capability, NC), and the capability to integrate manufacturing processes with new product development processes (a new product development capability, NPDC). Our model tests the indirect effect of NC on cost, quality, flexibility and delivery through NPDC. Furthermore, we test if the relationship between NC and NPDC depends on the strategic role of the plant. Using survey data from a sample of 521 plants, we confirmed the mediating effect of NPDC. However, the moderation effect was not confirmed. Our findings reveal that plants can deploy NPDC capabilities, fostered by NC, independently from their role in the network. This study contributes to the understanding of plant capabilities and plant roles in manufacturing networks.     

E-business services and business performance: a study of the telecommunications manufacturing industry

The development of information and communication technologies has significantly changed the business interactions as well as created new approaches for improving business performances. While the benefits from this development have been well documented in the literature, it also poses a significant challenge for companies in tracking or further improving e-business services. This article contributes to this body of knowledge by investigating the impact of e-business service dimensions on business performance in the telecommunications manufacturing industry. Based on 121 usable responses from a questionnaire survey of the UK telecommunication manufacturers, structural equation modelling is employed to identify the main e-business service dimensions which affect business performance significantly. The data analysis reveals that two e-business service dimensions significantly influence suppliers’ performance from the buyer's perspective. It also indicates the significant relationships between suppliers’ performance, buyer-perceived buyer–supplier relationship maintenance and the buyer's competitive advantage. The findings in this research not only help the supplier to understand which practices significantly improve its overall performance (as perceived by the buyer), but also assist the buyer in its supplier development efforts to improve its own business performance.     

An analysis of the supplier selection process

Customers select suppliers based on the relative importance of different attributes such as quality, price, flexibility, and delivery performance. This study examines the difference between managers' rating of the perceived importance of different supplier attributes and their actual choice of suppliers in an experimental setting. We use two methods: a Likert scale set of questions, to determine the importance of supplier attributes; and a discrete choice analysis (DCA) experiment, to examine the choice of suppliers. The results indicate that although managers say that quality is the most important attribute for a supplier, they actually choose suppliers based largely on cost and delivery performance.     

Critical success factors of green supply chain management for achieving sustainability in Indian automobile industry

The aim of this study was to identify and analyse the key success factors behind successful achievement of environment sustainability in Indian automobile industry supply chains. Here, critical success factors (CSFs) and performance measures of green supply chain management (GSCM) have been identified through extensive literature review and discussions with experts from Indian automobile industry. Based on the literature review, a questionnaire was designed and 123 final responses were considered. Six CSFs to implement GSCM for achieving sustainability and four expected performance measures of GSCM practices implementation were extracted using factor analysis. interpretive ranking process (IRP) modelling approach is employed to examine the contextual relationships among CSFs and to rank them with respect to performance measures. The developed IRP model shows that the CSF ‘Competitiveness’ is the most important CSF for achieving sustainability in Indian automobile industry through GSCM practices. This study is one of the few that have considered the environmental sustainability practices in the automobile industry in India and their implications on sectoral economy. The results of this study may help the mangers/SC practitioners/Governments/Customers in making strategic and tactical decisions regarding successful implementation of GSCM practices in Indian automobile industry with a sustainability focus. The developed framework provides a comprehensive perspective for assessing the synergistic impact of CSFs on GSCM performances and can act as ready reckoner for the practitioners. As there is very limited work presented in literature using IRP, this piece of work would provide a better understanding of this relatively new ranking methodology.