Document Type : Original Research

Authors

Department of Industrial Engineering, College of Engineering, Shiraz Branch, Islamic Azad University, Shiraz, Iran

Abstract

In a competitive environment changes rapidly occur therefore managers of organizations facing some challenges such as identifying important factors affecting organizational optimum usage of available resources. Thus, organizational performance evaluation is a crucial task to do and sensitive process in any industry. The objective of this study is to construct an approach based on the   balanced scorecard (BSC) and fuzzy analytic hierarchy process (FAHP) for evaluating the aircraft maintenance department in Iran. The BSC concept is applied to define the hierarchy with four major perspectives (i.e. financial, customer, internal business process, and learning and growth), and performance indicators are selected for each perspective. A Fuzzy AHP (FAHP) approach is then proposed in order to tolerate vagueness and ambiguity of information. A FAHP information system is finally constructed to facilitate the solving process. The results provide guidance to the aircraft maintenance department in Iran regarding strategies for improving department performance. The results show that financial indicator (0.305) and learning and growth indicator (0.255) have higher impacts on the objective. The constructed information system is suggested to be a good tool for solving other multiple-criteria decision-making problems.

Keywords

Al Fazari H., (2008). Fuzzy Quality Function Deployment for Aircraft Maintenance Organizations, Thesis [Doctorat], France, 25.
Chen F.H., Hsu T.S., & Tzeng G.H. (2011). A balanced scorecard approach to establish a performance evaluation and relationship model for hot spring hotels based on a hybrid MCDM model combining DEMATEL and ANP, International Journal of Hospitality Management, 908– 932.
Cho C., & Lee S. (2011). A study on process evaluation and selection model for business process management, Expert Systems with Applications, 6339–6350.
Erbasi A. & Parlakkaya  R. (2012).  The Use of Analytic Hierarchy Process in The Balanced Scorecard: An Approach in a Hotel Firm, Business and Management Review, (2)2, 23 – 37.
Huang H.C., Lai M.C., & Lin L.H. (2011). Developing strategic measurement and improvement for the biopharmaceutical firm: Using the BSC hierarchy, Expert Systems with Applications, 4875–4881.
Lee A.H.I., Chen W.C., & Chang C.J. (2008). A fuzzy AHP and BSC approach for evaluating performance of IT department in the manufacturing industry in Taiwan, Expert Systems with Applications, 96–107.
Lin Q.L., Liu L., Liu H.C., & Wang D.J. (2013). Integrating hierarchical balanced scorecard with fuzzy linguistic for evaluating operating room performance in hospitals, Expert Systems with Applications, 1917–1924.
Lin Z., YU Z., & Zhang L. (2014). Performance outcomes of balanced scorecard application in hospital administration in China, China Economic Review, 1–15.
Quezada L.E., & López-Ospina H.A. (2014). A method for designing a strategy map using AHP and linear programming, Int. J. Production Economics, 244-255.
Shaverdi M., Heshmati M.R., & Ramezani I. (2014). Application of Fuzzy AHP Approach for Financial Performance Evaluation of Iranian Petrochemical Sector, Information Technology and Quantitative Management, 995 – 1004.
Sundharam V.N., Sharma V., & Thangaiah I.S.S. (2013). An integration of BSC and AHP for sustainable growth of manufacturing industries, Int. J. Business Excellence, 77-92.
Tavana M., Mousavi N., & Golara S. (2013). A fuzzy-QFD approach to balanced scorecard using an analytic network process, Int. J. Information and Decision Sciences, (5), 331–363.
Wu H.Y., Tzeng G.H., & Chen Y.H. (2009). A fuzzy MCDM approach for evaluating banking performance based on Balanced ScorecNo. 9.