Determining quantitative targets for performance measures in the balanced scorecard method using response surface methodology

2018 ◽  
Vol 56 (9) ◽  
pp. 2006-2037 ◽  
Author(s):  
Sorour Farokhi ◽  
Emad Roghanian
Keyword(s):  
Response Surface Methodology ◽  
Performance Evaluation ◽  
Response Surface ◽  
Performance Measures ◽  
Balanced Scorecard ◽  
Decision Makers ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Optimal Values

Purpose The purpose of this paper is to propose a quantitative methodology for setting targets in the framework of Balanced Scorecard (BSC) in order to achieve vision and goals. Design/methodology/approach Response Surface Methodology is proposed to find the significant relationships that should be included in the strategy map and the optimal values of performance measures are assessed by using the desirability function-based approach of RSM. The proposed method was created by reviewing the existing literature, modeling the problem, and applying it in an oil company. In fact, RSM is used to execute the design matrix, analyze the collected data, extract models, analyze the results, and optimize the procedures that generate multiple responses. Findings By applying this methodological design, a clearer picture of the relationships between strategic objectives is obtained and the influence of strategic objectives on one another is determined. Afterward, optimal values for performance measures are determined. Research limitations/implications This paper proposes a framework for constructing a strategy map and setting quantitative targets to translate the goals and strategies into corresponding performance measures and targets. Also, this paper presents a case study to demonstrate the applicability and effectiveness of the proposed approach. However, RSM-based techniques require a greater amount of data to generate more accurate results. Although the advent of the Information Age has forced organizations’ decision makers to provide sufficient information and data for business analysis, the data requirements of RSM-based techniques are met. Practical implications In practice, the process of setting targets for performance measures can be challenging in terms of reaching a consensus between managers and decision makers. The findings of this paper can offer a new approach for performance evaluation based on the BSC which allows the organization’s decision makers to reach a more accurate picture of the relationship model between organization goals and those objectives within the BSC. It also demonstrates how decision makers can be guided in the process of defining performance target values in the BSC method. Originality/value Reviewing the literature on setting quantitative targets within the framework of the BSC showed no prior study in which RSM is used. This approach has two main contributions: the associations among strategic objectives are investigated and obtained in an effective way which analytically identifies the direction and degree of the relations among the performance measures. Considering the performance evaluation structure based on the BSC, quantitative targets have been determined to help in achieving the long-term goals of the organization. The application of the proposed method in a company showed that the contributions of this research are not only theoretical, but practical as well.

Quantitative target setting in balanced scorecard method using simultaneous equations system and goal programming

2019 ◽  
Vol 69 (9) ◽  
pp. 2089-2118
Author(s):  
Sorour Farokhi ◽  
Emad Roghanian ◽  
Yaser Samimi
Keyword(s):  
Goal Programming ◽  
Balanced Scorecard ◽  
Simultaneous Equations ◽  
Decision Makers ◽  
Programming Method ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Simultaneous Equations System

Purpose The purpose of this paper is to identify the accurate cause and effect relationships among strategic objectives and also to demonstrate how decision makers can be guided in the process of defining quantitative strategic target values in the framework of balanced scorecard (BSC) and performance measurement system. Design/methodology/approach Based on the proposed method in this research, after determining strategic objectives and developing an initial strategy map according to decision makers’ opinions, simultaneous equations system (SES) was used to determine the significance of the relationships among strategic objectives in higher perspectives of the BSC and corresponding strategic objectives in lower perspectives. Afterward, desirable values for performance measures were determined based on the equations and relationships obtained through SES and were optimized by goal programming method. Findings By applying the proposed method, a clearer picture of the associations among strategic objectives is obtained and the influence of strategic objectives on one another is determined. Afterward, optimal values for strategic objectives are determined to achieve the organization’s goals. Research limitations/implications This paper proposes a framework for constructing a strategy map and setting quantitative targets in the framework of BSC. Indeed, this paper presents a case study to demonstrate the applicability and effectiveness of the proposed approach. However, SES technique requires a greater amount of data to generate more accurate results. Although the advent of the Information Age has forced organizations’ decision makers to provide sufficient information and data for business analysis, the data requirements are met. Practical implications The presented quantitative approach is a supporting approach for improving decision makers’ opinions and enabling them to reach a more accurate picture of the relationships, valuing strategic objectives and achieving strategic goals. This research also presents a case study to demonstrate the applicability of the proposed approach. The application and implication of the proposed method in banking services show that the contributions of the paper are not only theoretical, but also practical. Originality/value The proposed method provides a novel approach for determining the most appropriate targets and applies a comprehensive and scientific model together with decision makers’ opinions and experiences and has two main contributions: first, the associations among strategic objectives are investigated and obtained in an effective way by conducting the SES for the first time in the framework of BSC. Second, quantitative targets have been determined to help in achieving the long-term goals. This task has been accomplished through a combination of SES, the three-stage least squares regression analysis and optimization by using weighted goal programming method.

Designing a balanced scorecard using a scenario approach

2019 ◽  
Vol 32 (2) ◽  
pp. 118-137
Author(s):  
Miguel Angel González ◽  
Luis Quezada ◽  
Pedro Palominos
Keyword(s):  
Balanced Scorecard ◽  
Training Session ◽  
Social Benefit ◽  
Ease Of Use ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Map ◽  
Intervention Team ◽  
New Strategies

Purpose The purpose of this paper is to design a method or process that relates dynamic environmental conditions with the strategic objectives present in a company’s strategy map, thereby allowing rapid analysis and the generation of new strategies that the company can adopt in a timely manner in order to maintain and/or improve its competitive position in the market. Design/methodology/approach One training session and three workshops were run involving the company staff. The intervention team reviewed and analyzed the results achieved and prepared the final presentation. Finally, they were asked to evaluate the intervention methodology with respect to usefulness and ease of use. Findings The developed methodology allows companies to obtain a broader vision of their future prospects. The executives’ participation in the process provided them a vision and understanding of the most relevant and sensitive variables of their environment. Research limitations/implications The proposed methodology is easy to use. It provides a simple and agile mechanism to adapt the strategy of an organization to the changes in the market and environment. Social implications This process will provide social benefit for the global community, from both a methodological perspective and a practical one, as it will provide a tool that will positively impact competitiveness and quality of life for workers and the wider community. Originality/value This paper allows the identification of the possible scenarios and their incorporation into a strategy map, which may help companies deal with the changes in their competitive environment. The strategy maps generated for each of the scenarios provide useful information with respect to presented events.

A method for designing strategy maps using DEMATEL and linear programming

2017 ◽  
Vol 55 (8) ◽  
pp. 1802-1823 ◽  
Author(s):  
Héctor López-Ospina ◽  
Luis E. Quezada ◽  
Ricardo A. Barros-Castro ◽  
Miguel A. Gonzalez ◽  
Pedro I. Palominos
Keyword(s):  
Decision Making ◽  
Linear Programming ◽  
Optimization Model ◽  
Decision Makers ◽  
Decision Making Process ◽  
Content Type ◽  
Strategic Objectives ◽  
Strategy Maps ◽  
Strategy Map ◽  
A Company

Purpose The purpose of this paper is to propose a quantitative methodology for the identification of the causal relationships between strategic objectives in a strategy map of a balanced scorecard. This is done to face the possible weaknesses described in the literature regarding the causal links and the difficulty in validating the relationships. Design/methodology/approach The proposed method combines the multi-criteria decision-making method called decision-making trial and evaluation laboratory (DEMATEL) and an optimization model. DEMATEL is used to establish the importance of the strategic relations between strategic objectives, and the optimization model is used to find the relations that are more “important” and should be included in the strategy map. The method was created by reviewing the existing literature, modeling the problem, and applying it in a company. Findings The most important results of applying this methodological design include that the proposed method maintains the BSC classical structure; it also enables the generation of several alternatives to support the decision-making process in terms of strategic objectives for a better organizational performance. Practical implications The method facilitates the decision-making process by presenting several alternatives of strategy maps according to different levels of organizational criteria. In fact, these alternatives help the organization in focusing on the most important aspects of the strategy map. Consequently, managers may identify where to pay more attention and resources in order to achieve the most important objectives of the company. Hence, this method, as a support for decision makers, enables (and requires) the active participation of senior managers and any kind of decision makers in creating and valuating objectives, relations, constraints, importance, and parameters of the optimization model. Originality/value DEMATEL has been used to design strategy maps. The contribution of the paper is the use of a linear programming model to select those relationships that should be included in the strategy map. It allows manager to focus on those strategic elements that are important from a strategic point of view. The application in a company showed that the contribution is not only theoretical but practical as well.

The Differential Improvement Effects of the Strategy Map and Scorecard Perspectives on Managers' Strategic Judgments

2012 ◽  
Vol 87 (3) ◽  
pp. 899-924 ◽  
Author(s):  
Mandy M. Cheng ◽  
Kerry A. Humphreys
Keyword(s):  
Performance Measures ◽  
Balanced Scorecard ◽  
Data Availability ◽  
External Information ◽  
Strategic Objectives ◽  
Information Relevance ◽  
Strategy Map ◽  
And Performance

ABSTRACT This study examines the effect that two key balanced scorecard (BSC) framework elements—causal linkages between strategic objectives in the strategy map and performance measures categorized by scorecard perspective—have on managers' ability to interpret the strategic relevance of external information and use this information to evaluate the appropriateness of an organization's strategy. We conduct two experiments, finding that presenting a set of strategic objectives as a strategy map enhances both managers' information relevance and strategy appropriateness judgments. We attribute this improvement to the explication of causal linkages between objectives in a strategy map. In contrast, presenting performance measures categorized by scorecard perspective only improves managers' strategy appropriateness judgments when the managers are provided with a set of strategic objectives that are not presented in a strategy map structure. Our study contributes to the literature by demonstrating that these two elements of the BSC framework have differential decision-facilitating impacts on managers' strategic judgments. Data Availability: Data are available from the authors upon request.

Demulsification of a Water-in-crude Oil Emulsion with a Corn Oil BasedDemulsifier using the Response Surface Methodology: Modelling and Optimization

2021 ◽  
Vol 14 ◽  
Author(s):  
Abed Saad ◽  
Nour Abdurahman ◽  
Rosli Mohd Yunus
Keyword(s):  
Response Surface Methodology ◽  
Crude Oil ◽  
Water Content ◽  
Response Surface ◽  
Separation Efficiency ◽  
Corn Oil ◽  
Oil Emulsion ◽  
Optimal Values ◽  
Input Variables ◽  
Oil Emulsions

: In this study, the Sany-glass test was used to evaluate the performance of a new surfactant prepared from corn oil as a demulsifier for crude oil emulsions. Central composite design (CCD), based on the response surface methodology (RSM), was used to investigate the effect of four variables, including demulsifier dosage, water content, temperature, and pH, on the efficiency of water removal from the emulsion. As well, analysis of variance was applied to examine the precision of the CCD mathematical model. The results indicate that demulsifier dose and emulsion pH are two significant parameters determining demulsification. The maximum separation efficiency of 96% was attained at an alkaline pH and with 3500 ppm demulsifier. According to the RSM analysis, the optimal values for the input variables are 40% water content, 3500 ppm demulsifier, 60 °C, and pH 8.

Fabrication, performance evaluation, and optimisation of adsorptive ammonia removal using hollow fibre ceramic membrane: Response surface methodology approach

2021 ◽  
Vol 316 ◽  
pp. 110932
Author(s):  
Mohd Ridhwan Adam ◽  
Mohd Hafiz Dzarfan Othman ◽  
Siti Hamimah Sheikh Abdul Kadir ◽  
Mohd Hafiz Puteh ◽  
Mohd Riduan Jamalludin ◽  
...  
Keyword(s):  
Response Surface Methodology ◽  
Performance Evaluation ◽  
Response Surface ◽  
Ceramic Membrane ◽  
Hollow Fibre ◽  
Ammonia Removal

Modeling of the machining parameters in turning of Al-5052/TiC/SiC composites: a statistical modeling approach using grey relational analysis (GRA) and response surface methodology (RSM)

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Venkateshwar Reddy Pathapalli ◽  
Meenakshi Reddy Reddigari ◽  
Eswara Kumar Anna ◽  
P. Srinivasa Rao ◽  
D V. Ramana Reddy
Keyword(s):  
Response Surface Methodology ◽  
Response Surface ◽  
Metal Matrix ◽  
Machining Parameters ◽  
Matrix Composites ◽  
Content Type ◽  
Relational Analysis ◽  
Desirability Approach ◽  
Grey Relational ◽  
Grey Taguchi

PurposeMetal matrix composites (MMC) has been a section which gives an overview of composite materials and owing to those exceptional physical and mechanical properties, particulate-reinforced aluminum MMCs have gained increasing interest in particular engineering applications. Owing to the toughness and abrasive quality of reinforcement components such as silicon carbide (SiC) and titanium carbide (TiC), such materials are categorized as difficult materials for machining. The work aims to develop the model for evaluating the machinability of the materials via the response surface technique by machining three distinct types of hybrid MMCs.Design/methodology/approachThe combined effects of three machining parameters, namely “cutting speed” (s), “feed rate” (f) and “depth of cut” (d), together with three separate composite materials, were evaluated with the help of three performance characteristics, i.e. material removal rate (MRR), cutting force (CF) and surface roughness (SR). Response surface methodology and analysis of variance (ANOVA) both were initially used for analyzing the machining parameters results.FindingsThe contours were developed to observe the combined process parameters along with their correlations. The process variables were concurrently configured using grey relational analysis (GRA) and the composite desirability methodology. Both the GRA and composite desirability approach obtained similar results.Practical implicationsThe results obtained in the present paper will be helpful for decision-makers in manufacturing industries, who work on metal cutting area especially composites, to select the suitable solution by implementing the Grey Taguchi and modeling techniques.Originality/valueThe originality of this research is to identify the suitability of process parameters combination based on the obtained research results. The optimization of machining parameters in turning of hybrid metal matrix composites is carried out with two different methods such as Grey Taguchi and composite desirability approach.

Improving the electromagnetic compatibility of electronic products by using response surface methodology and artificial neural network

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ching-Hsiang Chen ◽  
Chien-Yi Huang ◽  
Yan-Ci Huang
Keyword(s):  
Neural Network ◽  
Artificial Neural Network ◽  
Response Surface Methodology ◽  
Response Surface ◽  
Electromagnetic Compatibility ◽  
Heat Dissipation ◽  
Optimal Parameter ◽  
Content Type ◽  
Early Stages ◽  
Artificial Neural

Purpose The purpose of this study is to use the Taguchi Method for parametric design in the early stages of product development. electromagnetic compatibility (EMC) issues can be considered in the early stages of product design to reduce counter-measure components, product cost and labor consumption increases due to a number of design changes in the R&D cycle and to accelerate the R&D process. Design/methodology/approach The three EMC characteristics, including radiated emission, conducted emission and fast transient impulse immunity of power, are considered response values; control factors are determined with respect to the relevant parameters for printed circuit board and mechanical design of the product and peripheral devices used in conjunction with the product are considered as noise factors. The optimal parameter set is determined by using the principal component gray relational analysis in conjunction with both response surface methodology and artificial neural network. Findings Market specifications and cost of components are considered to propose an optimal parameter design set with the number of grounded screw holes being 14, the size of the shell heat dissipation holes being 3 mm and the arrangement angle of shell heat dissipation holes being 45 degrees, to dispose of 390 O filters on the noise source. Originality/value The optimal parameter set can improve EMC effectively to accommodate the design specifications required by customers and pass test regulations.

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