scholarly journals Differences in prioritization of the BSC’s strategic goals using AHP and ANP methods

2018 ◽  
Vol 42 (2) ◽  
pp. 193-217 ◽  
Author(s):  
Aleksander Janeš ◽  
Nina Begičević Ređep
Keyword(s):  
Decision Making ◽  
Balanced Scorecard ◽  
Analytic Network Process ◽  
Analytic Hierarchy ◽  
The Balanced Scorecard ◽  
Network Process ◽  
Strategic Goals ◽  
Key Issues ◽  
Hierarchy Process

The development and empirical verification of the balanced scorecard (BSC) model, using the multi-criteria decision-making methods (MCDM) called the analytic hierarchy process (AHP) and the analytic network process (ANP), are the key issues of the presented research. The paper presents the methodology of the prioritization of the BSC goals with the AHP and ANP methods. Even though the prioritization of the goals is possible with both, findings from the empirical analysis showed that the ANP is more complementary with the BSC because of the influences among the goals in the BSC. The ANP supports the modelling of those influences (through dependencies) and the AHP does not. The paper discusses special situations in prioritizing the BSC goals (understanding the ANP from the perspective of the user and the BSC with strategic goals that do not directly influence any other strategic goal) and proposes solutions. Therefore, it can be asserted that introducing the ANP to implement the BSC and vice versa, improved the decision-making approach and the quality of the obtained results. The research was based on a case study of modelling the BSC for Ydria Motors LL (YM), a manufacturing company.

The Analytic Network Process – Dependence and Feedback in Decision-Making

2011 ◽  
pp. 360-387 ◽  
Author(s):  
Thomas L. Saaty
Keyword(s):  
Decision Making ◽  
Analytic Hierarchy Process ◽  
Market Share ◽  
Analytic Network Process ◽  
Analytic Hierarchy ◽  
Fundamental Scale ◽  
Network Process ◽  
Independence Assumptions ◽  
Hierarchy Process ◽  
Pair Wise Comparison

Simple multi-criteria decisions are made by deriving priorities of importance for the criteria in terms of a goal and of the alternatives in terms of the criteria. Often one also considers benefits, opportunities, costs and risks and their synthesis in an overall outcome. The Analytic Hierarchy Process (AHP) with its independence assumptions, and its generalization to dependence among and within the clusters of a decision — the Analytic Network Process (ANP), are theories of prioritization and decision-making. Here we show how to derive priorities from pair-wise comparison judgments, give the fundamental scale for representing the judgments numerically and by way of validation illustrate its use with examples and then apply it to make a simple hierarchic decision in two ways: pair-wise comparisons of the alternatives and rating the alternatives with respect to an ideal. Network decisions are discussed and illustrated with market share examples. A mathematical appendix is also included.

scholarly journals Implementasi Metode Balanced Scorecard dalam Perancangan Sistem Penilaian Kinerja Perguruan Tinggi Vokasi

2020 ◽  
Vol 20 (3) ◽  
pp. 834
Author(s):  
Imam Bayhaqi
Keyword(s):  
Performance Appraisal ◽  
Balanced Scorecard ◽  
Quality Of Education ◽  
Appraisal System ◽  
Analytic Hierarchy ◽  
The Balanced Scorecard ◽  
Performance Appraisal System ◽  
Hierarchy Process ◽  
A Performance

The Balanced Scorecard (BSC) is one tool that can be used to measure the performance of an organization. To improve the quality of education, a performance appraisal system is needed to measure the ability of universities to carry out their functions. In this study, the authors will design a performance appraisal system for vokasi colleges by integrating indicators in BAN-PT, AUN-QA, MQA, and TEQSA. Integrating indicators aims to enable vokasi colleges to compete nationally and internationally. The results of this study obtained 90 indicators divided into four BSC perspectives. Each value will be calculated with the Analytic Hierarchy Process (AHP) method. The performance appraisal system that has been designed will be used by vokasi colleges to measure its performance so that it can be seen that improvements will be made by vokasi colleges to compete at national and international levels.

scholarly journals ANALYTIC NETWORK PROCESS (ANP) PADA BALANCED SCORECARD (BSC) DENGAN PENDEKATAN FUZZY

2016 ◽  
Vol 3 (2) ◽  
pp. 205
Author(s):  
Oni Soesanto ◽  
Muhammad Mahfuzh Shiddiq ◽  
Oktarini Oktarini
Keyword(s):  
Analytic Hierarchy Process ◽  
Balanced Scorecard ◽  
Fuzzy Number ◽  
Analytic Network Process ◽  
Triangular Fuzzy Number ◽  
Analysis Method ◽  
Analytic Hierarchy ◽  
Network Process ◽  
Hierarchy Process ◽  
Fuzzy Analytic Network Process

<p align="center"><strong>ABSTRAK</strong></p><p>Himpunan <em>fuzzy</em> merupakan perkembangan dari himpunan klasik. Himpunan <em>fuzzy</em> digunakan sebagai dasar dalam logika <em>fuzzy</em>. Logika <em>fuzzy</em> banyak diterapkan pada penelitian teknik pengambilan keputusan. Teknik pengambilan keputusan yang menerapkan logika <em>fuzzy</em> juga dapat digunakan dalam <em>Balanced ScoreCard</em> (BSC). Salah satu metode teknik pengambilan keputusan adalah <em>Fuzzy Analytic Hierarchy Process </em>(FAHP). FAHP telah diterapkan dalam BSC, namun tidak mencerminkan kondisi BSC sehingga diperlukan metode lain yang  memperhatikan keterkaitan antar aspek,  yaitu <em>Fuzzy Analytic Network Process </em>(FANP). FANP mampu memperbaiki kelemahan FAHP berupa kemampuan mengakomodasi keterkaitan antar kriteria atau alternatif. Paper ini membahas konsep pendekatan <em>Fuzzy</em> pada metode ANP menggunakan <em>extent analysis method</em><em> </em>untuk mengukur kinerja perusahaan berdasarkan indikator dalam perspektif BSC.</p><p><strong>Kata Kunci</strong>: <em>Balanced Scorecard</em> (BSC), Metode <em>extent analysis, Fuzzy Analytic Network Process</em> (FANP), <em>Triangular Fuzzy Number </em>(TFN)</p>

scholarly journals THE PROPERTIES OF HUMAN BEING'S DECISION MAKING

2017 ◽  
Vol 9 (3) ◽  
Author(s):  
Min-Suk Yoon
Keyword(s):  
Decision Making ◽  
Rank Order ◽  
Analytic Network Process ◽  
Human Beings ◽  
Analytic Hierarchy ◽  
Order Problem ◽  
Rank Reversal ◽  
Network Process ◽  
Hierarchy Process ◽  
Rank Preservation

In order to honor Thomas Saaty, the developer of Analytic Hierarchy Process (AHP)/ Analytic Network Process (ANP), and focus on the paper he wrote just before he died, this essay mentions the rank order problem due to the addition/deletion of irrelevant alternatives over which there were controversies in the AHP. Saaty ended the controversies with the explanation that both rank preservation and rank reversal are possible depending on the decision making circumstance. In this paper, we will summarize the three properties that fundamentally act on how to prioritize and aggregate the subjective judgments of human beings in ranking alternatives: comparisons, judgmental dependency and rank order. This essay also mentions the rank order in relation to the cases of addition/deletion of irrelevant criteria from previous studies. This essay closes by expressing gratitude to Thomas Saaty for his work. https://doi.org/10.13033/ijahp.v9i3.528

scholarly journals IMPORTANCE-PERFORMANCE ANALYSIS BASED BALANCED SCORECARD FOR PERFORMANCE EVALUATION IN HIGHER EDUCATION INSTITUTIONS: AN INTEGRATED FUZZY APPROACH

2020 ◽  
Vol 21 (3) ◽  
pp. 647-678
Author(s):  
Salman Nazari-Shirkouhi ◽  
Saeed Mousakhani ◽  
Mahdokht Tavakoli ◽  
Mohammad Reza Dalvand ◽  
Jonas Šaparauskas ◽  
...  
Keyword(s):  
Higher Education ◽  
Decision Making ◽  
Performance Evaluation ◽  
Performance Analysis ◽  
Balanced Scorecard ◽  
Higher Education Institutions ◽  
Analytic Network Process ◽  
Fuzzy Decision Making ◽  
The Balanced Scorecard ◽  
Network Process

Recognizing the state of the universities and disrupting their functions by performance evaluation helps them adopt more appropriate educational, research and institutional policies to conduct a university system. In this paper, the importance of the services provided and the activities of the university are determined by means of the balanced scorecard (BSC) approach, and the performance assessment structure is implemented based on an integrated fuzzy multi-criteria decision making (MCDM) approach. For this purpose, interdependencies between BSC aspects and effective indicators weight are determined by Fuzzy Decision-Making Trial and Evaluation Laboratory (FDEMATEL) and Fuzzy Analytic Network Process (FANP) methods, respectively. Accordingly, the final weight of the effective indexes on the performance evaluation of university is presented and the educational income is recognized as one of the most important indicators. Finally, the priorities of universities are specified in order to improve the performance and policy making by the importance-performance analysis (IPA). Therefore, the growth of the number of students should be considered as one of the most important stages in improving university performance in the future in order to achieve educational income. Moreover, the guidelines for universities and higher education institutions are presented to identify key factors in implementing and improving performance.

scholarly journals Suppliers Selection In Manufacturing Industries And Associated Multi-Objective Desicion Making Methods: Past, Present And The Future

2016 ◽  
Vol 12 (1) ◽  
pp. 93 ◽  
Author(s):  
Soheil Hassanzadeh ◽  
Kai Cheng
Keyword(s):  
Manufacturing Industry ◽  
Analytic Network Process ◽  
Data Envelopment ◽  
Manufacturing Companies ◽  
Analytic Hierarchy ◽  
Need To Evaluate ◽  
Network Process ◽  
Quality Of Products ◽  
Hierarchy Process

Nowadays, many manufacturing companies have decided to use other companies’ competencies and outsource part of their manufacturing processes and business to suppliers globally in order to reduce costs, improve quality of products, explore or expand new markets, and offer better services to customers, etc. The decisions have rendered manufacturing organizations with new challenges. Organizations need to evaluate their suppliers' performance, and take account of their weakness and strength in order to win and survive in highly competitive global marketplaces. Hence, suppliers evaluation and selection are taken as an important strategy for manufactring enterprises. This paper aims to provide a comprehensive and critical review on suppliers selection and the formulation of different criteria for suppliers selection, the associated multi-objctive decision makings, selecion algorithms, and their implementation and application perspectives. Furthermore, individual and integrated suppliers selection approaches are presented, including Analytic hierarchy process (AHP), Analytic network process (ANP), and Mathematical programming (MP). Linear programming (LP), Integer programming (IP), Data envelopment analysis (DEA) and Goal programming (GP) are discussed with in-depth. The paper concludes with further discussion on the potential and application of suppliers selection approach for the broad manufacturing industry.

scholarly journals REFLECTIONS: MATHEMATICAL PRINCIPLES OF DECISION MAKING

2017 ◽  
Vol 9 (3) ◽  
Author(s):  
Birsen Karpak
Keyword(s):  
Decision Making ◽  
Resource Allocation ◽  
Sensitivity Analysis ◽  
Analytic Hierarchy Process ◽  
Analytic Network Process ◽  
Time Dependent ◽  
Pairwise Comparisons ◽  
Analytic Hierarchy ◽  
Network Process ◽  
Hierarchy Process

This article discusses my reflections on Mathematical Principles of Decision Making by Thomas Saaty  (Saaty T. L., 2010). In this book, Saaty very clearly explains his Analytic Hierarchy Process (AHP) theory for measuring both tangible and intangible factors. Experts judgments are elicited about the dominance of a factor over another one via pairwise comparisons using an absolute scale and priorities of the factors are derived. The important concepts of the AHP such as compatibility index, validation, sensitivity analysis for testing the robustness of the priorities derived, and its generalization to structures with dependence and feedback, and the Analytic Network Process (ANP) are given. Extensions of the theory to complex decisions involving benefits, opportunities, costs and risks and applications to resource allocation and conflict resolution are included, as well as the generalization to continuous and time dependent judgments is also covered.https://doi.org/10.13033/ijahp.v9i3.521  

scholarly journals Using the Analytical Network Process to Select the Best Strategy for Reducing Risks in a Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-9 ◽  
Author(s):  
L. Hosseini ◽  
R. Tavakkoli-Moghaddam ◽  
B. Vahdani ◽  
S. M. Mousavi ◽  
R. Kia
Keyword(s):  
Supply Chain ◽  
Multicriteria Decision Making ◽  
Analytic Network Process ◽  
Supply Chain Network ◽  
Total Quality ◽  
Analytic Hierarchy ◽  
Network Process ◽  
Supply Chain Risks ◽  
Hierarchy Process ◽  
Different Levels

This paper considers four types of the most prominent risks in the supply chain. Their subcriteria and relations between them and within the network are also considered. In a supply chain, risks are mostly created by fluctuations. The aim of this study is to adopt a strategy for eliminating or reducing risks in a supply chain network. Having various solutions helps the supply chain to be resilient. Therefore, five alternatives are considered, namely, total quality management (TQM), leanness, alignment, adaptability, and agility. This paper develops a new network of supply chain risks by considering the interactions between risks. Perhaps, the network elements have interacted with some or all of the factors (clusters) or subfactors. We constitute supply chain risks in the analytic network process (ANP), which attracted less attention in the previous studies. Most of the studies about making a decision in supply chains have been applied in analytic hierarchy process (AHP) network. The present study considers the ANP as a well-known multicriteria decision making (MCDM) technique to choose the best alternative, because of the interdependency and feedbacks of different levels of the network. Finally, the ANP selects TQM as the best alternative among the considered ones.

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