Characteristics and features of a performance evaluation model using a multilevel fuzzy rule-based system

The main objective of this article is to describe a methodology developed for performance evaluation of complex organisational units. This methodology has been successfully applied to a variety of situations. It is an integration of analytical tools designed to incorporate several characteristics of the evaluation model. The tools include the use of rule base systems and fuzzy set theory. The development of the methodology has been several years in the making. The various phases and features of the model development are included in this paper. The most extensive application to date is that of developing an evaluation model similar to the credit rating process used for city government bonds. The model utilises a large number of performance measures including debt, financial and economic data. It also includes qualitative data for evaluating management policies and procedures. Descriptions of the model and the implementation of the analytical tools are presented in the context of the credit rating application.