APPLYING BSC-DEA MODEL TO PERFORMANCE EVALUATION OF INDUSTRIAL COOPERATIVES : AN APPLICATION OF FUZZY INFERENCE SYSTEM

Received: 09, Feb, 2015 Final Accepted: 13, March, 2015 Published Online: 18, March, 2015 Evaluating indicators such as productivity and efficiency, make managers aware at various levels of the strengths and weaknesses of the organization. In today's business environment, organizations try to improve their efficiency in order to have more power in the global competition. The present paper presents an integrated fuzzy approach for the efficiency evaluation of industrial co-operatives. This method consists of three different techniques: (1) identify important evaluation criteria based on Balanced Scorecard(BSC) According to the previous literature review and expert preference ; (2) apply fuzzy inference system(FIS) to eliminate unsuitable criterion; and, (3) develop data envelopment analysis (DEA) approach for the final evaluation. Among the indicators "The capacity of machines and production to capacity ratio" determined as the input parameters and "annual profits, customer satisfaction and continuous improvement of productivity" were considered as the output of the proposed DEA model. Finally, an actual industrial application is presented to demonstrate the proposed method. By transforming the linguistic variables to quantitative numbers by fuzzy numbers, the DEA model was formed and four units of the fifteen cooperatives were identified as efficient units..

[1]  P. Porter,et al.  Economic Efficiency in Cooperatives , 1987, The Journal of Law and Economics.

[2]  Gongbing Bi,et al.  DEA-based production planning , 2010 .

[3]  Rajiv D. Banker,et al.  A balanced scorecard analysis of performance metrics , 2004, Eur. J. Oper. Res..

[4]  E. H. Mamdani,et al.  Advances in the linguistic synthesis of fuzzy controllers , 1976 .

[5]  R. Kaplan,et al.  The balanced scorecard--measures that drive performance. , 2015, Harvard business review.

[6]  S. Kim,et al.  The impact of information technology on organizational efficiency in public services: a DEA-based DT approach , 2008, J. Oper. Res. Soc..

[7]  Soroosh Nalchigar,et al.  Information technology project evaluation: An integrated data envelopment analysis and balanced scorecard approach , 2010, Expert Syst. Appl..

[8]  Binshan Lin,et al.  An integration of balanced scorecards and data envelopment analysis for firm's benchmarking management , 2009 .

[9]  R. Cooper,et al.  New Product Portfolio Management : Practices and Performance , 1999 .

[10]  I. M. Premachandra,et al.  DEA as a tool for predicting corporate failure and success: A case of bankruptcy assessment , 2011 .

[11]  Jeewon Choi,et al.  A framework for benchmarking service process using data envelopment analysis and decision tree , 2007, Expert Syst. Appl..

[12]  Tser-yieth Chen,et al.  DEA performance evaluation based on BSC indicators incorporated: The case of semiconductor industry , 2007 .

[13]  ChangSu-Chao,et al.  Evaluating the Balanced Scorecard with Data Envelopment Analysis to Measure Management Efficiency of Hotels in Taiwan and Vietnam , 2005 .

[14]  Joseph C. Paradi,et al.  Information systems project prioritization using data envelopment analysis , 2005, Math. Comput. Model..

[15]  Ines Herrero,et al.  A modified DEA model to estimate the importance of objectives with an application to agricultural economics , 2010 .

[16]  Steven E. Salterio,et al.  The Balanced Scorecard: Judgmental Effects of Common and Unique Performance Measures , 2000 .

[17]  Lawrence M. Seiford,et al.  INFEASIBILITY OF SUPER EFFICIENCY DATA ENVELOPMENT ANALYSIS MODELS , 1999 .

[18]  Chie-Bein Chen,et al.  Firm operation performance analysis using data envelopment analysis and balanced scorecard: A case study of a credit cooperative bank , 2008 .

[19]  Hokey Min,et al.  A data envelopment analysis‐based balanced scorecard for measuring the comparative efficiency of Korean luxury hotels , 2008 .

[20]  E. H. Mamdani,et al.  An Experiment in Linguistic Synthesis with a Fuzzy Logic Controller , 1999, Int. J. Man Mach. Stud..

[21]  Avraham Shtub,et al.  R&D project evaluation: An integrated DEA and balanced scorecard approach ☆ , 2008 .

[22]  Abraham Charnes,et al.  Measuring the efficiency of decision making units , 1978 .

[23]  Rajat Bhagwat,et al.  Performance measurement of supply chain management: A balanced scorecard approach , 2007, Comput. Ind. Eng..

[24]  Robert C. Rickards,et al.  Setting benchmarks and evaluating balanced scorecards with data envelopment analysis , 2003 .

[25]  Ming-Miin Yu,et al.  Measuring physical efficiency of domestic airports in Taiwan with undesirable outputs and environmental factors , 2004 .

[26]  Avraham Shtub,et al.  Constructing and evaluating balanced portfolios of R&D projects with interactions: A DEA based methodology , 2006, Eur. J. Oper. Res..

[27]  A. Noura,et al.  Ranking Decision Making Units in Fuzzy-DEA Using Entropy , 2009 .

[28]  Da Ruan,et al.  Fuzzy group decision-making for facility location selection , 2003, Inf. Sci..

[29]  Xueming Luo.  Evaluating the profitability and marketability efficiency of large banks: An application of data envelopment analysis , 2003 .

[30]  J. Yen,et al.  Fuzzy Logic: Intelligence, Control, and Information , 1998 .

[31]  Govind S. Iyer,et al.  The impact of strategy communications, incentives and national culture on balanced scorecard implementation ☆ , 2011 .

[32]  Patrick R. McMullen,et al.  Using Simulation and Data Envelopment Analysis to Compare Assembly Line Balancing Solutions , 1999 .

[33]  Naveen Donthu,et al.  Benchmarking marketing productivity using data envelopment analysis , 2005 .

[34]  Yi-Kuei Lin,et al.  Performance evaluation of extension education centers in universities based on the balanced scorecard. , 2011, Evaluation and program planning.

[35]  G. van Dijk,et al.  Agricultural Co-operatives in the European Union: Trends and Issues on the Eve of the 21st Century , 1997 .

[36]  Paul Rouse,et al.  Integrated Performance Measurement Design: Insights from an Application in Aircraft Maintenance , 2002 .

[37]  A. Charnes,et al.  Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis , 1984 .

[38]  Hsin Hsin Chang,et al.  An empirical study of evaluating supply chain management integration using the balanced scorecard in Taiwan , 2009 .

[39]  R. Dorf,et al.  The Balanced Scorecard: Translating Strategy Into Action , 1997, Proceedings of the IEEE.

[40]  Hsihui Chang,et al.  Determinants of Hospital Efficiency: the Case of Central Government-owned Hospitals in Taiwan , 1998 .

[41]  Witold Pedrycz,et al.  Type-2 Fuzzy Logic: Theory and Applications , 2007, 2007 IEEE International Conference on Granular Computing (GRC 2007).

[42]  G. Graham,et al.  E-business strategy for supply chain integration: The balanced scorecard perspectives , 2010, 2010 International Symposium on Computer, Communication, Control and Automation (3CA).

[43]  Peide Liu,et al.  E-commerce Performance Assessment Research Based on the D-S Theory and the Balanced Score Card Method , 2008, 2008 International Seminar on Future Information Technology and Management Engineering.

[44]  Cláudia S. Sarrico,et al.  Data Envelopment Analysis: A Comprehensive Text with Models, Applications, References and DEA-Solver Software , 2001, J. Oper. Res. Soc..