An analytical hierarchy process framework for comparing the overall performance of manufacturing departments

Abstract

Many authors have suggested including non‐financial measures, besides traditional cost measures, in manufacturing performance measurement systems, in order to control the correct implementation of the manufacturing strategy with respect to all competitive priorities (quality, timeliness, flexibility, dependability, etc.). But the use of non‐financial performance measures makes it difficult to assess and compare the overall effectiveness of each manufacturing department, in terms of support provided to the achievement of the manufacturing strategy, since to this aim it is necessary to integrate performance measures expressed in heterogeneous measurement units. Aims to show the potential of the analytical hierarchy process (AHP) for assessing and comparing the overall manufacturing performance of different departments. Does not report the detailed analytical description of the AHP but focuses on the practical problems and managerial implications related to its application to performance measurement, pointing out also its assumptions and limitations.

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