A performance measurement system under activity based costing for advanced manufacturing systems by an integrated fuzzy AHP-fuzzy TOPSIS approach

Abstract

Nowadays, most of manufacturing firms try to reduce manufacturing response time, improve quality and decrease the costs by investing on advance manufacturing systems (AMSs) as the critical and vital strategic tools. Although the investment and successful implementation of AMSs has many potential advantages and benefits for manufacturing firms, a performance measurement system of manufacturing firms is a very complex task due to the many variables involved in measuring performance of advanced manufacturing systems. During the last decade, measuring performance of AMSs has emerged as a major issue for manufacturing firms. As traditional performance measurement systems are criticized, the aim of this paper is presenting an integrated fuzzy group decision making approach based on fuzzy analytical hierarchy process (fuzzy AHP) and fuzzy technique for order performance by similarity to ideal solution (fuzzy TOPSIS) to measure the performance of AMSs under activity based costing (ABC) systems. Using fuzzy theory for measuring the performance of AMSs in manufacturing firms can reduce ambiguities and uncertainties that are inherent in the performance measurement procedure. Finally, to illustrate the applicability and feasibility of the proposed approach an experiment with six manufacturers is considered and results are provided. Key words: Fuzzy set, advanced manufacturing systems, activity based costing, fuzzy AHP, fuzzy TOPSIS.