Abstract
Article history: Received September 10, 2011 Received in Revised form October, 30, 2011 Accepted 10 January 2012 Available online 23 January 2012 The balanced scorecard (BSC) approach is an effective technique for performance evaluation. BSC can better reflect the dependence and feedback problems of each factor in real world situations. This study aims at developing a set of appropriate key performance indicators according to (BSC) approach for SAPCO using multiple criteria decision making(MCDM) method. We provide key performance indicators through literature reviews and experts' idea in SAPCO, which is one of the biggest vehicle spare suppliers in Iran. The proposed study uses decision making trial and evaluation laboratory (DEMATEL) and analytic network process (ANP), respectively to measure the casual relationship between the perspectives as well as the relative weights. The results based on ANP method shows that ‘‘Customer’’ is the most influential factor. In addition, internal process, financial and learning and growth are in two to four positions. Three important key performance indicators are as bellow: Total price of parts, Customer satisfaction and Lack of parts in production. © 2012 Growing Science Ltd. All rights reserved.
Highlights
In recent years, changes in the global economic and financial environment have resulted in changes in the marketplace
This study aims at developing a set of appropriate key performance indicators according to (BSC) approach for SAPCO using multiple criteria decision making(MCDM) method
The balance scored card and Key Performance Indicator (KPI) ranking is an multi criteria decision making (MCDM) problem since it involves various criteria
Summary
Changes in the global economic and financial environment have resulted in changes in the marketplace. The growth and profit in the global competition will be possible by key questions such as: What are the mission and vision of our company and what strategies would guide us to the predefined goals. Kaplan and Norton (1992) are believed to be the first who introduced the idea of balanced score card (BSC). Kaplan and Norton (1996) stated that the financial topics do not necessarily represent the main success factors of an organization. Davis and Albright (2004) implemented a comprehensive study on the relationship between the BSC factors and key financial figures. On the other word, when a BSC is properly designed it is possible to build a cause and effect relationship between the financial data and other important factors. BSC model categorizes important criteria for performance evaluation into key performance indicators. Key performance indicators are correlated items, which are measurable and translate mission statements to clarified objectives (Oakland, 1999)
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