Hybrid methodology for measuring the utilization of advanced manufacturing technologies using AHP and TOPSIS

Abstract

PurposeGlobalisation and liberalization of today's markets economy has posed new challenges to all manufacturing organizations, irrespective of their size and sector, for effective utilization of advanced manufacturing technologies (AMTs) for sustaining their competitiveness. The purpose of this paper is to provide a new insight into the use of hybrid methodology using analytical hierarchy process (AHP) and technique for order preference by similarity to ideal solution (TOPSIS) approach, which is a multi‐criteria decision‐making methodology for measuring the effective utilization of advanced manufacturing technologies.Design/methodology/approachA hybrid methodology using analytical hierarchy process and technique for order preference by similarity to ideal solution approach has been applied in this study. In this research work, seven factors such as top management support, resistance of employees, pay scale, training to employees, industry‐institute‐interaction, proper planning and team structure have been selected to determine the priority weights of attributes by using AHP. TOPSIS method is then employed to achieve the final ranking results. To benchmark the success possibility of AMTs utilization, AHP has been applied.FindingsTop management support, resistance of employees and pay scale have been ranked as first, second and third important sub‐objectives for effective utilization of AMTs. While industry‐institute‐interaction, proper planning, training to employees and team structure have been placed at fourth, fifth, sixth and seventh positions for effective utilization of AMTs. It has been further noted that by using AHP, the successful utilization of AMTs can be found out.Research limitations/implicationsThe parameters selected for this study are applicable to the northern India manufacturing industry.Originality/valueAn attempt has been made to apply hybrid methodology approach using AHP and TOPSIS for effective utilization of AMTs. This is probably the first time that an attempt has been made to apply the hybrid methodology using AHP‐TOPSIS‐AHP for benchmarking the success possibility of utilization of AMTs in the northern Indian manufacturing industry.