Implementing Fuzzy Logic and AHP into the EFQM model for performance improvement: A case study

Abstract

In the current volatile and demanding business environment, managers are so eager to demonstrate that their organizations are excellent which can mainly be achieved through continuous performance improvement. The most applicable and suitable tools that by the assessment of organizations shows how successful they are in the organizational excellence path is European Foundation for Quality Management (EFQM) Excellence Model. This study aims at presenting a new integrated approach based on EFQM model using Fuzzy Logic, Analytical Hierarchy Process (AHP) technique and Operations Research (OR) model to improve the organizations’ excellence level by increasing the quality of business performance evaluation and determining of improvement projects with high priority. A case study in Yazd Regional Electricity Co. in Iran is presented to demonstrate the applicability of the proposed approach. In a way that, primarily, performance assessment by crisp method and the proposed method, Fuzzy method, is carried out. Then, strength points and the areas for improvement are identified by defining the scores for sub-criteria. Next, sub-criteria are prioritized to define the improvement projects by using AHP technique and Operations Research model. Finally, improvement projects with high priority are determined and some action plans for improvement projects are defined.