Prioritizing Agility Enablers Based On Agility Attributes Using Fuzzy Prioritization Method and Similarity-Based Approach
Prioritizing Agility Enablers Based On Agility Attributes Using Fuzzy Prioritization Method and Similarity-Based Approach
TI Journals
ISSN
2306-7276
www.tijournals.com
AR TIC LE INF O
AB STR AC T
Keywords:
Agility Enablers
Agility Attributes
Fuzzy logic
Similarity Method
Fuzzy Prioritization Method
2014 Int. j. econ. manag. soc. sci. All rights reserved for TI Journals.
1.
Introduction
Globalization, technology and facing with uncertainty and unpredictability in all sectors, make the ability of an organization to adapt to
unexpected changes critical in order to achieve and maintain a competitive advantage. The idea of adapting to unpredictable changes has
led to evolution of the concept of agility (Ganguly, Nilchiani, & Farr, 2009). The concept of agility was first introduced by researchers of
the Iacocca Institute (1991), and after the first introduction, it has been receiving an increasing attention by both researchers and industrial
communities (Bottani, 2009). They defined agility as a system that shifts quickly among product lines, ideally in real time in order to
respond to customer needs (Ganguly et al. 2009).Since 1990s; many publications on the subject have attempted to provide a definition of
agility. Some of the widely accepted definitions of agility are as below. Cho, Jung and Kim (1996) defined agility as the capability of
surviving and prospering in competitive environment continuous and unpredictable changes by reacting quickly and effectively to changing
markets. Menor, Roth and Mason (2001) implied that agility is the ability of a firm to excel simultaneously on operations capabilities of
quality, delivery, flexibility and cost in a coordinated fashion. Mathiyakalan, et al. (2005) defined agility as the ability of an organization to
detect changes (which can be opportunities or threats or a combination of them) in its business environment and hence providing focused
and rapid responses to its customers and stakeholders by reconfiguring its resources, processes and strategies. A survey of the related
literature shows that agile enterprises are characterized by proper attributes (or capabilities) which allow them to quickly respond to
changes of business environment. These attributes include time, cost, responsiveness, quality, customer needs and etc. (see e.g., Yusuf,
Sarhadi, & Gunasekaran, 1999). However these attributes are all significant as the capabilities of the agile organizations, relative
importance of them in achieving competitive advantage depends upon the specific market field (Bottani, 2009).Therefore, firms should
determine the relative importance of these attributes depending on the competitive bases that are willing to excel in. Since specifying the
weights of agility attributes is a qualitative decision making problem, it involves the vagueness of human judgments. Thus we apply fuzzy
set theory as a mathematical way which can handle the vagueness in decision-making to determine the weights of agility attributes. In
addition according to several conceptual models of agile enterprises explained in the related literature, companies can exploit several
enablers (or leverages) to achieve the agile capabilities. These enablers include collaborative relationships, customer/marketing sensitivity,
process integration and etc. (see e.g., Lin, Chiu, & Chu, 2006). It is important to prioritize these enablers so that organizations could
develop appropriate strategies to implement these enablers in a stepwise manner. Like determining the weights of agility attributes, ranking
enablers faces the vagueness of human judgments. Thus, we use a fuzzy method for this part too. The paper is organized as follows. Section
2 reviews the literature on agility, especially with a focus on agility attributes and agility enablers. In Section 3 the proposed framework for
prioritizing the agility enablers based on agility attributes and the methods require to this framework are presented. The empirical case
study is described in Section 4 and finally conclusion is presented in Section 5.
* Corresponding author.
Email address: [email protected]
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2.
Literature Review
References
Responsiveness (C1)
Yusuf, et al. (1999); Mathiyakalan, et al. (2005); cho, et al. (1996); Sharp, Irani and
Desai (1999); Tseng and Lin (2011); Sherehiy, Karwowski and Layer (2007); Lin, et al.
(2006a); Lin, et al. (2006b); Bottani (2009)
Competency (C2)
Yusuf, et al. (1999); Mathiyakalan, et al. (2005); cho, et al. (1996); Sharp, et al. (1999);
Tseng and Lin (2011); Sherehiy et al. (2007); Lin, et al. (2006a); Lin, et al. (2006b);
Bottani (2009)
Flexibility (C3)
Yusuf, et al. (1999); Mathiyakalan, et al. (2005); cho, et al. (1996); Sharp, et al. (1999);
Tseng and Lin (2011); Sherehiy et al. (2007); Lin, et al. (2006a); Lin, et al. (2006b);
Bottani (2009)
Quickness (C4)
Yusuf, et al. (1999); Mathiyakalan, et al. (2005); cho, et al. (1996); Sharp, et al. (1999);
Tseng and Lin (2011); Sherehiy et al. (2007); Lin, et al. (2006a); Lin, et al. (2006b);
Bottani (2009)
Integration (C6)
Technology (C7)
Responsiveness is considered as the ability to identify changes and respond quickly to them (Sherehiy, et al., 2007).
Competency is defined as an extensive set of abilities that provide a basis for productivity, efficiency and effectiveness of a
companys activities (Sherehiy, et al., 2007). It includes abilities to efficiently and effectively reach enterprises aims and goals
(Lin, et al., 2006b).
Flexibility is an ability to process different products and achieve different objectives with the same facilities (Sherehiy, et al.,
2007). It can include both organization/personnel and product volume/model flexibility (Tseng & Lin, 2011). However, recent
research findings showed that manufacturing flexibility depends much more on people than on technologies. It was concluded
that achievement of manufacturing flexibility, requires developing and maintaining a highly skilled, technologically competent
and adaptable workforce that can deal with non-routine and exceptional circumstances (Sherehiy, et al., 2007).
Quickness is the ability to carry out tasks and operations in shortest possible time (Sherehiy, et al., 2007).
Cost effectiveness as a financial attribute proves to be the single most important catalytic agent in guiding the drivers of agility
(Ganguly et al., 2009).
Integration dimension is defined as close and simple relations between the individual system components, easy and effortless
flow of the materials, information and communication between the system components, organizational structures, people, and
technology (Sherehiy, et al., 2007). This attribute include sub-criteria such as concurrent execution of activities, enterprise
integration and information accessible to employees (Bottani, 2009).
The technology attribute includes factors such as technology awareness, leadership in the use of current technology, skill and
knowledge enhancing technologies and flexible production technology (Bottani, 2009).
Prioritizing Agility Enablers Based on Agility Attributes Using Fuzzy Prioritization Method and Similarity-Based Approach
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physically distributed teams, rapid partnership, concurrent engineering, integrated product/production/business information system, rapid
prototyping and electronic commerce. After that Gunasekaran and Yusuf (2002) added about 60 viable leverages to the original ones and
categorized them into four main sets, namely strategic planning, product design, virtual enterprise, and information technology. Bottani
(2009) also implied seven agility enablers namely supply chain management, concurrent engineering, project management, hardware,
information technology, team building and knowledge management. Therefore, agility enablers could be defined based on a specific case
study and also they are available in the related literature. In this article we based the agility enablers suggested by Gunasekaran (1999) and
(Bottani, 2009) as our alternatives. The final alternatives were selected by the expert team of the case study (the Iranian gas company)
among the suggested enablers. Table 2 shows the agility enablers which are used in this study and a brief explanation of them.
Table 2. Agility enablers
Agility enablers
Description
The supply chain management system focuses on resolving business process problems
that are important to the customers. In agile supply chain environments, relationship with
suppliers and interaction between them should be flexible.
3.
Research Methodology
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Litreture riview
Similarity Method
Figure 2 shows the hierarchy of ranking agility enablers based on agility attributes as the main purpose of the paper.
Goal
Criteria
Alternatives
Responsiveness (C1)
Supply chain
management (A1)
Competency (C2)
Concurrent
engineering (A2)
Flexibility (C3)
Prioritizing the agility
enablers based on
agility attributes
Quickness (C4)
Integration (C6)
Technology (C7)
Prioritizing Agility Enablers Based on Agility Attributes Using Fuzzy Prioritization Method and Similarity-Based Approach
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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 3(1) January 2014
(1)
m x u
0 oterwise
Where l, m, and u are also considered as the lower bound, the mean bound, and the upper bound, respectively. The triangular fuzzy number
N is often represented as (l,m,u). According to Table 3, criteria compare with each other. After pairwise comparisons, are finished at a
level, a fuzzy reciprocal judgment matrix A can be established as
A= a
a
a
a
a
a
a
(2)
very low
(0.00,0.00,0.00)
low
(0.10,0.20,0.30)
medium low
(0.20,0.35,0.50)
medium
(0.40,0.50,0.60)
medium high
(0.50,0.65,0.80)
high
(0.70,0.80,0.90)
very high
(0.80,1.00,1.00)
Where n is the number of the related elements at this level, and a ij =1/ aij. Basic arithmetic operations on triangular fuzzy numbers A1 =
(l1 ,m1,u1), where l1 m1 u1 , and A2 = (l2,m2,u2), where l2 m2 u2, can be shown as follows:
Addition:
A1 A2 = (l1 + l2 ,m1 + m2,u1 + u2)
Subtraction:
A1 A2 = (l1 - u2 ,m1 - m2,u1 l2)
Multiplication: if K is a scalar
(kl , km , ku ), k > 0
K A1 =
(ku , km , kl ) , k < 0
(3)
(4)
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Int ernational Journal of Economy, Mana ge ment and Soci al Sci ences , 3(1) January 2014
A1 A2 (l1l2 ,m1m2,u1u2) , if l1 0 , l2 0
Division: A1 A2 ( ,
(5)
, ) ,
if l1 0 , l2 0
(6)
Although multiplication and division operations on triangular fuzzy numbers do not necessarily yield a triangular fuzzy number, triangular
fuzzy number approximations can be used for many practical applications (Kaufmann and Gupta, 1988). Triangular fuzzy numbers are
appropriate for quantifying the vague information about most decision problems including Facility location selection. The primary reason
for using triangular fuzzy numbers can be stated as their intuitive and computational-efficient representation (Karsak, 2002). A linguistic
variable is defined as a variable whose values are not numbers, but words or sentences in natural or artificial language. The concept of a
linguistic variable appears as a useful means for providing approximate characterization of phenomena that are too complex or ill-defined
to be described in conventional quantitative terms (Zadeh, 1975).
3.3. Fuzzy Prioritization Method
Fuzzy prioritization method is described by Wang et al (2006) as follow: suppose that a fuzzy judgment matrix is constructed as Eq. (2) in a
prioritization problem, where n elements are taken into account. Among this judgment matrix A, the triangular fuzzy number aij is
expressed as (lij,mij,uij), i and j=1,2,,n, where lij, mij, and uij are the lower bound, the mean bound, and the upper bound of this fuzzy
triangular set, respectively. Furthermore, we assume that lij<mij<uij when ij. If i=j, then a ij= aji = (1, 1, 1). Therefore, an exact priority
vector w = (w1, w2,,wn)T derived from A must satisfy the fuzzy inequalities:
lij
mij
(7)
Where wi> 0, wj> 0, ij, and the symbol means fuzzy less or equal to.To measure the degree of satisfaction for different crisp ratios w i/
wj with regard to the double side inequality (7), a function can be defined as:
ij
0 <
>m
(8)
Where ij. Being different from the membership function (1) of triangular fuzzy numbers, the function value of ij (wi/ wj) may be larger
than one, and is linearly decreasing over the interval (0,mij] and linearly increasing over the interval [mij,), as shown in Figure 4. The less
value of ij (wi/ w j) indicates that the exact ratio wi/ wj is more acceptable.
1
li
uij
Prioritizing Agility Enablers Based on Agility Attributes Using Fuzzy Prioritization Method and Similarity-Based Approach
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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 3(1) January 2014
= min
+
m
Subject to
Where ij ,P N , and
0 , x < 0
(x) =
(9)
1 , x 0
The power index P is fixed, and chosen by decision makers in a specific MCDM problem. A larger p is suggested, e.g. 10, as illustrated
briefly in the next section. The function J (w1,w2,,wn) is non-differentiable. In some cases, decision-makers are unable or unwilling to
give all pairwise comparison judgments of n elements. However, provided that the known fuzzy set of pairwise comparisons involves n
elements, such as F={a ij} ={a12 ,a13 ,,an1} or {a21 ,a31 ,,an1 }, the solution of priority vector (w1,w2,,wn )T will be still able to be derived
based on the optimization problem above. In order to measure the consistency degree of the fuzzy comparison judgment matrix A as Eq.
(2), an index can be defined after the optimal crisp priority vector (w , w , , w ) is obtained:
= exp max
i , j = 1,2, , n, i j
(10)
Where ij(w w ) is the function of (8). The value of satisfies 0 < 1 always. If it is larger than e-1= 0.3679, all exact ratios satisfy the
crisp inequalities iij w w mij, i and j=1,2,,n, ij, and the corresponding fuzzy judgment matrix has good consistency. =1 indicates
that the fuzzy judgment matrix is completely consistent. In conclusion, the fuzzy judgment matrix with a larger value is more consistent.
For solving this optimization problem that has non-linear constraints, we used the genetic algorithm.
cos ij =
(
)(
(11)
where ij is the angle between the gradients of the two alternatives, and (x i1, xi2, ..., xin) and (xj1, xj2 , ..., xjn) are the gradients of two
alternatives Ai and Aj respectively.
The conflict index equals to one characterized by ij = 0 as the corresponding gradient vectors lie in the same direction of improvement.
Similarly, the conflict index is zero characterized by ij = /2 which indicates that their gradient vectors have the perpendicular relationship
between each other. Based on the degree of the conflict between the alternatives, the degree of similarity between the two alternatives can
be calculated. The degree of similarity between alternative Ai and Ai, denoted as Sij, measures the relative similarity (closeness) alternative
Aj to Ai, given as (12).
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Int ernational Journal of Economy, Mana ge ment and Soci al Sci ences , 3(1) January 2014
Aj (Xj1,Xj2,
A
Aj (Xi1,X i2,
ij
X
X
Sij =
(12)
where ij is the angle between alternative Ai and alternative Aj. Represented the degree of conflict as discussed above. The larger the Sij is,
the higher the degree of similarity between alternative Ai and to Aj. The concept of the ideal solution is used in such a way that the most
preferred alternative should have the highest degree of similarity to the positive ideal solution and the lowest degree of similarity to the
negative-ideal solution. The ranking approach starts by normalizing the decision matrix to ensure all the criteria involved are benefit ones
based on (13), described as
(13)
..
.
...
..
..
..
.
(14)
The weighted performance matrix which reflects the performance of each alternative with respect to each criterion is determined by
multiplying the normalized decision matrix in (14) by the weight vector, given as
Y=
...
..
..
..
.
..
.
..
.
..
.
..
.
(15)
The positive (or negative) ideal solution consists of the best (or worst) criteria values attainable from all the alternatives if each criterion
takes monotonically increasing or decreasing values (Deng et al, 2000, Hwang, 1981). This concept has been widely used in various
multicriteria analysis models for solving practical decision problems (Deng, 1999, Deng et al, 1998, Shipley et al, 1991). This is due to (a)
its simplicity and comprehensibility in concept, (b) its computational efficiency, and (c) its ability to measure the relative performance of
the decision alternatives in a simple mathematical form. Based on this concept, the positive ideal solution and the negative ideal solution
can be determined from the performance matrix in (15), given as
A+ =( ,
A- =( ,
,,
, ,
)
)
(16)
Where
= max
= min
, ,,
, ,,
(17)
Prioritizing Agility Enablers Based on Agility Attributes Using Fuzzy Prioritization Method and Similarity-Based Approach
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Internat ional Jour nal of Economy, Mana ge ment and Social Sciences , 3(1) January 2014
The degree of conflict between each alternative Ai and the positive ideal solution (the negative ideal solution) can be determined based on
(11), given as
cos
cos
(18)
As a consequence, the degree of similarity between each alternative Ai and the positive ideal solution and the negative ideal solution can be
determined. Based on the degree of the conflict between the alternatives and the PIS and the NIS, the degree of similarity between the
alternatives and y (y ) can be calculated. The degree of similarity denoted as S , measures the relative similarity of the alternative Ai to
y , and the degree of similarity denoted as S measures the relative similarity of the alternative Ai to y .
|
|
(19)
|
(20)
So we will have a number between 0 and 1 for just as .Then we calculate the overall performance index for each alternative across
all criteria. This index can be calculated based on the concept of the degree of similarity of alternative Ai relative to the ideal solutions.
Pi =
, = 1,2, ,
(21)
In contrast to the similarity technique presented by Deng (2007), in the modified similarity S technique and Pi are always between zero
and one. To the extent Ai become more Similar to S and less similar to S , the overall performance index (Pi) become near to 1.After that
we rank alternatives in the descending order of the performance index value.
4. Empirical Analysis
The case of this study is a subsidiary company of the National Iranian Gas Company (NIGC). NIGC is one of the four major subsidiaries of
Iran's Petroleum Ministry and is responsible for providing over 61 percent of the country- required fuel. The case study is one of the
provincial gas companies which are responsible for gas delivery to the city, villages, power plants, industries and commercial centers in its
region. In this paper, the weights of criteria are calculated using FPM, and these calculated weight values are used as Similarity inputs.
Then, after Similarity calculations, evaluation of the alternatives and selection of best Enabler is realized.
C2
...
C5
C6
C7
C1
1.00
1.00
1.00
0.25
0.33
0.50
1.00
2.00
3.00
0.25
0.33
0.50
1.00
2.00
3.00
C2
2.00
3.00
4.00
1.00
1.00
1.00
2.00
3.00
4.00
1.00
2.00
3.00
4.00
5.00
6.00
C3
4.00
5.00
6.00
0.20
0.25
0.33
2.00
3.00
4.00
4.00
5.00
6.00
3.00
4.00
5.00
C4
0.25
0.33
0.50
0.33
0.50
1.00
1.00
2.00
3.00
0.25
0.33
0.50
1.00
2.00
3.00
C5
0.33333
0.5
0.25
0.33
0.50
1.00
1.00
1.00
1.00
1.00
2.00
0.33
0.50
1.00
C6
2.00
3.00
4.00
0.33
0.50
1.00
1.00
2.00
3.00
1.00
1.00
1.00
2.00
3.00
4.00
C7
0.33
0.50
1.00
0.17
0.20
0.25
1.00
2.00
3.00
0.25
0.33
0.50
1.00
1.00
1.00
After forming the model (9) for the comparison matrix and solving this model using Genetic algorithms, the weight vector is obtained as
follow:
w = (0.1309, 0.2176, 0.2521, 0.1047, 0.0855, 0.1195, 0.0894) T
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Int ernational Journal of Economy, Mana ge ment and Soci al Sci ences , 3(1) January 2014
Similarity:
The weights of criteria are calculated by FPM up to now, and then these values can be used in Similarity. According to Similarity
methodology, we obtained weighted normalized decision matrix that can be seen in Table 5.
C1
C2
C3
C4
C5
C6
C7
0.039
0.046
0.058
0.051
0.025
0.037
0.067
0.029
0.083
0.075
0.090
0.067
0.056
0.058
0.114
0.052
0.103
0.088
0.100
0.081
0.065
0.077
0.118
0.068
0.046
0.040
0.039
0.035
0.030
0.034
0.041
0.030
0.033
0.024
0.044
0.025
0.021
0.023
0.042
0.017
0.028
0.039
0.049
0.040
0.032
0.037
0.060
0.045
0.035
0.025
0.043
0.026
0.025
0.027
0.043
0.020
Alternatives
A1
A2
A3
A4
A5
A6
A7
A8
The positive ideal solution and the negative-ideal solution are determined by (16) and (17) as
A+ = [0.067, 0.114, 0.118, 0.046, 0.044, 0.060, 0.043]
A- = [0.025, 0.052, 0.065, 0.030, 0.017, 0.028, 0.020]
Therefore, the degree of conflict between each alternative and the positive ideal solution and the negative ideal solution is calculated by
(18) and the degree of similarity between each alternative and the positive ideal solution and the negative ideal solution are determined by
(19 & 20).after that the overall performance index for each alternative across all criteria can be determined by (21). The results of this
calculation are shown in Table 6.
Table 6. Alternatives ranking matrix
Criteria
Cos i+
S+
Ranking
0.915647
0.981043
0.98472
0.934463
0.670445
0.929639
0.998735
0.475712
0.503865
0.395542
0.696922
0.334825
0.056141
0.198185
0.987997
0.083809
3
4
2
5
8
6
1
7
Alternatives
A1
A2
A3
A4
A5
A6
A7
A8
4.
Conclusions
Nowadays agility is considered as a fundamental factor for competitiveness. However, little research exists which provides an integrated
framework in order to help companies increasing their agility. The purpose of this paper is developing a framework based on the fuzzy
multiple criteria decision making approach to identify the most appropriate agility enablers to be implemented by companies. First the
agility attributes and enablers are recognized. Second the fuzzy Prioritization Method is applied to determine weights of the agility
attributes. Finally Similarity-Based Approach is used in order to rank the agility enablers. According to result, A 7 (Team building) is the
best agility enablers among other enablers.
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Acknowledgement
The authors wish to thank an anonymous referee for the valuable suggestions which considerably improve the quality of the paper.
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