Advertisement

Global Journal of Flexible Systems Management

, Volume 14, Issue 4, pp 241–253 | Cite as

Moving Towards Organizational Agility: Are We Improving in the Right Direction?

  • Majid Nejatian
  • Mohammad Hossein Zarei
Original Article

Abstract

Agility is one of the most vital competitive advantages of organizations in response to the constant changes of volatile markets. In this paper, a novel approach towards improving organizational agility is proposed. Initially, the key performance indicators (KPIs) of the organization being studied are identified and ranked using balanced scorecard (BSC) and technique for order of preference by similarity to ideal solution (TOPSIS). According to the ranking, the most important KPIs are selected as the organization’s critical success factors (CSFs). To convert linguistics judgments into quantitative values a fuzzy logic-based framework is presented. At the end, two consecutive houses of quality are developed. By inserting the CSFs into the first house, the main agile attributes are discovered and used as the inputs of the second house. The outcome of the second house is identifying the main agile enablers that best satisfy the agile attributes and consequently move the organization towards becoming agile.

Keywords

Balanced scorecard (BSC) Fuzzy QFD Fuzzy TOPSIS House of quality (HOQ) Organizational agility 

References

  1. Agarwal, A., Shankar, R., & Tiwari, M. K. (2006). Modeling the metrics of lean, agile and leagile supply chain: An ANP-based approach. European Journal of Operational Research, 173, 211–225.CrossRefGoogle Scholar
  2. Ahmad, N., Haleem, A., & Seyd, A. A. (2012). Compilation of critical success factors in implementation of enterprise systems: a study on Indian organisations. Global Journal of Flexible Systems Management, 13 (4), 217–32.CrossRefGoogle Scholar
  3. Bevilacqua, M., Ciarapica, F. E., & Giacchetta, G. (2006). A fuzzy-QFD approach to supplier selection. Journal of Purchasing and Supply Management, 12, 14–27.CrossRefGoogle Scholar
  4. Bottani, E. (2009). A fuzzy QFD approach to achieve agility. International Journal of Production Economics, 119(2), 380–391.CrossRefGoogle Scholar
  5. Bottani, E. (2010). Profile and enablers of agile companies: An empirical investigation. International Journal of Production Economics, 125(2), 251–261.CrossRefGoogle Scholar
  6. Bottani, E., & Rizzi, A. (2006). Strategic management of logistics service: A fuzzy QFD approach. International Journal of Production Economics, 103, 585–599.CrossRefGoogle Scholar
  7. Brown, S., & Bessant, J. (2003). The manufacturing strategy-capabilities links in mass customization and agile manufacturing-an exploratory study. International Journal of Operations and Production Management, 23(7), 707–730.CrossRefGoogle Scholar
  8. Burgess, T. F. (1994). Making the leap to agility: Defining and achieving agile manufacturing through business process redesign and business network redesign. International Journal of Operations and Production Management, 23(7), 707–730.Google Scholar
  9. Cebeci, U. (2009). Fuzzy AHP-based decision support system for selecting ERP systems in textile industry by using balanced scorecard. Expert Systems with Applications, 36, 8900–8909.CrossRefGoogle Scholar
  10. Celik, M., Cebi, S., Kahraman, C., & Er, I. D. (2009). An integrated fuzzy QFD model proposal on routing of shipping investment decisions in crude oil tanker market. Expert Systems with Applications, 36, 6227–6235.CrossRefGoogle Scholar
  11. Chen, Y., Fung, R. Y., & Tang, J. (2006). Rating technical attributes in fuzzy QFD by integrating fuzzy weighted average method and fuzzy expected value operator. European Journal of Operational Research, 174, 1553–1566.CrossRefGoogle Scholar
  12. Chen, M. Y., Huang, M. J., & Cheng, Y. C. (2009). Measuring knowledge management performance using a competitive perspective: An empirical study. Expert Systems with Applications, 36, 8449–8459.CrossRefGoogle Scholar
  13. Chen, L. H., & Ko, W. C. (2009). Fuzzy approaches to quality function deployment for new product design. Fuzzy Sets and Systems, 160, 2620–2639.CrossRefGoogle Scholar
  14. Cho, H., Jung, M.-Y., & Kim, M. (1996). Enabling technologies of agile manufacturing and its related activities in Korea. Computers and Industrial Engineering, 30, 323–334.CrossRefGoogle Scholar
  15. Christopher, M. (2000). The agile supply chain: Competing in volatile markets. Industrial Marketing Management, 29, 37–44.CrossRefGoogle Scholar
  16. Dursun, M., & Karsak, E. E. (2013). A QFD-based fuzzy MCDM approach for supplier selection. Applied Mathematical Modelling, 37, 5864–5875.CrossRefGoogle Scholar
  17. Dymova, L., Sevastjanov, P., & Tikhonenko, A. (2013). A direct interval extension of TOPSIS method. Expert Systems with Applications, 40, 4841–4847.CrossRefGoogle Scholar
  18. Gehani, R. R. (1995). Time-based management of technology: A taxonomic integration of tactical and strategic roles. International Journal of Operations and Production Management, 15(2), 19–35.CrossRefGoogle Scholar
  19. Guh, Y.-Y., Po, R.-W., & Lee, E. S. (2008). The fuzzy weighted average within a generalized means function. Computers and Mathematics with Applications, 55(12), 2699–2706.CrossRefGoogle Scholar
  20. Gunasekaran, A. (1998). Agile manufacturing: Enablers and an implementation framework. International Journal of Production Research, 36(5), 1223–1247.CrossRefGoogle Scholar
  21. Heizer, J., & Render, B. (2011). Operations management (10 Ed.). New Jersey: Pearson Education.Google Scholar
  22. Hwang, C. L., & Yoon, K. (1981). Multiple attribute decision making: Methods and applications. New York: Springer-Verlag.CrossRefGoogle Scholar
  23. Kaplan, R. S., & Norton, D. P. (1992). The balanced scorecard-measures that drive performance. Harvard business Review, 70, 71–79.Google Scholar
  24. Kaplan, R. S., & Norton, D. P. (1996). The balanced scorecard: Translating strategy into action. Boston: Harvard Business School PressGoogle Scholar
  25. Lee, A. H., Chen, W. C., & Chang, C. J. (2008). A fuzzy AHP and BSC approach for evaluating performance of IT department in the manufacturing industry in Taiwan. Expert Systems with Applications, 34, 96–107.CrossRefGoogle Scholar
  26. Lin, C.-T., Chiu, H., & Chu, P.-Y. (2006). Agility index in the supply chain. International Journal of Production Economics, 100(2), 285–299.CrossRefGoogle Scholar
  27. Liu, H. T. (2009). The extension of fuzzy QFD: From product planning to part deployment. Expert Systems with Applications, 36, 11131–11144.CrossRefGoogle Scholar
  28. Lu, Y., & Ramamurthy, K. (2011). Understanding the link between information technology capability and organizational agility: An empirical examination. MIS QUARTERLY, 35(4), 931–954.Google Scholar
  29. Narasimhan, R., Swink, M., & Kim, S. W. (2006). Disentangling leanness and agility: An empirical investigation. Journal of Operations Management, 24, 440–457.CrossRefGoogle Scholar
  30. Oliveira, M. A., Valentina, L. V., & Possamai, O. (2012). Forecasting project performance considering the influence of leadership style on organizational agility. International Journal of Productivity and Performance Management, 61(6), 653–671.CrossRefGoogle Scholar
  31. Papalexandris, A., Loannou, G., Prastacos, G., & Soderquist, K. E. (2005). An integrated methodology for putting the balanced scorecard into action. European Management Journal, 23(2), 214–227.CrossRefGoogle Scholar
  32. Prince, J., & Kay, J. M. (2003). Combining lean and agile characteristics: Creation of virtual groups by enhanced production flow analysis. International Journal of Production Economics, 85, 305–318.CrossRefGoogle Scholar
  33. Ren, J., Yusuf, Y. Y., & Burns, D. (2000). A prototype of measurement system for agile enterprise. Quality Management and Technology, 5(4), 304–316.Google Scholar
  34. Ren, J., Yusuf, Y. Y., & Burns, D. (2001). Organizational competitiveness: Identifying the critical agile attributes using principal component analysis. Proceedings of the 16th International Conference on Production Research. Prague, Czech Republic.Google Scholar
  35. Ren, J., Yusuf, Y. Y., & Burns, N. D. (2003). The effects of agile attributes on competitive priorities: A neural network approach. Integrated Manufacturing Systems, 14, 489–497.CrossRefGoogle Scholar
  36. Sharifi, H., & Zhang, Z. (1999). A methodology for achieving agility in manufacturing organisations: An introduction. International Journal of Production Economics , 62(1–2), 7–22.Google Scholar
  37. Sharifi, H., Colquhoun, G., Barclay, I., & Dann, Z. (2001). Agile manufacturing: a management and operational framework, proceedings of the Institution of Mechanical Engineers part B. Journal of Engineering Manufacture, 215(6), 857–869.CrossRefGoogle Scholar
  38. Sharifi, H., & Zhang, Z. (2001). Agile manufacturing in practice: Application of a methodology. International Journal of Operations and Production Management, 21(5–6), 772–794.CrossRefGoogle Scholar
  39. Sherehiy, B., Karwowski, W., & Layer, J. K. (2007). A review of enterprise agility: Concepts, frameworks, and attributes. International Journal of Industrial Ergonomics, 37, 445–460.CrossRefGoogle Scholar
  40. Tang, J., Fung, R. Y., Baodong, X., & Wang, D. (2002). A new approach to quality function deployment planning with financial consideration. Computers and Operations Research, 29, 1447–1463.CrossRefGoogle Scholar
  41. Tsai, W. H., & Chou, W. C. (2009). Selecting management systems for sustainable development in SMEs: A novel hybrid model based on DEMATEL, ANP, and ZOGP. Expert Systems with Applications, 36(2), 1444–1458.CrossRefGoogle Scholar
  42. Van Hoek, R. I., Harrison, A., & Christopher, M. (2001). Measuring agile capabilities in the supply chain. International Journal of Operations and Production Management, 21(1–2), 126–147.CrossRefGoogle Scholar
  43. Vinodh, S., Sundararaj, G., & Devadasan, S. R. (2010). Measuring organisational agility before and after implementation of TADS. International Journal of Advanced Manufacturing Technology, 47, 809–818.CrossRefGoogle Scholar
  44. Wu, H. Y., Lin, Y. K., & Chnag, C. H. (2011). Performance evaluation of extension education centers in universities based on the balanced scorecard. Evaluation and Program Planning, 34, 37–50.CrossRefGoogle Scholar
  45. Yager, R. R. (1981). A procedure for ordering fuzzy subsets of the unit interval. Information Science, 24, 143–161.CrossRefGoogle Scholar
  46. Yüksel, I., & Dağdeviren, M. (2010). Using the fuzzy analytic network process (ANP) for Balanced Scorecard (BSC): A case study for a manufacturing firm. Expert Systems with Applications, 37, 1270–1278.CrossRefGoogle Scholar
  47. Yusuf, Y. Y., Sarhadi, M., & Gunasekaran, A. (1999). Agile manufacturing: The drivers, concepts and attributes. International Journal of Production Economics, 62, 33–43.CrossRefGoogle Scholar
  48. Zadeh, L. A. (1965). Fuzzy sets. Information and Control, 8, 338–353.CrossRefGoogle Scholar
  49. Zhang, Z., & Sharifi, H. (2000). A methodology for achieving agility in manufacturing organisations. International Journal of Operations and Production Management, 20(4), 496–512.CrossRefGoogle Scholar

Copyright information

© Global Institute of Flexible Systems Management 2013

Authors and Affiliations

  1. 1.Faculty of Management and EconomicsTarbiat Modares University (TMU)TehranIran
  2. 2.MashhadIran
  3. 3.Department of Manufacturing and Industrial Engineering, Faculty of Mechanical EngineeringUniversiti Teknologi MalaysiaJohor BahruMalaysia

Personalised recommendations