A Two-Stage Model Based on EFQM, FBWM, and FMOORA for Business Excellence Evaluation in the Process of Manufacturing

Abstract

In recent decades, many researchers and practitioners have believed that reaching a high level of business excellence leads to the continuous realization of a set of business goals. In the literature, a vast number of models for business excellence evaluation that contain different criteria depending on the cultural, technological, organizational, and socio-economic factors can be found. The aims of the proposed fuzzy two-stage model are to address some of the main shortcomings of the EFQM2020 model and to adapt it to the needs of process manufacturing. The relative importance of quality criteria and their values are presented by pre-defined linguistic expressions modeled by the triangular fuzzy numbers. The determination of the weight vector of criteria is stated as a fuzzy group decision-making problem and determined by using the fuzzy best-worst method. The proposed fuzzy multi-objective optimization by ratio analysis is implemented for determining the rank of enterprises. The management initiatives that should lead to the improvement of business excellence should be based on the business practices of enterprises that are highly placed in the rank. Testing and verification of the proposed model are performed on real data originating from enterprises operating in the same economic sector.

EFQM and business model relation effect on performance of manufacturing enterprises

“…The majority of authors believe that the model has to be adjusted to: (i) the size of the company, (ii) the business area and (iii) the uncertain business environment. It can be considered that the modification of the EFQM model is based on the change of weights of the criteria [3][4][5] [6].…”

“…The assessment of the relative importance of defined criteria is stated as a fuzzy group decision making problem, as in [6]. The fuzzy weights vector at the level of each DM, 𝑤 ̃𝑘𝑒 is given by using fuzzy Best Worst Method [37].…”

“…The values of criteria are assessed by DMs by using pre-defined linguistic expressions which are modelled by TFNs, 𝑣 ̃𝑒𝑘 . The weighted fuzzy EFQM model for production SMEs [6] is constructed by using fuzzy algebra rules [17] and presented in Table 1. Source: [6]…”

“…Along with those changes practitioners and academics have made efforts to modify EFQM model scores and adapt it to various fields of study. The majority of authors believe that the weight of the criteria depends on the size of the company as well as the changes that occur in an uncertain environment [3][4] [5] [6]. It can be considered that the modification of the EFQM model is based on the change of weights of the criteria.…”

“…Uncertainties and inaccuracies that exist in the considered problem are modeled using the theory of fuzzy sets [17]. The aggregated value of quality is obtained by combining the EFQM method proposed by [6] and the FSAW method. Values of treated performance, in this research it is a number of customer complaints as suggested by [13] were evaluated during discretized time intervals.…”