Measuring a manufacturing system’s performance using Saaty’s system with feedback approach

Provides a multi‐criteria performance measurement model to measure the profitability performance of a manufacturing system. In developing the model, analytic hierarchy process (AHP) and its extension system‐with‐feedback (SWF) approaches are used. The SWF approach, an extension of the AHP method, is recommended when independence among different elements of a system assumption is violated. In a manufacturing system, the system’s performance criteria are interrelated. When the level of a single system criterion is changed, other criteria must be considered simultaneously. Also, the relative importance of these criteria with respect to each other and their contribution to the overall profitability is directly affected by the competitive strategy applied by the manufacturing system. The performance evaluation model developed in this study includes the competitive strategy and interdependence between the system criteria in its hierarchical structure and achieves a more realistic and accurate representation of a manufacturing system.