Multi-criteria approach to optimization of enterprise production programme

Abstract

This paper develops a multi-criteria model for making decisions on the production programme relevant for industrial enterprises. It presents some possibilities of using the method of multi-criteria decision making with managerial decision making on the production programme and some possibilities of modelling and disclosing preferences of a decision maker when conducting multi-criteria rating of alternative solutions by applying the concept of PROMETHEE method. The development of a multi-criteria basis for multi-layered and multilevel decision making in a system of relevant criteria, including development aspect, technical and technological aspect, economic aspect, competitive aspect, and humanity aspect, with a set of relevant criteria indicators of quantitative and qualitative nature. By introducing new types of preference functions and by applying them to the multi-criteria decision making of the production programme and to the software support implemented there, original solutions to the problem of the programme orientation optimization are offered. Practical testing of the projected model and of the complex procedure of multi-criteria decision making was demonstrated in practice with the example of a multi-criteria approach to the selection of an optimal variant for the programme of hail suppression rockets production. A multi-criteria approach ensures finding solutions for, and examining the products that are a key to, the long-term development of the enterprise.

An Integrated MCDM Approach to PLM Software Selection

“…The PROMETHEE method does not provide clear guidelines to the assessment of criteria importance, either, but it is rather left to the decision-makers' rough estimate, and, as such, is imprecise and unreliable. The criteria used in the process of alternatives evaluation are expressed in different measure units with different requirements of minimization or maximization, they are changeable in time, heterogeneous, and frequently contradictory, as well [1,16], whereas their relative significance is a variable category and depends on a concrete situation, as well as on the decision-maker's subjective perceptions. Besides, the significance attributed to criteria determines to a great extent the final selection, so, pursuant to the importance of this problem issue, it is necessary within the MCDM process, that much more complex approaches to the determination of the criteria relative weight than that offered by the PROMETHEE method should be included.…”

“…There is a constant increase of product complexity while the lifecycle shortens, also the market fluctuations and economic uncertainty create pressure on prices and expressed need for a quick response to the consumer's growing and interchangeable requirements. All these are the challenges brought by contemporary global flows, which on their part radically change market conditions and competitive relationships, to overcome those challenges requires adoption of the new knowledge and modifying problem reaction and solution approach [1]. To face these challenges, manufacturers must adopt and incorporate the concept of products management process into their business flows throughout their lifecycle, from the idea of "end-of-life", i.e.…”

Key factors for successful implementation of ERP systems

“…A very important factor in the introduction of the ERP system is active and functional communication between all involved in the project implementation ERP system. [34]. Communication itself means a formal progress and information concerning the progress of the project from the leadership of the project to other stakeholders in the organization.…”