Methodology for uncertainty characterization of performance measures
International Journal of Quality & Reliability Management
ISSN: 0265-671X
Article publication date: 3 October 2016
Abstract
Purpose
The purpose of this paper is to present a methodology to represent the uncertainty generated in performance measures (PMs) during the operational step or “use step” of the performance measurement process (PMP). The different steps of the methodology are described and exemplified through an application example.
Design/methodology/approach
An index that reflects the level of uncertainty originated by the factors and the strength of their inter-relationships is developed through the use of graph theory. A graph is developed considering all sources or factors of uncertainty that may be present in this process. Based on the graph, the methodology includes the use of a matrix and the determination of the associated permanent function which is used for determining the uncertainty index.
Findings
During the development of the methodology, it was found that the use of a scale that includes zero for assigning values of the elements of the matrix is not appropriate when using graph theory and permanent function calculation, since in this case the permanent function is insensible to changes in some matrix elements.
Originality/value
This paper identifies all the sources that can affect the quality of performance measurement values during the operational step of the PMP and proposes a method to characterize the strength of this uncertainty. Beyond alerting decision makers to the level of uncertainty associated with a PM, it also allows defining appropriate actions to improve PMs’ quality.
Keywords
Acknowledgements
This work has been supported by FCT – Fundação para a Ciência e Tecnologia within the Project Scope: PEst-OE/EEI/UI0319/2014.
Citation
Lopes, I.S., Sousa, S.D. and Nunes, E. (2016), "Methodology for uncertainty characterization of performance measures", International Journal of Quality & Reliability Management, Vol. 33 No. 9, pp. 1346-1363. https://doi.org/10.1108/IJQRM-10-2014-0146
Publisher
:Emerald Group Publishing Limited
Copyright © 2016, Emerald Group Publishing Limited