Using Analytic Network Process to Establish Performance Evaluation Indicators for the R&D Management Department in Taiwans Hightech Industry

• Published in: Asian journal on quality Vol. 8; no. 3; pp. 156 - 172
• Main Authors: Liu, PangLo, Tsai, ChihHung
• Format: Journal Article
• Language: English
• Published: Emerald Group Publishing Limited 18.12.2007
• Subjects: ANP; BSC; Performance evaluation; R&D management
• ISSN: 1598-2688
• DOI: 10.1108/15982688200700030

The hightech industry is the economic lifeline for Taiwan. Its characteristics are short product life cycle, rapid changes in the market, and a high obsolescence rate for new products. Under globalization, the hightech industry has adopted Information Technology IT to shorten the manufacturing process, reduce costs and conduct product research and development R&D to increase the core competence of enterprises and achieve the goal of sustainable operations. Enterprises should actively strengthen their integration with internal and external resources and lead in R&D management to increase industrial operating performance. Effectively managing operations and R&D management evaluation in Taiwans Hightech Industry has become a critical subject. This study adopted 4 major Balanced Scorecard BSC perspectives to establish the Total Performance Evaluation Indicators for the R&D management department in Taiwans Hightech Industry. The Analytic Network Process ANP was applied to evaluate the overall performance of the R&D management department. The research framework is divided into 2 phases. The first phase is combined with the 4 major perspectives, Financial, Customer, Internal Business Process and Learning and Growth, as the related indicators for each measurement perspective. The Key Performance Indicators KPI were selected using Factor Analysis to identify the key factor from the complicated indicators. The relationship between the characteristics of each BSCs evaluation perspective is dependence and feedback. This study applied ANP to conduct the calculation and adjustment of correlation between each KPI, and determine on their relative weights for the objective KPI. The Financial Perspective for R&D management department in Taiwans Hightech Industry focused on the budget achievement rate of R&D management. The weight indicator value is 0.05863. The Customer Perspective focused on problemsolving satisfaction. The weight value of this indicator is 0.17549. The Internal Business Process Perspective focused on the quantity and quality of R&D. The weight value of this indicator is 0.13506. The Learning and Growth Perspective focused on improving competence in the research ersonnels professional techniques. The weight value of this indicator is 0.02789. From the total weighting indicators, the order of the Performance Indicators for the R&D management department in Taiwans Hightech Industry is 1 Customer Perspective 2 Internal Business Process Perspective 3 Financial Perspective and 4 Learning and Growth Perspective.