Business Processes Reengineering Portfolio Selection

Abstract

This paper presents a multi-objective zero-one linear programming model with fuzzy parameters to select a proper portfolio of processes for reengineering in the manufacturing companies. Based on a new setof qualitative and quantitative indicators, an evaluation method is presented to measure and estimate the reengineering effect of processes on the improvement of company performance. Fuzzy sets theory is used because some variables are verbal and we have some uncertain data. So, analytic hierarchy process, multi-criteria group decision making, fuzzy theory and portfolio theory all were used together to develop a process portfolio selection model. In this model, processes which make maximum value for company and cause theleast staff resistance are selected for reengineering. Also considering the membership degree of fuzzy numbers, a novel method is developed to solve multi-objective zero-one linear programming problems with fuzzy parameters. Finally, an illustrative case study is included to demonstrate the efficiency and practicality of the proposed model.

Keywords

• business process reengineering (bpr)
• process portfolio selection
• analytic hierarchy process (ahp)
• performance measurement
• fuzzy theory
• multi-objective zero-one linear programming