Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits
A performance evaluation matrix (PEM) is an evaluation tool for assessing customer satisfaction and the importance of service items across various services. In addition, inferences based on point estimates of sample data can increase the risk of misjudgment due to sampling errors. Thus, this paper c...
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| Format: | Article |
| Language: | English |
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MDPI AG
2023-08-01
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| Series: | Mathematics |
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| Online Access: | https://www.mdpi.com/2227-7390/11/16/3499 |
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| author | Teng-Chiao Lin Hsing-Hui Chen Kuen-Suan Chen Yen-Po Chen Shao-Hsun Chang |
| author_facet | Teng-Chiao Lin Hsing-Hui Chen Kuen-Suan Chen Yen-Po Chen Shao-Hsun Chang |
| author_sort | Teng-Chiao Lin |
| collection | DOAJ |
| description | A performance evaluation matrix (PEM) is an evaluation tool for assessing customer satisfaction and the importance of service items across various services. In addition, inferences based on point estimates of sample data can increase the risk of misjudgment due to sampling errors. Thus, this paper creates a decision-making model for a performance evaluation matrix based on upper confidence limits to provide various service operating systems for performance evaluation and decision making. The concept is that through the gap between customer satisfaction and the level of importance of each service item, we are able to identify critical-to-quality (CTQ) service items requiring improvement. Many studies have indicated that customer satisfaction and the importance of service items follow a beta distribution, and based on the two parameters of this distribution, the proposed indices for customer satisfaction and the importance of service items represent standardization. The vertical axis of a PEM represents the importance index; the horizontal axis represents the satisfaction index. Since these two indices have unknown parameters, this paper uses the upper confidence limit of the satisfaction index to find out the CTQ service items and the upper confidence limit of the importance index to determine the order of improvement priority for each service item. This paper then establishes a decision-making model for a PEM based on the above-mentioned decision-making rules. Since all decision-making rules proposed in this paper are established through upper confidence limits, the risk of misjudgment caused by sampling errors can be reduced. Finally, this article uses a practical example to illustrate how to use a PEM to find CTQ service items and determine the order of improvement priority for these service items that need to be improved. |
| first_indexed | 2024-03-10T23:45:56Z |
| format | Article |
| id | doaj.art-c1911cde00a4483daf22967efbafc651 |
| institution | Directory Open Access Journal |
| issn | 2227-7390 |
| language | English |
| last_indexed | 2024-03-10T23:45:56Z |
| publishDate | 2023-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Mathematics |
| spelling | doaj.art-c1911cde00a4483daf22967efbafc6512023-11-19T02:02:53ZengMDPI AGMathematics2227-73902023-08-011116349910.3390/math11163499Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence LimitsTeng-Chiao Lin0Hsing-Hui Chen1Kuen-Suan Chen2Yen-Po Chen3Shao-Hsun Chang4Department of Graduate Institute of Technological & Vocational Education, National Taipei University of Technology, Taipei 106344, TaiwanDepartment of Industrial Education and Technology, National Changhua University of Education, Changhua 500208, TaiwanDepartment of Industrial Engineering and Management, National Chin-Yi University of Technology, Taichung 411030, TaiwanDepartment of Foreign Languages and Literatures, National Chung Hsing University, Taichung 402202, TaiwanDepartment of Industrial Education and Technology, National Changhua University of Education, Changhua 500208, TaiwanA performance evaluation matrix (PEM) is an evaluation tool for assessing customer satisfaction and the importance of service items across various services. In addition, inferences based on point estimates of sample data can increase the risk of misjudgment due to sampling errors. Thus, this paper creates a decision-making model for a performance evaluation matrix based on upper confidence limits to provide various service operating systems for performance evaluation and decision making. The concept is that through the gap between customer satisfaction and the level of importance of each service item, we are able to identify critical-to-quality (CTQ) service items requiring improvement. Many studies have indicated that customer satisfaction and the importance of service items follow a beta distribution, and based on the two parameters of this distribution, the proposed indices for customer satisfaction and the importance of service items represent standardization. The vertical axis of a PEM represents the importance index; the horizontal axis represents the satisfaction index. Since these two indices have unknown parameters, this paper uses the upper confidence limit of the satisfaction index to find out the CTQ service items and the upper confidence limit of the importance index to determine the order of improvement priority for each service item. This paper then establishes a decision-making model for a PEM based on the above-mentioned decision-making rules. Since all decision-making rules proposed in this paper are established through upper confidence limits, the risk of misjudgment caused by sampling errors can be reduced. Finally, this article uses a practical example to illustrate how to use a PEM to find CTQ service items and determine the order of improvement priority for these service items that need to be improved.https://www.mdpi.com/2227-7390/11/16/3499performance evaluation matrixbeta distributionsatisfaction indeximportance indexupper confidence limit |
| spellingShingle | Teng-Chiao Lin Hsing-Hui Chen Kuen-Suan Chen Yen-Po Chen Shao-Hsun Chang Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits Mathematics performance evaluation matrix beta distribution satisfaction index importance index upper confidence limit |
| title | Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits |
| title_full | Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits |
| title_fullStr | Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits |
| title_full_unstemmed | Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits |
| title_short | Decision-Making Model of Performance Evaluation Matrix Based on Upper Confidence Limits |
| title_sort | decision making model of performance evaluation matrix based on upper confidence limits |
| topic | performance evaluation matrix beta distribution satisfaction index importance index upper confidence limit |
| url | https://www.mdpi.com/2227-7390/11/16/3499 |
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