A Research on Evaluation System of Enterprise Logistics Management Maturity

Abstract. Comprehensive measure and objectively reflect the maturity of enterprise logistics management is an important topic in business management. This paper， based on fuzzy evaluation method， constructs the evaluation index system of enterprise logistics management maturity， takes production-oriented enterprises for example， and explores the establishment of enterprise logistics management maturity evaluation system.

Key words： Enterprise Logistics； Management Maturity； Fuzzy Evaluation Method

1. Introduction

In recent years， enterprises have a deep understanding of logistics. Optimizing logistics management， reducing logistics costs and scientifically measuring logistics performance become a strong desire and requirements of many companies. In general， the enterprises’ logistics system can be divided into external and internal logistics. Currently， researches on enterprise logistics are concentrated in the external distribution， transportation and other external logistics study， while research on logistics in the production process， internal vehicle transport and distribution， warehousing and other internal logistics are relatively less. In fact， rationalization of internal logistics can promote the allocation of resources in the production process， rationalization process， thus greatly improving the competitiveness of manufacturing enterprises. Internal logistics involve in the inner workings of the supply chain， but also the content of production and management， therefore， the optimization and measure of internal logistics performance are very complicated. In this paper， based on fuzzy evaluation， we build enterprise logistics management maturity evaluation index system， and take production-oriented enterprises for example to explore the establishment of enterprise logistics management maturity evaluation system.

2. Logistics management maturity model

2.1 Model introduction

Guided by PMBOK， ISO9001 quality Management system， the Chinese project Management knowledge system， project quality Management theory and the theory Maturity Model theory， mainly by reference to K - PMMM of the typical comparatively perfect Maturity Model， and absorbing the existing organization development project Management Maturity Model （OPM3） research， based on CMM and BPMMM， we put forward Enterprise Logistics Management Maturity Model ELMMM.

ELMMM is a model to evaluate and improve the level of enterprise logistics process management. According to the hierarchical level classification principles， it divides the maturity level in two directions （quantitative management and achieve sustainable improvement）， including the initial level， basic level， standard level and excellent level， as shown in table 1.

2.2 ELMMM implementation process

ELMMM implementation process mainly includes four phases， 12 steps， as shown in figure 1. According to their English word acronym， the implementation of the process model can be called an IAII framework for short.

In initial stage， it needs to form a model implementation team and train it to lay a good foundation for later model application. Assessment phase analyzes the organization’s business process management level mainly through questionnaires， evaluates and analyzes maturity of the business process of enterprise management and communicate with enterprises about the analysis results and put forward diagnostic report. Improvement stage defines the direction of the business process management， the implementation of business process management and improves management system. Succession stage mainly sorts and records data， takes a post-implementation assessment， and formulate re-implementation plans.

3. The construction of enterprise logistics management maturity evaluation

3.1 The structure of the evaluation index system

ELMMM model establishes an evaluation model of three level structure， and evaluation index levels respectively are maturity level layer， category indicator layer and key process regional layer. Maturity levels are divided into four layers， namely： the initial stage， basic level， standard level and excellent level. This layer， in the first level indicators， is related to the enterprise logistics management in evaluating the maturity level of structure. Category index layer， as the second level index， corresponds to the four processes of enterprise logistics management， whose specific contents are organization and strategy， process specification， process control and performance management. Key process regional index layer， at the bottom， divides the category index layer （4 items） into 16 third-level indicators， using more detailed indicators to evaluate the category index layer. These 16 indicators mainly are the specific contents of the category index layer.

3.2 The evaluation index system

We should， according to every link， every department and every post in the theory of logistics management， with humanism as its core， formulate detailed， scientific and quantification standards， and manage it in strict accordance with the standards to improve the work efficiency greatly. Enterprise logistics management maturity evaluation index system is shown in table 2.

4. The application of enterprise logistics management maturity evaluation system

In enterprise logistics management maturity evaluation， due to the influence of many factors， we must make comprehensive consideration of various related factors and make overall evaluation， which is the comprehensive evaluation. On the other hand， as the size of the enterprise logistics management maturity factors has ambiguity， it is difficult to unify specifically boundaries and difficult to accurately determine. So it is necessary to use a certain number of methods to describe the fuzzy concept， namely adopt the fuzzy evaluation to judge， so that we can get more accurate evaluation value. Based on enterprise logistics management maturity model and the evaluation index system， we should build a maturity level evaluation model based on fuzzy comprehensive evaluation to provide a more scientific method for evaluating the enterprise logistics management maturity.

This section takes production control for example to analyze enterprise logistics maturity levels and take rating calculation.

4.1 The construction of fuzzy comprehensive evaluation model

4.1.1 Evaluation index sets

Supposed the enterprise logistics management maturity index sets as you = {U1， U2， UN}， Ui （I = 1， 2， 3... n） as the first category index layer， which is determined by several key process regional index layers， namely the Ui = {Ui1， Ui2... Uin}.

For ELMMM model， its four types of 16 items of index system can shorthand for U， U1， U2， U3， U4， whose relations and content area：

U = {U1， U2， U3， U4} = {organization and strategy， process specification， process control， performance management}

U1 = {U11， U12， U13， U14} = {rules and regulations， management processes， development planning， sustainability}

U2 = {U21， U22， U23， U24} = {standardization （manual）， supply plan， coverage， process control}

U3 = {U31， U32 U33， U34} = {production scheduling management， management， supervisory management， risk management}

U4 = {U41， U42， U43， U44} = {cost management， business performance， analysis and improvement， staff development}

4.1.2 The determination of fuzzy evaluation matrix

Considering the enterprise logistics management maturity evaluation of expert or relevant personnel is a kind of fuzzy mapping， and even in the same evaluation index， different persons may make different assessments， so the evaluation result can only be represented by the possibility of the j evaluation for the my index. This possibility is called membership degree.

Supposed Rij （I = 1， 2... n； j = 1， 2... m） represents the membership of the secondary indicators Uij’s j evaluation via. We define Rij value according to the following methods： statistical process the expert evaluation results and get vi1 v1 level evaluation index for a， vi2 v2 evaluations... v v4 level evaluations， for I = l， 2... n：

According to the value of rij， we can get row vector Rj， an index to the membership degree of each evaluation.

Arrange the above index membership degree according to the order of the evaluation index system of enterprise logistics management maturity and get the following forms of enterprise logistics management maturity fuzzy evaluation matrix Ri：

Organization and strategy layer fuzzy evaluation matrix is R1， process specification layer fuzzy evaluation matrix is R2， process control layer of fuzzy evaluation matrix is R3， and performance management fuzzy evaluation matrix is R4.

4.2 Method to determine index balance

4.2.1 Weight calculation of category index

Through evaluation results of assessment professional， we get statistical table of category index balance， and then carry through the average calculation and gain each weight.

Category weights of index layer offered by experts in this case are shown in table 3.

We get a layer of category index weight sets A = （0.224 0.294 0.226 0.224）.

4.2.2 Layer weights of key process calculation

Using AHP （The Analytical Hierarchy Process）， we can check with a logical relationship of the lower element， and compare each element for each upper element， finally， assemble the judgment result into comparison matrix.

Through the comparison and judgment in table 3， we can get four comparative matrixes as the follows：

Using the eigenvector method， we can determine the weight and weight of each index such as table 4.

4.2.3 Hold consistency check

To avoid logic loop contradiction in which A is more important than B， B is more important than C， and C is more important than A， we take the consistency check. Test results are shown in table 5.

From the table 5， we can know CR is less than 0.1. So there is no logic loop contradiction， and judgment matrix of organization and strategy layer and the identified weight are available. Similarly， we can get other weights of each layer. Layer of key process regional index weight sets are as follows：

4.2.4 Determine evaluation index weights and membership degree

We get maturity level fuzzy membership degree by questionnaires and the weight of each index is summarized in table 6.

4.3 Determine the fuzzy evaluation vector and calculate fuzzy comprehensive evaluation

4.3.1 The determination of evaluation vector

（1） Fuzzy evaluation of single factor

According to the above single factor fuzzy evaluation matrix Ri and the following formula， we calculate the single factor evaluation vector Bi：

（2） The multi-factor fuzzy comprehensive evaluation

4.3.2 Calculation of fuzzy comprehensive value

（7）

Among them， U represents for enterprise logistics management maturity level value；

B represents for the fuzzy comprehensive evaluation vector；

C represents for maturity level matrix， C = （l， 2 and 4）.

According to data in Table 6， we can calculate single factor fuzzy evaluation vector：

Organization and Strategy B1=A1×R1=（0.2274 0.3885 0.2636 0.1204）

Process Standard B2=A2×R2=（0.1773 0.2 0.4137 0.2091）

Process Control B3=A3×R3=（0.2911 0.2856 0.2455 0.2049）

Performance B4=A4×R4=（0.2212 0.3061 0.3535 0.2314）

Multi-factor fuzzy comprehensive evaluation vector B=A·R=（0.2531 0.2414 0.253 0.2478）

The single factor evaluation results are as follows：

U1=B1·CT=2.3， the results show that in the production control， the maturity of organization and strategy is 2.3， between basic level and standard level， which means enterprise management just reaches standard and remains to be improved.

U2=B2·CT=2.7， the results show that in the production control， the maturity of process specification is 2.7， between the basic level and standard level， which means the enterprise towards standard， and needs to be improved.

U3=B3·CT=2.4， showing that in the production control， the maturity of process control is 2.4， between basic level and standard level， which means it does not meet the standard and needs to be improved.

U4=B4·CT=2.5， showing that in the production control， performance management maturity is 2.5， between basic level and standard level， which means it does not meet the standard and needs to be improved.

Multi-factor comprehensive evaluation is U=B·CT=2.5， indicating business service management level of production control is between 2 and 3， which is between basic level and standard level， and needs further improvement.

5. Conclusion

There is no doubt that as people have clearer cognition of the importance of logistics and form， the role of enterprise logistics will obtain seriously more attention. This article builds a set of evaluation index system of manufacturing enterprise logistics maturity from the organization and strategy， process standard， process control and performance management. With this evaluation system， enterprises can carry on omni-directional perspective of internal logistics， thus lay a solid foundation for optimizing the internal logistics， taking logistics advantage and competitive advantage.

References

[1] Beijing National Academy of Sciences Project Management Institute. The Knowledge Outline of Project Management Body [M]. Beijing： electronic industry press， 2003.

[2] Hui Huang， Gongqian Liang & Xiao Mao. Construction and Application of Enterprise Project Management Maturity Model [J]. Journal of management engineering， 2005， （119）： 67-72.

[3] Junjiang Yang. Research on the Method of the Supply Chain Maturity Assessment [J]. Journal of economics and management， 2006， 20 （12）： 88-91.

[4] Daozhi Zhao， Qiang Zhang， Jianyong Sun. Supply Chain Management Maturity Method Study Based on MICK-4FI Operating Mode [J]. Journal of management technology， 2006 （11）： 98-101.

[5] Jijun Zhang. Fuzzy Analytic Hierarchy Process （FAHP） [M]. Beijing： Electronic industry press， 2006.