Dynamic Establishment of Weight of Enterprise ’ s Internal Function Based on AHP and QFD

Modern enterprise management strives to become effective and pragmatic, usually, KPI is the most essential key indicator for the enterprise examination department. However, because the supporting and bearing roles of KPI for different departments are different, no a rather scientific quantification for the weight between them is available, unbalanced examination weights between indicators and departments usually exists. Here, it is with balanced score card to breakdown enterprise’s key tasks, card the performance indicators supporting enterprise’s key tasks, and utilize AHP and QFD method to dynamically establish a standard for measuring each department’s indicators so as to provide a basis for enterprise’s scientific examination. 1.Integral Frame of the Project Here, with the strategy of Hangzhou Cigarettes Factory as a start point, the key performance indicators of current year on basis of enterprise’s tasks of the said year are carded, the broken-down indicators are sorted with KJ method, and the weight of the key indicators are determined with AHP method. Comparison with industry advanced level is made with key indicators-functional department matrix, and finally the weight supporting each department’s key indicator is obtained. The integral frame is shown in Fig. 1. AHP Method KJ Method QFD Method PI cster ey incator deloym nt Related relation matrix (key indicator-function department) Each functional department Importance of each functional department Setting the department s examination weight Bnchm aking A nual task PI w eihting Fig. 1 Diagram of Integral Study Frame 2.Breaking Down of Annual Key Performance Indicators Some enterprise’s annual tasks are rather definite, while some tasks are hidden in the high-level documents or laws or regulations of external origins, usually, the enterprise conducts an overall carding to ensure comprehensiveness of its annual tasks. Generally, an enterprise may be carded from four aspects (finance, customers, internal operation, and learning and growth) of the balanced score card. After breaking down of tasks, each supporting key indicator is re-divided. Taking the carding of year-2015 key performance indicators of Hangzhou Cigarettes Factory as example, the carding of Hangzhou Cigarettes Factory in 2015 in four aspects determines the annual tasks, as shown in Table 1. Tab. 1 Breaking Down Table of Key Performance Indicators of Hangzhou Cigarettes Factory in 2015 Level-I indicators Level-II indicators (Balanced Score Card) Level-III performance indicators Finance Controllable management fee of a single box MATEC Web of Conferences 139, 00147 (2017) DOI: 10.1051/matecconf/201713900147 ICMITE 2017 © The Authors, published by EDP Sciences. This is an open access article distributed under the terms of the Creative Commons Attribution License 4.0 (http://creativecommons.org/licenses/by/4.0/). Rational setting of enterprise key performance indicators Cut filler rate Roll paper consumption of a single box Composite energy consumption of 10000 pieces


Related relation matrix (key indicator-function department)
Each functional department

Benchmarking Annual task KPI weighting
Fig. 1 Diagram of Integral Study Frame

2.Breaking Down of Annual Key Performance Indicators
Some enterprise's annual tasks are rather definite, while some tasks are hidden in the high-level documents or laws or regulations of external origins, usually, the enterprise conducts an overall carding to ensure comprehensiveness of its annual tasks.Generally, an enterprise may be carded from four aspects (finance, customers, internal operation, and learning and growth) of the balanced score card.After breaking down of tasks, each supporting key indicator is re-divided.Taking the carding of year-2015 key performance indicators of Hangzhou Cigarettes Factory as example, the carding of Hangzhou Cigarettes Factory in 2015 in four aspects determines the annual tasks, as shown in Table 1.

3.Ordering of Importance of Key Performance Indicators
After determining the key performance indicators, the project group invites the personnel of functional departments to compare relative importance of level-I, level-II and level-III performance indicators with a pair-wise method, and analyze the data with yaaha analytic hierarchy process software.The calculated coefficient of test of concordance is below 0.1 and meets requirements.Due to limited space, here, merely the ordering and test of concordance of level-II indicators and total weight distribution of level-III indicators are cited, as shown in Table 2 and Table 3

Competitive Assessment of Key Performance Indicators
In order to find out the difference between indicators of us and other benchmarking enterprises, our indicators are compared with other enterprise's indicators in five grades (score 1-5) on basis of data on the excellence and standard-compliance of year-2015 cigarette industry, and in combination with features (highlights) of our key performance indicators, their absolute importance is obtained, as shown in Fig. 2.

Fig. 2 Competitive Assessment Table of Key
Performance Indicators

5.Matrix Analysis of Key Technical Indicators-functional Department Relation
After completion of the fore-phase work, the project group determines the matrix of "key performance indicators-each department's function" two-dimensional relation matrix, which is used to express the complex relation between each key performance indicator item and each functional department.Here, figure 6 expresses the "Strong" relation, i.e. the improvement of a key performance is strongly related with the compliance of corresponding functional department; 3 expresses "medium" relation, i.e. the improvement of a key performance is medium related with the compliance of corresponding functional department; 1 expresses the "weak" relation, i.e. the improvement of a key performance is weakly related with the compliance of corresponding functional department; and the blank expresses the no direct relation.When the selected product performance indicators are closely related with the compliance of corresponding functional department, for embodying the correlation, figure 9 is used, as shown in Table 3.As per the principle and structure of the house of quality, roof structure should exist, however, which is omitted, as shown in Fig. 4, since the relation between enterprise's functional departments is positive, instead of being negative.

7.Conclusion
The enterprise's work tasks of current year are carded from its strategy, the key performance indicators of the current year are broken down through comprehensive consideration with balanced score card mode, the supporting and contribution of each functional department to the key performance indicators is transformed with QFD method, and finally the types of various departments are scientifically decided, which provides the support to examine each enterprise department's weight and the objective data basis to set each department's basic wage and bonus.Dynamic adjustment with this method will dynamically set the weight of each department's function.

Fig. 3
Fig. 3 Matrix Analysis of Key Performance

Fig. 4
Fig. 4 House of Quality for Key Performance Indicators and Functional Departments Table of Key Performance Indicators of Hangzhou Cigarettes Factory in 2015 .