Uncertainty characterization of performance measure: A fuzzy logic approach

Abstract

The process of performance measurement encompasses the activities of designing, data collection and analysis. The lack of quality of performance measures (PMs) may influence decision-making. Since the process of performance measurement involves generally several actors, the decision-maker may not be aware of the level of uncertainty associated with performance measures. In this paper, fuzzy logic is used to represent the uncertainty generated in PMs during its design, use and analysis stages. The identification of uncertainty sources and the determination of an Uncertainty Index support actions to improve performance measures’ quality. An application example is provided to show the usefulness of the proposed methodology.