Performance Evaluation of a Department in the Manufacturing Industry Based on Balanced Scorecard

Setiyo Utomo; Nurfa Anisa; Sunyoto Sunyoto

doi:10.55927/fjas.v3i2.7829

Authors

Setiyo Utomo Mahasiswa Program Studi Teknik Industri, Fakultas Teknik, Universitas Wisnuwardhana Malang
Nurfa Anisa Program Studi Teknik Industri, Fakultas Teknik, Universitas Wisnuwardhana Malang
Sunyoto Sunyoto Program Studi Teknik Industri, Fakultas Teknik, Universitas Wisnuwardhana Malang

DOI:

https://doi.org/10.55927/fjas.v3i2.7829

Keywords:

Industry, Manufacturing, Balanced Scorecard, Key Performance Indicators, Analytical Hierarchy Process

Abstract

The success of a company, especially in the manufacturing industry, is closely linked to the performance of each department. The final objective of this research is to determine KPIs, measure department performance on each KPI based on the perspective of a Balanced Scorecard-based performance assessment approach, and then determine achievements. The process of generating Key Performance Indicators (KPIs) commences with conducting unstructured interviews to get KPIs for each perspective. Subsequently, a survey was devised to conduct a systematic evaluation of Key Performance Indicators (KPIs) for each perspective, employing the Analytical Hierarchy Process methodology. The computations yielded weights for the four perspectives: financial, customer, learning, and internal business process. Each perspective was assigned a weight value of 0.25, 0.50, 0.125, and 0.125, respectively.

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