Measurement and Proposed Improved Supply Chain Performance approach With PDCA frame work

Abstract

Supply Chain Management covers all the activities since material came from the supplier, then the material was processed into semi-finished products or finished products until the product is distributed to consumers. To know the performance of the company’s Supply Chain, measurement is needed. From these measurements will be obtained result, so good or not good performance of the company’s Supply Chain can be seen and can find the weaknesses of existing systems to be repaired. Given a good supply chain performance, the performance the company will increasingly focus and provide benefits, whether for the company, suppliers, and consumers. The company in this research is a company engaged in manufacturing Crude Palm Oil. The delayed raw material of fresh fruit bunches from suppliers resulted in fluctuating production numbers which need to be identified Supply Chain in the manufacturing process to maximize CPO production. By the result of supply chain performance measurement by using Supply Chain Operation Reference (SCOR) method there are 55 KPI that is 10 KPI for perspective plan, 5 KPI for perspective source, 15 KPI for perspective, deliver, 15 KPI for perspective make, and 10 KPI for perspective return. The result of scoring by using OMAX (Objective Matrix) method obtained by total index value equal to 6,1. Based on the traffic light system, the index is in the yellow category indicating that the performance of company supply chain as a whole has not achieved the expected performance even though the result is close to the target set. From KPI performance measurement result with OMAX calculation and traffic light system, it can be seen that KPI included in green category is 24 KPI, yellow category as many as 25 KPI, and red category as many as 6 KPI.