Abstract
Currently, the Indonesian business world is still dominated by Small and Medium Enterprises (SME). The number of SME has reached more than 26 million businesses, with Sumatera Utara being the province with the fourth largest number of SME in Indonesia. Every SME that produces halal products needs to measure its production performance by considering halal criteria to find out and measure the implementation of Islamic principles in product processing. There are 15 Key Performance Indicators used in measuring performance with SCOR Model and 6 of them are related to halal, namely Halal MUI label, Halal raw material, Order received damage free, Accuracy payment to suppliers, Appropriate in paying salaries, and number of defective products. Final performance of Tempeh SME is 45.94; which shows the performance of SME is still in a marginal condition. Based on the identification with the traffic light system, out of 15 KPIs (Key Performance Indicators) there are 7 KPIs that have a red color which indicates that repairing efforts are needed, namely: meetings with customers, MUI halal labels, number of defective products, flexibility in product manufacturing, equipment life, complain rate, and product replacement time.
Highlights
Performance measurement is the company's ability to set the standards desired by customers by considering low production and maintenance costs, improving product quality, reducing work-in-process inventory, reducing material handling costs and deadlines for delivery. [1]To provide cheap and good quality products, supply chain management is the key to determining a company's competitive advantage
This research was conducted at the Tempeh crackers industry, where the owner of the Small and Medium Enterprises (SME) stated that the tempeh crackers they produced were halal. This SME has never done a performance measurement, so this study aims to measure the performance of supply chain management in SME Tempeh crackers using the SCOR and AHP methods based on halal criteria
Of the 15 Key Performance Indicators (KPI) that are directly related to the performance of halal production, namely: 1. MUI halal label The existence of an MUI halal label on the product indicates that the company has obtained an Halal MUI decree
Summary
Performance measurement is the company's ability to set the standards desired by customers by considering low production and maintenance costs, improving product quality, reducing work-in-process inventory, reducing material handling costs and deadlines for delivery. To provide cheap and good quality products, supply chain management is the key to determining a company's competitive advantage. In practice, management is faced with uncertainty in demand, supply (delivery lead time, price, quality of raw materials, etc.), and internals party (machine failure, imperfect machine performance, production quality, etc.). Indonesia is one of the predominantly Muslim countries. Report from the State of The Global Islamic Economy for 2016-2017 shown the halal food industry has the largest estimated revenue in 2021, namely 1.9 trillion, with Indonesia in first place for consumers of halal food products, amounting to $ 154.9 billion. A Muslim is obliged to ensure that the food he consumes is halal. Halal is something that is allowed by the Shari'a to be done, used, or endeavoured [3]
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