Development of key performance indicators for production in a squid snacks factory

Abstract

This study concerns development of Key Performance Indicators (KPIs) at production in a squid snacks factory, the factory has operated by using three KPIs namely quantity of product, raw material used and quantity of defect. They are still insufficient to control and measure the performance. The factory has faced with many problems such as mis-planned production, ineffective production resource utilization and insufficient data collection. It suggests that more KPIs are the crucial keys for this factory to solve the problems mentioned earlier. This study starts from setting the plan foe developing KPIs. Next, a working team is set to brainstorming session in order to determine the appropriate KPIs. Strength and weakness analysis, setting objects, identify critical success factors, collecting relevant performance indicators in production and making a decision to select the appropriate KPIs corresponding to functions and critical success factors are the responsibility of the working team. After selecting the appropriate KPIs for this factory, the next step is statistical test. The outcome is there are some indicators that cannot measure the performance because of unstable result. Therefore, the factory should improve the performance of stable indicators. In addition, for unstable indicators the factory has to set the standard to control in order to keep them stable.