SE IN A MANUFACTURING
DiterbitkanOIeh
ProgramPascasarjana
MagisterEisnisAdministrasiDanlelnologi
InstitutTeknologiBandung
- 1700
ISSN:1{12
A HYBRIDKB-AHP.GAPANALYSIS
FORTHEPERFORMANCE
IIEASUREMENT
SYSTEM(PMS)
IN A MANUFACTURINGENVIRONMENT
Part1: ThePllls framewort
D. Wbllono
Maslerof Business
Adminishalion
InstiMTok|ologi Bandung
EDITORIAL
:: abstfact ::
Jawab:
Pq4aOggung
KetuaP,ogramMBA Teknologi
ITB
Dr lr,Jann.H.Tjakraatmadia,
MSIE
[e!qal_c!yqa!!!r ;
Dr lr. Sudarso Kaderiwiryo
Alssalaeenyu4lilsj
Prof.Dr.MathiasAroef
Prof.Dr.lr.SurnaTiahjaDjaiadiningrat
Dr lr.Kuntoro
mangkusuhoto
Dr.k Jann.H.
Tjakraatmadj4
MS|E
lr.Pamoedji
Hardiomidjojo,
MM
lr.H.ArsonAliluddin,
DEA
Ketua
Redaksi
Pelaksana
:
lr.Rudy.Bekti, M
Anggota
Redaksi
:
0r lr.UtomoSarjono
Pubo
0.. k Dermawan
Wibiso.to
Dr.lr.
Rajesricovandiraiu
h lurhayatiMTM,
llsc
Aurikcustomo,Sl,lfl
EditorialBahasa
: Reza
Noyaldi
BobbyHermanus,
ST
Koresoonden:
RiskaYt|liana,
ST
YanaAd.iana,
S.Si
Xa*eiina& GA:
RezaNovaldy,
ST
Layout& Desioncrafis:
AndikDewantoro,
S.Sn
KenSetyorini,
ST
Administrasi
Umun:
|YanSetiawan,
SE
Designingand implementingPUSis an inlegralpatl of managemen!contol qystems. Tobe
efleclive,po ormance measuesneed to rcllecl lha changesin conpetitivaress.However,
traditonal PMS is crilici*d lw fuing obsolele,irelevant to managedaldecision making.
untelatedlo skalegic objeclivesand detimental lo organisalionalimryovement' Given lhe
shorlcomingsol lraditional PMS,ttErc is needlot a new lamewotk thatcan bad to the design
ol a PMSlhat balances sho.l.lerl',anctlong-termmeasu.es,intenat and extedtalmeasurcs,
and linancial and operalionalr€asurcs fh$ paper ptesents on designingand managing
peiomance ol a manolacluing unil lrom the coryo.atetevello lhe shopfloorbvel. ll seeksto
tiu someol the gaps in the rc*arch by adclressingthrce ateas: slepsin desi)ning a PMS.
hame work of PMS specincb a manulacluring envircnmenl and imptefientalion of
KnowledgeBased (KB) sygems, Gaug,nglbsences of Pre-requisile(GAP) analysis and
AnalylicHiearchy Process(AHP)apprcachin anintegratedPMS.
Xeywotds:Pe ormanceMeasurernent
SyslemfPMSl,XrowledgeBased(KB).Ana4bHkmrchyPrccess
(AHP). GAP analysis,
lkutactunng
t. INTRODUCTION
Manufacturers,morelhan ever before,are realisingthal the needfor accurateand
comprehensive
infornationaboullheiractivitiesis ofcrucialimportance.
Thisis because,as
MedoriandSteeple(2OOO)
(WCM),
sl,ated,
thatto be classified
as WorldCtassManufacturers
manufacturing
organisalionsneed lo have a number of criticalingredaents:
one such
ingredaent
is that of an appropdate
Performance
MeasurementSystem(PMS)-Throughout
the1990s,variousnovelfrarn€uorks
havebeenderived.to aid manufacturing
organisations
lo selectand impfementrheasures,such as Plsm (Neely et a/, 2002).the Batanced
Scorecard(Kaplan & Norton.1996). yllal Srgns(Hronec.1993) and Ouestionnai/e Methods
(Dixonetal 1990).However.
asZairiandLetza(1994)haveobserved,research
in the areaof
pedormance
measurementhasnot producedsolidfindingsand this remainsa challenge.
NeelyandBourne(2000)supportthis argumentthrough
lheir researchfndingswhich show
thalsome90yoof managersfaillo
implementand
delivertheirorganisation's
strategiesbythe
pedormancemeasurementapplied-They arguethai lhis failureis moslly because lhe
performance
business
is itselfa multi-faceledconceptthat need a differenttype of PMS.
Furlhermore,as noted by Setlenheim(1991) and by Ljungberg(1994),methods for
developing
and implementing
detailedmeasures,adaptedto the environment
of a specific
company,
are seldomdescribed
in detail.
Themethodologysuppodedby KnowledgeEased(KB)systemsapproachin the PMS
hasnotbeencarriedoutin thepast.The KB approachis chosenbasedon ihe reasonsthat
first, a large number of perlormancevaiables are usuatly involvedin successful
lmplementation
ot PMS and therelationshipbetweenthem ar.r quitecomplex.Secondthe
prioritiesof improvement performancevariablesneeds suppor':ingtools to keep the validity
and @nsistency of decis'ronmaking. Third, the benchm?,kingprccess in tiguring a
companyscompetitiveness also has to be facilitatedby appr ipriate tools.Th€.sesituations
makothes€lection ol the prop€rmethodologyandits implementationquitea difrcult task for
www.mba.itb.ac.id
'ii. '-'T;.+''Y
;;'i1
9,'4.\r
t-V'
;'_.11
praclilionersin industryTheKB systemsareappliedto makelhepedormancemeasuremenl
syslems providedvalid,consistent,and practicalfor implementialion.
Applicationof KB
syslemsprovidestheopportunity
to inleraclwith
usersin anappropriale
mannerandtoasstst
process.The lediousand cumbersomecalculationsinvotvedrn
in lhe decision-making
performancevariables'
processcan be easily and accuratelv
lormulasand benchmarking
incorporatedwilhinthe rule-basedslruclure.Furthermore,by incorporatingexptanalory
feaiures,the KB systemcan be usedasa learningdeviceforallnEmbersof an organisation.
These featuresof KB systems,coupledwith the analysisof qualitativefeaturesof pMS
lhrough an embeddedGaugingAbsenceol Pre-reqursite(GAP)anatysis and Anatyoc
HierarchyProcess(AHP)approach,will make the hybridPi/iS Model of KB-AHP-GAP
analysisa real.praclical
andeffectivedecision-making
for practitio,Ers.
2. THE FOUNOATIOFORTHEDEVELOPMENT
OFAPMS
There are lhree main importanl stages lhal have been consideredin the
development of the Hybrid KB-AHP-GAPanalysis of proposed PMS Model: Easic
lhformation, Corc ol Peiormance Measuremen[ and Mdtanism ol Pedomance
Measuement. Withi4 lhese thrce lealwes ol the Model, the KB is used as the main
fouhdation, as depic:ted
in lhe Figure 1.
2,1Figure 1 - Stage1
Fromthe Figure1, it can be seenthat in The Basichfumation stagethercare
three impodant sets oi hfotmation lhal need to be considetd: Company Eniroment
lnlormation, FinancialandMa*et Inlornationand fuoducl lnlornali
ProgramPascasarjana
MagisterEisnisAdministrasiDanlelnologi
InstitutTeknologiBandung
- 1700
ISSN:1{12
A HYBRIDKB-AHP.GAPANALYSIS
FORTHEPERFORMANCE
IIEASUREMENT
SYSTEM(PMS)
IN A MANUFACTURINGENVIRONMENT
Part1: ThePllls framewort
D. Wbllono
Maslerof Business
Adminishalion
InstiMTok|ologi Bandung
EDITORIAL
:: abstfact ::
Jawab:
Pq4aOggung
KetuaP,ogramMBA Teknologi
ITB
Dr lr,Jann.H.Tjakraatmadia,
MSIE
[e!qal_c!yqa!!!r ;
Dr lr. Sudarso Kaderiwiryo
Alssalaeenyu4lilsj
Prof.Dr.MathiasAroef
Prof.Dr.lr.SurnaTiahjaDjaiadiningrat
Dr lr.Kuntoro
mangkusuhoto
Dr.k Jann.H.
Tjakraatmadj4
MS|E
lr.Pamoedji
Hardiomidjojo,
MM
lr.H.ArsonAliluddin,
DEA
Ketua
Redaksi
Pelaksana
:
lr.Rudy.Bekti, M
Anggota
Redaksi
:
0r lr.UtomoSarjono
Pubo
0.. k Dermawan
Wibiso.to
Dr.lr.
Rajesricovandiraiu
h lurhayatiMTM,
llsc
Aurikcustomo,Sl,lfl
EditorialBahasa
: Reza
Noyaldi
BobbyHermanus,
ST
Koresoonden:
RiskaYt|liana,
ST
YanaAd.iana,
S.Si
Xa*eiina& GA:
RezaNovaldy,
ST
Layout& Desioncrafis:
AndikDewantoro,
S.Sn
KenSetyorini,
ST
Administrasi
Umun:
|YanSetiawan,
SE
Designingand implementingPUSis an inlegralpatl of managemen!contol qystems. Tobe
efleclive,po ormance measuesneed to rcllecl lha changesin conpetitivaress.However,
traditonal PMS is crilici*d lw fuing obsolele,irelevant to managedaldecision making.
untelatedlo skalegic objeclivesand detimental lo organisalionalimryovement' Given lhe
shorlcomingsol lraditional PMS,ttErc is needlot a new lamewotk thatcan bad to the design
ol a PMSlhat balances sho.l.lerl',anctlong-termmeasu.es,intenat and extedtalmeasurcs,
and linancial and operalionalr€asurcs fh$ paper ptesents on designingand managing
peiomance ol a manolacluing unil lrom the coryo.atetevello lhe shopfloorbvel. ll seeksto
tiu someol the gaps in the rc*arch by adclressingthrce ateas: slepsin desi)ning a PMS.
hame work of PMS specincb a manulacluring envircnmenl and imptefientalion of
KnowledgeBased (KB) sygems, Gaug,nglbsences of Pre-requisile(GAP) analysis and
AnalylicHiearchy Process(AHP)apprcachin anintegratedPMS.
Xeywotds:Pe ormanceMeasurernent
SyslemfPMSl,XrowledgeBased(KB).Ana4bHkmrchyPrccess
(AHP). GAP analysis,
lkutactunng
t. INTRODUCTION
Manufacturers,morelhan ever before,are realisingthal the needfor accurateand
comprehensive
infornationaboullheiractivitiesis ofcrucialimportance.
Thisis because,as
MedoriandSteeple(2OOO)
(WCM),
sl,ated,
thatto be classified
as WorldCtassManufacturers
manufacturing
organisalionsneed lo have a number of criticalingredaents:
one such
ingredaent
is that of an appropdate
Performance
MeasurementSystem(PMS)-Throughout
the1990s,variousnovelfrarn€uorks
havebeenderived.to aid manufacturing
organisations
lo selectand impfementrheasures,such as Plsm (Neely et a/, 2002).the Batanced
Scorecard(Kaplan & Norton.1996). yllal Srgns(Hronec.1993) and Ouestionnai/e Methods
(Dixonetal 1990).However.
asZairiandLetza(1994)haveobserved,research
in the areaof
pedormance
measurementhasnot producedsolidfindingsand this remainsa challenge.
NeelyandBourne(2000)supportthis argumentthrough
lheir researchfndingswhich show
thalsome90yoof managersfaillo
implementand
delivertheirorganisation's
strategiesbythe
pedormancemeasurementapplied-They arguethai lhis failureis moslly because lhe
performance
business
is itselfa multi-faceledconceptthat need a differenttype of PMS.
Furlhermore,as noted by Setlenheim(1991) and by Ljungberg(1994),methods for
developing
and implementing
detailedmeasures,adaptedto the environment
of a specific
company,
are seldomdescribed
in detail.
Themethodologysuppodedby KnowledgeEased(KB)systemsapproachin the PMS
hasnotbeencarriedoutin thepast.The KB approachis chosenbasedon ihe reasonsthat
first, a large number of perlormancevaiables are usuatly involvedin successful
lmplementation
ot PMS and therelationshipbetweenthem ar.r quitecomplex.Secondthe
prioritiesof improvement performancevariablesneeds suppor':ingtools to keep the validity
and @nsistency of decis'ronmaking. Third, the benchm?,kingprccess in tiguring a
companyscompetitiveness also has to be facilitatedby appr ipriate tools.Th€.sesituations
makothes€lection ol the prop€rmethodologyandits implementationquitea difrcult task for
www.mba.itb.ac.id
'ii. '-'T;.+''Y
;;'i1
9,'4.\r
t-V'
;'_.11
praclilionersin industryTheKB systemsareappliedto makelhepedormancemeasuremenl
syslems providedvalid,consistent,and practicalfor implementialion.
Applicationof KB
syslemsprovidestheopportunity
to inleraclwith
usersin anappropriale
mannerandtoasstst
process.The lediousand cumbersomecalculationsinvotvedrn
in lhe decision-making
performancevariables'
processcan be easily and accuratelv
lormulasand benchmarking
incorporatedwilhinthe rule-basedslruclure.Furthermore,by incorporatingexptanalory
feaiures,the KB systemcan be usedasa learningdeviceforallnEmbersof an organisation.
These featuresof KB systems,coupledwith the analysisof qualitativefeaturesof pMS
lhrough an embeddedGaugingAbsenceol Pre-reqursite(GAP)anatysis and Anatyoc
HierarchyProcess(AHP)approach,will make the hybridPi/iS Model of KB-AHP-GAP
analysisa real.praclical
andeffectivedecision-making
for practitio,Ers.
2. THE FOUNOATIOFORTHEDEVELOPMENT
OFAPMS
There are lhree main importanl stages lhal have been consideredin the
development of the Hybrid KB-AHP-GAPanalysis of proposed PMS Model: Easic
lhformation, Corc ol Peiormance Measuremen[ and Mdtanism ol Pedomance
Measuement. Withi4 lhese thrce lealwes ol the Model, the KB is used as the main
fouhdation, as depic:ted
in lhe Figure 1.
2,1Figure 1 - Stage1
Fromthe Figure1, it can be seenthat in The Basichfumation stagethercare
three impodant sets oi hfotmation lhal need to be considetd: Company Eniroment
lnlormation, FinancialandMa*et Inlornationand fuoducl lnlornali