Abstracts Engineering

Performance measurement framework for engineering supply chain

by Kyung-Yeol Chun

One of the primary concern on the supply chain management (SCM) is the performance measurement because it is evident that there cannot be managed where there cannot be measured in supply chain performance. Supply chain performance measurement (SCPM) has taken a great role for set-up the concrete strategy and a driving force for improvement in organizational productivity. Accordingly, it is vital to establish the right performance measures and measurement system to set up strategic objectives, to evaluate the organizational performance, and to manage the future of business goal and activities effectively. The main objective of this case study research is to define the most effective performance metrics and to develop the corresponding framework with its criteria to improve the efficiency of engineering supply chain performance. Moreover, the performance measurement framework has been targeted to support the managerial decision-making systematically and dynamically by providing a management dashboard including feedback and KPIs. The research questions are generated to identify the problems, and the objectives of research works are defined as following three tasks. First, what measures can represent the performance effectively? Second, how can the performance are measured systematically? Third, how can the measured performance be analyzed and utilized to provide with a managerial decision-making tool? As the result of the research, performance module concept based on BSC (Balanced Score Card) with implementation of AHP (Analytic Hierarchy Process) methodology has been developed to meet the research objectives. The framework of BSC+AHP has been proposed, and it can contribute on the performance measurement and its effective measures and metrics for engineering supply chain, where the multi-dimensional performance measures are transformed into the representing BSC+AHP modules for a dedicated performance evaluation. This SCPM (Supply chain performance measurement) framework proposes the measures and metrics for the engineering supply chain performance. However, this measurement framework also could be utilized in different industrial areas of business by customizing the BSC+AHP modules and its metrics in accordance with the business characteristics.