Key performance indicators improvement in internal process : a case study of nitrocellulose manufacturer

Abstract

This thesis aims to improvement of key performance indicators (KPIs) in internal process of nitrocellulose manufacturer. In order to stay competitive advantage, the company needs to focus on long term performance measurement. The problem is losing of raw material, low quality of product and also delivery product to customer, non effective of resource management including man, machine material because of lack of indicators and control in internal process. It suggests that the effective KPIs will help the company solve the problems. This research starts to plan the step to improve the appropriate KPIs. In the beginning of process, SWOT analysis is determined the internal and external factors to set the strategic objectives. After that, the critical success factors are identified corresponding to the strategic objectives. Collect related KPIs with function and select the KPIs corresponding to function and critical success factors are done. Then the KPIs working team is created to evaluate the appropriate KPIs by criteria testing matrix. Target of KPIs are set by history data and brainstorming, Finally the top management will evaluate and approve them again. For example of new KPIs are Mean time between failures (MTBF), Breakdown rate, Controlling of temperature/pressure in digestion, % of product of out specification in viscosity and % on time delivery. After top management show that the new KPIs system is more relate to company profile, easier to measurable and cooperate with all level of employee, They were implemented for 3 months. The results showed increasing of amount of produced products, improvement of product quality and efficiency of delivery time is also improved. So the KPIs improvement in internal process is effective way to solve the problems.