Professional Documents
Culture Documents
Arranged by :
R. Muhammad Wiqayatullah (NPM. 21.2019.2.00347)
Rudi Cahyono (NPM. 21.2019.2.00348)
Auladan Prayoga Dhaneswara (NPM. 21.2019.2.00349)
Muhamad Yasin (NPM. 21.2019.2.00350)
Dindo Wahyuprayitno (NPM. 21.2019.2.00351)
Petrus Fajar Praditina Irianto ASP (NPM. 21.2019.2.00352)
Lazuardy Reza Syahputra (NPM. 21.2019.2.00353)
Sylvia Eka Wardhani (NPM. 21.2019.2.00354)
Muhammad Yasin Tuanaya (NPM. 21.2019.2.00355)
Nindya Nuanda Ardha Brillianio (NPM. 21.2019.2.00356)
MAGISTER INDUSTRI ENGINEERING
INDUSTRIAL TECHNOLOGY FACULTY
ADHI TAMA SURABAYA TECHNOLOGY INSTITUTE
2020
MEASUREMENT OF SUPPLY CHAIN PERFORMANCE WITH SUPPLY
CHAIN OPERATION REFERENCE (SCOR) MODELS
(Case Study of PT. SMT )
Class of 2019 Even Semester
Master of Industrial Engineering, Adhi Tama Institute of Technology Surabaya
ABSTRACT
PT. SMT is a business group engaged in energy (gas) whose gas factories are spread
throughout Indonesia. PT. SMT which has many stakeholders is faced with obstacles that occur
in the supply chain of Oxygen Gas products related to the number of customer complaints in
2019 . The increase in the number of complaints can be caused by several factors, including
specifications and the number of products that are not appropriate until the late
delivery. Therefore it is very necessary to measure supply chain performance for these products
by using Supply Chain Operations References (SCOR).
Keywords: Supply Chain, Performance Measurement, Supply Chain Operation Reference
(SCOR)
ABSTRACT
PT. SMT is a business group in the energy sector, whose gas factories are spread
throughout Indonesia. PT. SMT which has many stakeholders is faced with obstacles that occur
in the supply chain of Oxygen Gas products related to the number of customer complaints in
2019. The increase in the number of complaints can be caused by several factors, including
specifications and the number of products that is not suitable until the delivery is
delayed. Therefore it is very necessary to measure supply chain performance for these products
using the Supply Chain Operations Reference (SCOR).
Keywords : Supply Chain, Performance Measurement, Supply Chain Operation Reference
(SCOR)
I. INTRODUCTION
Along with the increasingly global market and increasingly developing information technology, the
challenges faced by the manufacturing world become heavy from time to time. Performance management
and continuous improvement is one of the fundamental aspects of supply chain management (SCM) . At 1
present, the advantages of supply chain optimization and integration are the focus of various companies in
the world. Companies are required to restructure business strategies and tactics. The essence of
competition lies in the way companies implement processes in producing products or services that are
better, cheaper and faster than similar companies .
2
PT. SMT is a business group engaged in energy (gas) whose gas factories are spread throughout
Indonesia. To meet the needs of consumers, PT. SMT provides and manufactures a variety of gases,
including Oxygen, Nitrogen, Argon, Hydrogen, Carbon Dioxide, Mixed Gas , Specialty Gas and Medical
Gas . PT. SMT which has many stakeholders is faced with obstacles that occur in the supply chain
of Oxygen Gas products related to the number of customer complaints in 2019 as shown in Table 1. The
increase in the number of complaints can be caused by several factors, including specifications and the
number of products that do not match up to delays in delivery. Therefore it is very necessary to
measure supply chain performance for these products.
Table 1. Customer Complaint
Period
Total Complaint
(2019)
January 1
February 0
March 1
April 0
May 1
June 0
July 0
August 0
Period
Total Complaint
(2019)
September 0
October 2
November 4
December 6
Source: Quality Control Dept. PT. SMT
Supply Chain Operations Reference (SCOR) is a model of supply chain operations that is often used
in measuring supply chain performance. The SCOR model is known for being able to connect business
processes, performance metrics, standard practices, and people skills into an integrated structure . In the
3
SCOR model, the processes in the supply chain are divided into five core processes, namely: 1) Plan ,
2) Source , 3) Make , 4) Deliver , and 5) Return . In addition, there are five general dimensions that are
used to determine matrix attributes or performance measures, namely: 1) Reliability, 2) Responsiveness ,
3) Flexibility , 4) Cost , 5) Assets . From these measurements the performance results that will lead the
company and provide benefits, both for the company itself, suppliers and consumers.
Based on the background of the problems faced by the company today, it can be formulated the
problem "How much is the value of the SCOR method performance measurement at PT. SMT? "
So that this research is in accordance with the planned data, and is more focused on the problem to
be discussed, the following problem boundaries need to be made:
1. Measuring with a moderate SCOR is only limited to 5 aspects, including Reliability, Responsiverness,
Flexibility, Cost, and Assets.
2. Research is only conducted on one type of product, namely Oxygen Gas which is produced in January to
December 2019.
II. LITERATURE REVIEW
Supply Chain ( Supply Chain )
Supply Chain Management (SCM) is a coordination depiction of the entire supply chain activities ,
starting with raw materials and ending with satisfied customers . 4
Rate the performance of the supply chain include an assessment of company performance on internal
processes and external processes of the company. Supply chain performance evaluation is not only
focused on one internal or external process. Both affect overall company performance.
Plan ,
is a process that balances demand and supply to determine the best course of action in
meeting procurement, production and shipping needs .
2.
Make ,
which is the process of transforming raw materials / components into products that
customers want .
4.
Analytical Hierarchy Process (AHP)
Thomas L. Saaty developed a decision support model, the Analytical Hierarchy Process (AHP). This
decision support model will break down complex multi-factor or multi-criteria problems into a
hierarchy. Hierarchy is defined as a representation of a complex problem in a multi-level structure where
the first level is the goal, followed by the level of factors, criteria, sub-criteria, and so on down to the last
level of alternatives. The AHP method is used to give weight to the level of importance of the indicators
at each level of measurement metrics according to the perspective of the importance of the indicator for
the company . 8
Scoring System
Furthermore, the performance measurement model can be integrated with the scoring
system model . Scoring system is used after the results of the performance measurement system design has
been completed. Stage of performance measurement by collecting performance data of measurement year
in the form of realization data or achievement measurement results and targets set by the company. The
formula used in the Scoring System is:
Formula :
Troubleshooting Steps
Figure 2 Research Steps
Explanation of Troubleshooting Steps
1. Literature Study
Literature study is used to study the theory and science related to the problem to be studied, namely
the measurement of a company's supply chain performance .
2. Literature Study
From the literature study, we will get the theoretical basis and references that will be used in research.
3. Observation and interview
Done to find out the real condition of the object to be studied as well as to plan and choose a research
location that will later be repaired with the appropriate method.
4. Formulation of the problem
It is a breakdown of the problem examined and will later indicate the purpose of the study.
5. Research Objectives
From the research objectives can be found the direction and targets to be achieved in the study.
6. Identification of Variables
Identify the related variables in the research conducted based on the Supply Chain Operation
Reference framework model . Supply Chain is divided into 5 basic management processes
namely Plan, Source, Make, Delivery and Return .
7. Designing Supply Chain Measurement Hierarchy
The initial hierarchy design of supply chain performance measurement will try to be implemented in
the company and whether it can be adapted to the conditions.
8. Identify Key Performance Indicators
Based on the SCOR framework model, Supply Chain is divided into five main scopes namely Plan,
Make, Source, Deliver and Return . From the five scopes, it is broken down again into several
indicators of company performance.
9. Preparation of the Questionnaire
The questionnaire in this study was used as a data collection tool. The questionnaire was composed
of predetermined variables. The preparation of the questionnaire consisted of the identity of the
respondents and a questionnaire about the assessment of attributes on the KPI.
10. Distribution and Questionnaire Collection
Questionnaires were distributed to all staff who had been determined at PT. The SMT will later be
collected for testing.
11. Data Adequacy Test
In testing whether the data we distribute to respondents is sufficient, the Bernoulli calculation uses
the minimum sample size . With the following formula:
For valid data a reliability test will be performed and invalid data will be discarded / removed.
13. Reliability Test
To test the reliability of the results of the questionnaire measurement, a reliability test was
performed. A test is said to have a level of confidence if the test gives the right results. The reliability
test was performed using SPSS V 16.0 software, the magnitude of good reliability was 1 and the worst
was 0. The greater the value obtained, the more reliable the attribute was. If the test results are not
relevant, it is necessary to review the preparation of the questionnaire.
a. Data is considered reliable if r > r and its value (+)
count table
If the test results are not reliable, it is necessary to review the preparation of the questionnaire.
14. Actual Value of Supply Chain Performance Measurement
The actual value here is the result of processing raw data obtained from various sources at PT. SMT.
15. Standardization of Supply Chain Operation Reference
The SCOR standardization process is carried out so that each performance indicator has the same size
scale, because if the performance indicator has a different size scale then the performance value does
not reflect the company's actual performance.
16. Weighting the Importance of Performance Indicators with AHP
Weighting is carried out on each main process and performance measurement indicators using the
AHP ( Analytical Hierarchy Process ) method through questionnaires. From this it can be seen the
level of importance and contribution of each indicator to the company's Supply Chain performance
value . This weighting is done for level one, level two. and level three.
17. Consistency Test
A step to test the consistency of the pairwise comparison matrix that is made based on the existing
problem.
18. Calculation of Supply Chain Performance Value
At this stage the Supply Chain performance value is calculated based on the multiplication of the
normalized performance indicator values with the weights of each performance indicator. Next step is
the integration of measurement results at the company level. This calculation aims to determine the
value of the company's overall Supply Chain performance .
19. Aggregation of Performance Values and Identify Indicators that need to be improved
After knowing the actual achievement value, normalization value and final performance value of each
KPI, then the company's overall performance performance can be calculated. Next identify what
indicators need to be improved.
20. Results and Discussion
From the results of data processing, we can see the results of our performance measurements during
the study which are then analyzed to get an overview of Supply Chain performance during the research
period.
21. Conclusions and Suggestions
Based on the results of data analysis and processing, conclusions can be drawn that can provide a
general picture of the research conducted. The conclusion is a summary of the results of the study. The
suggestions given are useful for follow-up research and giving advice to the company regarding
matters relating to research.
IV. DISCUSSION
The Initial Hierarchy of Supply Chain Performance
Measurement of supply chain performance can be described with a hierarchical model that is
almost like a pyramid. The hierarchy has the main goal, which is to get a performance value where as the
level goes down, the observations made are more detailed.
Based on the initial design of the existing Supply Chain , it can be seen / designed a hierarchy
of Supply Chain performance measurement at PT. SMT as shown in figure 3
Source: PT. SMT
Key Performance Indicator research at PT. The SMT above is qualitative and quantitative data obtained
from interviews and secondary data from companies that refer to Supply Chain performance . This data is