Company Performance Measurement using System Dynamics Approach
Usman Effendi, Mas-ud Effendi, Ririn Ayu Rosalina
Dept of Agro-Industrial Technology,
Brawijaya University
Abstract
PG KA is handled by plant, manufacturing, engineering, QC, and TUK that directly influence the company performance aspect. The decrease of sugar amount production causes the need of performance appraisal. This study aims to identify the factors that influence the company performance, to identify performance appraisal model, and to determine improvement alternative strategies to get the better right. This study utilized the system dynamics approach research method. This system dynamic model illustrates the relation of the factors including financial, production, and employee development. This study results show that the variables that is used as the benchmarks of the company performance level are sugar volume and profit. Based on the identification towards the company capabilities, there is 3 alternative strategies to increase the company performance. The simulation results show that the highest percentage of alternative strategies changes is 15,44% in the increase of the sugarcane production variable (alternative 1) in sugar volume and 12,79% in profit. This value addition can be achieved by PG KA by taking in account the factors that influence land productivity such as water, varieties, soil fertility, pest control, and fertilization.
Keywords: IDPMS, performance measurement, sugar, system dynamics
Topic: AGROINDUSTRIAL PRODUCTION SYSTEM MANAGEMENT AND REGULATION