Abstract:
This thesis first goal is to establish key performance indicators (KPI) based on balanced scorecard (BSC). Secondly, the indicators are developed to facilitate waste reduction in the studied motor factory. The research begins with reviews of theory and literature relevant to process study and strategic formation that provides the framework for four perspectives according to balanced scorecard concept. The populated BSC and proposed KPI are used to help establish practical measures for waste reduction. Results after implementation are compared with the prior state. The research results are (1) The average production cost reduces 2.65 per cent, (2) first-test pass rate increases from 90 to 94 per cent, (3) on-time production also increases from 90 to 94 per cent, (4) Waste percentage reduces from 5 to 2.1 per cent, (5) idle machinery time reduces from 10 to 3.8 per cent, (6) the average of bad material pass inspector reduces from 3 to 1.5%, and (7) the average of inventory loss reduce from 1 to none. In this Research will operate waste reduction in some KPI. The others KPI will improve and solve problem continuous in the future.