Abstract:
The objective of this research was to study the development of performance measurement frameworks and related key performance indicators (KPI) in measuring the operational performance of the traditional medicine and herbal industry in Thailand. The study was conducted with experts from companies that produce traditional medicine and herbal medicine in Thailand, which are certified by the Food and Drug Administration. The research consisted of two parts: 1) a questionnaire regarding relevant indicators in the traditional medicine and herbal medicine industry, using Likert scale 4 point options, and 2) a questionnaire for evaluating important and suitable indicators for the traditional medicine and herbal medicine industry using the Analytic Hierarchy Process (AHP) analysis method, incorporating the Balanced Scorecard (BSC) perspective along with the additional perspective of drug quality. The research findings indicated that indicators with the highest average scores should be prioritized as performance indicators in the traditional medicine and herbal medicine industry, with the following perspectives: 1. Financial perspective, including overall supply chain management costs and total product costs per unit. 2. Customer perspective is customer satisfaction with product quality. 3. Internal process perspective is production efficiency. 4. Learning and growth perspective, consisting of three indicators: 1) Having a policy that supports innovation or collaboration between factories and other units. 2) Technology and infrastructure. 3) Developing packaging or modifying drug forms to be suitable, and 5. The drug quality perspective is drug safety. In addition, the experts input on drug quality perspective is the most important performance measurement framework. The results of this research suggest that the performance measurement framework and indicators, particularly in terms of drug quality, should be incorporated as part of measuring the operational performance of the traditional medicine and herbal industry.