Designing a Balanced Scorecard-Based Performance Measurement System for PT XYZ's Fabrication and Maintenance Unit

Abstract

Background: The oil and gas industry is a crucial sector that significantly contributes to the global economy. PT XYZ, as a contractor in this industry, must conduct performance measurements to evaluate the factors influencing its success.
Purpose: This study aimed to design a performance measurement system using the Balanced Scorecard (BSC) model for the Fabrication and Maintenance (FM) Business Unit of PT XYZ.
Design/Methodology/Approach: The study employed in-depth interviews and literature reviews to collect qualitative and quantitative data. The findings indicated that the existing performance measurement system did not cover all critical aspects, so revisions were needed to better align it with the company’s vision and mission.
Findings/Results: The implementation of the BSC enabled the establishment of relevant and measurable key performance indicators (KPIs). The study suggested that adopting the BSC model could enhance PT XYZ’s business strategy effectiveness, ensure customer satisfaction, and provide a systematic framework for performance evaluation across all levels of the organization.
Conclusion: This study evaluated PT XYZ’s performance measurement system using the Balanced Scorecard (BSC) within the Fabrication and Maintenance (FM) Business Unit. The findings highlighted a misalignment in strategic goals, emphasizing the need for a cascading BSC implementation. Key recommendations included refining strategic objectives, applying the Analytic Hierarchy Process (AHP) for weighting, and improving key performance indicators to enhance accuracy, alignment, and overall company performance.
Originality/Value (State of the Art): The novelty of this research lies in its application of the Balanced Scorecard (BSC) to PT XYZ’s performance measurement, addressing gaps in existing evaluation methods. By integrating BSC perspectives with the company’s strategic vision, this study provides a tailored, industry-specific approach to performance assessment and continuous improvement.

Keywords: balanced scorecard, oil and gas industry, customer satisfaction, performance measurement