Evaluation and Strategy to Improve The Performance of Automotive Component Company

Abstract

Background: As one of the key actors in the automotive industry, automotive component-based companies must conduct evaluations to improve performance to compete and survive in the long term. 
Purpose: This study aims to evaluate the performance and formulate strategies to improve the performance achievement of PT XYZ. 
Design/methodology/approach: Analyzed using the balanced scorecard (BSC), BSC SQDC (safety, quality, delivery, and cost) performance management models, and the analytical hierarchy process (AHP). 
Findings/Result: Using BSC in the 2022 performance data show that the total performance achievement of PT XYZ reached 48,74%, still below the target set by the company. Using BSC SQDC analysis on 2023 data, the results show that the total performance achievement of PT XYZ in 2023 is 71,81%, with the highest ratio of achievement to the perspective weight from the financial perspective (90,95%) and learning and growth perspective (95%). The lowest ratio achievement perspective is from customers (54%) and internal business processes (32,1%). 
Conclusion: PT XYZ's performance improvement strategies are focused on two perspectives, namely the internal business process perspective, including supplier management, preventive maintenance, breakdown planning, spare part management, safety campaign, and renewable energy certificate purchase, and customer perspectives such as improving customer relationships, price adjustments, multi-source suppliers, automation and workforce management.
Originality/value (State of the art): As one of component-based company, his performance is impacting one of third biggest Indonesian commercial vehicle producent. 

Keywords:   automotive component company, balanced scorecard, business sustainability, performance improvement, traffic light performance review