PERFORMANCE EVALUATION OF SUBCONTRACTOR INJECTION MOLDING USING WEIGHTED-SUM METHOD WITH KPI MEASUREMENT AT TOY MANUFACTURING

Abstract

Key Performance Indicators (KPI) will help the measurement of organizational goals, which are critical to any company's continuous and successful/sustainable success. This project was conducted in one toy manufacturing, the injection molding area which will discuss the KPI of the subcontractors. The company has not yet developed indicators to measure the performance of its subcontractor. Unstandardized measurement and results exist within subcontractor operations, which has a substantial impact on the company's manufacturing process, particularly in the injection molding sector. For the previous three months, quantity delivery has exceeded the objective by 27%, delivery time consistency is only 78%, there are 1.31% rejected parts from the manufacturing line with 11 average part numbers, and inventory correctness and material efficiency are both 81% and 93%. Therefore, the research aims to determine the KPI and develop an evaluation procedure for the company’s injection molding subcontractor as well as select the highest performance of subcontractor. This project implemented Multi-Criteria Decision Making (MCDM) i.e. the Weighted-Sum method. The staffs of the injection molding were involved in the determination of weight of the criteria. The scoring was based on the performance of each supplier. The results a written KPI for the company’s subcontractor and the performance evaluation procedures were developed. The results of evaluation, out of 7 suppliers, Subcontractor H got the highest score of 78.73 and Subcontractor G got the lowest score of 68.32. It can be concluded that all of the subcontractor’s performance are need to be improved in the future. It is recommended for sustainability, this performance evaluation of subcontractor in the injection molding area implemented to help the subcontractors in boosting their KPI performance