Developing supply chain measurement based on process : a case company in marine industry

Abstract

This Master's Thesis examines the performance measurement in an operational support BU, focusing on identifying the current stage of the process and key performance indicators (KPIs), and developing KPIs aligned with business processes. The objective is to establish a process-based KPI framework that supports continuous improvement and strategic alignment. The thesis was conducted as a qualitative single case study, with data collected through internal documentation and expert interviews within the case company. The study uses Business Process Management (BPM) as the foundation for process mapping and integrates performance measurement approaches, including the Balanced Scorecard and the SCOR model. The resulting framework maps core supply chain processes (purchasing, production, product delivery and return) in the case BU and suggests KPIs based on efficiency, effectiveness, and strategic contribution. The suggested KPIs followed the BSC and SCOR framework, including forecast accuracy, inventory turnover rate, materials readiness rate, first past yield, resolution time and perfect order rate. Continuous improvement plans follow the Plan-Do-Check-Act model for embedding performance measurement and continuous improvement into the BU's operations. The findings highlight the importance of clarity in process ownership and measurable targets, providing practical insights for supply chain performance improvement. The proposed framework is a basis for further refinement and implementation within similar business environments.