8th North America Conference on Industrial Engineering and Operations Management

Application of Balanced Scorecard Method in Measuring Halal Frozen Food Supply Chain Performance

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Track: Undergraduate Student Paper Competition
Abstract

As one of the countries with the largest Muslim population in the world, Indonesia is a very attractive market for the halal food industry. According to The Global Islamic Economy Indicator in the State of the Global Islamic Economy (SGIE) Report in 2022, Indonesia is ranked fourth in the number of halal food consumption. The halal status of the product must be guaranteed from the source of raw materials until the product received by consumers. This research was conducted at a small business that produces halal frozen food which has been measuring its performance only based on financial aspects. This study aims to determine the value of business performance using 4 aspects with the balanced scorecard method, namely financial aspects, customer aspects, internal business aspects and learning & growth aspects using halal indicators. This study uses 19 Key Performance Indicators (KPI) in measuring performance. Based on the calculation results, it is known that the business performance value is 73.362 which is included in the good performance category. Based on the analysis with the Traffic Light System method, there are 6 KPIs that require improvement and 2 of them are halal indicators. Proposed improvements that can be given to improve business performance, namely the owner can use Islamic banks in saving capital and business income and also organize training and education on the Halal Assurance System (SJH) to employees, especially employees who work in the production department.As one of the countries with the largest Muslim population in the world, Indonesia is a very attractive market for the halal food industry. According to The Global Islamic Economy Indicator in the State of the Global Islamic Economy (SGIE) Report in 2022, Indonesia is ranked fourth in the number of halal food consumption. The halal status of the product must be guaranteed from the source of raw materials until the product received by consumers. This research was conducted at a small business that produces halal frozen food which has been measuring its performance only based on financial aspects. This study aims to determine the value of business performance using 4 aspects with the balanced scorecard method, namely financial aspects, customer aspects, internal business aspects and learning & growth aspects using halal indicators. This study uses 19 Key Performance Indicators (KPI) in measuring performance. Based on the calculation results, it is known that the business performance value is 73.653 which is included in the good performance category. Based on the analysis with the Traffic Light System method, there are 6 KPIs that require improvement and 2 of them are halal indicators. Proposed improvements that can be given to improve business performance, namely the owner can use Islamic banks in saving capital and business income and also organize training and education on the Halal Assurance System (HAS) to employees, especially employees who work in the production department.

Published in: 8th North America Conference on Industrial Engineering and Operations Management , Houston, United States of America

Publisher: IEOM Society International
Date of Conference: June 13-15, 2023

ISBN: 979-8-3507-0546-1
ISSN/E-ISSN: 2169-8767