Exploring the Potential Use of Key Performance Indicators A Case Study in Operations with Outsourced Production
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Typ
Examensarbete för masterexamen
Master's Thesis
Master's Thesis
Program
Quality and operations management (MPQOM), MSc
Publicerad
2023
Författare
Palalija, Arnes
Appel Jonsson, Sar
Modellbyggare
Tidskriftstitel
ISSN
Volymtitel
Utgivare
Sammanfattning
Although outsourcing has been providing many benefits to organisations since its
inception, the issues with limited control and insight still remain. One resource
that can be used to overcome these issues is by the help of metrics such as key
performance indicators (KPIs), that allow a company to monitor the performance
of its subcontractors. A company that has been experiencing obstacles with limited
control and insight in its subcontractors’ performance, is CPAC Systems AB. The
company only uses a few metrics to evaluate the performance of their subcontractors
and these metrics are only collected once a month. CPAC reached out the authors
of this thesis, for help with developing and implementing new KPIs to mitigate the
issues. Therefore, with the assistance of the case organisation, the thesis aims to
answer the questions: firstly, how the operational needs of an organisation with
outsourced production remain unsatisfied, and secondly, what KPIs are suitable to
enable operational improvement aligned with these needs.
To answer the questions, the thesis combines a hybrid approach of qualitative and
quantitative elements. The qualitative part entailed exploring literature on the
subject of KPIs, visual management, and outsourcing to get acquainted with the
subject. Then interviews were conducted with the case organisation to find the
needs of the Operations function at CPAC, from which the KPIs should derive. As
for the quantitative part of the thesis, a KPI dashboard was constructed that could
act as a proof of concept for how a visual display of KPIs might be implemented.
The thesis found multiple needs present at the departments of the Operations function
that could be linked to the outsourcing dilemma. Also, the thesis presents
multiple KPIs that could be valuable to CPAC, and discusses whether these are
suitable to implement. Furthermore, the process of creating the dashboard is explained
and discussed in detail. Finally, the thesis ends with concluding remarks
about recommending the case organisation to look into a database solution, and addressing
the gap between what is learned in university versus the reality of industry.
Beskrivning
Ämne/nyckelord
Key performance indicators , Critical success factors , Outsourcing , Visual management , KPI-visualisation