Performance Measurement System Design in a Semiconductor Supply Chain Organization

This thesis proposes a methodology to create an effective performance measurement system for an interconnected organization. The performance measurement system is composed of three components: a metrics set, a metrics review business process, and a dashboard visualization technique to display the metrics data. If designed according to the proposed methodology, the combination of these three elements produces a performance measurement system which drives behavior, creates accountability, and fosters continuous organizational improvement. The proposed methodology has been demonstrated by its application to a manufacturing planning organization within a major semiconductor company. Specifically, the performance measurement system of this manufacturing planning organization was redesigned using the proposed methodology and pilot-tested over the course of a six-month internship. First, the metrics set was redesigned based on alignment to strategic objectives and grounded in metrics design fundamentals. Second, the business process to review the organization‟s metrics and spur action was streamlined and redesigned for maximum impact and stakeholder engagement. Finally, a visualization dashboard was created to communicate key metrics clearly and graphically to all members of the organization. The proposed performance measurement system demonstrates the effectiveness of the proposed methodology and has been adopted as the system-on-record for the organization. Thesis Supervisor: Deborah Nightingale Title: Professor of the Practice, Aeronautics and Astronautics and Engineering Systems Thesis Supervisor: Ricardo Valerdi Title: Lecturer, Engineering Systems