1. A PROCESS PERFORMANCE MEASUREMENT FRAMEWORK FOR PT. TERMINAL PETIKEMAS SURABAYA INSIGHT IN THE PROCESSES OF THE CONTAINER FREIGHT STATION Guus Aarts 23-06-2014

2. ‘You can’t manage what you can’t measure’ - William Edwards Deming

3. PT. TERMINAL PETIKEMAS SURABAYA PT. Terminal Petikemas Surabaya Container terminal service provider Tanjung Perak Gateway to Eastern Indonesia Subsidiary PT Pelindo III DP world

4. CONTAINER FREIGHT STATION Container freight station (CFS): ‘a place where containers are stuffed, de-stuffed and consolidation/deconsolidation of export/import goods takes place’ Services: General cargo receiving and stuffing service Stripping and general cargo delivery service Customs inspection

5. MOTIVATION Management of TPS concluded that: The CFS is an unprofitable department Goal TPS: Make CFS into a profitable department by operating more efficient Increased competition by opening PT. Terminal Teluk Lamong Goal TPS: Enhance service excellence and reliability to improve competitive position Optimize processes in the CFS

6. MOTIVATION TPS states that to optimize, the following is needed: Insight in the processes Ability to measure performance of the processes Knowledge of the current performance

7. RESEARCH OBJECTIVE “The objective of this research is to develop a process performance measurement framework which will give TPS the ability to identify performance measures to be able to measure the performance of the processes in the Container Freight Station and to be able to control and monitor the processes continuously”

8. CURRENT SITUATION CFS processes Stripping Stuffing Receiving Delivery Customs inspection Operations department Support manager ultimately responsible

9. CURRENT SITUATION Current insight and ability to measure 4 Key Performance Indicators: % Achieved against jobs ordered % of Cases closed 72 hours after receiving complaint Time taken per transaction minutes Number of processes reviewed per month 1 fully dedicated to the CFS: KPI: % Achieved against jobs ordered Controlling and monitoring is lacking since October 2013

10. CURRENT SITUATION Current insight and ability to measure: Barely ability to measure 1 KPI dedicated to CFS  only customs inspection No insight in other four processes CFS is unable to measure the performance of the processes which results in insufficient insight in the processes.

11. PROCESS PERFORMANCE MEASUREMENT FRAMEWORK Need: Identification KPI’s Secure controlling of KPI Prevent lacking of monitoring KPI Requirements TPS: Identification of KPI’s KPI’s linked to strategy KPI’s based on operational processes Plan to secure controlling of KPI’s Plan to monitor KPI’s

12. PROCESS PERFORMANCE MEASUREMENT FRAMEWORK Requirements Frameworks Identification of KPI’s KPI’s linked to strategy KPI’s based on operational processes Plan to secure controlling of KPI’s Plan to monitor KPI’s Desk research Literature study - KPI’s based on operational processes

13. PROCESS PERFORMANCE MEASUREMENT FRAMEWORK Requirements Identification of KPI’s KPI’s linked to strategy KPI’s based on operational processes Plan to secure controlling of KPI’s Plan to monitor KPI’s Vitale logistiek Identification of KPI’s KPI’s linked to strategy KPI’s based on operational processes Plan to secure controlling of KPI’s Plan to monitor KPI’s 1.Project Sheet 2.Blue print 3.Strategic window 4.Longlist 5.Shortlist 6.AImplementation proposal B Implementation 7.Control plan 8.Training 9.Evaluation 1.Project Sheet 2.Blue print 3.Strategic window 4.Longlist 5.Shortlist 6.AImplementation proposal B Implementation 7.Control plan 8.Training 9.Evaluation

14. VITALE LOGISTIEK 6B Implementation 8 Training 9Evaluation

15. PROCESS PERFORMANCE MEASUREMENT FRAMEWORK Detailed description framework: 1.Project sheet 2.Blue print 3.Strategic window 4.Longlist 5.Shortlist 6.Implementation proposal 7.Control plan 8.Monitor plan Step-by-step guidance to identify, control and monitor KPI’s

16. CASE STUDY 1 Project sheet – Plan of Approach and chapter 1 2 Blue print: The process description including the data structure Mother flowchart Process hierarchy diagram – Main process, processes and procedures Process overview flowchart and data structure Detailed process flowchart and data structure Overview of the information systems and their interrelationship Description of the financial structure. IDName of documentProviderReceiver D1 Letter of Stuff Request( original document, advance payment and goods list) CustomerDocument Service Staff D2 Job order(CEIR) Document Service Staff Customer D3 Two job order copies Document Service Staff CFS administration D4 Tally Sheet – signCFSCustomer D5 exported container removal sheet CFS Operations Assistant Manager - Yard and Gate Operations Staff - Yard & Berth Planning Staff - Administration & Document Staff D6 Good stuffing and receiving document CFSAdministration & Document Staff

17. CASE STUDY 2 Blue print Process description based on process business superintendent Data structure not completed Financial structure not completed No bottlenecks found and eliminated

18. CASE STUDY 3. Strategic window Strategic objectives: No defined strategic objectives o Increase profitability O Improve service excellence o Improve reliability o Improve efficiency o Maintain zero-accident policy

19. CASE STUDY 3. Strategic window Critical success factors Increase profitability Improve service excellence Improve reliability Improve efficiency Maintain zero- accident policy Maximize revenue Reduce unachieved services Maintain consistent delivery of services Reducing cycle time for each operation Zero accidents Attracting new customers Reduce defects Accurate information delivery Competent personnel Cost effectiveness Sufficient availability equipment Correct execution procedures Retention customers Minimize equipment downtime Improve safety Ensure equipment reliability Sufficient availability space Sufficient availability Labor

20. CASY STUDY Key Performance Indicators

21. CASY STUDY 4. Longlist Blue print and strategic window combined List of possible performance indicators 5. Shortlist PIs fromlong list scored on: Effectiveness Correctness Usefulness

22. CASY STUDY 5. Short list

23. CASY STUDY 5. Short list

24. CASE STUDY 6 Implementation proposal Technical design ‘Good’ KPI Functional design What should the information describe? Dashboard

25. CASE STUDY 7 Control plan Delivery of valid data Processing data into KPIS and dashboard Use of KPIs and dashboards oDescribe for each KPI who is responsible for the delivery of the data oDescribe to whom and on which fixed date the data should be delivered oAppoint one responsible person to collect all the data oAppoint one responsible person to deliver the reports oDescribe to who and on which fixed data the reports have to be delivered

26. CASE STUDY 7 Control plan

27. CASE STUDY 8 Monitoring plan Support manager responsible

28. CONCLUSIONS CFS is unable to measure performance and has insufficient insight Process performance measurement framework is needed to identify, control and monitor KPI’s Framework Vitale Logistiek is chosen based on requirements Step-by-step guidance to identify, control and monitor KPI’s described Case study: By making use of the framework KPI’s are identified Blue print not completed No strategic objectives

29. CONCLUSIONS The process performance measurement framework gives the CFS: The ability to identify relevant KPI’s based on the requirements A plan to control the usage of the KPI’s A plan to monitor the KPI’s Framework considered as suitable

30. CONCLUSIONS The identified KPI’s give the CFS: The ability to get insight in the processes The ability to measure the performance of the processes The ability to set the current performance The identified KPI’s give the CFS the ability to start optimizing the processes once these are implemented and functioning

31. RECOMMENDATIONS Complete framework 1 Complete blue print Data structure Financial structure 2 Eliminate bottlenecks Implementation 3 Implement KPIs from shortlist 4 Develop a dashboard 5 Test KPIs 6 Measure current performance 7 Define specific strategic objectives 8 Set targets for the KPIs 9 Use monitoring plan

32. RECOMMENDATIONS Anchorage KPIs 10 Use control plan 11 Training KPIs General Users Management Administrator 12 KPI Awareness 13 Automation data entry

33. MOTIVATION Goal TPS: Make CFS into a profitable department by operating more efficient Goal TPS: Enhance service excellence and reliability to improve competitive position Optimize processes in the CFS Implement and use the identified KPIs

34. RECOMMENDATIONS 15 Use framework to identify KPIs for new processes 16 Use framework to assess changes in strategy Use framework to adjust or identify new KPI when necessary 17 Use framework to identify KPI for new goals, objectives or critical success factors 18 Use framework to identify KPIs for processes outside CFS

35. REFLECTION Roadmap to achieve research objective Deliverables Current situation Interviews and desk research Focus on strategy Requirement framework Framework Requirements Based on operational processes Vitale Logistiek suitable Combination frameworks Adjusting framework – process description

36. REFLECTION Vitale logistiek Blue print Observing and interviews Business process superintendent Bottlenecks Outsourcing Strategic window Critical success factors Interviews board  strategic objectives Short list Assessment Usefulness Effective and correct but not useful Not effective and/or incorrect but useful

37. REFLECTION Implementation proposal Abstract  PMRS Control plan Report template Appoint responsible persons Monitoring Roadmap Scenario

38. ‘You can’t manage what you can’t measure’ - William Edwards Deming