Rahmad Waris Wahdianto
Department of Magister Industrial Engineering, Faculty of Industrial Technology, Institut Teknologi Adhi Tama Surabaya

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Strategy Formulation for Improving PT XYZ Operational Performance Using Balanced Scorecard Integration and SAW Method Ivana Maretha Siregar; Rahmad Waris Wahdianto; Hery Setia Wardana; Lukiswara Meganesia; Ni Luh Putu Hariastuti
Airlangga Journal of Innovation Management Vol. 6 No. 4 (2025): Airlangga Journal of Innovation Management
Publisher : Universitas Airlangga

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.20473/ajim.v6i4.81824

Abstract

PT XYZ is a canned crab processing company that continues to experience significant operational performance gaps despite implementing the Balanced Scorecard (BSC). Several key performance indicators, such as production time, defect rate, and product innovation, consistently fall short of their targets, indicating that the current BSC functions only as a monitoring tool and does not provide a quantitative foundation for selecting the most impactful improvement strategy. This research integrates the Balanced Scorecard (BSC) with the Simple Additive Weighting (SAW) method to prioritize five alternative strategies. The SAW analysis shows that Revitalization of the Human Resource Management System emerges as the highest-priority strategy, followed by Innovation Capability Development and Human Resource Capacity Building. These top three strategies demonstrate the strongest overall impact on improving operational performance, reinforcing the central role of human resources in driving sustainable efficiency improvements. The results also reveal that human-centered strategies generate a broader cascading effect across all KPIs compared to technology-focused alternatives. This pattern highlights that improvements in employee satisfaction and training hours act as leverage points that accelerate gains in production time, defect reduction, and innovation output. Overall, the findings confirm that strengthening HR systems creates long-term operational advantages that are more consistent and scalable for PT XYZ.