Model development based on baldrige excellence framework criteria in palm oil factory

Abstract

This research was conducted in palm oil factory. So far, the palm oil factory's performance measurement is still conventional, focusing on the financial sector and ignoring other sectors that are also important to be known its performance. The purpose of this research is to build performance measurement model comprehensively using Baldrige excellence framework criteria. Baldrige excellence framework consists of 7 criteria that is leadership, strategy, customer, knowledge management, workforce, operation, and result. The calculation is done by path analysis using SPSS. Based on the calculation is known that leadership has the most substantial direct influence on the palm oil factory's performance of 0.341 and then followed by the workforce of 0.260, strategy of 0.235, knowledge management of 0.119, operations of 0.097 and customers of 0.082. Leadership and workforce have a substantial influence on increasing palm oil factory performance. In other words, it can be concluded that human resources in palm oil factory have a substantial influence in improving the performance.