IMPROVING KPI WEIGHTS OF EQUIPMENT SUPPLIERS IN MOBILE NETWORK OPERATORS USING QFD METHOD

This paper focuses on improving the Key Performance Indicator (KPI) weights used by Mobile Network Operator (MNO) for measuring their Telecommunication Equipment Supplier (TEM) performance. The intention of measuring KPI is to monitor supplier performance based on purchasing agreement and renewal purchasing decision at the end of the contract. A survey was conducted among network leaders who worked in one leading Indonesian MNO. The company used existing KPI since 2016 without updating both the elements and weights afterward. There are no significant weights differences among existing group KPI (Capability, Performance, Resource and Support) which calculated with Analytic Hierarchy Process (AHP) Method. This study used Quality Function Deployment (QFD) to find new weights and used the AHP method for getting a relative weight of customer requirements as part of QFD’s component. The result shows group KPI between existing and study are different significantly for both element ranking and weight, also the new weight better reflects the current situation. The process of this study could be proposed to another telecommunication firm in order to evaluate their supplier’s
KPI. The proposed method enables the decision-maker can easily assign his priority degrees and calculate the original KPI indices for their equipment supplier.