ABSTRACT: Introduction: This is a case study on the development of a performance management system based on the Knowledge-Based Performance Management System (KBPMS). The subject company is a medium-sized enterprise (SME) producing freshly baked bakery products on a daily basis. This study aims to provide a baseline example in developing appropriate performance management system for SMEs, particularly those within the similar industry, size, and phase of business lifecycle as the subject company. Methodology: The development process for the PMS involves five stages: (1)Foundation and principles (partnership, empowerment, integration, and independence); (2)Background information (business area information); (3)Design process (vision, mission, strategy, performance variable, correlation, and benchmarking); (4)Implementation (measurement, evaluation, diagnosis, follow up action); and (5)Refreshment (review and continuous improvement). This study is limited to design process. Result: A set of performance indicator was established and grouped into three main perspectives of KBPMS: business result, internal process, and resource capability. In addition, an implementation plan was formulated to guide future actions. Conclusion: The development of a PMS in SME can facilitate objective, data-driven and timely decision-making. However, the framework outlined in this study is not a universal solution and must be tailored to the specific context and needs of each company.

KEYWORDS – Bakery, Food manufacturing, KBPMS Performance Management System, SME