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The purpose of this paper is to design a model of the port performance metrics for improving the quality in ports by integration of six sigma and system dynamics (SD) approach.

The port performance is measured by the sigma value (SV), the process capability indices (PCIs), and the cost of poor quality (COPQ) as the performance metrics. A port is a complex system that requires SD as an appropriate tool to simulate the model dynamically. The performance metrics focus on measuring the port performance in the entire flow of material in the cargo handling process.

With this model, the changing of the SV, the PCIs, and the COPQ can be identified and analyzed the results to improve the performance in ports. These metrics are utilized to eliminate “waste” in the cargo handling process at ports. This waste consists of lost and damaged cargo, equipment and transporter breakdown, and equipment and transporter delay time. The port performance metrics model can assess the causal relationships in ports as a complex system.

Studies on integration between the six sigma model and SD in ports are few and relatively limited. The port’s performance can be measured directly using the SV, the PCIs, and the COPQ in the simulation. The port performance metrics model will give the decision makers to make some scenarios to contribute for the optimization of performance in ports.