Articles

Six Sigma Approach to Reduce Revenue Leakage in Revenue Recognition Process: A Case Study

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This study investigates business process inefficiency of revenue recognition process at Gajah Logistics, which impact to financial loss. The primary objective of this research is to improve the business process of revenue recognition process, with the purpose to reduce revenue leakage using Six Sigma approach. Six Sigma DMAIC methodology was used as foundation of the problem-solving approach, while in each process Six Sigma Tools also applied.

The study conducted in five main approaches following the DMAIC methodology. First, business process related to defined into business process mapping on a swim lane visualization. Secondly, the fault factors measured using Fault Tree Analysis (FTA) and prioritized using pareto analysis. Third, each faut basic event analyzed using inferential statistics. Then the gap analysis conducted to improve with benchmarked state of the art. After that, solution was formulated and prioritized using effort-impact matrix. Finally, the post implementation impact was simulated to give new baseline of the process quality.

The overall process quality measured by DPMO at the current state was 2.5 sigma level, which was causing a huge loss to the company. After implementing sigma level is improved to 3.5 sigma level, while the loss reduce 76%.

The research conclude that Six Sigma approach could give company systematic approach to solve the complex and cross functional process inefficiency. The results also showed that if an organization applies effort-impact analysis, it obtains valuable information necessary to support decision-making processes.

Process Improvement in PT. Docil Berkah Abadi Using Business Process Improvement (BPI) Framework

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PT. Docil Berkah Abadi is a retailer that offers motorcycle accessories, primarily windshields, via e-commerce, resellers, distributors, and an offline store. Additionally, subsidiary companies sell additional varieties of accessories. Mission of this organization is to dominate the market for motorcycle accessories in Indonesia and to innovate our products via subsidiary companies. PT. Docil Berkah Abadi has serious problems in its business process because the previously running business processes are not effective and result in too large fixed costs incurred by PT.Docil berkah Abadi This is the time from the beginning of the order acceptance until the goods are sold too long. The number of employees who have been discharged does not correspond to the salary costs already incurred by PT. Docil Berkah Abadi This is a very expensive rental because you have to store a lot of stock.

The aim of this study is to improve business processes by understanding the roots of the problem with Root Cause Analysis (RCA) and improve the business process with Business Process Improvement. (BPI). The author uses five whys on Root Cause Analysis (RCA) analysis and performs identification on business early processes, and improves business by streamlining with Bureaucracy Elimination and Upgrading.

This study was conducted using qualitative methods. The researchers conducted in-depth interviews with several divisions of the company to gain insight into the business processes of the enterprise. The results of the interviews showed that the business processes used by the company are still less accurate. Using interview insights, the researchers built a new process business using flowchart.