Tag Archive for: Revenue Leakage.

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.