INFORMATION TECHNOLOGY AS THE TOOLS TO DO BUSINESS PROCESS IMPROVEMENT IN A MANUFACTURING COMPANY

WIDODO, STEVEN MONTANA (2016) INFORMATION TECHNOLOGY AS THE TOOLS TO DO BUSINESS PROCESS IMPROVEMENT IN A MANUFACTURING COMPANY. S1 thesis, UAJY.

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Abstract

This research of business process improvement is entitled Information technology as the tools to do business process improvement in a manufacturing company. The business process improvement take place in supply chain midterm planning and allocation planning department. It was started with the realization of manual work, unnecessary data usage, processes and possibility of error on the process by the manager. The process of shipment advice could take more than 180% of the designated time, this condition affects the processes after shipment advice, and they are: transport planning, transport ordering, and creating purchase order or transfer order. This thesis reviews several studies regarding business process improvement methods, and it can be concluded that the methodology of the studies are following the flow of step, and this reviews of methods are used as the basis of the methodology of this research. The methodology used to do business process improvement is by the following 5 steps, they are: initialize, select, design, implement, and evaluate. The initialize step revealed: the current condition of shipment advice, the necessary remarks and notes to the new design, resources available, key performances, and business process mapping, and the result of key performance measurement. The select step started with the identification of waste by using the seven waste of Toyota production system which have been modified for identifying waste in the office area. The waste are: Transport, defects, motion, over processing, and waiting. The waste in activities in the business process are analyzed for the its causes, it reveals that there are five causes, they are: different instrument, no automated function, scattered data, design of instrument, and unremoved old revisions of instrument. These found causes then analyzed for its solution, and this solution will be used as the design for each proposed solution. The proposed solution are: using Excel and VBA, VBA, or access. The proposed solutions are evaluated with pairwise comparison to find the best proposed solution, the criteria for doing the pairwise comparison are based on the remarks and notes collected from the initialize step, in which for each criteria are conforming the waste removing purposes. The select step is concluded with an improvement plan by using the selected proposed solution, which is by using Excel and VBA. The design step was started by doing the improvement plan, the design is supported with the macro line and excel formulas, and the process is continued to testing the results for the improvement design. The improvement design then arranged to be the beta version or the prototype. The implement step was started with measuring the performance of beta version by using the key performances which are collected from initialize step. The evaluation step concluded that the beta version reduced the key performances, by more than 50% for each key performance, and the evaluation step also revealed that the reduced space consumption by 94%, which came into decision of using the beta version as the current practice. This thesis research shows that Information technology can be used as the tools to do business process improvement, with the sense of eliminating or reducing the waste in the business process.

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