IMPROVEMENT RECOMMENDATIONS FOR FRANKINCENSE DISTRIBUTION CENTER THROUGH SCOR-BASED KPI AND VALUE STREAM MAPPING

SOENARNO, NICHOLAS INDRA PRAMANA (2019) IMPROVEMENT RECOMMENDATIONS FOR FRANKINCENSE DISTRIBUTION CENTER THROUGH SCOR-BASED KPI AND VALUE STREAM MAPPING. S1 thesis, UAJY.

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Abstract

Frankincense is one of the many valuable trade commodities that Indonesia possesses, with much of its source, Boswelia trees, located at North Tapanuli, Sumatra Island. In response to the rising demand of frankincense in Java Island, distribution centers start emerging around Java. One of them is located in Purwokerto, Central Java. Lately, the company is facing a customer dissatisfaction problem, which is apparent by the decreasing number of customers in the sales book. The owner suspects that this was due to late deliveries from supplier and competitor’s prices, but he had no way of knowing because of the lack of supply chain performance system in place. Moreover, because he does not know exactly what is wrong, he also does not know how and what to improve. Therefore, a supply chain performance measurement framework needs to be given to the owner to enable monitoring along with recommendations on how to improve them. The supply chain performance measurement framework consists of several key performance indicators that are generated based on literature with respect to SCOR’s process pillars; plan, source, make, and deliver. After that, AHP is utilized to prioritize the generated KPIs to be proposed to the owner for final selection process involving his capability and commitment. Afterwards, value stream mapping is conducted to formulate improvement recommendations to eliminate problems and improve KPIs. In the end, four key performance indicators were chosen by the owner to be implemented as a part of supply chain performance measurement framework within the company. Recommendations to improve them revolve around the application of lean principles such as continuous flow, supermarket pull system, Kanban, and inventory minimization. Information exchange between supplier and distribution center also needs to be refined by adding forecast and supplier evaluation feedback.

Item Type: Thesis (S1)
Uncontrolled Keywords: Frankincense, Supply Chain, Performance Measurement, Value Stream Mapping, Key Performance Indicator (KPI)
Subjects: Teknik Industri > Sistem Kerja
Divisions: Fakultas Teknologi Industri > Teknik Industri Internasional
Depositing User: Lia natanaelia utami
Date Deposited: 15 Aug 2019 03:45
Last Modified: 15 Aug 2019 03:45
URI: http://e-journal.uajy.ac.id/id/eprint/19659

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