Design of New Simple Supply Chain Software for Enhance Business Process Company Acceleration Through Lean Six Sigma Analysis

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1 International Journal of Service Science, Management and Engineering 2017; 4(4): ISSN: (Print); ISSN: X (Online) Design of New Simple Supply Chain Software for Enhance Business Process Company Acceleration Through Lean Six Sigma Analysis Zahidi Putra 1, Parulian Leonard 2, Maryadi Tirtana 1 1 Program Study of Management Logistics Electronics Industry, Polytechnic APP, Ministry Industry, Jakarta, Indonesia 2 Program Study of Management Industrial Engineering, Polytechnic STMI, Ministry Industry, Jakarta, Indonesia address tirtana.mts@gmail.com (M. Tirtana), tirtana-s@kemenperin.go.id (M. Tirtana) To cite this article Zahidi Putra, Parulian Leonard, Maryadi Tirtana. Design of New Simple Supply Chain Software for Enhance Business Process Company Acceleration Through Lean Six Sigma Analysis. International Journal of Service Science, Management and Engineering. Vol. 4, No. 4, 2017, pp Received: April 13, 2017; Accepted: May 4, 2017; Published: August 31, 2017 Abstract Nowadays, in Manufacturing sector an industry has to look to the various demands made by its consumers, whether it produces consumer goods or the machine tools. Smaller lot sizes, increased product flexibility, higher product quality, decreased delivery time, and smaller profit margins are typical of the ambitious goals in many such organizations. The objective of research is to obtain an improvement in each supply chain lines organization performance in order to achieve maximum production and increase added value for customers. In this research shown the largest of waste activities output which is come from in one of lines supply chain organization that obtain from the calculation of value sigma. Waste activities means not achieve production and customer satisfaction that deliver from company. Outcomes from the research have point out that the activities which classified as Business Value Added (BVA) has potential to time reduction, therefore excessive time left will be optimized for Value Added (VA) activity. Analysis of the Company's current processes using conventional process through manual forms obtained the smallest sigma values find in the logistics department with value 1.2 sigma and DPMO (Defect Per Million Opportunity). New simple supply chain software with bases ERP (Enterprise Resource Planning) has been created and installed in each lines of department, this software is quite easy adopted for company and helpful to speed up transfer management information, which includes the collection, processing, delivery and the spread of information according to a particular procedure. After implementation of new systems using new software, the improvement of sigma value in the logistics division improves to 5.5 sigma and 26 DPMO. Keywords Supply Chain, Lean Service, Time Table Analysis, Six Sigma, ERP 1. Introduction Computers and information systems are essential parts of every business today. Modern business needs to invest in technology to compete their competitors and consumers. The drive for operational excellence and continuous improvement leads many larger enterprises with a factory production presence to implement a variety of programs to meet these goals. Six Sigma is one obvious example of a program earmarked to achieve operational improvement at a company. In many cases, Six Sigma benefits from a variety of software applications to help measure, analyze, and control factory processes. (Vincent Gasperz, 2007). Innovation is still important for competitiveness and longterm success, and the processes related to manufacturing and delivering the product are where changes can continue to offer greater value to customers and stakeholders. Process innovation is finding better ways to do the job that you have to do. Compared with product innovation, there may not be an ingenious new idea that needs to be built, tested, funded, marketed, launched, and serviced. Process innovation may involve benchmarking another organization that performs a similar process, or an unrelated organization with a process

2 International Journal of Service Science, Management and Engineering 2017; 4(4): that somehow parallels yours. (Hayler & Nichols, 2005). A supply chain is essentially a set of three or more companies directly linked by one or more of the upstream or downstream flows of products, services, finances and information form a source to customer. Supply chain management may be defined as the management of the different flows in a supply chain with a view to improving the long term performance of the individual firms and the supply chain as a whole. As is evident from the definition itself, the flow of information is vital to the functioning of a supply chain. Without information relayed at the right time to the right place, the whole supply chain would come to a standstill. Hence information technology, which enables information flow within a firm, between firms, and across the supply chain, goes a long way towards ensuring effective and efficient supply chain management. Information technology, in short, forms the backbone of most corporate supply chains (Auramo, 2005). Enterprise resource planning (ERP) system has been one of the most popular business management systems, providing benefits of real-time capabilities and seamless communication for business in large organizations. However, not all ERP implementations have been successful. Since ERP implementation affects entire organizations such as process, people, and culture, there are a number of challenges that companies may encounter in implementing ERP systems. In the case of industry component, mostly companies still using manual form or conventional system in order to running their business processes, Otherwise, company has a standard business process 1 day finish per department. Based on the results of the achievement target data actualization of business process on cam chain guide production in threemonth period from January to March 2014 obtain average results are not achieved compared with target company s standard, as displayed in figure 1. Figure 1. Achievement process business of chain guide period January-March Methodology This study aimed to implement a new software which designed and simplify from ERP (Enterprise Resource Planning) program into company s business process system due to replace manual system. This software applied in all lines of company s business processes for of the company PT Multi Rekadaya Adiprima start from sales order, production, warehouse and distribution. Then measured the timeliness of the process between the before and after using IT systems, the next calculated data values his statistics using statistic software, which consists of the value of the standard deviation, aberration variation, the value of the DPMO (Defects Per Million Opportunity) that can eventually retrieved the value of sigma. The methods used in the process of data collection is carried out as follows: 2.1. Define (Definition) First of all see the flow business of the entire process on PT. Multi Rekadaya Adiprima, then identify the most important factors in the existing processes in the PT. Multi Rekadaya Adiprima with how to determine the Critical To Quality (CTQ), using the analysis activities table time analysis Measure (Measurement) Measurements were made to the data that we get and the process of the present (current process). Such data is data the attainment of production and delivery of goods in year 2014.

3 40 Zahidi Putra et al.: Design of New Simple Supply Chain Software for Enhance Business Process Company Acceleration Through Lean Six Sigma Analysis warehousing, distribution and the overall report. Figure 2. Current activitites logistic divison before improvement (research, 2016) Analyze (Analysis) After the part of problem identification and measurement data on existing processes, in phases of this analysis determined the Critical to Quality (CTQ) and then measure the running processes with process capability. Analysis of grouped in two stages of data analysis and analysis of waste activities Improve (Improvement) After identify the problems occurred, next is to determined a solution to fix it, for example do the improvement of nonvalue added activities, business value added, being value added with the method proposed improvements to everyday work activities. The application of ERP system used to coordinate all the resources, information, and activities needed to complete business processes. ERP systems based on databases in General and modular software design. ERP is software that integrate all departments and functions of an enterprise into one system that can serve all the needs of the company, both from the Sales Department, production, Figure 3. Software development for improvement phase (research, 2016) Control (Control) If the implementation was done and the results are already visible improvements, then the required stages of the control. At this stage, the analysis is also applied to the data and the process to find out a comparison between the old and the process is a process that has already undergone repairs. 3. Result and Discussion Table 1. Result Sigma and DPMO value (research, 2016). The data processing is done by measuring the value of statistics, from data collection results achievement day production process for three months (January-March 2014) on one of the production chain cam Guide each of its segment of the process beginning to end process (salesordermarketing-ppc-production-warehouse-shipping). On the process Define needed precision to analyze the SOP (Standard Operating Procedure), to find out the problems in the process of achievement of the production and delivery of goods. At this stage it is known that companies in doing business process activities are still using the traditional concept, namely the use of the manual form and a letter job. According to the table relationship DPMO and Cp then DPMO value obtained and the value of sigma, according the table below: Supply chain Sales order marketing PPC produksi warehouse logistik Nilai Cp Nilai Sigma σ 2.2 sigma 2.1 sigma 3.7 sigma 2.8 sigma 3.8 sigma 1.2 sigma Nilai DPMO The calculation result shows the process of logistics (distribution of delivery) have a value of sigma the least value of DPMO 617,911. This indicates that the value of a million opportunities there will be 617,911 it is likely that the process will cause defects or nonconforming at the time they did, delivery logistics processes to the consumer with the capability to process 0.36 or 1.2 sigma after converted based on the value of the DPMO. Analysis of improvement with the implementation of a system of information technology (IT) on phase Improve (I) applied to the application of information technology (IT) in the form of the device software ERP. Enterprise Resource Planning (ERP) is an information system that is used to controlling business process in a company, with the aim to make it easier for the company to regulate and control the resources of the company is centralized, i.e. by integrating sales system, manajamen system, a system of planning and stock control systems and material needs for the purchase. However, there are many open ERP modules, and each module has the character, function, and the workflow itself, which sometimes causes the user difficult using the ERP application. Therefore, in this study we make ERP software with modules that are simple and easily understood by the user (user friendly). This allows the Industry to shift its business processes using the form from the previous manual into information systems (IT). In order to prevent network

4 International Journal of Service Science, Management and Engineering 2017; 4(4): hacking problem, it recomended to do backup data in each one month. Figure 4. Display User login. On the module Sales, companies can create a database of the names of the clients making it easier for companies to record the number of requests, the date, and payment products. Module sales made there are menu customers, quotations, and purchase order. On the module Sales, companies can create a database of the names of the clients making it easier for companies to record the number of requests, the date, and payment products. Module sales made there are menu customers, quotations, and purchase order. Figure 5. Display Sales menu. On module Production created menu Production orders, Products, Material items, Order materials, Supplier. In the production process that was first done after there is a demand for is a division of production planning and determine a schedule for the production process. Planning schedule can be done by means of automatic or manual way by the Division of production. When using the automatic way can then make a booking on module production order and will automatically direct connect automatically on a system of products and material items.

5 42 Zahidi Putra et al.: Design of New Simple Supply Chain Software for Enhance Business Process Company Acceleration Through Lean Six Sigma Analysis Figure 6. Display Production menu. On the warehouse processes can be used to see the condition of the material if the material had been up on the floor of the production or will be sent, this menu allows the user to control the status of the transfer of goods or materials. For the transfer of these materials can be accessed on the warehouse module in stock warehouse. Figure 7. Display Warehouse menu. On the distribution module, provided the set menu delivery and invoice paid. This module describes the process of goods to be sent after the information items obtained at module warehouse. Data shown is product data to be sent, quantity, shipping address and the shipping status. The shipping process is completed will be marked with a set of delivery, which will then be billed to customers with invoice.

6 International Journal of Service Science, Management and Engineering 2017; 4(4): Figure 8. Display Distribution menu. In the Report module menu provided are income Report, product available report and product sales amount report. This menu is created to know reports of sales activities, production, and the amount of stuff that's been done Bill invoice. This module is useful for a company to view the status of its business either directly (real time) without having to wait for a manual report made. Figure 9. Display Report menu. 4. Conclusion Based on research carried out at PT. Rekadaya Multi Adiprima in terms of improvement data processing results is shows the achievement of improved timeliness of supply chain process at each division, particular logistic division has match target according set time company with an average of 1 day. Table 2. Result Sigma and DPMO value logistic dept. (research, 2016). Supply chjain Before After Logistic. Dept. Nilai Cp Nilai sigmaσ 1.2 sigma 5.5 sigma Nilai DPMO Improvement activities implement the application IT systems using new programs rated effective enough to be

7 44 Zahidi Putra et al.: Design of New Simple Supply Chain Software for Enhance Business Process Company Acceleration Through Lean Six Sigma Analysis applied in every line of the supply chain, as supporting the achievement of timeliness of services. Simplification ERP system with display of a menu that is easy to understand, can add to the quality of the company's Logistics Division process sigma of 1.2 value to be 5.5 sigma. References [1] A. Parasuraman, Valerie A. Zeithaml. Leonard Berry A conceptual Model of Service Quality and Its Implication for Future Research. Journal of Marketing, Volume 49. [2] Agrell, Per J. (1995). Six sigma for application in service industry. International journal industrial engineering. 41, hal [3] Al-Mashari M, Al-Mudimigh A. (2003), ERP implementation: lessons from a case study. Information Technology dan People, Vol. 16, page [4] Braglia, Marcello, Andrea Grassi, (2007). Goal improvement using six-sigma. Journal of Industrial Engineering, ) [5] Efthimios Bakogiannis, Maria Siti, Avgi Vassi, Case Studies and Sustainable Urban Mobility Research Schemes: A Communication Channel among Researchers and Interdisciplinary Community Groups. Journal of Service Management and Engineering, [6] Gaspersz, Vincent Lean Six Sigma for Manufacturing and Service Industries. Jakarta: PT Gramedia Pustaka Utama. [7] George, Michael L.; Maxey, John; Rowlands, David T.; Price, Mark. (2005). The Lean Six Sigma Pocket Tool Book: a quick reference to nearly 100 tools for improving process quality, speed, and complexity. McGraw Hill, New York. [8] Hayler, Rowland; Nichols, Michael. (2005). What is Six Sigma Process Management. McGraw-Hill, New York. [9] Mathiassen, Lars; Munk-Madsen, Andreas; Nielsen, Peter Axel; Stage, Jan. (2000). Object Oriented Analysis & Design. Marko Publishing ApS, Denmark. [10] J. A. O'Brien and G. Marakas, Foundation Concept: Information Systems in Busi-ness, in Management Information System, New York, The McGraw-Hill Companies Inc, 2010, p. 4. [11] O Brien, James A, Marakas, George M, (2011), Management Information System 10th Edition, McGraw-Hill/Irwin, New York. [12] Pyzdek, Thomas. (2002). The Six Sigma Handbook: A Complete Guide for Green Belts, Black Belts, and Managers at All Level. McGraw-Hill, New York. [13] Pyzdek, Thomas. (2003). The Six Sigma Project Planner. McGraw-Hill, New York. [14] Russel, R. S. Dan B. W. Taylor Operations Management. Prentice Hall, New Jersey. [15] Shahbazi Roghayeh, Maryam Haghshenas, Methodology Presentation for the integration of knowledge management and business intelligence, Journal of Service Management and Engineering, 2016 [16] Tan, W., Cater-Steel, A., & Toleman, M., Implementing IT Service Management: A Case Study Focussing On Critical Success Factors, 2009 [17] Zeithaml. Valarie, Bitner & Gremler Service Marketing. Singapore. McGraw-Hill Companies Inc.