EVALUATING KNOWLEDGE TRANSFER TO INCREASE ORGANIZATION CAPABILITY: CASE STUDY AT SUPPLIER IMPROVEMENT PROMOTION DIVISION IN PT. MITSUBISHI MOTORS KRAMAYUDHA INDONESIA (MMKI)

• Main Author: Harya Putra, Wicaksono
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/46228
• Institution: Institut Teknologi Bandung

The Indonesian automotive industry has become an important pillar in the country's manufacturing sector because many world-famous car companies re-open car manufacturing factories or increase their production capacity in Indonesia, the country with the largest economy in Southeast Asia. Moreover, Indonesia experienced a remarkable transition because it went from being only a place of production of cars for export (especially for the Southeast Asian region) to a large (domestic) car sales market due to the increase in gross domestic product (GDP) per capita. Car manufacturing companies from Japan become the dominant players in the Indonesian car manufacturing industry, very tight competition is shown by car manufacturers by offering features, designs, performance, and very competitive prices. PT. Mitsubishi Motors Kramayudha Indonesia (MMKI) is an automotive company with shareholder of 51% majority ownership of Mitsubishi Motors Corporation, 40% Mitsubishi Corporation, and the rest is Kramayudha Indonesia as a local partner. Seeing the great opportunity for potential market in Indonesia, Mitsubishi Motors dares to make the decision to invest its money by building an assembly plant in Indonesia. 32 The challenge faced by companies that many competitors have long dominated the market in Indonesia. To start its project for the first time in Indonesia, a successful product launch is a mandatory for MMKI. Many experts brought in from Japan to support the Mitsubishi Xpander project and the Pajero Sport localization so that the MMKI can win the competition. It is possible that in the future there will be more and more car makers that enliven the competition of the automotive industry in Indonesia. Some of car makers are bankrupt and stop production in Indonesia because of not good sales performance that have impact to the loss profit and can’t cover production costs. In order to survive from tight competition, Mitsubishi's management implemented a cost reduction strategy, one of which was to repatriate Japanese experts gradually. SIP unit has the function of carrying out improvement activities at suppliers to improve their performance in terms of Quality and Delivery. During the course of the project, technical skills are needed. Each Expert has their own specialization in the fields of stamping, welding, and plastic injection. Whereas local people learn by learning and observed how experts do the problem solving. For this reason, it is very important for SIP units to know the knowledge possessed by experts in order to increase their capacity in reaching the company's vision and mission. The purpose of this research is to map, analyze gaps and evaluate knowledge transfer to provide recommendations as improvement activities needed for SIP units.