BUSINESS PROCESS IMPROVEMENT DESIGN OF MAIN DISTRIBUTION MATERIAL PROCUREMENT IN SUPPLY CHAIN MANAGEMENT DIVISION PT PLN (PERSERO) HEAD OFFICE

• Main Author: Niko, Amelia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/51299
• Institution: Institut Teknologi Bandung

PT. PLN (Persero) is implementing a centralized procurement strategy in the Supply Chain Management Division (DIV SCM) for 16 categories of Main Distribution Material (MDU). This material is sent directly from the supplying factory to 149 PLN Area warehouses spread across Indonesia. The problem faced is related to material delays received by the PLN Area. The delay in material delivery is seen from the MDU contract, in 2018 it ranges from 1 (one) to 4 (four) months. This delay is getting higher for the following year. It increases to 1 (one) to 5 (five) months in 2019. If this delay is not corrected immediately, it will have a negative impact on company performance. The purpose of this study is to map, evaluate and carry out a design for improvement of business process of the Main Distribution Material procurement (MDU) on DIV SCM. The contribution produced by this study is the discovery of new work processes that are more effective, lean and standardized. This research uses Gultom's main reference model (2018). The shortcomings in the reference model will be complemented by another additional reference model and benchmarking to Malaysia's National Workforce. Business Process Improvement (BPI) approach by Harrington (1991) is applied to the improvement of the main distribution material (MDU) procurement business process. The improvements made in the Procurement Planning Sector are applied by eliminating the approval from the Regional Division (DIV REG), reducing the cycle time of work processes, designing improvements to the compilation of corporate MDU needs, compiling procurement planning schedules, increasing the involvement of PLN Pusertif, and eliminating the duplication of due diligence work to manufacturer. The improvements made in the Procurement Implementation Sector are applied by compiling a procurement implementation schedule, making a sequence for the implementation of the 16 MDU categories based on Pareto principles, and compile the PIC strategy for implementing the procurement.Then, improvements made in the supplier management and logistics sectors are applied by reducing cycle times, compiling a schedule for issuing MDU allocation letters, and compiling performance assessment for MDU providers. Improvement of the procurement process applied was able to reduce processing time for 135 working days, where existing conditions took 306 working days and after being repaired it became 171 working days. However, this study has limitations, namely only discussing the process of procurement of goods with limited auction method and the contract is completed with a period for 1 (one) year. The next research is expected to be able to study procurement with other auction methods, with multi-year contract strategies (multi-year contracts).