BUSINESS PROCESS RE-ENGINEERING THROUGH 3 HARD SS MCKINSEY FRAMEWORK AS WORKING CAPITAL MANAGEMENT IMPROVEMENT PROPOSAL (CASE STUDY: PT. XYZ)

• Main Author: Adhi Prasetyo, Wibisono
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/53522
• Institution: Institut Teknologi Bandung

Unsatisfactory performance of working capital, due to the negative operating cash flow, indicates that problems exist in internal business processes. Meanwhile, the covid-19 pandemic urges the management to be wiser in making decisions, primarily to support better working capital management. They cannot rely forever on its aggressive capital structure. Accordingly, the management committed to carrying out operation improvement that related to the working capital management. This decision is the background of this research to identify and analyze the root cause problems and the issues' improvement plan. Further investigations regarding the business issue are conducted, and business process re-engineering through the 3 hard Ss framework is selected as the research design. These frameworks are approached due to their capability to map the thorough process and link them to one another. These combination improvement ideas over the ineffective and inefficient activities could be blended while organized to be aligned with the organizational directions. This research is conducted through a semi-structured interview to explore the company conditions and uses secondary data to gather the information and strengthen the evidence. As for the findings during the study, there were at least 14 ineffective and inefficient activities. Those activities were carried out a root-cause analysis to determine the source of the problem that had to be eliminated. The previous series of issues could also be resolved. These findings suggest improving the aspects covering strategy, structure, and system as an organized improvement effort such as production management, receivable management, payable management, and cash flow control and monitoring. Production management is divided into acceleration production, excess inventory prevention, and scheduled maintenance. Receivable management consists of acceleration of collection and improving the contract's quality. Payable management covers the postponement of payment to subcontractors, quality of procurement improvement, and long-term agreement procurement. Lastly, cash flow control & monitoring as an aggregation of several information integrations. The research is limited to the 3 Hard Ss to support the management concern and commitment with immediate necessity.