BUSINESS PROCESS IMPROVEMENT DESIGN OF SUBSIDY FERTILIZER DISTRIBUTION FROM LINES I WAREHOUSE TO LINES IV WAREHOUSE AT PT PUSRI PALEMBANG

• Main Author: Kholid
• Format: Theses
• Language: Indonesia
• Subjects: Teknik (Rekayasa, enjinering dan kegiatan berkaitan)
• Online Access: https://digilib.itb.ac.id/gdl/view/56955
• Institution: Institut Teknologi Bandung

One of the distribution areas of subsidized fertilizer PT. Pusri Palembang is the province of Central Java. The distribution system from line I warehouse to line IV warehouses is having problems. The problems encountered are delays in supply, especially in Distributors and Retailers' warehouses. The delay was due to disruption in distribution operations. The problem recurs every year, especially in the growing season. If the problem is not fixed immediately, it will have an impact on the quality of farmers' production and the company performance. The purpose of this research is to map, evaluate and improve the business process of distribution of subsidized fertilizers at PT. Pusri Palembang for area of Central Java Province. The expected contribution is the acquisition of a new subsidized fertilizer distribution business process that is more effective, lean and standardized. This study uses Bonar's main reference model (2006), as well as shortcomings in the main reference model will be supplemented by other supporting models and benchmarking in similar state-owned companies that also conduct subsidized product distribution activities. For business process improvement approach conducted Business Process Improvement (BPI) by Harrington (1991). Improvements made at the Manufacture’s Level are to add a time limit clause in the contract or change the type of contract from voyage charter to Time Charter for ship and truck service provider partners. In addition, it also automates the loading activities of fertilizer from warehouse line I to the ship at the special pier of PT Pusri Palembang. Improvements made at the Distributor level are proposed in three alternatives, first alternative Manufacturers fully regulate the transportation process from warehouse line I to warehouse line IV. The second alternative is the first alternative coupled with the Distributor’s purchase and purchase authority completely taken over by the Manufacturer. The third alternative is to eliminate the Distributor entity on subsidized fertilizers distribution. The best alternative choice through expert opinion is the 3rd alternative with the highest score from the other two. Improvement at the retailer level is by improving supervision facilities and infrastructure through information technology applications. Reseller rates are strongly influenced by the success of improvements in the previous process. Improvements in business processes that have been carried out have been able to reduce the processing time for the distribution of subsidized fertilizers by 27-39 working days. In existing conditions it takes 60 days and after the improvement of the distribution process time to 21 - 33 days only. However, this study has limitations that only discuss the distribution process of subsidized fertilizers related to the movement of goods from the warehouse in line I of PT Pusri Palembang to the warehouse in line IV of Central Java Province only