ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)

In the rapid growth of the courier service business as it todays, the offering of credit facilities was considered effective to attract the account customers to use the company services. However, the high number of credit sales without regularly payments will causing a new problem, namely account...

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Main Author: Aprilia Tri Wardani, Fenty
Format: Theses
Language:Indonesia
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Online Access:https://digilib.itb.ac.id/gdl/view/58040
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Institution: Institut Teknologi Bandung
Language: Indonesia
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spelling id-itb.:580402021-08-30T11:47:22ZROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC) Aprilia Tri Wardani, Fenty Manajemen umum Indonesia Theses Overdue Account Receivable, Days Sales Outstanding, Six Sigma, DMAIC, AHP, Lean Organization. INSTITUT TEKNOLOGI BANDUNG https://digilib.itb.ac.id/gdl/view/58040 In the rapid growth of the courier service business as it todays, the offering of credit facilities was considered effective to attract the account customers to use the company services. However, the high number of credit sales without regularly payments will causing a new problem, namely account receivable. PT ABC, which is one of the courier service providers, has IDR 207 billion account receivable in June 2020. This large amount of receivable affected to the company cash flow. Therefore, it is needed to conduct a research to solve the problem in a relatively short time, until the end of 2020. This research aims to determine the factors that causing the overdue accounts receivable; provide solutions based on the root causes happened; as well as proposing the anticipatory steps, so the similar problems will not be repeated. Based on the calculation of days sales outstanding (DSO), the accounts receivable payment takes a long time, which was averaged 126 days, whereas the standard is only 30 days. Based on the calculation of defects per million units (DPMO), the account receivable was at the four sigma level, and the company have to make the corrective action to reduce the number of overdue account receivable to achieve the five sigma level. Through the DMAIC method, the problem analysis is carried out and found the eighteen root causes of the overdue account receivable. Furthermore, several solutions were made based on the problem root cause, and it is proposed seven alternative solutions. Because the several solutions are similar in its application, it was grouped into four, namely: (1) continuous improvement in internal company, including process improvements and the application of lean organizations; (2) negotiating and retaining the account customers; (3) using the legal channels and debt collector services; and (4) further cross-check for the customers who have declared bankruptcy. Furthermore, the four alternative solutions were analyzed using analytical hierarchy process (AHP) to determine the priority of the improvement implementation. The results of this study indicate that the alternative solutions implemented brought impact in reducing the number of the overdue account receivable by 172 billion rupiah, or 83% of the total receivables, as well as making the DSO faster to 35 days. Furthermore, a new standard flow process is made to be applied in handling the account receivable. It need to do because the company has to make the continuous improvements, so the six sigma level standard could be achieved. text
institution Institut Teknologi Bandung
building Institut Teknologi Bandung Library
continent Asia
country Indonesia
Indonesia
content_provider Institut Teknologi Bandung
collection Digital ITB
language Indonesia
topic Manajemen umum
spellingShingle Manajemen umum
Aprilia Tri Wardani, Fenty
ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)
description In the rapid growth of the courier service business as it todays, the offering of credit facilities was considered effective to attract the account customers to use the company services. However, the high number of credit sales without regularly payments will causing a new problem, namely account receivable. PT ABC, which is one of the courier service providers, has IDR 207 billion account receivable in June 2020. This large amount of receivable affected to the company cash flow. Therefore, it is needed to conduct a research to solve the problem in a relatively short time, until the end of 2020. This research aims to determine the factors that causing the overdue accounts receivable; provide solutions based on the root causes happened; as well as proposing the anticipatory steps, so the similar problems will not be repeated. Based on the calculation of days sales outstanding (DSO), the accounts receivable payment takes a long time, which was averaged 126 days, whereas the standard is only 30 days. Based on the calculation of defects per million units (DPMO), the account receivable was at the four sigma level, and the company have to make the corrective action to reduce the number of overdue account receivable to achieve the five sigma level. Through the DMAIC method, the problem analysis is carried out and found the eighteen root causes of the overdue account receivable. Furthermore, several solutions were made based on the problem root cause, and it is proposed seven alternative solutions. Because the several solutions are similar in its application, it was grouped into four, namely: (1) continuous improvement in internal company, including process improvements and the application of lean organizations; (2) negotiating and retaining the account customers; (3) using the legal channels and debt collector services; and (4) further cross-check for the customers who have declared bankruptcy. Furthermore, the four alternative solutions were analyzed using analytical hierarchy process (AHP) to determine the priority of the improvement implementation. The results of this study indicate that the alternative solutions implemented brought impact in reducing the number of the overdue account receivable by 172 billion rupiah, or 83% of the total receivables, as well as making the DSO faster to 35 days. Furthermore, a new standard flow process is made to be applied in handling the account receivable. It need to do because the company has to make the continuous improvements, so the six sigma level standard could be achieved.
format Theses
author Aprilia Tri Wardani, Fenty
author_facet Aprilia Tri Wardani, Fenty
author_sort Aprilia Tri Wardani, Fenty
title ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)
title_short ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)
title_full ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)
title_fullStr ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)
title_full_unstemmed ROPOSED IMPROVEMENT OF THE OVERDUE ACCOUNT RECEIVABLES USING SIX SIGMA DMAIC AND LEAN ORGANIZATION (CASE STUDY: CORPORATE ACCOUNT MANAGEMENT - PT ABC)
title_sort roposed improvement of the overdue account receivables using six sigma dmaic and lean organization (case study: corporate account management - pt abc)
url https://digilib.itb.ac.id/gdl/view/58040
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