BUSINESS PROCESS IMPROVEMENT OF NEW PRODUCT DEVELOPMENT - FITTING KITS USING THEORY OF CHANGE AND ECRS (CASE STUDY: MOTOACCESSORY CHINA, LTD)

• Main Author: Marth Athur, Bayu
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/72004
• Institution: Institut Teknologi Bandung

Motorcycle sales reached 47.2 million in 2020, generating US$117.2 billion. China and India sold 36.7% of units worldwide in 2020. Indonesia had the third highest unit sales and China the largest revenue share. China's economic growth may surpass the US's sooner than expected as the Republic of China recovers faster from the initial COVID-19 pandemic. Motoaccessory China Limited Companies (MCC), founded in Shanghai in 2006, saw this economic expansion as an opportunity and a vast potential fitting kits market in China since MCC top fitting kits sales volume is relatively low compared to top cases. Top cases and new fitting kits would expand as motorcycle sales and models in China increased. MCC must improve the business process of new product development-fitting kits (NPD-FK) to increase fitting kit sales and speed up product development to strengthen DASH market position in China. In China, Brand "Q" has a 36% market share, and DASH fitting kits only have 1%. MCC faces dozens of local players in this product category, with a share of 55%, making it difficult. SWOT analysis is used to analyze business circumstances in the early stages of the study to clearly identify MCC actual and intended conditions. Brainstorming, interviews, and focus groups with linked business functions provided the core data. Main issues identified as slow development cycle of new fitting kits model in MCC. Furthermore, we used business process analysis to identify the bottleneck or the longest time that takes place in product development during the prototyping stage. Stakeholder analysis and root cause analysis are also used as supporting solution tools in the Theory of Change. We found that the root cause of the main issues related to methods (no clear communication channel, lack of understanding of roles and responsibilities, and no standard format report), then manpower (inexperienced in NPD-FK, lack of knowledge, and lack of understanding the benefit of the project), and material (not working with standard fitting kits components). In this study, improvements were made using Theory of Change and Eliminate Combine Rearrange simplify (ECRS) concept to address these issues. This proposed strategy could reduce product development lead time by 20–22% and speed up development cycle of new fitting kits. For successful implementation, we recommended that all internal stakeholders related to NPD-FK be made aware of their existence to give support and make a significant contribution to MCC.