THE IMPLEMENTATION OF KNOWLEDGE MANAGEMENT TO INCREASE PRODUCTIVITY (CASE OF PT. ORGANIC FARM)

• Main Author: Prillia, Stacia
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75993
• Institution: Institut Teknologi Bandung

PT. Organic Farm is one of the well-known organic vegetable farming in Indonesia. The company has two sources of vegetable supply such as its organic farm and external farmers. To maintain its credibility as a premium seller, the company carries a customer service level with a target of 90%. Customer service level is calculated by comparing the quantity supplied to the quantity ordered. The higher the service level, the company can serve the customer demand. However, the average service level for the past year is only 76%. Low service level happens because 7 Pareto products produced by internal farms never achieve the target. Based on the data, the average land productivity is only 0,36 kg/m2, but the company sets a productivity target of 0,8 kg/m2. Some issues contributing to low productivity are lack of knowledge documentation for each process, limited knowledge sharing among farmers and leaders to the farmer, and lack of training conducted for new farmers. Besides failing to achieve the target, the company also experienced lost revenue of Rp328 million. Hence, properly implementing knowledge management will be helpful in solving the company’s issues. In order to propose the solution, the author will first assess the current knowledge management implementation level using APO assessment tools. The result shows that the company is still at the initiation level with a total score of 115,9. The highest score is achieved in the knowledge management outcomes with a total score of 20,7, and the lowest score is obtained in the knowledge process category with an average score of 13,2. Several solutions proposed to enhance the implementation of knowledge management are setting up documentation standard, externalizing and codifying related knowledge to the production process, conducting monthly leaders talk, providing a budget for external training and reward system, establishing a portal for knowledge management, and hiring one new member as a system and control officer to manage all knowledge in the company and inspect the compliance.