REDUCING DELAY IN SERVICE PART EXPORT OPERATION AT SUPPLIER X OF PT. TMMIN THROUGH BUSINESS PROCESS REENGINEERING

Abstract

Service part export is one of operational activities at PT. TMMIN. The ideal lead time is 15 days but currently, the lead time was 23 days resulting in some part to be shipped by air with rates of Rp1,800,000/kg. The root cause is PO for service part export is different from PO for service part domestic. In current business process, the problems are Supplier production & late delivery to PT. TMMIN, Check part’s data completeness 6 days before shipment, Container delivery and waiting in external CY, Calculate the production quantity based on fluctuation in order at Supplier X, and No request of order fulfilment support from Supplier X to PT. TMMIN. The proposed improvements are Forward PPR List to PBMD to check Part Price N-1 before shipment, Arrange technical support persons that will give analysis & feedback to help supplier production, Built an in-house CY at Sunter 1 Plant, Create Order Fulfilment Request Support documents, Establish new process flow for Order Fulfilment Request, and Arrange supplier visit & constant follow up from PT. TMMIN to Supplier X. The improvement prediction results are total cost reduction worth Rp128,200,000 and 4.42 days reduced making the lead time 18.52 days.