IMPROVEMENT THE ON-TIME DELIVERY RATE USING BUSINESS PROCESS REENGINEERING FOR ORDER PROCESSING PROCESS AT H COMPANY

Abstract

A fundamental challenge that companies are facing today to become global competitors is that of devising and implementing strategies aimed at satisfying customers who require better levels in price/cost, quality, product design, delivery speed, reliability and on-time delivery. It is essential to accurately decide and maintain delivery times and quantities of consumer orders. This research will be guided by the following steps. Firstly, description about the problem background, problem statement, scope and assumption. Secondly, introduce the theory of BPR, symbols of BPD, and the tools for BPR. Thirdly, use the Cause and Effect Diagram, and Pareto to further find the root causes. Fourthly, use the Critical Success Factors, select sub-processes that affect the delivery rate. Fifthly, using Power Designer to draw the BPD, analyze and compare the results before and after the process optimization. Finally, it was found that order processing delay and duplicate works have resulted in low on-time delivery rate, after optimization, the result is an increase in on-time delivery rate from the previous 89.5% to 96%.