Business process reengineering at Diversey Lever

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Dimetrius, Belly and Panggabean, Bungaran and Redjeki, Dewi Sri and Sjafei, Netta Julia and The, Paul (1999) Business process reengineering at Diversey Lever. Undergraduate thesis, IPMI Business School.

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Abstract

Business process reengineering (BPR) becomes an inevitable part of a company that is moving toward a strategic change in improving its performance level. BPR is not about incremental improvements in processes. BPR must seek to combine the best from existing processes with new ideas about how the ideal process should look. Thus, a true application of BPR will be a structured process where these two element, idealizing and streamlining, are combined. The de-linking of PT Royal Lokareal from diverseyLever Indonesia in April 1999 was the trigger for DIverseyLever to do BPR. The big question was what would be the organization structure that better fits the new business processes in Diverseylever Indonesia after de-linking? Many in-depth interviews with diverseylever Indonesia management team have been conducted and a study of relevant company documents have been done by the team. We then came up with a thorough understanding of the current business processes through process mapping, what worked and what needed to be established. In a nutshell, our findings indicate that the load of commercial unit is rather complex in practical way of running business, which includes warehousing, procurement, accounting and finance. Business development units with the main responsibility to develop businesses are occupied with other tasks which are key to the company's success such as production, scheduling. The customer service function that is crucial to this business is not yet fully exploited and in line with the marketing strategy. This analysis brought us to the conclusion that for diverseylever Indonesia to strive in this potentially attractive industry, major changes need to be done. We learnt that the accountability and control issue stems from the rather informal work arrangements at DiverseyLever Indonesia since the time of PT Royal Lokareal. This resulted in overlaps as well as under-utilization of important functions. For Diverseylever Indonesia to achieve better business performance in the future we strongly recommend that the new structure incorporate the following main functions: logistics, marketing, accounting/finance and technical. Logistics to be responsible for warehousing, procurement, commercial, production and scheduling. Marketing to be responsible for marketing and customer service, accounting/finance to be responsible solely for accounting and finance matters and so is the technical function as to ensure proper control.

Item Type: Thesis (Undergraduate)
Subjects: H Social Sciences > H Social Sciences (General)
Divisions: Library > GFP (Group Field Project)
Depositing User: Dede Faujiah
Date Deposited: 07 Sep 2022 04:48
Last Modified: 07 Sep 2022 04:48
URI: http://repository.ipmi.ac.id/id/eprint/1528

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