Open AccessBusiness process improvement in brown sugar industry in Kudus regency
Author(s) -
Mu’adzah,
Taufiq Immawan
Publication year - 2021
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1764/1/012182
Subject(s) - sugar , production (economics) , sugar cane , sugar production , cane , business , sugar industry , operations management , added value , agricultural science , agricultural engineering , environmental science , engineering , economics , food science , chemistry , finance , macroeconomics
Kudus is a regency which belongs to one of the largest sugar cane farming and brown sugar producer in Indonesia. However, the challenges in sugar cane industry have been so tough lately. The consumption of sugar cane has increased, but the production process takes so long time. Regarding to this condition, it is difficult to compete with other sugar industries in national level, especially refined sugar. This research aimed to help the workers to make brown sugar industry in Kudus become a highly competitive industry, by improving the brown sugar quality, improving the production efficiency so it no longer takes much time, and improving the cost efficiency in order to reduce the production cost. The method implemented in this research was Business Process Improvement (BPI) by using Value Stream Mapping (VSM) as the activity map, based on the added value, Economic Value Added (EVA), and Key Performance Indicator (KPI) as the performance assessment indicators. The research findings revealed that there were two activities that had no added value, such as loading and delivering the sugar cane to the warehouse, cost efficiency, and production efficiency. The Economic Value Added was as much as Rp 256.702.5000 before the production, and increased by Rp 1.367.374.835 after the repairment, as many as five times. The production result had increased from 7 quintal to 8 quintal per day. Meanwhile, the use of chemical substance was decreased from 1 kilogram per day to 0, while the production cost was from Rp 4.937 to Rp 4.324, and the selling price increased from Rp 7.000 to Rp 14.000 per kilo, based on the standard production or limitation that has been decided.