Open AccessNutmeg oil production process analysis using Business Process Improvement-a case study
Author(s) -
Rahim Darma,
Hasan Yudie Sastra,
Arhami,
F. Erwan
Publication year - 2021
Publication title -
iop conference series. materials science and engineering
Language(s) - English
Resource type - Journals
eISSN - 1757-899X
pISSN - 1757-8981
DOI - 10.1088/1757-899x/1082/1/012005
Subject(s) - nutmeg , refining (metallurgy) , production (economics) , process (computing) , business , operations management , process management , manufacturing engineering , computer science , engineering , economics , chemistry , food science , macroeconomics , operating system
This study delivers the analysis of business process of the nutmeg oil production process in a small and medium enterprise (SME) in South Aceh using Business Process Improvement (BPI). This study analyses the pre-refining, refining and post refining activities of the nutmeg oil production process based on economics, labour, and technology aspects. This study carries out 3 phases of BPI which are organizing for improvement, understanding the process, and streamlining. This study reveals activity efficiency from 31 (on the as-is model) to 26 (on the to-be-model). The activities are further analysed using Devil’s Quadrangle, particularly for cost and time dimensions. As a result of the new technology implementation being proposed, the fixed cost has increased by 48.33%, the variable cost has decreased by 47.64% and time has improved by 33.33%. Moreover, this study provides a recommendation to implement the to-be-model of the business process as an SOP for the nutmeg oil production process in South Aceh SMEs.