Six Sigma Approach to Reduce Revenue Leakage in Revenue Recognition Process: A Case Study

Apply

Six Sigma Approach to Reduce Revenue Leakage in Revenue Recognition Process: A Case Study

Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 07

Abstract

This study investigates business process inefficiency of revenue recognition process at Gajah Logistics, which impact to financial loss. The primary objective of this research is to improve the business process of revenue recognition process, with the purpose to reduce revenue leakage using Six Sigma approach. Six Sigma DMAIC methodology was used as foundation of the problem-solving approach, while in each process Six Sigma Tools also applied. The study conducted in five main approaches following the DMAIC methodology. First, business process related to defined into business process mapping on a swim lane visualization. Secondly, the fault factors measured using Fault Tree Analysis (FTA) and prioritized using pareto analysis. Third, each faut basic event analyzed using inferential statistics. Then the gap analysis conducted to improve with benchmarked state of the art. After that, solution was formulated and prioritized using effort-impact matrix. Finally, the post implementation impact was simulated to give new baseline of the process quality. The overall process quality measured by DPMO at the current state was 2.5 sigma level, which was causing a huge loss to the company. After implementing sigma level is improved to 3.5 sigma level, while the loss reduce 76%. The research conclude that Six Sigma approach could give company systematic approach to solve the complex and cross functional process inefficiency. The results also showed that if an organization applies effort-impact analysis, it obtains valuable information necessary to support decision-making processes.

Authors and Affiliations

Farhan Rizaldi Gustira, Manahan Siallagan,

Keywords

Optimizing Social and Economic Inclusion through Adaptive Sports Programs for Persons with Disabilities: A Pathway to Achieving SDGs

This study explores the impact of sport on the social inclusion and economic well-being of people with disabilities in the community and its contribution to achieving the Sustainable Development Goals (SDGs) relating to...

Assessing Knowledge Management Readiness to Improve Data Quality by Prevent Incorrect Data Input on ERP System in Component Rebuild Center PT Kalcoal

To fulfil the demand of availability component for supporting the mining operation at PT Kalcoal. Recondition component daily activity of recondition is entanglement from one process to another until the end of process....

EP ID EP739735
DOI 10.47191/ijcsrr/V7-i7-03
Views 83
Downloads 0