CHAPTER I
INTRODUCTION
1.1 Background
Before make this Improvement Assignment, we make the business process assignment based on CIMOSA in the service industry. Our chosen industry is Kertasari Service Industry. From that observation we found some parts that need to be improved. They are IT process, set direction, maintenance process, and get order. From all of that parts we decided to choose the get order part. We choose it because we think that part is critically important and need improvement. Some shortage that we found is the Kertasari Service Industry didn’t have marketing department. They only rely on mouth to mouth talk between the doctors to promote their firm. It’s maybe a good marketing strategy, but if they not do other action to find client or get order they will be hard to be a bigger firm. They also seems like didn’t want to develop. We can see this, because they didn’t expand their firm by taking clients not only from hospital. They can get clients from hotels, malls, and etc. Whereas they have everything that needed to do it and there is nothing wrong about it. By expanding their business they can have more clients and of course more profit. It also impacts the employment because they need more employees and reduce the unemployment. Other thing that can be improved is the office. The office of Kertasari is only a house. Even it didn’t have a placard in the front. Maybe it’s not a big deal and this also could avoid the taxes, but if they want to be a big company they need to look convicing in front of the client. It also make the client easier to find the office. So improvement is a must for this company because it’s already have a good potential to be a leading company in maintenance service industry.
1.2. Purpose
· To identify parts of the business process which still need improvement
· To find solutions about how we improve the business process
1.3 Method
The method that we use in this research is first identify and analyze all of the parts in the CIMOSA to define which part need an improvement. Then we pick one part that we think need more development than the other. After that we do information gathering and analyze to find a solution about how to improve that part.
1.4. Reason Why We Must Improve The Business Process
· A business process without improvement will be stuck and cannot be developed
· A firm which not doing improvement will lose in the market because there will be other competitor who do the improvement
· To make the business process more effective and efficient
CHAPTER II
THE REASON OF CHOOSING THE BOX
2.1 Problems Existing in Business Process
In this part we try to describe one by one the lack part of each step in business process CIMOSA then we can choose the highest point of lack process from the describing that we want to show. This is the description the lack of each box.
2.1.1 Manage Process
Manage process is a set of management activities in business system that contains the determining of vision and mission of a firm, the methods to achieve the vision & mission and the methods to actuate all resources effectively.
2.1.1.1 Set Direction
In this part, in set direction contain the vision and mission of the business company. This vision and mission are representatives of the purpose we want to achieve in a business system by considering the condition. Set direction has the function that is to determine the vision and mission in a business system.
The Weaknesses:
But in our research to Kertasari Company, The lack of this part is the Kertasari Company itself doesn’t have the vision and mission. The owner while it is given the question about the vision and mission, then he just answer with the simplest answer that the company have the best cleaning service and can fulfill the customer want, and he add the vision to welfare society with the way create job field. And for the mission the owner just answer like before he just state the mission like the vision he answer making new job, and etc. We think, it means that this company doesn’t have the vision and mission definitely.
The Excesses:
This company can do the business without the vision and mission. They can do all the business without any direction from mission, they just do and get the maximum income and can welfare the employee, and also make the client become satisfy to our service.
2.1.1.2 Set Strategy
Set strategy is the way that can be done to reach the vision and mission. Business system must determine the strategy to reach the vision and mission that has been stated before.
The Weaknesses:
In this company the weaknesses is in the strategy to get order besides the hospital service. They only just provide the service only in the hospital, there is no clear attempt to get another field beside the hospital. They are afraid to go out from comfort zone.
The Excesses:
And in outline this part the Kertasari company is good. Because “C.V Kertasari” stated the strategy that they has already done in reaching vision and mission of that firm, including the satisfaction consumer strategy, compete with other firm that has the same kind of business, and the strategy for facing the constraint that happen during the business process.
a) Satisfaction Consumer Strategy
In this part the Kertasari Company is good because this firm state clearly to make customer become satisfaction. They provide some treatment for the patient in hospital as their customer with provide some aromatherapy for cleaning materials.
b) Compete with other company
For this part Compete with other company, in our opinion this part for Kertasari Company is lack. Because in this part the firm should have the way to face the competition with the other company that moving in the same field, that firm doesn’t have concrete way to solve if their business compete with the other. One example is that company doesn’t have the placard to make that company become popular. And this placard makes this firm more known by more people and trustworthy company.
But there is aspect that this company still exists until now with the way:
- Do the internal communication with the client, that will be invited to make relation and for CV. Kertasari itself beside getting the relation with the client, it also gets the profit from this relation, because automatically the person who works in that hospital like the doctor see the worker from “CV. Kertasari” do their task, and it make the doctor to tell the “Kertasari” has the qualified cleaning standard for the cleaning service. And it can spread to other hospital from mouth to mouth. And it makes the profit for “CV. Kertasari” itself.
- Do the buying great of the material, this way has the function that is to anticipate the season coming where the materials difficult to find. With the great buying of materials, the cleaning service will happen well, and there is no complain again from the customer.
But we still state that in this part Kertasari Company is still lack.
c) The constraint in doing the business process.
This part in Kertasari Company is good.
2.1.1.3 Direct Business
Direct business is one of the efforts to make all resources which reach the purpose.
The Weaknesses:
This company also has the weaknesses in divide the division of staff is still doesn’t balance. Some of the position is be doubled to one in the position of the owner position. The marketing position is done by owner position.
The Excesses:
In this part of CIMOSA the Kertasari Company has a good direct business. This company is engaged in the service industry.
2.1.2 Core Process
Core process has the function that is to give the added value directly to the customer. On the other hands Key activity or cluster of activities which must be performed in an exemplary manner to ensure a firm's continued competitiveness because it adds primary value to an output.[1] Service that has resulted must appropriate to the customer want, in order to market still has positive response to the service. Core process has four kinds of activities, those are develop product, get order, fulfill order, and support Product.
2.1.2.1 Develop Product
Develop product is the strategy to develop service in order to market still has positive response to the product or service that has been created.[2]
The Weaknesses:
In this part “Developing Product” the Kertasari is still lack. Because they develop the product only just rely on the hospital sector alone. They dwell only in the sector and not getting out of their comfort zone and if later on there will be competition, Kertasari will not grow because he's just playing and struggling in the health field. They do not want to try to get out of the health care field such as hospitality, shopping malls, restaurants, and many more.
The Excesses:
In the observation, there is no excess of developing product. Because the develop product in this company is not working well. The develop product only in the hospital sector as same as the weaknesses description. So the excesses of develop product is none.
2.1.2.2 Get Order
Get order is an effort to get the consumer. If the product that has been created can be used to consumer, so business system must have an effort to get the consumer so it can dominated the market. And the worst we think in this part “Get Order”. In this part Kertasari doesn’t have direct way to reach the get order. And also there is no marketing position in this company. Whereas this position is the main point when we want to get customer. This marketing can find by promoting our product to other people. But in Kertasari there is none. They just rely solely by word of mouth promotion is better. The proven written is:
a. Marketing Strategy
- There is no Marketing position in this firm. All the marketing and get client is done by the owner.
- The getting of client is with mouth to mouth. There is no proposal to get the client.
- Always make communication well to all of the client.
b. Marketing Management
Marketing Management is fully performed by the owner of a business system that we observed. They do scheduling when there’s an increase in sales.
And also the company we mean the office of this company is not big like other company that has big building for the office. But this company not, their office is in house and there is no placard in outside the building. So if people search this office, they will be confused and difficult to find it. Whereas the building can influence the customer coming. And enough for Get Order.
The Excesses:
But beside the weaknesses of get order, this company also has the excess that is this company can get the client especially the hospital without any proposal, and also there is no promotion through the website. They just promote to the doctor who has relation with the owner of this company. It can be called that this company can grow well without any marketing and publication about this company with the quote still in the hospital sector.
2.1.2.3 Fulfill Order
Fulfill order has the role to fulfill the demand of the market toward product that will be produced.
The Weaknesses:
The weaknesses of this part is when the company will find the supplier, they just sent short message service through the hand phone and get it easily.
The Excesses:
In this part “Kertasari” is doing well their role in this part of business process. because In cleaning service firm, especially in “CV. Kertasari” to make fulfill with the demand the owner directly to open recruitment for the outsource workers, and then give the training to the new workers. It can make that people ready to work as a cleaning service in a hospital. And also keep the things supply in a hospital well. It’s also the fulfill order.
2.1.2.4 Support Product
Support product has a function to increase the value of the final product or service in order to make the customers or clients more satisfied.
The Weaknesses:
The weakness of this company is there is no development about the supporting product for cleaning in the hospital. For example if this company has qualified standard automatically there is development in the support product but in this company the product is none.
The Excesses:
In this part “Kertasari” company do well this part in business because Kertasari can provide the support product to support the business process. One of example is keeping the quality of the hygienic, it’s one of the support product to support the cleaning service.
2.1.3 Support Process
Support process is a part in CIMOSA in order to keep the core process running well. Why is support process important? It is because a company or firm that has a good support process is not only can survive but also develop in the middle of hard competition.
2.1.3.1 HR Process
Human resource management is a part in CIMOSA that has a function to add more value in human resource quality.
The Weaknesses:
There is no weakness in this company about the human resources in this company. It means the developing human resource is well.
The Excesses:
A company of firm that has a good HR Management can make a satisfying service against customers. And for Kertasari this part does well. They create the best Human Resource moreover this company is service industry. They also give training for their employee before they work in the hospital. And we think the HR Process of this company is good.
2.1.3.2 IT Process
IT Management has a function to support a company or firm to make the work easier. We can imagine what if a big company or firm is just using a typing machine, it will really slow down the working process.
The Weaknesses:
But Kertasari doesn’t have this. Kertasari doesn’t utilize the technological sophistication. They only using telephone and email to get the supplier. And we think it still less technology instead the company.
The Excesses:
There is no the excesses in this part. Because the company conducts business only use IT facilities in the form of short messages via mobile phone and email.
2.1.3.3 Financial / Accounting Process
Finance & accounting are a part in CIMOSA that has a function to let us know how the financial process and the cash flow in a company or firm is. It is very important for a company of firm to has a financial data, to let the head of the company or firm know how many the income and outcome is and especially to prevent money corruption.
The Weaknesses:
There is no weakness in financial/accounting process. It means all the financial process doing well and monthly reported.
The Excesses:
In this company, Kertasari has a good financial and accounting. In that company the report of money flow is reported monthly. It means that the accounting process in that company is doing well.
2.1.3.4 Maintenance Process
Maintenance management is a part in CIMOSA that has function to keep the support tools working. Usually in manufacturing industry, there is a periodically maintenance checking, so the machines will not have any problems.
The Weaknesses:
There is no weakness in maintenance process. It means all the maintenance process that support the business is doing well.
The Excesses:
In this part, Kertasari is doing well. Even though CV. Kertasari firm is a service firm, and one of it is maintenance service, but there is also a maintenance management in this firm. In the primary client of this firm that is hospital, the maintenance checking is to check all the hygiene of cleaning tools, the chemical that used to maintenance and household working and many more that must not be contaminated with something or broken.
That’s all the description of the best and the worst of business process based on CIMOSA.
2.2 Problem Chosen to Improve
In the description of existing problems in this firm, we limit only one core problem to be discussed in detail, improved and solved. In this case, we choose the problems in GET ORDER as our main topic discussion to improve. Before we go through, here are some further explanations of GET ORDER.
Why did we choose ‘get order’? In our opinion, the firm we surveyed actually has a really simple but serious problem in their business process and it located in ‘Get Order’ position. CV. Kertasari doesn’t have any way of marketing incessantly from time to time. To do the business, this firm only relies on the promotion from doctor to doctor from mouth to mouth. For us, this way of getting order is not a good thing. A firm can’t do a business by only relying on others role.
There are some points we underline for improvement.
How do they ‘get order’?
FIRST point: They way to promote
CV. Kertasari was already established many years ago and had its first hospital client actually by help of the owner’s friend. That time, this firm only focused at one hospital. Doctor is one of many people who directly experience the cleaning service activities. The cleaner and more hygienist a place, the easier doctors work as they need cleanness the most. So, due to their well-done job, many doctors were satisfied and willing to defend their existence in the hospital.
It’s very common if a doctor works at many hospitals at once. Everywhere and every time they work, cleanness is still needed. If they already feel satisfied with the works of cleaning service provider in previous hospital, they automatically will recommend this service to another hospital they work. Indirectly, doctors do promotion for this firm and this kind of free promotion gives a really big advantage for cleaning service provider firm (CV. Kertasari). Doctors can easily influence another hospital to use the service for this firm because doctors often hold high position in their job. Indirectly it creates mutualism symbiosis for both sides. For CV. Kertasari, they only have to keep their quality to not loose this reliance. And because only doctors do promoting, the job field will only take place in hospitals.
Below is the illustration how CV. Kertasari expand its business until now.
SECOND point: Going public for existence
It’s not a secret anymore one the aim an enterprise or firm is to show ‘Who they are’ in public. The more a firm recognized by public means the bigger a firm is. That will impact on people demand. What person in the world would buy ‘unfamiliar’ product? People naturally tend to buy a product if they at least know the existence of a product, which means the firm is legal. So does with service sector. If we will send money, of course we will use a credible company. So, a firm will do everything to make their enterprise be credible. For example, a firm can build a big building/factory showing their label. However, this theory doesn’t happen in CV. Kertasari. This firm doesn’t show their existence in public. They don’t have a ‘proper’ place to held their office activities and of course to show that there are an ‘enterprise’ inside the building. Actually, they do have a place to do business activities, although it’s really small as they are running in Cleaning Service industry which the core business is held in separated place (hospitals). But our point, the lack side of this firm is they don’t put a banner/poster showing their enterprise on the front side of the office.
We can see bellow, the lack side of CV. Kertasari. They don’t have any banner/poster to show their existence.
Analysis
In our team opinion, from first point, this kind symbiosis mutualism will not always be good. However, we admit this is really enjoying. It looks simple and at a glance, it’s so clear the biggest advantage comes to CV. Kertasari. They must be not troubled to get client by promoting here and there. They just sit and keep the good work then comes a job. But look at another aspect. If this firm does nothing but relying on ‘free promotion’, it will not be good for firm development. If this continues, CV. Kertasari will only be able to dominate in Hospital-field. They can’t expand the business to another field such as for Hotels, Office-building, etc.
Above paragraph also has correlation with the second point discussion. In the second point (about Going public for existence), this firm also has weakness at this. They don’t put any poster/ banner in front of their office. The reason is simple. They don’t want to get responsibility to pay any tax. For them, the bigger a company recognized by public, the bigger they will pay tax. This actually is really reasonable and gives advantage. But we think, it is a temporary advantage.
As the time goes, who knows there’ll be another competitor which may be even better. If CV. Kertasari can’t secure the main job-field in Hospitals, they won’t have another place to go because previously they didn’t build a good image as big enterprise. They may be really good at work and quality, but it means nothing in business world if they don’t have credibility. Which one of many ways is putting poster/banner in front of the office. And if a firm want to be bigger, it’s been their duty to pay tax. What can Indonesia be if people don’t pay tax??
Another example of advantage of putting banner/poster in front of the office is people turn out to help promoting CV. Kertasari. Why is it so? Let’s see some facts. First, CV. Kertasari building office is located in the middle of housing. There are a lot of people around it. According to our experience, if around us there’s some firm/enterprise, we naturally tend to promote what exist in our environment. For example, if there’s people ask for Cleaning Service provider to another person living next to / around CV. Kertasari, this person will immediately tend to refer to CV. Kertasari without acknowledgment. This kind of ‘free promotion’ will also give another advantage to CV. Kertasari. But this kind of ‘free promotion’ isn’t the main way to promote and enlarge the firm. The ‘free promotion’ doing by doctors and people are just some variation and a little advantage to a firm. In our opinion, we can’t make it as a main way of promoting, especially if this is a profit business.
Finally, those are the main negative side of business process in our opinion. It’s placed in its Get Order part.
CHAPTER III
IMPROVEMENT
Improvement is a method how to make something to be better. Some companies or firms, however good they are, must have some weakness. The improvement is used to cover the weakness. The observation about Kertasari firm business operation based on CIMOSA approach has making conclusion that they have some lack of effectiveness in business performance.
First is the IT Process. Although Kertasari firm could be categorized as a big firm, but they used only e-mail, Short Message Service (SMS), and basic Microsoft Excel to coordinate each other and making tables for financial things. To be a great firm, it must be supported by a great IT process too. In other words, Kertasari firm will be hard to grow to be the best firm if they thought Ms.Excel, e-mail, and SMS were enough.
Second is the Maintenance Process. Many firm office buildings will show their identities as a firm so other people will recognize them. But it doesn’t happened in Kertasari firm, it’s because of the building is totally same as an usual house. Stranger people will be hard to recognize them as a big firm and it will influence to their marketing strategy, it’s because if many people know that there is a firm around them, they will share it to other people, which is an advantage to the firm.
The third is the firm’s mission and vision. Kertasari firm doesn’t have any mission and vision that motivate them to be a better firm. The CEO of the firm is just doing the business stagnantly and didn’t want try a new thing.
However, the worst of all is their methods how to get customers, which is in CIMOSA approach is categorized as Get Order. Many firms or companies try different things in marketing strategy to dominate business markets, but it is so different with Kertasari firm since they use only doctors in hospitals where Kertasari firm put their workers and ask them to share the Kertasari firm workers performance to another hospitals. Below are some suggestions for Kertasari firm Get Order issue.
1. EXPAND THE BUSINESS ENTERPRISE
The most crucial issue that often appear in business is out of comfort zone. Kertasari firm is a speciality firm that focused on maintenance service in hospitals only. Unfortunately, the firm is too comfortable with their maintenance service in hospital since there isn’t competitors, so if there is a more expert firm comes which also serves maintenance service for hospitals too, Kertasari firm will be hard to survive.
So the suggestion is the Kertasari Firm should expand their business of maintenance service not only at hospitals, but also in other public facilities too, such as hotels, malls, or maybe condominiums. The reason Kertasari firm should expand their business in other public places, not to open a new business, such as making products, is because of their experiences in maintenance service. Kertasari firm should have many experiences in maintenance service since they start business in 1990s, so if they serve maintenance service for hotels or other public places too they should not have a serious problem since the hospital hygiene standards are higher than other public places, such as there should be particular cleaning wipes for different rooms and the workers must not go outside to avoid bacteria spreads. To develop their business in other public places, Kertasari firm can introduce their proposal first, then to convince the customers, Kertasari firm can shows the avowal about Kertasari firm performance from the hospitals that had used Kertasari firms before. Kertasari firm used only trustworthy supplier’s product to the customers by examining the composition of any supplier’s products in details. This policy will help them keep customer’s trusts.
2. MAKING NEW MARKETING STRATEGY
Based on the information from sources, Kertasari firm use only doctors in hospitals to share the performance of maintenance service to another hospitals. In order to increase the business growth is by making a new marketing strategy. It is a good policy if the Kertasari firm forms a marketing department as they didn’t have any depatment that focused on marketing, so Kertasari firm will not just rely on the doctor’s sharings but also try a new marketing idea. In this era, there is many companies use internet to promote their product to publics, and Kertasari firm should use internet to promote their maintenance service too. They can make a blog or website to put their experiences working in maintenace service for years and shows the visitor the amount of public places maintenance that ever handled by Kertasari firm.
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Above is the picture of SWOT analysis. SWOT analysis is used to identified the strength, weakness, opportunities, and threat of a firm or a company. Strength means the value that helps the firm of company to achieve goals, weakness means the value that hampers the firm or campany to achieve goals, opportunities means how the company cover the weakness, threat means the value that make the company or firm bankrupt.
The relationship between the improvement part and SWOT analysis is by looking at the SWOT analysis, the firm or company can make some new policies to improve their performance.
CHAPTER IV
SUMMARY & DISCUSSION
Conclusion :
So the conclusion is, the main Kertasari shortage is in the “get order”. The reason is this firm didn’t actively searching for customer. They just waiting for doctor to promote their firm to another hospital. They also didn’t try to enlarge their market by approaching other institution instead of hospital. If they keep going like this, their market is not gonna grow bigger. They just stuck in that situation and will never be develop. It’s also give other competitor an open wide door to enter the market and if they not do something they will lost in the market. Moreover the reason “get order” be the main shortage is their office is a house without a placard instead of a big building. If they use a big building, it will make the company looks more professional and make the clients more interested.
Suggestion :
· Expand the business empire
To expand the company Kertasari can do several things such as hotel, malls and other public places. It’s will give more income and Kertasari company can dominate the market.
· Making new marketing strategy
To get more clients, Kertasari need to develop new marketing strategy other than mouth to mouth promotion. Kertasari can make some advertisement to tell people that this company is exist or try to be more active to search for client.
Discussion :
· Why Kertasari did not do any promotion or advertisement, whereas many bigger company still need to promote their business?
· Why Kertasari only focus on hospital and not approach other institution?
BIBLIOGRAPHY:
[1] Business Dictionary Web Services 2011, Core Process, The United States, accessed 09 November 2011,
[2] Business Dictionary Web Services 2011, Develop Product, The United States, accessed 09 November 2011,
