Business Process Improvement Design of Indonesian
National Standard (SNI) Product Certification
Mas’ud Adhi Saputra
Center for Material and Technical Product Ministry of Industry
Bandung, Indonesia mas.ud@adhisaputra.com
Rina Meyilani
Research Center for Water Resources Ministry of Public Works and Housing
Bandung, Indonesia rina.meyilani@gmail.com
Abstract—Product certification is a process to certify specific products that have gone through performance testing and quality assurance as well as fulfill the qualification criteria specified in the contract, regulation or specifications (usually called a certification scheme). This paper proposed an improvement design of product certification service in Indonesia. Product certification service as a public service need to transform from traditional based service (manual process) to electronic based service (digital process). This research uses Business Process Re-engineering (BPR) method to find critical improvement which is focused on process. This improvement design should be measured from some indicators to prove that the new design can reach the best public service quality.
Keywords—product certification service, SNI, product certification management information system, Business Process Re-engineering, service quality
I. INTRODUCTION
Indonesian National Standard (SNI) is the only one nationally standard in Indonesia. SNI is formulated by Technical Committee and regulated by National Standardization Body (BSN). Product standardization policy in Indonesia also aims to protect consumers, ensure the quality of industrial product and maintaining a healthy business competition [1].
Many countries in the world apply a different approaches of product certification, there are mandatory with the legal basis (legislation) and voluntary. Implementation of standards should have the legal foundation are products related to:
1. Public and individual safety from workplace accidents and and hazardous environments
2. Machinery and equipment safety e.g household electrical appliances, transportation equipment and machinery
3. Structures safety as a result of the failure/damage such as buildings, bridges, factory equipment (pressure vessels), and so on
4. Safety of property due to fire, earthquake, such as building material specifications, standard design code for earthquake resistance buildings
5. Health guarantee of the water, the environment, and air pollution, such as regulations and specifications of the piping and drinking water sanitary
6. Purity and contamination of medicine and food, such as labelling regulation and composition, the chemicals, dyes, preservatives and bacteria
SNI applied to various products, such as LPG cylinder, helmet, lamp, fertilizer, coffee, tea, rubber, glass, tire, wheel, steel and metal products, television, washing machine, water pump, refrigerator, air conditioner, etc.
In Indonesia, the organization in charge to carry out the product certification process called the Product Certification Body (LSPro). Only LSPro which has been accredited by the National Accreditation Committee (KAN) is entitled to carry out the product certification process.
Fig. 1 shows relationship between KAN, LSPro and Supplier or Importer.
Fig. 1. Relationship between KAN, LSPro and Supplier/Importer
Importantly, supplier or importer needs to understand some procedures to apply SNI product certification. However, cause of the lack of information makes supplier or importer confused. Other problems are delay issuance of the SNI certificate (SPPT SNI), obscurity coverage service costs, and integrity issues of service officers (bribe).
SNI product certification service which is an example of public service has to satisfy public service principles [2]:
a. Transparency – open, easy to understand, available to access for public.
b. Accountability – can be accounted for in accordance with the regulations.
c. Conditional – accordance with the conditions and abilities of providers and recipients of service by commit with the efficiency and effectiveness principle.
2015 International Conference on Automation, Cognitive Science, Optics, Micro Electro-Mechanical System, and Information Technology (ICACOMIT), Bandung, Indonesia, October 29–30, 2015
d. Participative – encourage people participation in public service by way of their aspirations, needs, and expectations.
e. Equality of Rights – not discriminate against race, religion, class, gender and economic status.
f. Balance of Rights and Obligations – providers and recipients of service should fulfill rights and obligations.
Advances in communications and information technology are having a profound effect on ways customers interface with service provider. For services, the introduction of technology often empowers the customer to perform the service unassisted [3]. Product certification service as a public service should adopt information technology to improve the quality of service itself because information technology was considered capable of creating major improvements in business processes [4].
II. RESEARCH METHOD
In this study we use Business Process Re-engineering (BPR) is the fundamental rethinking and radical redesign of business processes to achieve dramatic improvements in critical, contemporary measures of performances, such as cost, quality, service and speed [5].
Six principles or concepts of BPR [5] [11] [12]:
- Fundamental rethinking, involves challenging the status quo by raising basic questions about the organisation
- Radical redesign (clean slate), requires redesigning the new business processes from scratch
- Business process orientation, states the primarily object of reengineering as the business processes rather than the organisation itself
- Top-down (strategy led), prescribes process reengineering to be part of the strategic planning of the organisation
- Dramatic improvement, states that BPR aims for significant discontinuous improvements in critical performance measures
- IT enablement, highlights the critical role of IT/IS in BPR
Across BPR, there are five steps to re-engineering processes [5]:
- Understand the business needs and the processes
- Model and analyzing processes
- Benchmark business processes and their outcomes
- Use the information to redesign and implement the new processes
- Review and assess new process performance to feedback into further redesigns
III. PRODUCT CERTIFICATION
SNI product certification is a certification process to obtain SPPT SNI (SNI Marking Product Certificate). Items will be or are being circulated in the Indonesian market, especially products in the mandatory category but does not have SPPT SNI forbidden to circulate in Indonesia. Consequently, if it is violated is enforced withdrawal of goods or confiscation by the authorities.
Many companies flocked to obtain SPPT SNI as an effort to fulfill the prerequisites before launching products to market. This has increased ahead of the opening of the ASEAN Economic Community (AEC) by 2015. However, it is not necessarily the foregoing impact on the increasing problems related with obtaining SPPT SNI.
A. Product Certification Value Chain
Fig. 2. Product certification value chain
Fig. 2 illustrates the value chain of product certification service. This value chain comprises:
1. Primary Activities
- Registration and Application, registration process of SNI product certification service that covering registration of the identity of supplier/importer and request document filling
- Evaluation, process of verifying the completeness of the document
- Audit, consisting of audit of adequacy and conformity
- Decision Making, the decision making process whether the product is eligible or not
- Surveillance, the oversight of production process and product quality, at least once a year
2. Support Activities
- Scope Improvement, process of adding scope and or product commodity that can be certified
- Financial Management, including the billing process and financial records
- Human Resources Development, managing auditor, sampling officer and administrative officer
- Procurement, process procurement of goods/services that support product certification services
B. Product Certification Categories, Types and Objectives
Product Certification consists of two categories:
- Mandatory
- Voluntary
In keeping with WTO principles, mandatory product certification may be applied to areas of significant concern relating to safety, health or the environment. In the other hand, voluntary product certification is used for market differentiation. Product certification improves acceptability of products by the market [6].
Types of product certification:
- System 1A – certify products which are tested by testing laboratory
- System 1B – certify each products that represented by the sample of products
- System 2 – certify easily defective products during the process of distribution
- System 3 – certify products that have high complexity production process
- System 4 – certify products that have expired date and high complexity production process
- System 5 - certify products that have high risk ***)
***generally used for mandatory product certification
Three fundamental purposes of product certification [6]:
- Address concerns of consumers, users, and all interested parties by instilling confidence that the product fulfills specified requirement
- Demonstrate third party (independent) oversight
- Not require excessive resources thus raising costs beyond market expectations
C. Product Certification Process Flow
Product certification process begins when the company (or supplier) delivered the application documents of SPPT SNI and must meet special requirements, such as a Certificate of Cooperation Applicant Company. Then, application documents will be checked and reviewed by administration officers. If all of documents are valid and complete, invoice wil be issued.
After invoice payment, LSPro will arrange the schedule of documents correctness and adequacy audit. Supplier are given the opportunity to present the results of corrective actions. After that, LSPro will arrange conformity audit that consists of two subprocesses quality management system audit by auditors and sampling by sampling officers.
Technical committee prepares panel meeting for companies that have met the requirements (the results of
system audit without major findings or there are major findings but have been closed and laboratory test results that have met the product standard). Panel meeting determines whether the process to obtain SPPT SNI (new, recertification, surveillance and additional scope) can be issued, suspended, revoked or otherwise. Next process, administration officer make a draft of SPPT SNI and will be signed by the Head of LSPro and the final process is SPPT SNI issuance for company (supplier). The SNI product certification process flow illustrated in Fig. 3.
IV. IMPROVEMENT DESIGN
A. Potential Improvement
Overall business process of SNI product certification is still done manually, starts from supplier/importer came LSPro to bring the required documents, filling out form manually. Then, proceed to make the payment and send a proof of payment to LSPro. After that, the entire audit process conducted and end up getting SPPT SNI.
TABLE I. COMPARISON OF ELECTRONIC SERVICE AND TRADITIONAL SERVICE [3]
Features Electronic Service Traditional Service
Service encounter Screen-to-face Face-to-face
Availability Anytime Standard working hours
Access From home/office Travel to location Market area Worldwide Local
Ambiance Electronic interface Physical environment Competitive
differentiation Convenience Personalization Privacy Anonymity Social interaction
The proposed development of business process is by building Management Information System of SNI product certification include SMS Gateway and Dashboard (which can also function as Executive Reporting System). This development is expected to answer the problems that have emerged, particularly with regard to the effectiveness and efficiency of cost and service time.
B. Proposed Business Process Re-engineering Design
The proposed business process re-engineering design illustrated by Business Process Model and Notation (BPMN). BPMN is a graphical representation for specifying business processes in a business process model.
Fig. 4. Business Process Re-engineering Design level 1
Fig. 5. Business Process Re-engineering Design level 2 (Register Supplier/Importer process)
Fig. 6. Business Process Re-engineering Design level 2 (Upload and Check Document process)
Fig. 7. Business Process Re-engineering Design level 2 (Bill and Pay process)
Fig. 9. Business Process Re-engineering Design level 2 (Issue Certificate process)
V. SERVICE QUALITY INDICATORS
Public service quality measured by 5 dimensions [8][9][10]:
a. Tangible, includes physical facilities, equipment, personnel, and communication channel.
b. Reliability, company/institution capability to give trusted services.
c. Responsiveness, personnel or system capability to help customer and give the responsiveness service.
d. Assurance, includes personnel skill and attitude, also zero risk.
e. Empathy, includes easiness to have good communication relationship between provider and recipient and understand what the customer needs.
SNI product certification service quality evaluated by Responsiveness dimension which shown as Table II below.
TABLE II. SERVICE TIME ANALYSIS
No Business Process
Before (hrs) After (hrs) Min Max Avg Min Max Avg
1 Verify
Business process improvement of SNI product certification is expected to accelerate time to a maximum of 36 days of service with reference to the previous maximum service time standard is 41 days. In term of costs, is expected to save 25% of the total costs incurred. Costs can be saved as a result of business process improvement are other costs that arise in addition to the process to obtain SPPT SNI (Sertifikat Produk Penggunaan Tanda SNI).
However, this study only focused on the improvement of the technical side, not from a political standpoint. Implementation of SNI is a technical barrier/non-tariff barrier to protect domestic industries. Time effectiveness and cost efficiency of SNI product certification service can have an impact on the high number of imported foreign products. Although, on the other hand can improve and “force” local producers to create quality products with high competitiveness.
Future research that can be developed is to implement this business process improvement design to be prototype of SNI product certification management information system and measured by SERVQUAL method or other quality measurement methods.
References
[1] Government Regulatory Republic of Indonesia no. 102/2000 about National Standardization.
[2] Ministerial Decree of Government Officer Empowerment Republic of Indonesia no. 63/KEP/M.PAN/7/2003 about General Guide of Public Service.
[3] J.A. Fitzsimmons, and M.J. Fitzsimmons, “Service Management : Operations, Strategy, and Information Technology,” 5th ed. Singapore : McGraw Hill. 2006.
[4] S. Adesola and T, Baines, “Developing and Evaluating a Methodology for Business Process Improvement,” Business Process Management Journal, Vol. 11, No. 1, pp 37-46, 2006.
[5] M. Hammer and J. Champey, “Re-engineering the Corporation. A Manifesto of Business Revolution,” New York : Harper Business. 1993 [6] G. Brundle, and R. Coiner, “ISO/IEC 17065:2012 Conformity
assessment – Requirements for bodies certifying products, processes, and services,” APEC training presentation. 2012.
[7] Chief Decree of Industrial Research and Development Agency, Ministry of Industry no. 247/BPPI/X/2008.
[8] V. Zeithaml, A. Parasuraman, and L.L. Berry, “Delivering Quality Service.” New York : The Free Press.
[9] A. Parasuraman, V. Zeithaml, and L.L. Berry, “A Conceptual Model of Service Quality and its Implication for Future Research,” Journal of Marketing, Vol. 49, 41-50, 1985.
[10] Hardiyansyah, “Kualitas Pelayanan Publik – Konsep, Dimensi, Indikator dan Implementasinya.” Yogyakarta : Gava Media. 2011.
[11] R.R.M. Linden, “Seamless Government: A Practical Guide to Re-engineering in the Public sector,” Jossey-Bass Publishers.1994. [12] T.H. Davenport and D. Stoddard, “Re-engineering Business Change of
![Fig. 3. Product Certification Process Flow [7]](https://thumb-ap.123doks.com/thumbv2/123dok/262958.505903/3.595.307.556.192.658/fig-product-certification-process-flow.webp)
