THE STRATEGIC BUSINESS UNIT OF GARUDA INDONESIA CARGO USING THE LEAN SERVICE PRINCIPLE
By
ARIEF SUPRAYOGO 13111043
BACHELOR’S DEGREE in
BUSINESS ADMINISTRATION
FACULTY OF BUSINESS ADMINISTRATION & HUMANITIES
SWISS GERMAN UNIVERSITY EduTown BSD City
Tangerang 15339 Indonesia
August 2016
Revision after the Thesis Defense on 21st July 2016
Arief Suprayogo STATEMENT BY THE AUTHOR
I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.
Arief Suprayogo
____________________________________________
Student Date
Approved by:
Dr. Dr. Dipl.-Ing. Rachman Sjarief, MM, MH.
____________________________________________
Thesis Advisor Date
Eric Jos Nasution, MBA, MA, Ph.D
____________________________________________
Dean Date
Arief Suprayogo ABSTRACT
ANALYZING THE OPERATION MANAGEMENT OF
THE STRATEGIC BUSINESS UNIT OF GARUDA INDONESIA CARGO USING LEAN SERVICE PRINCIPLE
By Arief Suprayogo
Dr. Dr. Dipl.-Ing. Rachman Sjarief, MM, MH. Advisor
SWISS GERMAN UNIVERSITY
With more economic activity there is a need for more logistic services to support the distribution of goods. The most time efficient logistic service type between land, sea, and air is the air logistic. Many people or businesses company trusted air logistic cargo due to the outstanding advantages compared to the other two such as on-time performance. The purpose of this research is to analyze PT. Garuda Indonesia SBU (Strategic Business Unit) Cargo’s Soekarno-Hatta International Airport, Jakarta incoming domestic warehouse operation management using lean service principles.
The methodology approach of this research will be conducted by qualitative data.
The qualitative data will be gathered through observation, explanation, interview, and industry data. The lean service principle which originated from lean manufacturing principle and the Toyota Production System will also be used in this research. After all of those process an analysis will be conducted which will lead to a conclusion and recommendation.
Keywords: Air Cargo, Logistic, Lean Service Principle, Lean Manufacturing Principle, Toyota Production System
Arief Suprayogo
© Copyright 2016 by Arief Suprayogo
All rights reserved
Arief Suprayogo DEDICATION
I dedicate this thesis for my family, especially my mom, dad and my brother who always motivated me to finish the study.
I also would like to dedicate this thesis for my beloved country Indonesia.
At last I would like to dedicate this thesis to my advisor Dr. Dr. Dipl.-Ing. Rachman Sjarief, MM, MH. who taught and advice me every step of process in making this thesis.
Arief Suprayogo ACKNOWLEDGEMENTS
First of all, I wish to thank God Almighty for the blessing giving me an opportunity to do a bachelor study and finish this thesis writing on time.
I would like to thanks my family who always encourage and motivate me during the study in Swiss German University.
A deepest thank and appreciation to Dr. Dr. Dipl.-Ing. Rachman Sjarief, MM, MH. my advisor for the time, willing, effort, guidance, advice, and comment to help me finish this thesis on time.
I also would like to thank all of Swiss German University lectures whom have taught me since the first semester to gain my knowledge, I really appreciate it.
Many thank to PT. Garuda Indonesia for the research permission in Strategic Business Unit (SBU) Cargo and every person at it who could not be mentioned one by one.
Arief Suprayogo TABLE OF CONTENTS
Page
STATEMENT BY THE AUTHOR 2
ABSTRACT 3
DEDICATION 5
ACKNOWLEDGEMENTS 6
CHAPTER 1 - INTRODUCTION 10
1.1 Background 10
1.2 Research purpose 14
1.3 Scope Limitation 14
1.4 Significant of study 15
1.5 Research Approach 15
1.6 Research Problems 15
1.7 Research Questions 16
1.8 Design and Instrumentation 16
CHAPTER 2 - LITERATURE REVIEW 17
2.1 Operation 17
2.1.1 Operation Management 18
2.1.2 Operational Excellence 20
2.1.3 Operational Planning 20
2.2 Services 21
2.2.1 Service Operation 21
2.2.2 Differences Between Services and Manufacturing Characteristics 22 2.2.3 Differences Between Services and Manufacturing Operations 24
2.3 Quality 26
2.3.1 Perspectives of Quality Meanings 27
2.3.2 Dimensions of Quality For Services 30
2.3.3 Quality Control 31
2.3.4 Quality Assurance 33
2.4 5S Methodology 34
2.5 Kaizen 35
2.6 Lean Principle 36
2.6.1 The 7 + 1 Specific Forms of Lean Manufacturing Principle Waste 37
2.6.2 Lean Service Principle 39
2.6.3 Primary Point of Lean Service 39
2.6.4 The Seven plus One Specific Forms of Lean Service Waste 41
2.7 Previous Studies 42
2.8 Studies Differences 45
Arief Suprayogo
CHAPTER 3 – RESEARCH METHODS 46
3.1 Research Method 46
3.2 Research Observation 46
3.3 Research Questions 46
3.4 Data Collection Method 47
3.4.1 Primary Data 47
3.4.2 Secondary Data 48
3.5 Research Process 48
3.6 Time and Place of Research 50
3.7 Research Model 50
CHAPTER 4 – RESULTS AND DISCUSSIONS 51
4.1 Company Background 51
4.1.1 Vision and Mission 52
4.1.2 Organizational Structure 52
4.1.3 The History of Incoming Domestic Cargo Warehouse 53
4.2 Result 54
4.2.1 The Process of Incoming Domestic Cargo 54
4.2.2 Wastes in Incoming Domestic Cargo Warehouse Operation Management 57 4.2.3 Improvement for The Operation Management of Incoming Domestic
Cargo Warehouse in The Future 66
4.3 Discussion 67
4.3.1 The Process of Incoming Domestic Cargo 67
4.3.2 Wastes in Incoming Domestic Cargo Warehouse Operation Management 68 4.3.3 Improvement for The Operation Management of Incoming Domestic
Cargo Warehouse in The Future 72
CHAPTER 5 – CONCLUSIONS AND RECOMENDATIONS 74
5.1 Conclusions 74
5.2 Recommendations 74
GLOSSARY 78
REFERENCES 79
APPENDICES 81
APPENDICE A – Result of The Interviews 81
APPENDICE B – Result of The Interviews to Supervisor 83 APPENDICE C – Result of The Interviews to Group Leader 91 APPENDICE D – Example of The Information Label Sticker 97
APPENDICE E – Example of The Air Waybill 98
CURRICULUM VITAE 99