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American Journal of Economic and

Management Business

e-ISSN: 2835-5199

Vol. 2 No. 5 May 2023

Implementation Of Lean Management To Reduce Waste In The

Operational Process Of Conflict Management At PT XXX

Siti Nursyamsiah, Hatipah

Universitas Islam Indonesia. Yogyakarta, Indonesia

Email: [email protected], [email protected]

Abstract

This study aims to analyze the application of Lean Management in order to eliminate

waste in the operational process of preventing and handling external disturbances carried

out by the External Relations Department at PT XXX, so that productivity increases,

processes are faster and the use of resources is more effective and efficient. The research

method used in this study is a descriptive qualitative approach. Descriptive qualitative

research aims to understand the phenomena that occur in the object under study. The data

collected are in the form of primary data and secondary data, secondary data in the form

of work document documents including Organizational Structure, Job Description, SOP,

and work reports, while primary data is obtained through observation and interviews. The

data analysis method used includes data reduction, data display and drawing research

conclusions until researchers feel they get what they want to research, in this case it is

waste that occurs in the operations of the External Relations Department so that it can be

investigated further. The data obtained were analyzed using the concept of Eliminate

Waste using a tool in the form of a RACI Matrix. The results of the study are portraits of

existing waste in departmental operations in the RACI diagram as well as

recommendations for workflow arrangements and the distribution of new tasks and

authorities in the RACI diagram format. The results of the study stated that the application

of lean management is still not implemented properly, where it was found that there is

waste in the form of overlapping roles and processes that are carried out repeatedly by

several functions

Keywords: lean management; eliminate waste; RACI Matrix;

This article is licensed under a Creative Commons Attribution-ShareAlike 4.0

International

INTRODUCTION

In order to increase competitive advantage, companies must be able to carry out

operational processes more efficiently and effectively (Stock et al., 2006). One of the

important efforts that needs to be done is to formulate an adaptive and easily adapted

corporate strategy to follow the development of changes that occur suddenly in global

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competitive conditions (Parlindungan, 2014). An adaptive strategy up to the operational

level is expected to leverage the effectiveness of the organization to be better able to

compete globally in all respects. The External Relations Department at PT XXX is one

of the functions included in the mining operational support process (Operations Support).

This department has a function to prevent operational disruptions that come from outside

the organization Raisch, (2008), with the main role being prevention, handling and

recovery of external conflicts of the organization so as not to interfere with mining

operations. Therefore, to increase competitive advantage in supporting mining operations,

the External Relations Department must be able to conduct its operations more effectively

and efficiently. The biggest challenge in effective and efficient operations is (waste)

which is not small in every process in the department (Moh & Abd Manaf, 2014; Verbano

& Crema, 2019). Lean Management is one of the solutions applied by many companies

to continue to innovate and be adaptive to changes and customer needs, with the

implementation of lean management, it is expected that activities in the company can be

carried out systematically, effectively and efficiently. Lean introduces major changes in

behavior and culture, and demands quality leadership and the ability to make sustainable

changes (Trisbiantara & Meliala, 2018). The goal of lean is to reduce waste in the

company's efforts to complete work and deliver quality work to customers in a timely,

effective and efficient manner (Rahman et al., 2013).

The purpose of this study is to analyze the implementation of the concept of Lean

Management in the operational business of the External Relations Department. Finding

waste, according to the concept of Lean Management, which exists in existing operational

business processes Provide recommendations for corrective actions so that operational

business processes become leaner.

RESEARCH METHODS

A qualitative approach was used in this study, with a case study type of research

and was descriptive. According to Aurbech &; Silverstein quoted by Sugiyono, (2016)

qualitative research is research by analyzing texts and interview results with the intention

of finding the meaning of a phenomenon (Musavengane, 2022; Norberg-Schulz, 2013)

Primary data were obtained by conducting interviews with sources determined by

purposive sampling. The resource persons involved in this research are structural officials

(section heads and department heads) in the External Relations Department of PT XXX,

as well as experts in charge of organizational development from the HR section of PT

XXX. Secondary data in the form of work documents include Organizational Structure,

Job Description, SOP, and work reports related to operational prevention and handling of

external disturbances carried out by the External Relations Department of PT XXX.

Data collection methods in this study are interviews, observations and document

review (documentation). Internal company documents were collected and reviewed with

the interviewees. The review of this document greatly strengthens the data obtained

through observation and interviews. The data obtained through document review,

observation and interviews are then analyzed through a data reduction process so that

researchers have a clearer picture and make it easier for researchers to collect the

necessary further data (Abdussamad & SIK, 2021). After that, researchers present data in

the form of charts or diagrams to make it easier for researchers to understand the

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phenomena that occur and discuss with the resource persons regarding the validity and

consistency of the phenomena captured by researchers. Based on this process, then the

researcher compiles a conclusion on the problem under study.

RESULT AND DISCUSSION

Operational Business Process in the External Relations Department

The function of the External Relations Department in the PT XXX organization is

to prevent the company's operations from stopping due to external interference and foster

good relations with stakeholders (Simao et al., 2016). The preventive measures against

the cessation of operations implemented by the External Relations Department are further

known as "Conflict Management". Conflict management includes operational processes

related to handling and resolving conflicts sourced from external parties of the company.

The operational business process flow of conflict management carried out by the External

Relations Department, PT XXX in accordance with the PT XXX Conflict Handling

Procedure is: (1) Receipt and Verification of Conflict Information. (2) Conflict Analysis.

(3) Determine conflict resolution. (4) Review of Conflict Resolution Recommendations.

(5) Implementation of Recommendations, Monitoring and Evaluation. The External

Relations Department is one of the functions in the Operation Support & Relations

Division headed by a General Manager who reports to the Director of Operations &; HSE.

This department has two sections, namely the Community Relations section and the

Conflict Management Section, each of which is headed by a Superintendent, each of

which is in charge of several Specialists or Staff, namely Community Relations

Specialists for five mining areas, one Conflict Management Specialist, one Stakeholder

Management Specialist and one Data Management Specialist.

Lean Management Analysis on Operational Business Processes of the External

Relations Department (PT XXX)

This research begins with a review of company documents in the form of

procedures / SOPs to find out a detailed picture of what operational activities are carried

out based on the principles of operations management, namely all efforts made to convert

inputs into outputs in producing services (in this case mining operation stop prevention

services). The SOPs reviewed are two SOPs issued and used by External Relations

Department personnel in carrying out their duties and responsibilities, namely Regional

Development Procedures (P-CRL-03) and Conflict Management Procedures (P-ERL-01).

The next document reviewed is the Form Job Description document to find out the

division of duties and responsibilities carried out by the department (Simao et al., 2016).

The document is the Job Description of three key positions, namely the Manager of

External Relations to simultaneously validate the functions of the External Relations

department, as well as the Job Description of two sections in the department, namely

Superintendent Community Relations and Superintendent Conflict Handling considering

that accountability (responsibility) for the implementation of operational processes lies

with each section head officer / Super1intendent.

The result of the SOP document review is process flow data that can be further

investigated related to waste in the operational process business, namely the presence or

absence of repetitive or excessive and unnecessary processes. While the results of the

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review of the Job Description Form document are in the form of data that can be analyzed

further about waste related to the presence or absence of overlapping duties and

responsibilities between the two sections in the External Relations Department.

Researchers use a tool in the form of RACI Martix which can describe the inter-

relationship of several aspects, in this case the flow of operational processes, the parties

involved and what their roles are and other resources used. RACI Matrix was first

introduced in the 1950s, but according to Elhady & Abushama, (2015) it is very suitable

to be applied to the business environment to date, which demands flexibility and

organizational ability to adapt. In the past, the RACI Matrix was known as the "Decision

Right Matrix". RACI stands for (R) Responsible; namely the party in charge of carrying

out a task or an operational activity, (A) Accountable; i.e. the authorized party (having

responsibility) gives approval to a task or an operational activity, also called the person

in charge, (C) Consult; namely parties who need to be asked to provide input or feedback

related to the implementation of a task or an operational activity, and (I) Inform; namely

parties who need to be given regular information related to the development of the

implementation of tasks or an operational activity (Olivier & Radun, 2017). The

disaggregated and reduced data is then plotted into the RACI Matrix as follows:

Figure 1: RACI Matrix Actual

Based on the presentation of data in the RACI Matrix Actual diagram, the author

conducted interviews and discussed with the resource persons to get validation while

finding waste in the operational processes of the External Relations Department. The

principles of an effective RACI Matrix according to Suhanda & Pratami, (2021) are; (1)

Streamline communication / make team communication easy and effective, (2) No people

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overload / adjust to the proportion of one's workload, (3) Set clear expectations / no

duplication of roles (over processing), used as a rationale to find waste.

The results of interviews and discussions with resource persons found some waste,

including; (1) The existence of operations that do not have an accountable (A) or consult

existent so that the quality control process by the person in charge becomes minimal and

there is the potential for defects (Scrap/Defect) in the services produced. (2) The existence

of parties / functions that have no role at all which is often accompanied by a covert

distribution of tasks to other parties so that it is very possible for overload to these parties

or even duplication of roles to several parties. (3) The existence of several responsible

roles (R) and accountable roles (A) in an operational flow which are core roles that ensure

operations are carried out so as to allow for over processing.

Furthermore, researchers tried to rearrange the division of duties and

responsibilities of each function by eliminating existing waste and paying attention to the

principles of an effective RACI Matrix and proposing a Lean RACI Matrix. Some

adjustments after waste elimination in the chart are; (1) Each operational process has only

one Responsible (R) role. (2) In each process each function can contribute (there are no

empty roles). (3) Return the function of absorbing external issues in the Regional

Development and Field Report process to the Community Relations section. (4) Return

the conflict management function to the Conflict Management section. So the RACI

Matrix chart will be as shown below :

Figure 2 : RACI Matrix Lean

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CONCLUSION

Based on the waste findings above, it can be concluded that the concept of Lean

Management has not been applied optimally to operations in the External Relations

Department (PT XXX). The finding of quite a lot of waste with the RACI Matrix Actual

model drawing tool (Figure 1) indicates that there is room for improvement that is very

possible so that operations can be more effective and efficient and the products and

services produced are of higher quality.

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