Indrianawati Usman and Karnova Achmad Bastari (2018) How Sig sigma methodology can improve the account receivable performance. A case study. In: Seminar Nasional & Call for paper Forum Manajemen Indonesia (FMI) ke 10., 7-8 November 2018, Palembang Sumatera Selatan.

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Abstract

The performance of account receivable is really matter to the performance of the business. Performance gap of account receivable collection contribute to low turnover of working capital. The objective of this study is to investigate the account receivable performance using six sigma methodology. Six Sigma was originally developed for manufacturing companies and this method is mostly used in manufacturing companies. Lately many argue that this methodology can also be used in service like finances industries. This is case study research using Trakindo Utama is an authorized dealer of Caterpillar in Indonesia as an object of the research, which have performance gap between the actual performance achievement and the target of collection of receivables. Accounts Receivable performance is calculated using Receivables Turnover, Collection Days, and Overdue Ratio. This study also aims to fill the research gap that studies about Six Sigma. The research related Six Sigma is usually in the manufacturing industry. Type of this research is case study and exploratory. Using DMAIC concept, the results of research concluded that. In the define phase known actual data collection days Trakindo Surabaya is 89 days while the desired target is 60 days. In phase of measure result of data processing show that 63.4% problem is on part invoicing, hence team do focus improvement in that area. In the analyze phase is done analysis of business process data and root cause. In the improve phase the approved solution is to implement monitoring center finance tools in order to measure the process and view collection performance. In the control phase has been formulated system and supervision by improving the SOP for the evaluation process, and run continuously in order to improve the performance of accounts receivable.

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