PCA for Logistic payment improvement

23th Feb 2016 Maria Christina - Finance team

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Countermeasure

6. Schedule

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Countermeasure

6. Schedule

PCA sheet

By solving the problem, preparing logistic payment will be faster than before and also eliminate delayed payment.

1

Problem (What)

Prepare logistics payment need longer time because of there are a lot of wrong entry and incomplete supporting document

Date:01/12/15

By: Maria

Current Condition(Check)

Action(How)

PIC (Who)

Schedule(When)

Progress

1. Incomplete subcontractor invoice or the invoice isn't original

2. Wrong Charge Entry

1. Making “Announcement Letter” for all forwarder about standard Invoices submission document and the sanctions of delayed payment if they don’t comply with HTI “Announcement Letter”.

2. Entry Logistics charge controlling tools (tools from Pak Priyo “IT”) and submit the file as standard of submission Payment Request.

1. Finance

2. Logistic

1. 11 Dec 2015

2. 01 Jan 2016

Done

Canceled

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Countermeasure

6. Schedule

Original schedule

This schedule change due to cancelation of using control sheet

2

Action Plan P.I.C. January Feb

Progress Confirmation Event 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 1 2 3 4 5 8 9 10 11 12

1. Collect logistics payment problem data

2. Send invitation for logistics section to discuss the problem

3. Meeting with logistics section

4. Logistics charge controlling tools trial

5. Implementation of logistic charge controlling tools

Maria

Maria

Finance Team

LogisticTeam

LogisticTeam

Canceled !

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Changing Plan (Cancel working sheet)

6. Schedule

Current Situation

68 % of logistics payment problem due to incomplete document & wrong entry. For wrong entry problem 77% caused by Dimas, Aditya, & Evi.

3

Incomplete Document Wrong Entry Wrong Flow Others05

1015202530

0%

20%

40%

60%

80%

100%

42%

68%

91%100%

Count %Cumulative

1 2

Dimas Aditya Evi Tata Niken Vio Happy Erwin Asril Tomy Andry0123456789

0%10%20%30%40%50%60%70%80%90%100%

26%

52%

77%87% 94% 97% 100% 100% 100% 100% 100%

Count % Kumulatif

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Countermeasure

6. Schedule

Action Plan 5Action Plan : “Improvement Logistic Payment”

Action Plan PIC Jan_2W Jan_3W Jan_4W Feb_1W Feb_2W

Progress Confirmation Event 11 12 13 14 8 18 19 20 21 22 1 2 3 4 5 9 10 11 12

1. Collect logistics payment problem data

2. Send invitation for logistics section to discuss the problem

3. Meeting with logistics section

4. Logistics charge controlling tools trial

5. Implementation of logistic charge controlling tools

Maria

Maria

Finance

Logistic

Logistic

▼ ▼

▼

▼

▼ ▼

▼

25 26 27 28 29

Revision History

Details0 4 1 5 2 6 3 7

Date Details Date3rd Level

4th Level

5th Level Improvement of Logistics Payment

Author Maria Dept Accounting Jan 12, 2016

Objective

1. To avoid delayed payment 2. Time efficiency

Environment Recognition , Current Problem Analysis

• Wrong AP Record by section & accounting• Incomplete supporting document for payment

Target （ Control Target and Attainment Basis ）

1. Zero “0” mistake of logistics payment Necessary Resource （ Man ・ Thing ・ Money ・ Information ）

1. Mistake Payment Procedure Data by Monthly Basis2. Announcement letter to Vendors (External)

Target Requirement （ Thing should be done to achieve the target ）

1. Create & Send Announcement Letter to Vendors2. Implement logistic charge controlling tools

2nd Level

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Countermeasure

6. Schedule

Countermeasure 1

The impact of sending the letter will be check by keeping the mistakes record every month start (Feedback Tools) on March 2016

6

Announcement Letter to Vendor

Page 1

Page 2

Done !

1

Announcement Letter to Vendor1. Already sent on, Feb 25th & 26th , 20162. Sent to 25 logistics vendor 3. Content:

a. Payment Schedule b. Document Requirement for payment c. Deadline of Invoice submission to HTI

Sent on Feb 26th 2016

Sent on Feb 25th 2016

7

Countermeasure 2

The control sheet is cancelled and changed to feedback tool

8

Reason of Cancelation:1. Benefit only for finance

section2. Adding workload for logistic

section3. Wrong entry only caused by

a few PIC

Canceled !

Control Sheet

2

Control Sheet:1. Canceled2. Content:

a. Charge Nameb. Allocation of cost and taxc. Allocation of shipment

New Countermeasure

Will be report to manager every month start on March 2016

9

Feedback Tools

PIC A PIC B PIC C PIC D PIC E PIC F PIC G0

5

10

15

20

25

0%10%20%30%40%50%60%70%80%90%100%

33%

63%

91%98% 100% 100% 100%

Count % Kumulatif

Wrong Entry Wrong Flow Incomplete Document

Other05

10152025

0%20%40%60%80%100%

40%

70%90%

100%

Count % Cumulative

Feedback Tools:1. Will start report on March,

20162. Content: a. Vendor Name b. Invoice No c. PIC Name d. Types of Mistakes

Table of content

1. PCA sheet

2. Original schedule

3. Current situation analysis

4. Action Plan

5. Countermeasure

6. Schedule

Revise Schedule

Point no 1 and 2 already done

10

Action Plan P.I.C. February March

Progress Confirmation Event 4 5 6 7 8 11 12 13 14 15 18 19 20 21 22 25 26 27 28 29 1 2 3 4 5 8 9 10 11 12

1. Making Feedback Tools

2. Implementing Feedback Tools

3. Report to Manager Every Month

Maria

Finance Team

Maria