PRODUCT STANDARDIZATION AT KRS

Abstract

In Indonesia, the food industry is one of the sectors that support the increase in
the value of the national investment, the Ministry of Industry noted, throughout
2018, the food and beverage industry can grow 7.91% or exceed the national
economic growth of 5.17%. According to the Indonesian Franchise Association,
this food industry trend is in line with the increasing interest in franchising.
Encouraged to participate in advancing the Indonesian economy, KRS seeks to
undertake all franchise offers submitted by loyal KRS customers. There are 19
franchise offers throughout Indonesia. Accepting challenges in developing
business, KRS wants to ensure that products from KRS are well standardized so
that it does not damage the excellent image that KRS has built. Therefore, the
purpose of this research is to know and implement standardization procedures for
products to maintain uniformity of quality wherever KRS products are sold
throughout Indonesia.The approach that will be used in this study begins with an
internal analysis consisting of the VRIO Framework and Value Chain. After
conducting an internal analysis, the research will proceed with analyzing external
problems, namely Porter 5 forces and PESTLE. TOWS Matrix, Value Proposition,
and SIPOC to Lean Six Sigma with DMAIC tools as a combination of Six Sigma
and Lean concepts. The main causes of problems faced by KRS are the poor
performance of part-workers, ineffective distribution of information, and very
manual and administrative processes that are very ineffective and
inefficient.Solutions and improvements that can be applied to improve the
efficiency of the operation process are the creation of an E-Operation application,
the benefits to be gained include increased transparency and accountability,
integration of all the divisions involved and access tracking in real-time. Training
and contract binding can be done to improve the human resource division, and
finally, the solution offered to address the problem of information distribution is
to fill vacant positions, namely the coordinator who mediates between the central
kitchen and the part workers