Business Process Reengineering Involving Information Technology in a Tin Mining Company

Abstract

This study aims to modify business process reengineering (BPR) by involving Information Technology (IT) and identifying critical factors in the case study of tin mining companies. Tin mining companies experience delays in the customs clearance process. The process of procuring imported goods from abroad requires the process of checking imported goods (custom clearance) through the Goods Import Notification (PIB) document. Errors or delays in making PIB for imported goods often cause delays in arriving at the warehouse. So it is necessary to change or redesign the process to reduce the delay. Based on the results of data processing on tin mining companies there are three critical factors cause errors or delays in making custom clearance documents, namely: (1) HS code and lartas certain goods do not have permits, (2) invoices sent by suppliers do not match actual data, and (3) The finance department is often late in processing payments bill. This research will produce recommendations to tin mining companies based on the results of BPR modifications. Recommendations for changing business processes for three critical factors causing errors and delays are (1) Utilization of IT in the process of sending information for each department, (2) Adding a pre-written process in the invoice flow by suppliers, and (3) Using IT and the existence of different document colors in the process of approval notes and bills of goods import approval documents (PIB). The results of this study are only recommendations for tin mining companies. So that there is no performance measure for the success of BPR modifications.