Analyzing Sales Challenges with Root Cause Analysis to Enhance Business Process

Andreas Maruli Tatar Nainggolan

STIE Malangkucecwara Malang, Indonesia.

Wiyarni Wiyarni *

STIE Malangkucecwara Malang, Indonesia.

*Author to whom correspondence should be addressed.


Abstract

Aims: The purpose of this study is to analyze sales problems of a company using root cause analysis to support business process improvement.

Study Design:  This study is qualitative approach and uses Root Cause Analysis to analyse the data.

Place and Duration of Study: To maintain company confidentiality, this research uses the name of XYZ instead of the actual name. The object of this research is XYZ Company that company engaged in the wholesale trade of car parts and accessories, retail trade of vehicle parts and accessories, between August 2023 and December 2023.

Methodology: This study used mixed method approach (qualitative and quantitative).The informants in this study were divided into internal and external sources. Informants from internal sources come from Directors, Commissioners, Area Sales Managers, Finance Administration and Tax Managers, HRGA Managers, and Branch Managers. The external informants of this study are external informants are Senior Trainer Performance Excellence, Founder & Trainer Expert Club Indonesia. The data also collected from results of the meeting minutes at the time of the Sales Gathering, and minutes of branch sales performance evaluation meetings.

Results: The results of this study indicates the most dominant cause of the problems are customer database not update, Apps Upgrade and Notifications, Address and location do not match, and Force Majeure conditions (flooding business premises). The solutions are standardization, automation and/or mechanization, and improve sales person capability.

Conclusion: Increasing sales is the main thing that top management wants to achieve for all teams under it, to support business process improvement; has been proven by changes in results or ongoing improvement processes using root cause analysis in an effort to resolve problems that occur and continuous improvement or improvement.

Keywords: Root cause analysis, business process improvement, fishbone diagram, logic tree diagram


How to Cite

Nainggolan, Andreas Maruli Tatar, and Wiyarni Wiyarni. 2024. “Analyzing Sales Challenges With Root Cause Analysis to Enhance Business Process”. Asian Journal of Economics, Business and Accounting 24 (6):450-63. https://doi.org/10.9734/ajeba/2024/v24i61373.

Downloads

Download data is not yet available.

References

Hult GTM, Hurley RF, Knight GA. Innovativeness: Its antecedents and impact on business performance. Industrial Marketing Management. 2004; 33(5):429–438. Available:https://doi.org/10.1016/j.indmarman.2003.08.015

Minister of Trade of the Republic of Indonesia. Regulation of the minister of trade of the republic of Indonesia number 24 of 2021 concerning engagements for the distribution of goods by distributors or agents. 2021;1–10.

Minister of Trade of the Republic of Indonesia. Regulation of the minister of trade of the republic of Indonesia number 22/M-DAG/PER/3/2016 concerning general provisions for the distribution of goods. 2016;1–15.

Minister of Trade of the Republic of Indonesia. Regulation of the minister of trade of the republic of Indonesia number 66 of 2019 concerning amendments to regulation of the minister of trade number 22/M-DAG/PER/3/2016 concerning general provisions for the distribution of goods. 2019;1–6.

Elangovan S, Jusoh MS, Muhd Yusuf DH, Ismail MS, Hj Din MS. 8D problem solving methodology: Continuous improvement in automation organization. Journal of Physics: Conference Series. 2021;2129(1).

Available:https://doi.org/10.1088/1742-6596/2129/1/012017

Harrington HJ. Business process improvement: The breakthrough strategy for total quality, productivity, and competitiveness. McGraw-Hill, Inc; 1991.

Larasati SD, Wicaksono SA, Wardani NH. Business process improvement using the business process improvement (BPI) method (Study at the Marketing Research Section and Customer Service Center of PT. Petrokimia Gresik). Journal of Information Technology and Computer Science Development. 2017;1(11):1425–1432.

Available:http://j-ptiik.ub.ac.id

Pratama II, Pramono D, Setiawan NY. Business process improvement using the business process improvement (BPI) method (Case Study in the UTD Logistics Implementation Section of the Indonesian Red Cross (PMI) Malang City). Journal of Information Technology and Computer Science Development. 2018;2(12):6705–6712.

Andersen B. Business process improvement toolbox (Second ed). ASQ Quality Press; 2007.

Badan Standardisasi Nasional. Sistem manajemen mutu – persyaratan (ISO 9001:2015, IDT): Vol. ICS 03.120. 2015;1–53.

Oakes D. Root cause analysis: The Core of Problem Solving and Corrective Action; 2009.

Nikita N. 5 Why ’s and Ishikawa: Practical guidelines for effective root cause analysis (pp. 1–17). Expert Club Indonesia; 2020.

Serrat O. The five whys technique. Knowledge Solutions; 2009. Available:https://www.adb.org/sites/default/files/publication/27641/five-whys-technique.pdf

Gangidi P. A systematic approach to root cause analysis using 3 × 5 why’s technique. International Journal of Lean Six Sigma. 2019;10(1):295–310. Available:https://doi.org/10.1108/IJLSS-10-2017-0114

Jeston J, Nelis J. Business process management practical guidelines to successful implementations (Second Ed). Elsevier Ltd; 2008.

Dewi LP, Indahyanti U, Hari SY. Business process modeling using UML and BPMN activity diagrams (FRS Online Case Study). National Seminar on Industrial Engineering Waluyo Jatmiko V. 2012;1–9.

Fatmawati AK, Ana RS, Setiani, Muis A. The effect of ceramic sales on the performance of ceramic craftsmen with digitalization as a moderation variable . Asian J. Econ. Busin. Acc. 2023 Aug. 9 [cited 2024 May 16];23(18):148-59. Available:https://journalajeba.com/index.php/AJEBA/article/view/1065

Creswell JW. Research design: Qualitative, quantitative, and mixed methods approaches (Fourth Ed). SAGE Publications, Inc; 2014.

Creswell JW, Poth CN. Qualitative inquiry & research design: Choosing among five approaches. In Sage Publication (Fourth Ed). SAGE Publications, Inc; 2016.

Taher D, Cahyono BE. Lean six sigma (LSS) yellow belt training: Vol. LSS YB (Issue Day 1, pp. 1–152). Expert Club Indonesia; 2021.

Latino RJ, Latino KC, Latino MA. Root cause analysis: Improving performance for bottom-line results. In root cause analysis: Improving Performance for Bottom-Line Results, Fourth Edition (Fourth Ed). CRC Press; 2011.

Available:https://doi.org/10.1201/b10988

Hall JA. Accounting information systems: Seventh Edition (Seventh Ed). Cengage Learning; 2011.

Kaplan RS, Norton DP. Strategy maps: Converting intangible assets into tangible outcomes. harvard business school press; 2004.

Mind Tools. Root Cause Analysis. Mind Tools; 2014. Available:https://www.mindtools.com/ag6pkn9/root-cause-analysis

Tjahyono E. Analysis of causes and efforts to reduce lost sales that occur at PT Emaro Online Indonesia. Titra Journal. 2018;6(2):215–222.

Weske M. Business process management: Concepts, Languages, Architectures. Springer; 2007.

W Mushollaeni W, Suhendri H. Business image improvement and quality of products of meatballs household business and catering. J. Econ. Manage. Trade. 2015 Sep. 9 [cited 2024 May 16];10(2): 1-7. Available:https://journaljemt.com/index.php/JEMT/article/view/347

Kim G, Suh Y. Semantic business process space for intelligent management of sales order business processes. Information Systems Frontiers. 2011 Sep;13:515-42.