The process of asset management in universities does not utilise good information system. Many processes are still done manually and not integrated automatically using the system. Furthermore, the existing system is not ideally applied and causes it to run improperly, which obstructs its implementation. Therefore, the purpose of this study development is to solve problems faced by universities using business process re-engineering to gain significant improvements. The process of managing assets and repairs mapped and analyzed using the unified modeling language (UML). There are up to 3 alternatives and 2 scenarios in each procedures during the making. The result of this observation is a new design process simulated using iGrafx to examine the proposed refinement process.
By using time as the main parameter, the results of the simulation study showed a procedure time reduction in Procedure of Routine Consumable Goods/Stationary up to 8.40%, Procedures of Maintenance and Repair Facility up to 10.68%, Procedures of Registration/Recognition and Report Public University Assets up to 10.73%, Procedure of Removal Assets Owned by Universities up to 34.72%, and Work Instructions for Asset Stocktaking in Public University up to 27.97%.
Keyword: information system, asset management, business process re-engineering, enterprises resources planning.
Public universities should be able to be the main reference of the nation's progress. Therefore, universities must keep doing innovation in various fields. One thing that becomes artery in college is asset management. Good asset management can reduce the losses that might be occurred to an organization. In other words it is clear that the performance of an organization depends on its ability to create and protect the values of environmental, social, and cultural. The University has a limit of certain conditions in the different decision-making process of the company; results obtained from differences of their structure, especially their strategic goals and operational objectives. In the other hand, universities are required to generate rational decisions and sustainable by using experience and knowledge. To position themselves in the education and observation, higher educational institution must consider business and behave as corporate actors who act strategically, not only in the internal organization, but also in the external in terms of seeking suitable position with the external environment and stakeholder. Asset management process in universities do not utilize a good information system very well. Many of the processes are still done manually and not integrated automatically using the particular system. Furthermore, the existing system is not ideally applied and causes it to run improperly, which obstructs its implementation.
2. LITERATURE REVIEW
AM is a combination of management, finance, economics, engineering and work practices applied to physical assets with the purpose of being able to provide the level of excellent service in the most cost efficient (Prawoto, 2016). The purpose of AM is to enable an organization to achieve its objectives through the provision of appropriate asset solutions. In determining these solutions, there are several things to consider, including the cost of the life cycle, the choice of procurement, terms and conditions, project constraints, the opportunity to recycle, budgeting income and opportunity to obtain value-add (Barrett & Baldry, 2003). AM implementation at the organization will be very closely related to information systems. By using the information system, the system is good and the integrated AM will be awakened.
The earlier study and knowledge define the information system as the element that regularly interconnected to form a framework that supports the decision-making process, to accommodate even distribution of information, collecting data, and if necessary, can provide advice (Köylüoğlu, Duman, & Bedük, 2015). The purpose of the information system is to process the data then that data be integrated with other components interconnected systematically to meet the needs in data processing. In addition, the information system also mediates technical fields and field management within the organization. In the last few years, many academia has started to realize the importance of information systems and the latest technologies to support sustainability in educational field. This happens because the information system can enhance the competitiveness of the university (Dachyar & Dewi, 2015) is based on research conducted by Dachyar & Dewi (2015). However, if combined with ERP system, information system could give better values. ERP system is a system that could be used to integrate business process. The purpose of ERP system is to add value and reduce the cost by providing accurate information for those who need it. The usage of ERP system may support decision making which is related to resources management. ERP aims to increase the utilization of business process to be more integrated and fast in terms of its implementation, corresponding with the best practice. Other alternative to function the system is by maximizing the speed of transferring information, decrease the amount of time needed for responding to customers and suppliers, and supplying the right information to make a decision. Most importantly, ERP integrates the information on supply chain companies that may have implications on cost reduction, inventory reduction, and improve the operating performance (Sunmer, 2014).
There is always a relation between the business process and information systems involved in the issue of AM. Business process could be defined as series of interconnected activities which uses the power of the company (Vuksic, Stemberger, & Jaklic, 2002). Aside of that, business process is a set of activities that transform one or several input to become output that gives value to the consumer (Hammer & Champy, 1993). Business process is a network of activities done by resources and transform input to become output (Anupidi, Chopra, Deshmukh, Mieghem, & Zemel, 2006).
Based on earlier research, the problems in the business process can be completed in two ways, namely using a BPR or BPM. However, to obtain significant results BPR method is used to solve the problems. BPR is the thinking and redesign fundamentally and radically in order to achieve improvements in critical processes dramatically in certain sizes such as cost, quality, service, and speed (Hammer & Champy, 1993). In the implementation of BPR, there are two major challenges, namely socio-cultural and technical. The challenge of social culture can be a change from the original structure into a functional organizational structure based processes. While the technical challenges can be the development of a new process designs that differ from the current process (Aldowaisan & Gaafar, 1999). There are five steps in BPR, which prepare for re-engineering, map and analyze as-is process, design to-be process, implement reengineered process, and improve process continuously (Muthu, Whitman, & Cheraghi, 1999).
To make improvements in business processes, the mapping on the as-is and to-be is needed. This mapping is done by using Object Oriented method (OO) using Unified Modeling Language (UML), which is used for detailing, visualizing, and documenting models of software systems that comprise the structure and design so as to meet the needs of consumers of such software. However, UML can also be used to model business and model the system that are not software (OMG, 2005). UML is described into 2 main forms, which are “use case diagram” that illustrates what is being done by system from the researcher perspective from external system. This diagram explains the function of a system and its user (Kanwalvir & Himanshu, 2011). It also shown function of a system and user that are going to interact with the system itself (Alhumaidan, 2012). The second form is “activity diagram” that illustrates the workflow that shows the arrangement and order of activities whilst also shows who perform the particular activities. Activity diagram is commonly used for describing the workflow, because it is easy to understand, simple, and has a capability of explaining various situation in one set (Podeswa, 2005).
3. RESEARCH METHODOLOGY
This research uses BPR method, which then divides the process into 3 major steps. There are “prepare for re-engineering”, “map and analyze as-is process”, and design to-be process”.
“Prepare for re-engineering” is done to understand the business process of asset management in the universities. There are eight procedures in asset management process in universities, which are provision of consumables, maintenance and facilities reparation, record the asset through operational cost, record of asset through supplying process, report the asset, assets elimination, inventory in working unit, and inventory in the work unit.
“Map and analyze as-is process” is done after the understanding of the preliminary condition of the asset management process system. This stage is supported by UML in the modelling. The diagram used in the modelling is “use case diagram” and “activity diagram”. The one modelled system will be analyzed and evaluated.
“Design to-be process” is done by doing the benchmark on the first condition from asset management. The design of the new system is going to be simulated using iGrafx to overcome best scenario.
4. DATA AND RESULTS ANALYSIS
The initial condition of asset management “use case diagram” model is presented in Figure 1, while the example of the activity diagram is illustrated in Figure 2. In the making of as-is process, the mapping of each activities and decision making of every procedures are done. Mapping is done to acknowledge the duration of an activity and determine probabilities in each choices. These probabilities include the “yes” or “accepted” happenings and vice versa. In addition to, the mapping is done to know the type of activities, whether they are “value added” (VA) or “non-value added” (NVA), and also the expansion and discussion of the issue regarding each activities. Asset management process is also illustrated and simulated corresponding with the existing procedure.
The next step after having the result of simulation is determining the real issue. From the mapping done in the previous step and categorizing every problems, there are 5 major issues, namely the process that takes too long, the manually-done work, similar processes, unimportant processes, and repetitive tasks. To solve these problems, the solution offered are cutting activities which do not give additional values towards the process (eliminate), uniting activities that have similar function or purpose (combine), splitting activities (separate), simplifying activities based on its purposes and adjusting it with other activities, and doing automation or integration with the system. The summary of the issues and solutions is applied in Table 1.
From the gained result, the alternatives are generated corresponding with the issue. There are several points which are needed to be focused on beforehand. The first one is the activities that take a similarities or related from the operational side. The last one is the activities and actors that have unclear and unnecessary function. These points show main problems happened in AM in universities. After knowing and understanding these points, the alternatives for reparation could be observed. Those alternatives could be seen in Table 2. Based on the alternatives presented in Table 2, the appropriate scenario is produced, with the consideration of each procedures. The scenario in this process is based on 2 things, which are using the information system and not using any. In this case, the information system used is ERP with the Oracle software. The scenario of reparation produced is presented in Table 3.
Use case diagram from the repaired process is shown in Figure 3. Here, there is a procedure reduction from eight to five. Reduction of this procedure can occur by combining procedures can be put together. Procedure pooled, among other procedures for recording operational cash asset acquisition, asset acquisition recording procedures for procurement and reporting asset procedures. This procedure is combined as a procedure that is both sequences. But in fact this procedure is fractured and there is a delay when the simulation is large enough at the end of each procedure. Then the inventory procedure carries the merger between inventory and inventory compilation university faculty. This is also done because it has a sequential flow and delay occur at the end of the inventory process faculties. Figure 3 shown the use case diagram of the results of the improvements made. In the provision of consumables, there are no activities are cut, because basically it is just the reduction of decision making, happened because of the reduction in scenario 1. In scenario 2 the use of documents reduced from five different documents being no documentation at all with the help of information systems. For maintenance and repair facility procedures scenario 1 of 12 activities into 7 activity and decision-making from 3 to 2 decision. While in the second scenario only occurs a reduction of one document. In the procedures for recording and reporting the assets of 28 to 19 activities. To document only reduced one for scenario 1. The scenario 2 reduces only 2. This occurs because as for the document on the procedure is not removed because it is a sensitive and related to reporting to the intuition that others who do not have an integrated system. For the procedure for removal of goods from the 16 activities to 13 activities and decision-making from 5 to 4 decision. Just like the previous procedure, this procedure is not reduced because the document is also sensitive in nature. On the inventory procedure from 14 to 10 activities and activities of the 10 document be 8 document in scenario 1. As in scenario 2 to 9 activity and 5 document. Comparison of processing time for each procedure are shown in Table 5. The degree of reduction of the time performed by each of the scenarios shown in Table 6.
Based on the result of simulation, the researcher conclude that BPR method and ERP system implementation are able to accelerate the process significantly.
By clarifying, reducing, and combining activities that are unclear, unnecessary, or repetitive, it could reduce personnel expenses in managing assets.
...(download the rest of the essay above)