Designing Improvement of Procurement Business Process Reengineering Approach : A Study Case of Insurance Company

Abstract

Streamlining procurement process is one of the strategies to reduce cost of a company, especially in the insurance industry. This research aims to propose design improvement of procurement process in insurance company by implementing Business Process Reengineering (BPR) method. Data collection regarding procurement process was collected in one of life insurance company in Indonesia. This research uses BPR method which consist of three steps namely mapping as-is process, analyze as-is process, and modeling to-be process. Mapping as-is process using iGrafx standard Business Process Modeling and Notation (BPMN). Analyze as-is process by its process time to indicate problems. Modeling process to-be by using BPR best practices that will be prioritized using AHP method and selected using pareto analysis. Scenarios for to-be process then created based on the selected best practices, that will be inputed into the simulation model iGrafx standard BPMN. This research produces three scenarios of to-be process for procurement in Indonesian insurance company that reduce 35-76% of the process time compared to as-is process.