1. Improvement of Payment Procedure
“Standard Operation Procedure of Payment”
NHC Activity
Project Implemented By:
Rizki
Cipta
Carolina Haerul Maria Ayu Lutfi Vivi Dwi Retno
Makoto
Imaishi
Member Member Member Member Member Member Member Leader Advisor 1
19th Feb 2016 Finance team

2. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result
6. Overview of activity and future schedule

3. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result
6. Overview of activity and future schedule

4. Selection of Theme
Highest score was regarding improvement of “Payment procedure”
1
No PROJECT
PROJECT CRITERIA
SCOR
E
TOTA
L
PRIORI
TY
HIGH IMPACT EASY TO FIX
FINANCIAL
BENEFIT
(9: high)
INTERNAL/
EXTERNAL
CUSTOMER
SATISFACTI
ON
(9: high)
IMPROVE
EFFICIENCY
(9: more
efficient)
PROBABILI
TY OF
SUCCESS
(9: high)
PROJECT
SIMPLICITY
(9: project
simple)
COST FOR
IMPLEMENT
ATION
(9 :low)
1
Improvement of
payment
procedure
>implement efficient
Standard of Procedure
3 3 9 9 9 9 42 1
2
E-payment
request
>Payment request online
3 9 9 3 9 3 36 2
3
HTI-Financial
Commnet
>Sharing valued financial
Information
3 9 9 3 3 3 30 4
4
New Standard
procedure for PIB
Duty
>Standard Payment
Request for PIB Duty
3 3 3 9 9 9 36 3
5
Learn Japanese
Language
>To added value for each
employee
1 9 1 1 1 1 14 5

5. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result
6. Overview of activity and future schedule

6. Current Situation
Payment Problem cause additional potential cost around IDR 11.4 M /Year and
Delay Payment to Vendors
2
 Chart of Payment problem (qty invoices average per-month)
42%
68%
91%
100%
0%
20%
40%
60%
80%
100%
0
10
20
30
Incomplete Document Wrong Entry Wrong Flow Others
Count %Cumulative
Number of mistakes by types of
payment
Material
Logistics
OPEX
• Payment delay to
Vendor
• Lose vendors
trust
1 2
560
340
300
120
Total Loss time per Month
1,320 Minutes = 22 Hours
Incomplete Document Wrong Entry Wrong Flow Other
Total Loss
Hours
22hrs/month
Overtime cost
/hours
IDR43K
Total cost of
lost hour
IDR11.4M/Year
Take Additional Time and cost Effect to Outside

7. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result (Not yet collect effect)
6. Overview of activity and future schedule

8. Problem Analysis
Miss procedure caused by is the several factors
3
PeopleEnvironment
Methods Material
Miss procedure
make additional
time and cost
Logistic Vendor
Submit incomplete
Document
①Vendor don’t know
Standard document
Requirement of HTI
Human Error
②Lack of checking
And controlling
③New Staff
No refreshmen
Do It in rush
High Workload
Nobody feed back
to manager
Wrong entry
Incomplete
Documents
④No tools for
Feed back
Miss original
inv.subcont or tax
invoice subcont

9. Real cause and countermeasure
Implement 3 countermeasure to cover real cause of miss procedure
4
①Vendor don’t know
Standard document
Requirement of HTI
②Lack of checking
And controlling
③New Staff
No refreshment
④No tools for
Feed back
Why 1 Why 2
Real
Cause
Counter
Measure
Vendor only
send basic
doc. (Inv. &
Tax Inv.)
Vendor don’t
know the HTI’s
requirement
No formal
information
from HTI
Announce-
-ment
Letter to
Vendor
Making
Standard
Operational
Payment
Making
feedback
tools
Superiors
don’t know
checking point
No guidance of
checking point
for accounting
requirement
No Standard of
Accounting
requirement-
payment
Lack of
information
Only learn by
case
No Guidance
material
No record of
the mistake
Follow up the
mistake only by
verbal
Less follow up
& feed back to
previous
problem

10. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result
6. Overview of activity and future schedule

11. Action Plan 5Action Plan : “Theme”
Action Plan PIC 46Ki_1Q 46Ki_2Q 46Ki_3Q 46Ki_4Q 47Ki
Progress Confirmation Event 4 5 6 7 8 9 1 2 3 4 5 6
1. Check current Flow & Standard document
2. Check update HTI & External Regulation
3. Create SOP, Controling Tools & Announcement Letter
4. Send Announcement Letter to Vendors
5. Check & Review the Result
Accounting
Accounting
Accounting
Accounting
& GA
Accounting
& Section
▼ ▼
▼ ▼
▼ ▼
▼
▼
10 11 12
RevisionHistory
Details
0 4
1 5
2 6
3 7
Date Details Date
3rd Level
4th Level
5th Level Improvement of Payment Procedue
Author NHC Team 2 Dept Accounting Sep 30, 2015
Objective
1. To avoid problems of Payment
2. To support on job training for New HTI Member
3. Time efficiency
4. Standardize Payment Procedure
Environment Recognition , Current Problem Analysis
• No Standard Operation Procedure of Payment
• Wrong AP Record by section & accounting
• Incomplete document Payment
Target（Control Target and Attainment Basis）
1. Have Standard Payment Procedure on Feb 1st, 2016
2. Zero “0” mistake of Payment Procedure
Necessary Resource（Man・Thing・Money・Information）
1. Mistake Payment Procedue Data by Monthly Basis
2. Standard document comply with HTI & External Regulation
3. Announcement letter to Vendors (External)
Target Requirement（Thing should be done to achieve the target）
1. Create Standard Payment Procedure
2. Create & Send Announcement Letter to Vendors
3. Send Mistake of Payment Procedure Report by Monthly Basis
2nd Level

12. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result
6. Overview of activity and future schedule

13. Result (Not yet collect effect) 1
Already implement Letter to Vendor and SOP Payment
6
1. Announcement
Letter to
Vendor
Page 1
Page 2
2. SOP
Payment

14. Result (Not yet collect effect) 2
Our team not yet confirm the effect from our countermeasure,
So that will be next our plan
7
33%
63%
91%
98% 100% 100% 100%
0%
20%
40%
60%
80%
100%
0
5
10
15
20
25
PIC A PIC B PIC C PIC D PIC E PIC F PIC G
Count % Kumulatif
Wrong entry report by PIC
3.Checking
Tools
<1. Announcement Letter to Vendor>
1.Already sent on , Feb 9th, 16
2.Content:
a. Payment Schedule
b. Document Requirement
c. Deadline of Invoice submission to HTI
<2. SOP Payment>
1.Finished on Feb’16
2.Content:
a. Type of Payment
b. Standard document
c. Flow Chart
<3. Checking Tools>
1. Will start report on March , 2016
2. Content:
a. Vendor Name
b. Invoice Number
c. Type of mistakes
d. Name of PIC
<Effect from each countermeasure>
1. Countermeasure tools just done on
Feb’16
2. Effect from all countermeasure will be
apply on March, 16
3. Continuous report starts April, 16

15. Table of content
1. Selection of Theme
2. Current Situation
3. Problem Analysis
4. Action Plan
5. Result
6. Overview of activity and future schedule

16. Next Plan
We have a SOP Payment, deliver training, & improvement
8
<Benefit Provided by this NHC Activity>
 Having Standard Operational Procedure for Payment
 Having Checking Tools of Mistake Payment Procedure
<Area need improvement>
 Simplified Checking Tools of payment to update & report
 Update the SOP for prevent another mislead
Action Plan PIC 46Ki_3Q 46Ki_4Q 47Ki_1Q 47Ki_2Q 47Ki_3Q
Progress Confirmation Event 10 11 12 1 2 3 7 8 9 10 11 12
1. Explanation & Refreshment training
2. Review & Report the effect from Counter
measure
3. Received feed back from all section
4. Improvement
5. Report the progress & result countermeasure
payment
Accounting
& GA
Accounting
Accounting
& Section
Accounting
& Section
Accounting
▼
▼
▼
▼ ▼
▼
4 5 6