JUNE 2011 ISSUE
e - ZINE
Handover Reduction Project: Shorten the customer felt timeliness
Increase productivity which gives direct impact to the quality of service is the key objective of Handover Reduction project Indonesia was nominated as pilot country to roll the project. The project that has been rolled out since May 3rd is now in define and implement possible solution stage. Process mapping and rootcause analysis for Indonesia, were conducted on 16 27 May 2011 with Target and William Sonoma as nominated client. During this period, Raul C. Asa Jr. and Arnold Mendoza Candelaria as GSC representatives, representative from Target Team, WilliamsSonoma and Catherine Wongsono (PEX Manager), identified the wastes in the processes, map generic requirements, identify the problem areas and then define a new ‘generic’ process. This new flow will be then tested and the results will be compared against the productivity and quality statistics gathered before the implementation. Catherine said
that Indonesia SCM volume is growing after the crisis, and need to improve more on performance aligning with the growth. “We would like to focus on growing our business and focus on the improving our quality and maximize our sidekick, GSC. We understand that there's always an area to improve in current origin-GSC process, there are some handover point identified in the current process and those handover has added the total turn time felt by the customer which is unnecessary, we would like to be the first to reap the benefit.” she added. Mapping and identify problem areas needs to be thorough and detail. And similar to other process improvement projects, challenges emerged during the process. It took some time for the team member in SCM to fully open on the idea of identifying areas of improvement. “Some have been so comfortable on their daily task; they did not see any as an improvement possibility. Raul and Arnold have been very open and patient to reveal these areas,
and get the mutual agreement from both origin and GSC” said Catherine. Much benefit can be earned from this project. “It help us identify unnecessary steps to get more efficiency in daily operational and can be used for best practice sharing for us” Lina, representative from Target team, said. By expected result to deliver a new origin process with reduced handovers between Damco customer teams and GSC, hopes will increase productivity as well as quality of service and shorten the customer felt timeliness. ”it’s very eyes opening on the process improvement. We have better understanding on both process which open possibility to reduce our workload.” Joklan , Williams-Sonoma team manager added. (Catherine W)
Updates of the Months Process Improvement training 3 Transportation Strike 4 Long Service Awards 6 Damco Aiming Chemical Industry 8
Damcoâ€™s Project Cargo BUT MENARD What is the cargo? Fundex F12 itâ€™s a Boring Machinery and accessories used to support PT Adhi Karya for construction additional on APRON 3 Terminal 3 Soekarno Hatta. The main purpose is to broaden the Apron for more international flights in Terminal 3. BUT Menard is the Main Sub Contractor for PT Adhi Karya. How is shipment process? Bidding has started since last year. Covering Door to door arrangement. Shipment was having a bit of challenge during the clearance process of the Temporary import arrangement but we managed to deliver the cargo safe and sound. The machinery will be used for 6-7 months time and will be returned back to Port Klang before end December 2011. Why Damco? Among competitors: BDP, PT Kencana Bahari Logistics and Lima Bintang, Cardig, Varuna; Damco Indonesia has won the business out from 3 times presentation covering on technical proposal, value proposal and temporary import arrangement. They use Damco because they trust that we can deliver the goods timely. This shipment has lead to Air freight shipment from France and Clearance and delivery for cargo form Australia. When are they delivered? The Boring Machinery delivered at site after midnight (Friday 26th 01.20 am) and the Open top Friday at 05.00 pm on Terminal 3 Soekarno Hatta. Who are in charges? Robertus Iswadi - Account Manager Muji Burrahman - Territory Sales Manager Noor Elysa Fauzie - Project Cargo Manager Lia Yuliarti - LSS and OOG Supported by Ops Team: Sri Rustanti and Aldes Islamy. Finance support: Juven, Uke.
TRANSFORMER ! What is the cargo? Cargo is Transformer Rectifier, designed to lower High voltage into low voltage. Rectifier is also able to convert AC to DC. Transformer Rectifier is used for the electrical system in the plant. How is the shipment process? Shipment is accommodated in Breakbulk. Carrier used is Rickmers Linie. MPV on Rickmers Tokyo sailed on 30-04-2011 eta JKT on May 19, 2011. Delivered to site on Thursday June 2, 2011 and working with LSS team on clearance. Why they ship with Damco? We are able to offer solution on shipping the Transformer Rectifier and the spare parts. Shipment project combined in Break-bulk (main Transformer Rectifier), Flat rack and containerized cargo (HC equipment) for the spare parts. We are able to offer competitive rate and total solution. The Transformer arrived and the spare parts are arriving soon. Who is in charge? Account Manager: Yosi Purnama Territory Sales Manager: Indra Agung Santoso Project Cargo Manager: Noor Elysa Fauzie Pricing: Lia Yuliarti Operation: Sri Rustanti, Aldes Islamy LSS Team: Sartono, Pandu Wirawan
Lean: Process Improvement Training and Roll-Out! Building on your 5S and VMS awareness, we will now step up a gear and roll-out the Process Improvement training for each team, one team per week (including branches!), during the next 2-3 months.
The roll-out will take the teams through the 10-Step cycle (Nike and Cakung CFS have already gone through half of it), spread to 1-2 hours sessions per day (not the whole day!) during the roll-out week, facilitated by Alister. This will be an excellent opportunity to learn while doing actual process improvement exercises. The roll-out week for your team will be communicated in the very near future upon agreement with your manager. (Alister)
An integrated flowchart visually showing your process steps and who does what
Issues (quality concerns) found in the process, quick wins, and prioritized issues
Root Cause Analysis
Identified root cause of the prioritized issues
Actions to be taken to solve the quick wins and prioritized issues, to be posted on VMS
DILO (Day In Life Of)
Visible and quantified data of % time spent in specific daily activities inspiring more action points
Best practices and not so good practices observed inspiring more action points
(E.g. weekly) measurement chart showing if the process performance is stable, and/or if it is improving
Visual board showing people, performance, improvement (e.g. Action Plan status), and customer information for daily and weekly team meetings.
Strike against Jakarta Road Restriction Road restriction in Jakarta, a new administrative policy restricting truck access to the inner city toll road has provoked various reactions. From public point of view, this new policy reduces traffic in morning and evening rush hour. They are very appreciate and supporting this new regulation. However, from transporter side, this regulation increasing their business cost. Restriction means they have to take alternative way which much longer and farther. This only will impact on their operation daily cost. ORGANDA (National Road Transport Operators Association) raised their concern to government to postpone the regulation until the supporting infrastructure built and ready. But after having several unnoticed complaining by government, ORGANDA plan to have strike on May 20th. “Stop Operation” strike will surely paralyze export and import activity, including Damco as we also member of ORGANDA. An intense meeting and discussion was held between both parties, which finally reached agreement. The agreement was Government will postpone and revaluate the policy and Organda will cancel the strike plan. Turn out there was another issue emerged from this agreement. Jakarta Governor Fauzi Bowo refused to cancel, but instead he insists to implement the policy. "I don't know what the transportation minister is thinking. He hasn't talked to me yet, but we will definitely implement what has been agreed on by the
regional administration," said Fauzi to JakartaPost. This is vital matter which gives direct impact to Damco business. Without any transportation, we surely unable to keep our business run. In respond to this situation, Damco chose to wait and see. Organda planned another strike on May 27 as their respond to governor’s act. The strike commenced at 6 am. Organda deployed satgas (internal security) to restrict truck operate. Even thou it was only one day strike, but it has disrupted our business activity. Latest update that we have about this issue is that Organda and government still haven’t reached final agreement. Road restriction is still being implemented and Organda threat to increase their rate to compensate the operational cost.
Our nest is getting roomy! Yup! Previously, we announced a lot of new stuff going on in Damco Indonesia – one of which is our literal expansion on our head office's 26th floor. Starting this month, Damco will extend the area on the 26th floor encompassing third quarter floor of office space. After getting through the global crisis in 2009 with flying colors, Damco's business and shipment volume have been increasing and hence, more space is needed to
accommodate a smoother workflow. We’ve now got plenty of space for our paper airplane challenges, puppy obstacle courses and probably enough room to get a full on game of indoor futsal!
Sneak peek on this Month
JUNE’11 Some Major event in this month, so do not forget to book your calendar !
Visitors 12 JC PENNY Visit to Warehouse and Port
11 - 13 SOREN SKOU, Board of Director Visit and TOWN HALL for managers
30 KENNY NGAI, Group Vice President - MACYS Visit Damco Indonesia
BERNARD HUTAGALUNG - 15 YEARS LONG SERVICE AWARD There’s a saying in Indonesian …“ Air tenang menghanyutkan”. In English, we also have similar expression …. “Still water runs deep”. That’s my impression about Bernard. He came across as a quiet & calm person. Many of his subordinates said that Bernard is as cool as a cucumber (makes me wonder how he will behave if there’s a fire…), and at first glance, judging by his outward behavior, many people thought that he is Javanese … at least until they know Bernard’s last name. Something which not many people know about Bernard, was the fact that he already completed post graduate degree in Economic Management, University of Indonesia. His best memory and proudest achievement, was his earliest years as junior staff, where he was entrusted by the management to deal with plastic raw material of Mitsubishi Kasei. The first warehousing business handled by this company. Bernard’s wish for the future is to be better at all things, as a person, as a leader, as a husband, and as a friend. (Inta)
Some of his peers & colleagues said: “ …. Ben, as far as I know is a good men and has high integrity to the company. His patient and experiences on some positions make him as the one who has a complete knowledge in Damco …” (David B. Pandjaitan) “ … I’ve never seen him angry, and to think that I’ve known him for more than 10 years … wow ….!!! “ (Lydia Simamora) “ .. Bang Ben is very calm, and very good anchor when you are in panic mode..” (Titi Sari) “ Bang Ben = understanding and listening” (Hana Luptiana) “ …Low profile, very patient, doesn’t seems like Bataknese to my opinion…” (Ninuk Ambarwati) “One of the most experienced colleague I have been working with in Damco, he is also down to earth despite having a lot of experience. It is not difficult to work along side of him…” (Asido Tindaon)
10 Years Long service awards:
Shoimah and Tata ‘Jelyta’ On 21st May 2011, Shoimah (Ima) and Jelyta (Tata) celebrate their 10th year Long Service Award for their dedication with Damco. Both of them joined the company on the same day and they are now working in same Damco PEX team. Shoimah (Ima) started her journey in Damco in SCM Adidas team, during that time not all of us have our own PC, she even need to move from 1 PC to another at the same time grasping new knowledge in Logistics, something new for her who took Communication as her major in University. After Adidas, she took up documentation in Nike team where she learnt valuable things, compliance to deadline and zero tolerance to mistakes. “It was tough at the beginning but we have to stay cool during those hard times, and now when I’m no longer in Nike, I have a good relationship even with Nike NLO”. After Nike, she is entrusted to join an interesting yet challenging role as FACT Super User back in 2006-2007 and thereafter, joined PEX for more than 1 year, where she become the system’s expert and becoming teacher for many of us in SCM. Her expertise and leadership grow further and after the implementation she is become FACT Super user across Damco Indonesia, at the same time managing a team of 11 people in FACT team. When we asked her view on how DAMCO progress for the past 10 years, she said, “DAMCO continues to evolve in fast paced towards a better tomorrow, creating a more conducive environment for the people. Transparency is further promoted in new rules, and everybody have equality in chance on developing themselves, and we become more specialized, we’re no longer a
hybrid doing A to Z tasks and much more automation in our process”. “No matter how tough is our work, let’s help one another from our colleague, our colleague is our friend, the people is the key success of DAMCO”, she concluded. Tata joined Damco as billing team. She was handling the billing of SCM team, in particular Adidas. She has been with Damco through the evolution of our billing system, from MIS, OASIS and the latest is FACT (SAP R/3). She is well known by the customer as a very calm person even when she handled an angry customer. We have known her with her amazing skill of ‘taming’ an angry customer through phone. She is a very dedicated person that strives to complete her work. She always gives the best she can do and complete the task she undertakes. She is a lovely mother of 3 children, 2 boys and 1 girl. Wishing them another happy healthy years to come. (Catherine W)
Wisnuaji’s House burned On Saturday 28th may 2011, the whole family including wisnuaji (Nike Team) was on the way to bogor to visit relative. The only person who stayed in the house was their maid. Not so long after the family left, the house was being fogged for dengue mosquito. After it's done and the fog is all clear, the maid toast a bread and left it for sweeping the front yard. Apparently after a while she forgot to check the toast, and got surprised by a blast from the kitchen. When she ran to the kitchen, the windows already broken and the flames was already reached to the ceiling, She screamed for help to the neighbor. The flames got to the car that parked in the garage next to the kitchen and explode it. It was so hard to call the fire company and while waiting for them to arrive, the neighbors passed the water hand to hand try to extinguish the fire, but it didn't work out well. And comes another explosion from 3 empty gas cylinders in the kitchen. 30 minutes after, the fire truck arrived and took out the fire. However 80% of the house was already burned. Since the house was totally damaged by the fire and not in proper condition to live in, now wisnuaji and his family is still staying at one of their family which located quite near. (Diah Wulandari)
Damco Aiming Chemical Industry Damco participated on the Dye+Chem expo 2011 at JIExpo Kemayoran, Jakarta. The event held 12-15 May, consists of 4 different industries, namely chemical industry, textile, leather products and Power & Energy. With hundred of exhibitors and thousands of visitors gave Damco high exposure on these industries, though we were aiming for chemical industry as one of our vertical industry segment. “We are one step closer to our customer, especially in chemical” said Harry Purwoko, National Sales Manager. Many benefit gained from this event. From establishing new contact with potential customer, sales leads, brand exposure, up to secured customers. With a good work from sales team, trade management, as well as SCM pulling many visitors to Damco booth. One of them was Trade minister of Timor Leste which got an explanation about Damco from Robertus Iswadi, sales on duty.
Gokart Racing! Morning mists slowly disappear as I drove my car to sentul kar7ng circuit. It was on May 28, a Saturday morning and I wanted to see the Indonesia Kar7ng Championship 2011 (ﬁrst round) where Damco sponsoring one of the racing par7cipant, AUS Motorsport. Passing the Jakarta inner-‐city freeway, I con7nued heading to Jagorawi freeway. Then I got call from Rosdiana, saying that she already in the circuit and wai7ng for me. Not for long aOer I took sentul exit gate and entering the racing complex, I saw rosdiana wai7ng at the entry gate. I grabbed my cell phone to call pak haru, the AUS team manager, informing that I’ve arrived at the circuit and wai7ng for the entry pass card. He came out through the crowd toward me and I wave him to be easily recognized. Then he gave the entry pass and asked me to follow him. The circuit was very crowded. Whirr of kar7ng car as par7cipants started to start their engine, noisy of the spectators really rushed my adrenalin. Kar7ng race was ﬁnally started, and it was very exci7ng to see them compete and lead the race. AUS motorsport, supported by Damco, ﬁnally manage to grab winner posi7on for each stage. But unfortunate for Cody, he failed to win as he was hit by another car on the last lap which made in the 10th posi7on. For the rest of the team: -‐ Rafa Salmun – 3rd Winner in Micromax Class -‐ Paul Halliday – 1st Winner Rotax Max Master Class -‐ M Rulli Armando – 1st Winner National Gearbox Class -‐ Cody Halliday – 10th position in Rotax Max Junior Class
Published on Jun 9, 2011