Proceeding of the 11 th International Conference on QiR (Quality in Research) Faculty of Engineering, University of Indonesia, Depok, Indonesia, 3-6 August 2009 ISSN 114-1284 1 Quality Improvement Using Model-Based and Integrated Process Improvement (MIPI) Methodology T. Yuri Zagloel 1 , M. Dachyar 2 and Febi Nur Arfiyanto 3 University of Indonesia, Depok 16424 Tel: (021) 7270011 ext 51. Fax: (021) 7270077 E-mail: yuri@ie.ui.ac.id 1 mdachyar@ie.ui.ac.id 2 febi1802@yahoo.com 3 ABSTRACT Industry environment is not just to meet customer requirement, but also to run their business effectively and efficiently in order to face the global competition. Although there are many methods have been developed, practitioner still finds difficulties when implement the methods. MIPI (Model-based and Integrated Process Improvement) by Sola Adesola and Tim Baines showed a holistic, structured and procedural guidance for improving business processes. MIPI is developed by reviewing and analysing current methodologies and selecting a few frameworks against key performance indicators.. By using MIPI methodology, industry not only can identify non value added activities in their processes but also can align with organization vision and mision. Hence, practitioners can have structured steps which are consistent and efficient when improving business process. Case study taken on hatchery produced Days Old Chicks (DOC) which identify business needs and problem areas using pareto chart shows that small and weak DOC is the highest rank (39%). As-Is Process Mapping also conducted to capture current business process architecture. Using Cause and Effect Diagram and Failure Mode and Effect Analysis (FMEA) organization can identify that improper heater control in hatchery machine is the main problem (Risk Priority Number : 36). Action plan created in to a matrix as road map for process improvement plan. Key words : MIPI, Seven Procedural Steps, Performance Indicator, Quality Improvement and FMEA 1. INTRODUCTION Growing and competitive industries creating high quality product or services as a compulsory requirement. While in the other side, company also requires to effectively and efficient in order to face dynamic business changes. In order to survive in such environment, reviewing, evaluating and develop plans for improving business process performance is a must thing to do. These activities called Business Process Improvement (BPI). Business Process Improvement (BPI) can be recognizing as an organized and planned business activity improvement methodology. Business Process Improvement is a structural approach to analyze and continuously improve company activity by focusing on waste elimination and bureaucratic. Under big BPI umbrella there are three common strategy and activity adopted by organization: Continuous Process Improvement (CPI), Business Process Re-Engineering (BPR) and Business Process Benchmarking. Although there are many method of BPI has been developed, practitioner still found difficulties when implement the methods. MIPI (Model-based and Integrated Process Improvement), a BPI method created by Sola Adesola and Tim Baines as a result from doctorate research showed a holistic, structured and procedural guidance for improving business processes. Research conducted resulting on identifying company’s criteria and target to improve its business process performance. 2. RESEARCH METHODOLOGY Model-Based and Integrated Process Improvement (MIPI) methodology is a Business Process Improvement (BPI) methodology from a research program by Sola Adesola and Tim Baines on Cranfield University, 2005. MIPI is a generic model of BPI consists of seven procedural steps as guidance for action and decision. MIPI methodology can be use for improvement process and engineering process initiative. This methodology describe ”what” to do and ”how” to make it happen. The structure for this methodology contains a hierarchical structure includes: aim, actions, people involved, outcome/exit, checklists, hints and tips, and relevant tolls and techniques Model-Based and Integrated Process Improvement (MIPI) was developed from literature and discussion from practitioners. This methodology has been tested in two steps. First, a single case study was carried out which the researcher participated to nurse the newly formed BPI methodology through assessment. The second step by conducting case studies without direct involvement from researcher. Detail of BPI steps is shown in Table 1 below.