ABSTRACT
The processes of financial recording and billing are critical components of financial management within organizations, including those in the education service sector. However, at PT Hikari Bridge Indonesia, these processes are still carried out manually, are not integrated, and heavily depend on a single administrative staff member. This condition leads to various issues that pose challenges in terms of both process efficiency and risk control. This study aims to develop a Value and Risk Mapping (VRM) model by integrating Value Stream Mapping (VSM) for activity mapping and Failure Mode and Effect Analysis (FMEA) for risk analysis. VSM is utilized to classify activities into Value Added (VA), Non-Value Added (NVA), and Necessary Non-Value Added (NNVA) categories, along with calculating the Process Cycle Efficiency (PCE). FMEA is employed to evaluate potential failures through severity, occurrence, and detection parameters, which are used to calculate the Risk Priority Number (RPN) as an indicator of risk level. Additionally, a risk classification symbol based on RPN is introduced to support the visualization in the VRM. The developed model demonstrates that VRM provides two crucial types of information in a single visualization: process effectiveness (lean) and potential failure (risk). The initial (existing) VRM condition reveals a dominance of NNVA activities, with an average processing time per transaction of 681 seconds (11.35 minutes), and a PCE of only 9.92%. It also identifies 32 potential failure points, consisting of 5 high-risk, 7 medium-risk, and 20 low-risk items. After the improvement phase (VRM Improvement), the processing time was reduced to 34 seconds (0.5 minutes), all RPN values fell within the low-risk category, and high-risk activities were successfully eliminated. The PCE increased to 23.52%, indicating a significant enhancement in efficiency. This study demonstrates that the integration of VSM and FMEA through the development of the VRM model can effectively identify priority areas for improvement in a single visualization and facilitate process integration. The model can be applied to other institutions with similar characteristics and contributes theoretically by expanding the function of VSM into the context of operational risk management.
Keywords: FMEA, Process Mapping, Risk, VRM, VSM