In line with its strategy and business target to become a World Class Company in the midst of the dynamically changing business climate and an increasingly competitive industry, it is necessary for all lines of the Company to be agile in responding to and handling business opportunities in work to improve the Company’s competitiveness.
The changing business climate is influenced by various factors, including changes in policy by the ownership, the Company’s business orientation, competition conditions, and increasing demands by the stakeholders. Therefore, the Company requires an effective and efficient procedure to ensure:
• Satisfying the needs and hopes of stakeholders.
• Rapid response by the Company to the dynamically changing business strategies.
• Rapid strategic decision making.
• Ease of knowledge transfer.
• Creation of a High Assurance Organization.
In creating this effective and efficient governance, the Company has applied an integrated management system referring to the principles of good corporate governance, the Semen Indonesia Management System, which covers:
• Quality Management System (ISO 9001),
• Environmental Management System (ISO 14001),
• HSE Management System (SMK3-OHSAS 18001),
• Testing Laboratory Management System (ISO/IEC 17025),
• Risk Management System (ISO 31000), dan
• Other Management Systems, and
• Improvement programs through the application of Innovation Management
The application of the Semen Indonesia Management System (SMSI) is expected to provide added value for shareholders in particular, and stakeholders and the public in general.
The Semen Indonesia Management System (SMSI) was built based on the Company’s business processes, integrated with the Quality Management System ISO 9001 in the expectation of building a comprehensive and flexible Management System able to respond to dynamic changes in strategy and company organization, while remaining orientated toward stakeholder expectations.
Through this management, the Company formed the P2M-SMSI (Improving and Refining Quality in SMSI) Team assigned the following duties and responsibilities:
Review, refine and improve the Management System with reference to Quality Management System ISO 9004;
Integrate existing systems, including Process Integration, Documentation and Implementation;
Refine and Improve the Automated Document System through document control software;
Evaluate the effectiveness of the Management System application and close out findings resulting from the Internal Audit and External Audit.
In the Semen Indonesia Management System implementation, integrated audits are also conducted to
ensure application of the management system consistently and with consequence. To ensure continual improvements, the Company also determines policies for Innovation Management System (IMS) application consisting of Innovation, Quality Control Groups, the 5R Program (brief, clean, tidy, maintained, diligent), Suggestion System, and Total Productive Maintenance. The Total Productive Maintenance program has now been upgraded with the application of Reliability Centered Maintenance (RCM) and the Quality Control Project to achieve international-class operational management in accordance with the Company’s vision.
The role of the Semen Indonesia Management System (SMSI) in the corporate transformation process to become a Holding Company has been:
• Adjusting the Management System certification.
• Adjusting the SMSI documentation system.
• Mapping and compiling all the Company’s business processes in the Holding Company and Operating
• Standardizing the Management System in Semen Indonesia.
Performance in the Semen Indonesia Management System (SMSI) in 2012 has resulted in the following:
Improved implementation of Innovation Management System (IMS) imbuing the Company with a culture of innovation and strengthening the SGG consolidation spirit.
Building the Innovation Management System (IMS) application as a media innovation Creating, Classifying, Sharing, Re-using and Documenting.
Implementing the Semen Indonesia 2012 Quality Convention, a competition for Incremental Innovation within the Semen Indonesia Group.
Implementation of the Semen Indonesia Award on Innovation 2012 as a competition for Breakthrough Innovations within the Semen Indonesia Group.
Obtaining the Nominee SNI Award 2012 award in the large goods company category from BSN.
Attaining a score of Good Performance in the Malcolm Baldrige-based Excellent Performance Assessment by the SOE Ministry.
Attaining the Gold level PROPER award from the Environment Ministry.
Attaining a level V Green Industry Award from the RI Industry Ministry.
Attaining the Pioneering Technology 2012 Award from the RI Industry Ministry.
Receiving awards for innovation at national and international conventions, as follows:
– 3 Gold and Promising Candidate Facilitator at the Indonesian Quality Convention (IQC) 2012 in
– 2 Platinum, 6 Gold and 4 Silver at the Quality Work & National Productivity Gathering (TKMPN) 2012
– Team Excellence Competition in the International Exposition Team Excellence (IETEX) 2012 in
– Gold Award in the International Convention on Quality Control Circle (ICQCC) 2012 in Malaysia.
– Team Excellence Exhibition in the Asian National Quality Congress (ANQ) 2012 in Hong Kong.
– Team Excellence Exhibition in the Asia Pacific Quality Conference (APQO) 2012 in Sri Lanka.
– Team Excellence Exhibition in the Bangkok International Quality Symposium (BIQS) 2012 in
In addition to the above, the implementation of SMSI demonstrates a reflection of the principles of GCG,
covering transparency, accountability, responsibility, independence and fairness.
– Establishment of standard procedures to define the Mission, Vision, Strategy, Policies and Targets that have been cascaded to the smallest work unit, as well as managed use of good software applications, providing clear direction to achieve the Company’s Mission and Vision and facilitate the stakeholders to monitor and oversee through online dashboard management.
– Establishment of standard procedures covering all activities related to company management and the
application of ERP & automated (online) systems ensuring transparency and ease of access for stakeholders, as well as facilitating supervision and internal and external control.
– Establishing standard procedures to evaluate the Company’s performance periodically (daily, weekly, monthly, annually) with the aim of triggering all the company’s instruments to continually improve and create innovation to improve the Company’s performance and improve added value for stakeholders.
– Establishment of an Organization Structure in line with the Mission, Vision, Strategy and goals; descriptions of duties and responsibilities; and competency requirements for each of the Company’s instruments holding a position as well as management to ensure effective and efficient corporate management.
– Establishment of standard procedures based on the cycle Plan, Do, Check, Action and always reviewing and refining through the SMSG Quality Refinement & Improvement Team (P2MSMSG Team) periodically to guarantee effective business management and improve accelerated achievement of the Company’s vision.
– Establishment of standard procedures for Internal Audit to ensure implementation of the check and balance mechanism and application of the Company’s internal control systems.
– Establishment of Key Performance Indicators (KPI) for each of the Company’s instruments with a cascading mechanism for Corporate KPI to the smallest work unit to ensure consistency and alignment with the Company’s targets, strategy, vision and mission.