Modern management model for KAREB Bojonegoro cooperative: Integration of ABM, lean six sigma, and RBV and TPB approaches

In global business competition, ABM helps cooperatives such as KAREB Bojonegoro Cooperative achieve cost efficiency without sacrificing quality. KAREB Cooperative's expenditure is very high, reaching IDR158.82 billion in five years, with the main costs on fuel, labor, and maintenance. Optimizing expenditure and cost management is important to reduce waste, increase efficiency, and profitability. Various studies have shown that Lean Six Sigma and ABM methods increase efficiency, reduce waste, and improve financial performance in various industries with proper implementation and intensive training. However, external factors, recent data, and regional variations, with deficiencies in data and methodology, and challenges in lean sigma implementation have not contributed simultaneously. This study offers the Integration of ABM, RBV, and TPB in Lean Sigma at KAREB Bojonegoro Cooperative because it is suspected that the condition of tobacco processing is not optimal and this approach needs to improve sustainable production efficiency. This study will analyze the implementation of ABM and Lean Sigma for cost control and waste reduction in tobacco drying at Kareb Cooperative with the contribution of Resource-Based View (RBV) and Theory of Planned Behavior (TPB) to improve process quality and optimal resource monitoring. This study uses a qualitative model with a case study method to assess the implementation of Activity-Based Management (ABM) in production cost efficiency, linking it with Lean Six Sigma, Resource-Based View (RBV), and Theory of Planned Behavior (TPB). Key informants from Kareb Cooperative Bojonegoro, including the Head of Production, Accounting, and HR, provided insights into the impact of ABM and internal factors on efficiency. The research instruments included in-depth interviews, observation, and documentation, while the research procedure followed a systematic flow to ensure the validity and relevance of the data. This study states that the implementation of ABM at Kareb Cooperative Bojonegoro allocates costs based on actual activities, improving efficiency and cost control. Costs include procurement of materials (Rp24,375,300,000), production (Rp9,216,862,000), and distribution (Rp6,000,000,000). Lean Sigma focuses on reducing waste such as overproduction, defects, and waiting by improving processes and training. The ability is quite large in identifying production inputs and related costs such as fuel (Rp14,375,300,000), raw materials (Rp10,000,000,000), and production and distribution processes. Waste management such as overproduction and waiting, as well as the implementation of ABM and Lean Sigma, aims to increase efficiency and reduce costs. Evaluation and training are carried out to optimize processes and reduce waste. Setting costs based on activities, while Lean Sigma uses the Just-In-Time (JIT) system. Variable costs are optimized, production is controlled to reduce defects,and distribution and storage are improved for cost efficiency. The keys to success are open communication, management support, and intensive training. The implementation of ABM and Lean Sigma in Kareb Bojonegoro Cooperative effectively reduces costs and waste through training, JIT, and process control. These findings are expected to increase productivity, reduce costs, and improve the competitiveness of cooperatives and provide a model for implementing modern management.