Operation Strategy Formulation in GKSI Boyolali Milk Treatment Industry

Abstract- GKSI (Union of Indonesian Dairy Cooperatives) Boyolali is milk treatment industry currently specializing in condensed milk and focus to do B2B as contract manufacturer. They faced pressure on profit margin due to tighter competition and increasing raw material and utility cost. The company did not success on fulfilling market requirement and managing their resources affecting to uncompetitiveness on their business. The purpose of this research is to propose strategy formulation to improve their performance through corporate, business, operation strategy. Conceptual model to be used in this research is strategic management model about strategy hierarchy and operation strategy model by Slack and Lewis. The data to support analysis were collected through in-depth interview with people in the company, observation, historical data of the company, and information from public news. Corporate strategy formulation began by doing external and internal analysis, then summarizes it into SWOT. Then, it would use IFAS-EFAS, Grand Matrix, GE Matrix, and TOWS Matrix to determine directional strategy. Business strategy would use Porter Competitive Strategy. As final output, operation strategy formulation would determine performance objectives that considered pivotal for the company. Then, it continued by determining the excellent strategy through operation strategy matrix with prioritizing the certain area that become critical structural and infrastructural decision. In corporate level strategy, the direction of company is stability and selective investment. Business strategy that suit the most for their current condition and capability is differentiation. With quality and speed are the most pivotal performance objectives, the company should focus to acquire cooling technology for production process (structural decision), product and service development and improve standardization on production (infrastructural decision). On implementing those strategies, they could try to install tubular heat exchanger, improve customization level, and improve HACCP (Hazard Analytical Critical Control Point) system implementation in production process. Keywords: Milk Treatment Industry, Contract Manufacturer, Operation Strategy, Structural and Infrastructural Decisio

Multipe Regression and Productivity Analysis of Modjopanggung Sugar Factory

Modjopanggung sugar factory is located in Tulungagung have problem in sugar production and productivity that less effective, based on that case, question of this research is  about some factor of productivity, how to increase sugar production, and productivity, and the purpose is to know the most significance factor that influence sugar production and to measure productivity of Modjopanggung in 2010.The step to start this research, first problem formulation, theoretical foundation, model formulation, data collection and analysis, and conclusions and recommendations. In this research use multiple regression model that use sugar production as dependent variable ,and factories sugarcane own field wide, farmer sugarcane field wide, sugarcane sucrose content  average from factories sugarcane field,sugarcane sucrose content average from farmer sugarcane field, factories efficiency, truck unit, yesterday sugarcane remnant ,sugar milling day amount, milling capacity as independent variable, and in productivity measure use labor, sugarcane material, capital, fuel, electricity as input and income from sugar and tetes as output. Methodology of research is by interview and observation to factory. The result is amount of truck unit and farmer sucrose content is the most significant among all variable to increase sugar production with positive sign, mean increase in them also increase sugar production, adjusted r square 0.997 mean 99.7% of sugar production can explained by result of independent variable, t value in 0.1298 that still inside acceptance area, mean no difference in forecast and reality of sugar production. Productivity in 2010, ratio of partial output and input all more than 1 mean output can cover input, but in multifactor and total factor less than 1  mean addition of input productivity factors actually can not cover by output factor, with lowest partial output factor is electricity and highest partial output factor is sugarcane material. The suggestion is better policy to increase truck unit and farmer’s sugarcane content and effectivity in labor quality, sugarcane dividend with farmer, capital usage, fuel alternate and usage, electricity efficiency. Keywords: Sugarcane production, multiple regressions, productivity analysis, PG Mojopangun

Decision Analysis of Airbrake Midterm Production Planning at the Machining Department, PT 'X' Bandung

PT 'X' Bandung is a state-owned companies and one of its products is vehicle. One of the important subassemblies of the vehicle is the airbrake. This paper is aimed finding and selecting feasible midterm production plan alternatives for the Machining Department for the production of air brake for the upcoming scheduled three consecutive periods, namely period 1 (12 days), period 2 (12 days), and period 3 (27 days) using decision-making methodology base on Hayes et al., consisting of evaluating the existing capacity to meet orders, defining alternatives for meeting those likely orders, performing financial analysis of each alternative, assessing key criteria or key issues for each alternative, and selecting and defending the alternative to be pursued. We calculated that the existing capacity was insufficient to meet the orders, and therefore,we developed four alternatives. The first alternative was trying to meet the demand using the available resources by accepting the lateness in which penalty costs would have to be calculated based on the contract agreement. The second alternative was adding capacity through overtime and in this regard the overtime costs would be calculated. The Thrid alternative was adding capacity by purchasing new machines in which capital required would be calculated. And the last alternative was a mix of overtime and the addition of new machines and the related costs would be calculated as well. The alternative with the least cost would be selected. Based on our analysis using two criteria, namely compliance to schedule and costs, we conclude that the last alternative is the best production plan for the company in meeting the demand of airbrake for the upcoming three periods.Keywords: midterm production planning, decision making methodology, airbrak

Analysis and Proposed Service Quality Improvement of PT. Prudential Life Insurance Indonesia

Abstract. This study aimed to determine the level of satisfaction of the policy holders in PT . Prudential Life Insurance Indonesia over the quality of service provided to the policy holder until today . In this study , the writer used SERVQUAL as a measure of a company's services to the consumer’s  satisfaction . This study used a questionnaire which was distributed to 170 respondents as a consumer of product in PT . Prudential . Questionnaire results shows that the level of customer satisfaction dimensions of service quality assurance , reliability , empathy , responsiveness and tangible need a lot of improvement . Analysis results prove that there is a gap between perception and expectation. Of the analysis indicated that there are no services that need to be fixed with high interest. PT Prudential just need to maintain existing services ( i.e. in the dimension of assurance , empathy , responsiveness and reliability) and not too much in making attempts on dimensions of service that do not really matter ( in this case is the dimension of tangibles )Keywords: PT. Prudential Indonesia, service, quality, service quality, SERVQUAL, gap, improvement

Purchasing strategy to minimize financial losses for customer support division on aerospace industry company

The Customer Support at an aerospace industry company, is on division who handles after sales support to customers. The workload keeps getting bigger everyday due to the requirements of the customers to keep their aircraft at serviceable condition. They are facing big issues due to high number of Customer Complaints, identifying low Customer Satisfaction. This issue arise due to long delivery lead times and low quality of delivered materials. Currently, Customer Support is running around US$20 million business per year, and targeted by the Board to achieve US$ 100 million in the coming years. In order to change this situation, we identify the issue by using DMAIC method, and improvement shall be made, especially for the Purchasing Strategy, where it is one of the root cause indicating the low performance of Procurement in terms of supporting Customer Support

Multipe Regression and Productivity Analysis of Modjopanggung Sugar Factory

Modjopanggung sugar factory is located in Tulungagung have problem in sugar production and productivity that less effective, based on that case, question of this research is  about some factor of productivity, how to increase sugar production, and productivity, and the purpose is to know the most significance factor that influence sugar production and to measure productivity of Modjopanggung in 2010.The step to start this research, first problem formulation, theoretical foundation, model formulation, data collection and analysis, and conclusions and recommendations. In this research use multiple regression model that use sugar production as dependent variable ,and factories sugarcane own field wide, farmer sugarcane field wide, sugarcane sucrose content  average from factories sugarcane field,sugarcane sucrose content average from farmer sugarcane field, factories efficiency, truck unit, yesterday sugarcane remnant ,sugar milling day amount, milling capacity as independent variable, and in productivity measure use labor, sugarcane material, capital, fuel, electricity as input and income from sugar and tetes as output. Methodology of research is by interview and observation to factory. The result is amount of truck unit and farmer sucrose content is the most significant among all variable to increase sugar production with positive sign, mean increase in them also increase sugar production, adjusted r square 0.997 mean 99.7% of sugar production can explained by result of independent variable, t value in 0.1298 that still inside acceptance area, mean no difference in forecast and reality of sugar production. Productivity in 2010, ratio of partial output and input all more than 1 mean output can cover input, but in multifactor and total factor less than 1  mean addition of input productivity factors actually can not cover by output factor, with lowest partial output factor is electricity and highest partial output factor is sugarcane material. The suggestion is better policy to increase truck unit and farmer’s sugarcane content and effectivity in labor quality, sugarcane dividend with farmer, capital usage, fuel alternate and usage, electricity efficiency. Keywords: Sugarcane production, multiple regressions, productivity analysis, PG Mojopangun

Aggreate Planning Strategies at CV Saswco Perdana

Abstract. CV Saswco Perdana is a company engaged in clothing industry that located in Gedebage, Bandung. CV Saswco Perdana is a company with medium-large industrial scale. The current condition of the company, they manufactured product in based on order.Based on interview with General Manager of CV Saswco Perdana. Currently the company has 50 employee that work in production division with total capacity can reach 2.500 dozens per month. Otherwise, based on previous data the average demand for 2014 is 730,76 dozens per month and for 2015 the average of demand is 596,94 dozens per month. According to those situation, there is a high level of idle workers that can be occur. So, the company needs to adjusting their workers in order to optimizing their resources and minimizing the total cost. And one of the operations management’s tool that company can use is aggreate planning strategy. Because by using aggregate planning the company can determines the ideal levels of capacity, production, subcontracting, inventory, stockouts, and even pricing over a specified time horizon (for this research, the time horizon is among 12 months). The research aimed to know the best of aggregate planning strategy that can be implemented by CV Saswco Perdana in order to fulfill the forecasted demand in period 2016 from 5 alternative aggregate planning strategies that conducted in this research, which are: pure chase strategy, pure level strategy, overtime strategy, optimization using linear programming, and mix strategy by varying workforce and overtime, by minimizing unmeet demand and the low cost as key performance. The methodology used is quantitative method. Primary data are collected from interview with Operations Director and General Manager at CV Saswco Perdana. And secondary data is collected from company’s documents record. Based on all strategies that conducted, the workforce needed is less than 50 workers. Thus, the company needs to adjust their workforce by laying off some workers in order to maximize the resources. The strategy that has the lowest cost is optimization strategy using linear programming with estimation total full costs is Rp.2.407.306.752 and incremental cost is Rp.64.524.912. But, the current work-hour in CV Saswco Perdana is violate the existing of regulations. Especially “pasal 77 and pasal 78 UU no. 13 tahun 2003†about work-hour and overtime of labor. According to those situation, the author providing the alternative optimization strategy using linear programming with changing the variable of work-hour and overtime related to the regulations as a recommendation. The total cost for alternative optimization using linear programming is Rp.2.610.594.007 and the total incremental cost is Rp.69.464.160. Keywords: Demand, Forecast Demand, Optimization Resources, Aggregate Planning

Decision Analysis of Airbrake Midterm Production Planning at the Machining Department, PT 'X' Bandung

PT 'X' Bandung is a state-owned companies and one of its products is vehicle. One of the important subassemblies of the vehicle is the airbrake. This paper is aimed finding and selecting feasible midterm production plan alternatives for the Machining Department for the production of air brake for the upcoming scheduled three consecutive periods, namely period 1 (12 days), period 2 (12 days), and period 3 (27 days) using decision-making methodology base on Hayes et al., consisting of evaluating the existing capacity to meet orders, defining alternatives for meeting those likely orders, performing financial analysis of each alternative, assessing key criteria or key issues for each alternative, and selecting and defending the alternative to be pursued. We calculated that the existing capacity was insufficient to meet the orders, and therefore,we developed four alternatives. The first alternative was trying to meet the demand using the available resources by accepting the lateness in which penalty costs would have to be calculated based on the contract agreement. The second alternative was adding capacity through overtime and in this regard the overtime costs would be calculated. The Thrid alternative was adding capacity by purchasing new machines in which capital required would be calculated. And the last alternative was a mix of overtime and the addition of new machines and the related costs would be calculated as well. The alternative with the least cost would be selected. Based on our analysis using two criteria, namely compliance to schedule and costs, we conclude that the last alternative is the best production plan for the company in meeting the demand of airbrake for the upcoming three periods.Keywords: midterm production planning, decision making methodology, airbrak

Proposal of an Operations Strategy Formulation in PT ABC

ABC is a heavy-duty equipment and support equipment assembler, provides chrome plating and engineering solution. Problems in the development of the company is how to increase the production in each production line. Constraints incurred in the company due to non optimal operation performance system. This is an obstacle for the company to expand its business. That problem causes difficulties for the company in determining the long-term strategic plan. Evolving business issues will be discussed through strategic audit that is expected could achieve strategic fit. The discussion includes the current situation of the company, corporate governance, external environment, internal environment, and strategic analysis. Constraints on the performance of the operation will be solved by formulating operations strategy. Ability to carry out operations management requires performance measurement. Measurement in meeting customer needs includes productivity, efficiency, effectiveness, and health and safety workplace. Measurement is fundamental to know the capabilities. Thus the company will know the capacity and productivity of the plant. The ability to recognize this capacity will be a fundamental consideration of the company in making a  development strategy decision to achieve long-term targets. Changes will occur in the basic  performance records, knowledge of the exact production capacity, also in opportunities to make working methods improvement and an appropriate investment. By knowing the production capacity accurately, the coordination of each division in achieving target will be synergic. Holistic measurement of corporate performance can be started by this basic measurement. Key Words: operation strategy, capacity, productivity, measuremen