PRODUCTION PROCESS IMPROVEMENT ON THE PLASTIC BASE PRODUCT IN CV. JAYA MAKMUR SETIA

Main Authors: Rivai, Rifqi Nur; School of Business and Management – Institut Teknologi Bandung, Basri, Mursyid Hasan; School of Business and Management – Institut Teknologi Bandung
Format: Article info eJournal
Bahasa: eng
Terbitan: The Indonesian Journal of Business Administration , 2022
Online Access: https://journal.sbm.itb.ac.id/index.php/IJBA/article/view/4111
Daftar Isi:
  • Manufacture industry is becoming one of the competitive industries in Indonesia, especially in this globalization era. The current condition in the firm, production process that happen in the firm is not balance, where this condition becoming a business issue in this firm that makes lost sales and over production in this firm. The root of the problem that elaborated by current reality tree are low-competences employee, delayed payment from customer, no-aggregate planning strategy for workforce allocation, no inventory control management, and the firm doesn’t have other molding for production machine (to change the style of production facility from dedicated machine into flexible machine). Based on the research, there are three scenario of aggregate planning strategy that can be implement in the firm. New inventory management control can be creating by using a MRP system, because of this product is classified to a dependent demand. By focusing to maintain the business process by creating a proper aggregate planning strategy and new inventor control management, hopefully the firm can fulfill the customer demand and minimize the lost sales and overproduction, so the production process in the firm can be balance again also the revenue of the firm can be maximized again. By implementing new aggregate planning strategy, the firm can obtain income in average around 96,16% (with the assumption, expense only for the employee salary) comparing with an existing strategy (firm only obtained the income around 69,43% (with the assumption, expense only for the employee salary)).Keywords:unbalance production, lost sales, overproduction, aggregate planning strategy, inventory management control