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Faculty of Engineering and Technology IENG4316: Production System Analysis Spring 2018/2019 TERM PROJECT REPORT PRODUCTION OF KEREPEK (KERIPIK PEMPEK) 14th May2019 Lecturer: Ammar Ammer Group members: Ahmad Rizal Sopiandi (2018370015) Afiq Hidayatullah (2015370014) Farras Reyhan (2018370054) Zilfitr...

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Faculty of Engineering and Technology IENG4316: Production System Analysis Spring 2018/2019

TERM PROJECT REPORT PRODUCTION OF KEREPEK (KERIPIK PEMPEK)

14th May2019 Lecturer: Ammar Ammer Group members: Ahmad Rizal Sopiandi (2018370015) Afiq Hidayatullah (2015370014) Farras Reyhan (2018370054) Zilfitriani (2018370014)

Table of Contents ABSTRACT................................................................................................................................................. 2

I.

INTRODUCTION ......................................................................................................................... 2

II.

STRATEGY AND COMPETITION ............................................................................................. 2

III.

FORECASTING ........................................................................................................................... 4

IV.

SALES AND OPERATION PLANNING ................................................................................... 6

V.

INVENTORY CONTROL……………………………………………………………………...14

VI.

SUPPLY CHAIN MANAGEMENT …………………………………………………………. 18

VII. LEAN MANUFACTURING …………………………………………………………………. 19

VIII. OPERATION SCHEDULING ……………………………………………………………….. 21

IX.

FACILITIES LAYOUT AND LOCATION ………………………………............................. 22

X.

CONCLUSION ……………………………………………………………………………… 26

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ABSTRACT This report aims to show the implementation of Production System Analysis course into the project Production of KEREPEK (Keripik Pempek). Knowing the detailed data of market demand for Pempek and its limitation, this Report would describe thepProduction system idea and its analysis for change the Pempek limitation becoming the strength of business idea with good prospect.

I.

INTRODUCTION Pempek is one of traditional famous food that comes from Palembang, South Sumatra. This food is widely known and in-demand by Indonesian peoples. Unfortunately, Pempek is one of the rare food in Indonesia due to its durability and its unique flavor. Furthermore, the traditional production system that is used to produces Pempek also has a limited amount of production. That is way, it is hard to find the Pempek outside Palembang. Therefore, to solve this problem, we come up with an idea to make a large production of Pempek, so that it is easy to find and can easily enjoy by peoples. This idea entitled Production of KEREPEK (Keripik Pempek). The idea is to change the form of Pempek to become chips without eliminate the pempek unique flavour, so it is can be durable and can easy distributed accross Indonesia and worldwide. In order to that, the KEREPEK would have the production system that able to produce large amount of Chips, so it can meet with our objectives.

II. STRATEGY AND COMPETITION Before we go further to the strategy that we have for our product, let first define our potential customer and competitors.

Potential Customer The potential customer that we focused on for now is Indonesia people in all range of age, gender, culture, etc. And it is especially for the customer who lived in Jakarta and its surrounding area (JaBoDeTaBek). The reason we choose JaBoDeTaBek is that the citizen in that area is consumptive in term of food. Moreover, the growth economy in Jakarta and its surrounding area is high compared to another region in Indonesia. Based on that reason, we decide that our starting market will focus on customers from Jakarta and its surrounding area. Furthermore, we do not rule out the possibility that we will spread our market to another region in Indonesia in the future.

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Competitor The competitor that we considered here is another brand with the same product that already exists in the market. It can be the brand for the chips or even brand for the Pempek. It is important for us to understand who is our competitor so we can have a better plan for selling our product.

Strategy Dimensions This is strategy dimension that focused on how ww compete with the competitors. The strategy that we have to compete with our competitors are: a.

Conformance Quality

In term of quality, we will always make sure that the entire production process of the KEREPEK from the raw material until its final product received by the customers was having good quality. Then, in order to make sure that our entire product having good quality, we will have a quality control department in which responsible for standardizing the quality. b.

Delivery Speed and Reliability

The delivery speed and reliability of our product was highly considered in order to achieve high customer satisfaction. It is good as the first step for branding our product brand to spread among the peoples. Then, to make sure that our delivery speed and reliability is fast and consistent, we will give training to the employee regarding the importance of fast delivery, customer satisfaction and how to maintain it. c.

Flexibility

It is about the adaptability of our product in the market according to customer demand. So, if the customer demand is decreasing due to the feeling of being bored, we will always introduce a new innovation to our product. This new innovation might be a new flavor of KEREPEK that is in suitable with the customer taste. d.

Branding

Branding is one of the key success of our product. It is important not only to make sure that peoples knew that our product existed, but it is also about giving a memorable impression to the customer that would make them become subscription. In order to have a good brand, we choose KEREPEK as our product brand with the slogan “Cara Mudah Menikmati Pempek” (The easiest way to taste Pempek). The reason we choose that name and slogan is that it is easy to remember and fit to describe our product.

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TIME HORIZONS FOR STRATEGIC DECISION Furthermore, in order to survive and able to settle in the market, we have planted our time horizons for strategic decision. a. Short term Decision In short term decision, we consider the decision that it needs to take in a short amount of time. The short term decision that we considered is that purchasing, Inventory control, shift scheduling, etc. b. Intermediate-term Decision In the intermediate decision, the things that we considered is that the forecasting demand, the purchasing for the machine, tool, and its maintenance, the employee that we need in our production, the retailer as our distributor for our product, etc. c. Long term Decision In the long term decision, we consider the sizing and location of our facilities, Innovation of the product and finding the new market for our product.

III. FORECASTING According to the survey that we have done for finding the market demand, there are 58 out of 63 samples correspondence are willing to buy our product. Hence, our first demand is 58 package per day. In the other hand, based on the survey result, we assume that our first forecasting demand will be 60 packages per day. Then, if the demand and forecast demand is constant during a week, the number of market demand for our product will be 58*6 = 348 package per week and the forecast demand will be 60*6 = 360 package per week (here we set 6 working days in a week) Week

Demand

Forecast

1

348

360 (assumption) Table 3.1

After that, in order to find the forecast demand in week two, week three until week n, we will use the exponential smoothing method. The formula for exponential smoothing shown below: Ft= Ft-1 – α (Ft-1 – Dt-1) P a g e 4 | 26

The reason we use the exponential smoothing is that we have the data that needed for forecasting the next demand using the exponential smoothing method. Here, we decide α=0.1 (Recommended for production). Therefore, due to the exponential smoothing method, the forecasting future demand shown below: Week

Demand

Forecast

1

348

360 (assumption)

2

360

359

3

352

359

4

355

358

Cumulative/Month

1415

1436

Table 3.2 Month

Demand

Forecast

1

1415

1436

2

1436

1434

3

1430

1434

4

1420

1433.7

5

1433

1431.2

6

1435

1431.4

7

1440

1431.8

8

1450

1432.6

9

1460

1434.3

10

1436

1436.9

11

1418

1436.8

12

1437

1434.9

Table 3.3 By having the data of forecasting above, we can use it as the benchmark for our future planning production. So, we can make planning that is can help our production running well and prevent any production problem that may occur in the future. P a g e 5 | 26

IV.

SALES AND OPERATION PLANNING Sales Planning a. Target Market The target market of our product segmentation is all level of society with various age, gender, occupation, culture, etc. However, based on our survey, it is shown that the range of age of our customer who willing to buy more than once a week is between 15 – 35 years old. Then, due to that result, our product innovation would focus on that segmentation. b. Sales Strategies The sales strategy of our product divided into two which are Offline strategy and Online strategy. The offline strategy will focus on getting in touch and promotion activities with the retailer and customer directly (face-to-face) in our shop. While for the Online strategy, we will more promote our product and brand through social media ( Instagram, Facebook, Twitter, etc) and also selling them through online selling application such as Tokopedia, Bukalapak, Shoppe, etc.

Operation Planning a. Production Operation Planning The table information below would explain the process production according to its correct order and the estimation time plus operator needed for each of the processes. Here is the Production Operation Planning of KEREPEK Production: No

Action

Estimation Time Consume (Minutes)

Operator

1

Buying and Put it down the Raw Materials in the Inventory

420

3 people

2

Dough and Forming

25

1 person

3

Steaming

40

1 person

4

Slicing

260

1 person

5

Drying process

62

1 person P a g e 6 | 26

6

Fraying, oil draining, and seasoning

62

1 person

7

Packaging and Finishing

160

2 persons

8

Store the product in inventory

5

1 person

Table 4.1

Based on the table above, we expect that our first action for producing the KEREPEK is buying the raw material and put it into the Inventory. This action is done once a week and involved three employees and approximately consume 360 minute or 6 hours to be done. In the Value Stream Mapping, this action includes the Re-stock inventory activity. After we finish the first act, there are seven other actions in which it is included as the production process of our product. Here, the action number two, six and seven represent the Cellular Manufacturing production process that aims to organize work areas, where equipment, machines, and workstations are arranged in an efficient order, so that the movement of people, inventory and materials can run smoothly from the beginning to the end of the process. Therefore, by applying this concept, waste on the production process such as transportation, waiting time, or delay can be minimized.

b. Machine and Equipment Planning In our production, there are several machine and equipment that is used in the production process. These nine machines and equipment 3 have their own usability that is suitable for each process that we have in our production. Here are the list and use of each machine in our production:

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1. Mixing Machine (Doughing), used to mix all the raw material needed to have the dough.

Dimension: 775mm x 710 mm Figure 4.1

2. Forming Machine, used to shape the dough shaped like a tube.

Dimension: 500 mm x 300 mm Figure 4.2 P a g e 8 | 26

3. Steamming Machine, used to steam the dough has been shaped.

Dimension: 900mm x 950mm Figure 4.3

4. Slicing tool (Knife), used to slice the dough after the steaming process. The reason we use a knife is in order to reduce the setup cost since the slicing machine was very expensive. Moreover, we would also use chips shaping tools, so the chips that we would make have the same size.

Dimension : 100 mm x 35 mm Figure 4.4

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5. The Drying machine used to dry the dough that has become chips, so it is easy to fry.

Dimension: 600 mm x 600 mm Figure 4.5

6. Frying and draining Machine, it is used to fried and drain the chips. These two machine are unity with each other.

Dimension: 550 mm x 520 mm Figure 4.6

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7. Seasoning/Flavouring machine, used to give the seasoning to the chips that have been draining.

Dimension: 1430 mm x 950 mm Figure 4.7

8. Packaging Machine, used for packaging process

Dimension: 875 mm x 410 mm

Figure 4.8

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9. Trolley, used as the transportation tool to move the KEREPEK that have been placed into the box to the shipping process.

Dimension: 890 mm x 590 mm \ Figure 4.9

Key Performance Indicator In order to measure how effective our company can maintain its standard, we set KPI at multiple levels to evaluate crucial category in our production. The following KPI also explains the goal that we want in the crucial category and the review period to analysis how success our production for achieving its goal. Here is KPI at our production: No

CATEGORY

KPI

GOAL

REVIEW PERIOD

1.

Quality Control

Raw Material Quality Checking

Make sure all ingredients used are fresh and safe to consume so that product quality is maintained. Especially the fish used must be fresh because it is the main ingredient of our product.

Monthly

Cleanliness of production site

Make sure all the equipment, machinery, and place are clean, not dusty, smelly, and not

Monthly

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attacked by insects or other animals.

2.

Taste

Durability

The chips are safe to consume until 1 year after production process.

Monthly

Seasoning

The taste of the chips should be like Pempek (the fish taste dominates) and the marinade must be evenly mixed.

Monthly

Texture 3.

Packaging

Design

Chips texture are thin and crispy. Monthly In order to attract attention of customer, we have to make our packaging become interesting and unique.

Monthly

Table 4.2 Aggregate Planning Here, the aggregate planning generally contains from forecasting calculation. The goal of our aggregate planning is to plan gross work force levels and to manage our inventory as well. Based on our forecasting calculation, the production plan of our product in 1 year express in table below: Month

Demand

Cumulative

Production Level

Cumulative Production Level

Inventory

Working Days

1

1415

1415

1435.5

1435.5

20.5

14

2

1436

2851

1435.5

2871

20

15

3

1430

4281

1435.5

4306.5

25.5

15

4

1420

5701

1435.5

5742

41

14

5

1433

7134

1435.5

7177

43

15

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6

1435

8569

1435.5

8613

44

15

7

1440

10009

1435.5

10048.5

39.5

15

8

1450

11459

1435.5

11484

25

16

9

1460

12919

1435.5

12919.5

0.5

16

10

1436

14355

1435.5

14355

0

15

11

1418

15773

1435.5

15790.5

17.5

14

12

1437

17210

1435.5

17226

16

15

Table 4.3 Due to the number above, then the Average Production per month of our production is equal to 12919/9 = 1435.4 per package. However, if we look closely, when we choose the average production equal to 1435.4 per month, then there will be stock out occurs at the tenth month. So, in order to avoid the stock out, we decide to choose the tenth month as the new benchmark for average production that is 1435.5 per package.

V.

INVENTORY CONTROL Before we start to decide the planning for inventory control, let first define the cost for each of raw material that is needed in our production. Here is the list of raw material and it’s price that we have in our production: Raw Material

Amount

Cost

Grilled Fish

12 kg

Rp 600,000

Flour

13.5 kg

Rp 67,500

Sago

1.5 kg

Rp 12,000

Spices

3 kg

Rp 20,000

Total Cost

Rp 699,500

Table 5.1

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Besides the raw material, we also need several supporting material e.g. LPG Gas and cooking oil as the material that it needs to produce the raw material. Here the list of our supporting material and it’s price:

Supporting Material

Amount

Cost

Oil

10 L

Rp 150,000

LPG Gas

12 kg

Rp 130,000 Rp 280,000

Total Cost

Table 5.2 Then, looking at the total price of raw material and supporting material, our total cost will equal to Rp. 979.500 for every one-time production. In specific, we estimate that every 300 gram of raw material would produce for one package of KEREPEK. From that, we can determine the cost for producing 1 package of KEREPEK that shown below: 𝑐 = 979500 ×

300

30000

= 𝑅𝑝 9795 𝑝𝑒𝑟 𝑝𝑎𝑐𝑘𝑎𝑔𝑒

Hence, every one ...