Production Cost Efficiency Research Articles

Production cost efficiency analysis of regional water companies in eastern Indonesia

Climate change can cause decreasing the quantity and quality of both surface and groundwater resources due to the increasing temperature and water evaporation. The Regional Water Companies (Perusahaan Daerah Air Minum/PDAMs) that use both surface and groundwater for supplying water to the community have many challenges to expanding services due to the effect of climate change. Also, the territory of Indonesia in the form of an archipelago makes the effect of climate change can be higher and disrupt the stability of water resources, especially in Eastern Indonesia. This study aimed to analyzes the efficiency of production costs by using PDAM performance indicator data for fiscal years 2016 until 2018. The data sourced from the Water Supply Improvement System Implementation Agency (Badan Peningkatan Penyelenggaraan Sistem Penyediaan Air Minum/BPPSPAM). Using a statistical cost method, we highlight several independent variables that are likely to affect PDAM cost-efficiency. The study results showed that of the 48 PDAMs observed, 28 were classified as efficient (58.33%) while the remaining 20 (41.67%) were inefficient. Energy costs, maintenance costs and general administrative costs become significant factors affecting the efficiency of production costs, but not chemical costs. In addition to costs, variable non-revenue water, service coverage and number of employees also influence cost efficiency. An efficient PDAMs can continue to expand their service coverage by reducing non-revenue water and the costs above by also incorporating the impact of climate change in their medium and long-term planning.

PERHITUNGAN EFISIENSI BIAYA PRODUKSI TAHU DENGAN METODE HEURISTIC SILVER MEAL

The research that was carried out was to calculate the efficiency of the production cost of tofu using the Heuristic Silver Meal method. For every tofu production, raw materials are needed. The raw materials needed to make tofu include imported soybeans and vinegar. The problem that often occurs in the Home Industry XYZ is that there is an excess supply of imported soybeans and vinegar which can cause ordering costs and storage costs for raw materials to increase. Things like this of course need to get serious attention and handling to improve the state of production activities of the home industry XYZ so as not to cause supply costs. With this problem, a research on the cost efficiency of Tofu Raw Material production is carried out in the hope that the Home industry XYZ can optimize inventory costs. the need for raw materials for making Tofu in order to maintain quality and streamline production costs. The results of the study using the Silver Meal Heuristic method were Rp. 315,059,416 and Meanwhile, using the riil method home industry is Rp. 307,741,100, from the comparison of the Silver Meal Heuristic method with the riil home industry method, the difference is Rp. 7,318,316 and the efficiency is 2.32%.

Dynamic hierarchical collaborative optimisation for process planning and scheduling using crowdsourcing strategies

ABSTRACT Platform-based crowdsourcing manufacturing has recently garnered wide attention as it is a business model that facilitates economies of scale and cost efficiency in production. The inherent coupling of process planning and production scheduling (PPPS) in a platform-based crowdsourcing manufacturing environment necessitates collaborative optimisation of PPPS decisions. Existing research that assumes PPPS decisions are integrated into one static single-level optimisation problem becomes no longer applicable with the arrival of the crowdsourcing mode. This paper presents a dynamic hierarchical collaborative optimisation (DHCO) mechanism that considers a process planning to interact with scheduling according to the optimal decision of the open manufacturing platform. A bilevel mixed 0-1 nonlinear programming model is established with the platform acting as the leader and the manufacturing enterprises serving as the follower. It is solved by a nested genetic algorithm (NGA). A case study of a part family is presented to illustrate feasibility of DHCO. Through comparative experiments, it is found that integrating crowdsourcing strategies into process planning activities is advisable for a platform to increase competitive advantages. The proposed model can manage well the conflict and collaboration between PPPS and balances the benefits of a platform with the manufacturing enterprise impacts triggered by planning activities. Abbreviations: DHCO: Dynamic Hierarchical Collaborative Optimisation; IOM: Integrated Optimisation Method; KKT: Karush-Kuhn-Tucker; MNL: Multinomial Logit; NGA: Nested Genetic Algorithm; PFI: Process Flexibility Index; PPPS: Process Planning and Production Scheduling; PSI: Process Similarity Index; TOM: Two-stage Optimisation Method.

Analysis of Seaweed Cracker Product Marketing Strategy at the Marine and Fisheries Independent Training Center (P2MKP) Balikpapan City, East Kalimantan

Pusat Pelatihan Mandiri Kelautan dan Perikanan (P2MKP) is a seaweed cultivation business field that located in Jalan Mulawarman Gang Anyer RT.13 No. 44 Manggar, Balikpapan City, East Kalimantan. The selling method they applied has no specific strategy in marketing, the selling method they applied only provide current needs of customers.Strategy formulation starts with the input stage to formulating the strategy; identify and analyze the factors of internal and external company’s environment. The next stage is the matching stage to result a proper strategy alternative with combining the internal and external factors. The result of IFE and EFE matrix included into IE matrix to detect company location. After the location of company was detected in the IE matrix, then SWOT analysis was required to formulate strategy alternative. The last stage, decision stage, it decides which one will be the priority with using Analysis Hierarchy Process as recommended strategy for the company. It results strategy is;(1) Maintain a relationship with the government to get patent product license, (2) To create an innovation of products with using technology and occur coordination with related instances to get BPOM RI and halal certification, (3) To maintain a cooperation to get government support in widening the marketing area, (4) Increasing production or stocks volume with using technology, (5) To reach the efficient production cost with maintaining the same product price, and the sixth strategy is build the partnerships to increasing the quality of product so the customer value is achieved.

Analisis Pengendalian Persediaan Bahan Baku dengan Menerapkan Metode EOQ (Economic Order Quantity) pada PT. Jatisari Furniture Work

This research objectives aims to determine and analyze raw material inventory control, the ideal raw material inventory that the company must provide and the efficiency of production costs carried out by Jatisri Furniture Work in Tasikmalaya for the period 2018.11 – 2020.02. The data collection method in this study is by direct observation at Jatisari Furniture Work in Tasikmalaya. Using techniques such us interviews, observation, and documentation. These observations were made in production reports for the years 2018 – 2020. The analysis tool was carried out using the Economic Order Quantity (EOQ) method such us safety stock, reorder point, and total inventory cost. The result of the Economic Order Quantity (EOQ) analysis show that the total cost of raw the material inventory that must be incurred by the company is greater than the total cost of inventories calculated according to the EOQ method. Companies should follow the calculations from the EOQ method so that they can save on raw material inventory costs, so that production costs are more efficient.

Vertical Integration Practice: The Case of PT Solusi Transportasi Indonesia and PT Teknologi Pengangkutan Indonesia

Business actors often use vertical integration agreements as an instrument to take control of several business activities including the production process of certain goods and/or services and avoid uncertainty over the supply of raw materials to produce goods and/or services. By using vertical integration, a company will get benefits which are the efficiency of production costs so that the profits obtained by a company are greater. One of the examples of vertical integration agreement practice is the case of an affiliation between PT. Solusi Transportasi Indonesia (Grab Indonesia) and PT Teknologi Pengangkutan Indonesia (PT TPI). The agreement between Grab Indonesia and PT TPI give rise to allegations of violation of vertical integration of the agreement build by both parties, namely the element of production control in the form of discrimination against business actors competing with PT TPI which subsequently had a further impact on drivers who are not partners of PT TPI. This paper uses a normative juridical research method with a statutory approach, a case approach, and a conceptual approach. This paper discusses cases based on vertical integration theory and its development, then assesses the vertical integration agreement between Grab Indonesia and PT TPI.

Cost Efficiency of International Corn and Soybean Production

The objective of this paper was to examine the cost efficiency of corn and soybean pro-duction for typical farms involved in the cash crop agri benchmark network using data for the period 2013 to 2017. Average cost efficiency for the typical farms in the network that produced corn, soybeans, and both corn and soybeans was 0.749, 0.774, and 0.939, respectively. Inefficiency was a greater problem for the farms producing corn than for the other farm types examined. Inefficient farms tended to overutilize direct, operating, and overhead inputs.

Coaching Small Industries Kerupuk Kawasan Wisata Ujungpangkah Kabupaten Gresik

Raw materials for making crackers in the form of fish are very abundant in this village and most people make a living as fishermen and fish pond farming. Fish used as raw material for making crackers are payus fish and laosan. The cracker industry produced by most of the craftsmen in Ujung Pangkah sub-district, Gresik Regency, the majority are sold in the form of 'raw crackers' at very cheap prices, simple packaging, less attractive shapes and marketed in the local area, so the product quality must be improved. Fish crackers are crackers whose ingredients consist of a mixture of flour and fish meat. Many types of fish can be used as a basis for making crackers. Payus fish (Elops hawaiensis) is one of the predatory fish species of small fish and crustaceans in ponds. The existence of this fish is quite abundant so that it can be used as a product that can be consumed by the community. Coaching assistance and in the form of providing manual dough cutting machine tools accelerate the production process and production cost efficiency. Assistance with the production process has been carried out through quality control, micro marketing (Instragram and Facebook), financial management reporting through microfinance accounting processes.

Efficiency of Ross 308 broilers under different nutritional requirements

The use of nutritional requirements adjusted to the new broiler genotypes defines their optimal genetic expression. Thus, broiler breeders, universities, and scientific institutions have carried out research with different nutritional requirements to improve the productive efficiency of broilers and decrease production costs. This test aimed to evaluate the growth performance and carcass characteristics of 1,200 unsexed Ross 308 broiler fed diets formulated by the requirements of Ross 308, NRC, FEDNA, and Rostagno for a period of 35 d. Throughout the experimental period, the Ross 308 group improved ( P < 0.05) the BW and feed intake compared with the other experimental requirements. In addition, the NRC group decreased the BW and feed intake, although with similar results with the FEDNA and Rostagno groups, respectively ( P < 0.05); this last treatment decreased the feed conversion ratio and viability ( P < 0.05). Furthermore, the Ross 308 and FEDNA groups showed the highest carcass yield ( P < 0.05); and the lowest breast yield ( P < 0.05) was found in the NRC group. However, the leg and abdominal fat yields did not differ among treatments ( P > 0.05). Moreover, diets under FEDNA reported the highest relative weights for the liver, heart, and gizzard. Likewise, this group (FEDNA) reduced breast protein and ashes, as well as the NRC group increased crude fat and decreased the a ∗. The diets formulated based on digestible amino acids and with a good balance of protein and energy, such as those of the Ross 308 group, showed the higher results.

Analysis of cost efficiency of hydrogen production via electrolysis: the Russian case study

The article focused on investigation of cost efficiency of hydrogen production via water electrolysis in Russia up to 2030. Different non-carbon generation technologies were assumed as input sources for electrolysis, namely wind, solar, hydro and nuclear power plants. Analysis is based on levelized cost of hydrogen (LCOH) framework incorporating all cost related to electrolysis (capital cost, operation &amp; maintenance, electricity price, etc.). Additionally, we estimated LCOH sensitivity to some techno-economic parameters – cost of capital, capital expenses and capacity factor of different power supply sources.

The application of the Six Sigma method in reducing the defects of welding on the steel material

Quality control is an essential factor in producing products that are following what consumers want. The high quality of the product significantly affects the efficiency of costs incurred during the production process. This study aims to determine the types of defects and their causing factors as well as actions taken to reduce the number of defects to increase the efficiency of production costs. The measurement results obtained the number of productions of 12499 pcs with the number of defects of 2712 pcs of 21.6% with a sigma level of 3.1100 DPMO. Identification of defects in welding is porosity defects of 724 pcs, undercut defect of 613 pcs, slag defect of 435 pcs, crack defect of 491 pcs, and spatter defect of 449 pcs. The actions taken are periodic maintenance and repair of welding machines and connectors, supervising the condition and cleanliness of the material, providing periodic directions to welding operators by explaining reasonable welding procedures and arranging a welding field development program for welding operators through a job training program. Improvements have been implemented and found a reduction of defects up to 15% and a reduction of 6.6%.

EFFECT OF TOTAL QUALITY MANAGEMENT AND JUST IN TIME ON PRODUCTION COST EFFICIENCY IN PT SEMEN PADANG

The application of Total Quality Management (TQM) is closely related to the quality of existing resources in the company. TQM provides a foundation for quality management and is an alternative in ensuring customer satisfaction, as well as Just In Time (JIT) which is a comprehensive and comprehensive production system. inventory management system where raw materials are purchased and produced as much as needed and used at the right time in every production process. In this study, the authors will examine the effect of TQM and JIT in efficiency of production costs at the manufacturing company PT Semen Padang in period 2016-2019. The data collection method was carried out by distributing questionnaires to each unit manager at PT Semen Padang which included managers of the accounting unit, human resource unit and production unit. The sampling technique used purposive sampling method and there were 67 samples. The analytical method used is to use the classical assumption test. Data analysis was also performed using the multiple regresion method with the SPSS Ver.16 application Based on the results of the hypothesis testing, it shows that Total Quality Management (TQM) has a positive effect on cost efficiency and Just In Time (JIT) has a positive effect on cost efficiency.

Impacts of Upsus Program on the Cost Efficiency and Competitiveness of Rice Production in Indonesia

&lt;p&gt;Program Upsus adalah program nasional yang dirintis pada tahun 2014 dan mulai diterapkan secara besar-besaran pada tahun 2015. Dalam program ini, padi mendapatkan porsi terbesar dari anggaran pemerintah, dan diharapkan dapat meningkatkan produksi beras melalui peningkatan luas areal panen dan produktivitas. Target yang ditetapkan adalah bahwa Indonesia akan mencapai swasembada beras lagi dalam tiga tahun. Setelah itu, targetnya adalah Indonesia dapat memelihara keberlanjutan swasembada beras, mencapai surplus untuk ekspor setelah 2017, dan dalam jangka panjang Indonesia akan menjadi lumbung pangan dunia pada tahun 2045. Saat ini, program tersebut telah dilaksanakan selama lima tahun dan analisis dampak dari penerapan program Upsus terhadap sisi efisiensi biaya dan daya saing produksi beras Indonesia ini penting untuk dikaji. Makalah ini bertujuan untuk membahas kerangka teoritis dan konseptual pengaruh program Upsus terhadap peningkatan efisiensi biaya dan daya saing produksi padi pada tingkat usaha tani. Alat analisis yang dapat digunakan untuk ini adalah perbandingan antara sebelum dan sesudah implementasi program Upsus yang terdiri dari regresi fungsi &lt;em&gt;stochastic frontier cost&lt;/em&gt; (SFC), &lt;em&gt;policy analysis matrix&lt;/em&gt; (PAM), analisis distribusi kepadatan kernel, dan model regresi berganda pengaruh peningkatan efisiensi biaya terhadap perubahan daya saing. Beberapa rekomendasi kebijakan yang dihasilkan dari pembahasan makalah ini berguna untuk lebih membantu meningkatkan strategi implementasi selanjutnya dari program Upsus pada padi.&lt;/p&gt;

Estimating Costs of an Implementation Intervention.

Health care systems frequently have to decide whether to implement interventions designed to reduce gaps in the quality of care. A lack of information on the cost of these interventions is often cited as a barrier to implementation. In this article, we describe methods for estimating the cost of implementing a complex intervention. We review methods related to the direct measurement of labor, supplies and space, information technology, and research costs. We also discuss several issues that affect cost estimates in implementation studies, including factor prices, fidelity, efficiency and scale of production, distribution, and sunk costs. We examine case studies for stroke and depression, where evidence-based treatments exist and yet gaps in the quality of care remain. Understanding the costs for implementing strategies to reduce these gaps and measuring them consistently will better inform decision makers about an intervention's likely effect on their budget and the expected costs to implement new interventions.

Cost efficiency of principal crops in Bihar (India) – A stochastic frontier approach

In the present study, an attempt has been made to test the cost efficiency of cereal crops like paddy, wheat and maize separately in the state of Bihar using Stochastic Cost Frontier model. It has been tried to determine the determinants of cost inefficiencies. The study is also aimed to know the factors affecting the cost inefficiencies in production of major cereals of the state so as to ascertain proper steps to increase cost efficiency in production. Most important observation emerged that there existed non-linear relationship between cost inefficiency and farm category. Cost inefficiency first increased with the increase of farm size then it decreased. In case of paddy mechanization could negatively affect the cost inefficiency and proportion to family labour in total labour was found positive implying increase in cost inefficiency. But in wheat, family labour showed positive value, indicating thereby increase in cost inefficiency. In case of maize, coefficient of fertilizer use was observed positive indicating increase in cost inefficiency. Coefficients of land holding size were positive in all the crops for all categories of farms. This advocated non-linear relation between farm category and cost inefficiency which showed larger farms were less cost efficient. The cost inefficiency depends on proportion of family labour, mechanization, type of seed used. The result enables to identify the determinants of cost inefficiency, which will certainly guide the state to adopt suitable policies. Farmers may be made aware about rational allocation of resources to reduce cost and make farming cost efficient.

Applications of Goods Mutation Control Form in Accounting Information System: A Case Study in Sumber Indah Perkasa Manufacturing, Indonesia

This study analyzes the new GMCF method applied by the company with the aim to find out how the production of Accounting Information Systems (AIS) implemented by the company can be managed properly. The study also seeks to find out whether the company needs new system support facilities to facilitate the production performance reporting process of each division and evaluate the performance of GMCF systems in the company. The methods used are descriptive analysis techniques and statistical tests of Paired Sample T-Test comparison; this study uses production data of each unit of a product with random sampling to determine the level of product damage and compare production with the GMCF system and prior to using it. The results of the analysis found that the application of goods mutation control forms (GMCF) greatly influenced the smooth production reporting process, which resulted in an increase in achieving production targets and reducing the risk of product damage during the production process. The company also benefits from the efficiency of production costs when using the GMCF system and can quickly design policies for products that are damaged during the production process. In addition, the company can have damaged products repaired faster than before.

Enabling Mass Customization and Manufacturing Sustainability in Industry 4.0 Context: A Novel Heuristic Algorithm for in-Plant Material Supply Optimization

The fourth industrial revolution and the digital transformation of consumer markets require contemporary manufacturers to rethink and reshape their business models to deal with the ever-changing customer demands and market turbulence. Manufacturers nowadays are inclined toward product differentiation strategies and more customer-focused approaches to stay competitive in the Industry 4.0 environment, and mass customization and product diversification are among the most commonly implemented business models. Under such circumstances, an economical material supply to assembly lines has become a significant concern for manufacturers. Consequently, the present study deals with optimizing the material supply to mixed-model assembly lines that contribute to the overall production cost efficiency, mainly via the reduction of both the material transportation and material holding costs across production lines, while satisfying certain constraints. Given the complexity of the problem, a novel two-stage heuristic algorithm is developed in this study to enable a cost-efficient delivery. To assess the efficiency and effectiveness of the proposed heuristic algorithm, a set of test problems are solved and compared against the best solution found by a commercial solver. The results of the comparison reveal that the suggested heuristic provides reasonable solutions, thus offering immense opportunities for production cost efficiency and manufacturing sustainability under the mass customization philosophy.

Analisis Unjuk Kerja Oven Pengering Hasil Modifikasi Dengan Variasi Kecepatan Aliran Udara Panas

Cost production efficiency through modified tunnel driyer by using the economizer so that the cost of fuel component eliminated. This study aimed to determine the performance of modified tunnel driyer associated with the quality of the product produced related to achived drying rate . From 3 (three) experiments conducted with variations in the hot air flow velocity of 0.5 m / sec, 0.7 m / sec, and 0.9 m / sec, it was found that only the first experiment occurred condensation and the resulting drying product was declared NG . From the results of the hypothesis independent sample t-test concluded the level of dryness of the results of the 3rd experimental product is better than the results of the 2nd experimental product. Thus, setting a hot air flow rate of 9 m / sec produces the most optimal modified dryer performance.

Pendampingan Peningkatan Efisiensi Biaya Produksi UMKM Heriyanto Melalui Analisis Biaya Kualitas

In each production process, it is possible there will be a discrepancy between the product that has been produced and with the standard, which referred to a defective product or a damaged product. The defective product or damaged product will affect the increase in production costs because the defective product has absorbed production costs from the beginning and it can cause losses to the company. Thus the company must make quality improvements to make the quality of the products produced more consistent and so that there are no more defective products. Improvement of this quality is needed by the existence of expenditure which is called quality cost. Quality costs are part of the production costs. With the existence of defective products or damaged products, it will cause production costs to increase because the company must pay for the process of reworking or reproducing. Therefore, by improving quality through quality costs, it is expected that production costs will be reduced. Production processes that pay attention to quality will reduce the possibility of product defects. Thus the company's production costs will be more efficient but still pay attention to the quality of the products produced. The purpose of this report is to find out how to supervise quality costs of UMKM in improving production cost efficiency. The author conducts community service at the UMKM Heriyanto which is a UMKM engaged in the shoe industry, especially adult women's shoes located on Jl. E. Sumawijaya, Sindang Barang Village, Gang Jambekiuna, Pasir Eurih Village, Taman Sari District, Bogor Regency.The results of the study show that the quality cost component found in the UMKM Heriyanto consists of prevention costs, internal failure costs, and external failure costs. In UMKM Heriyanto there is no apprasial cost because there is no quality control or checking activity for the product. In addition, the calculation of production costs in UMKM Heriyanto is quiet basic and simple because it does not separate the cost of direct raw materials from indirect raw materials, direct labor with indirect labor, and there are some overhead costs that are not taken into account. Internal failure costs consisting of excess raw materials have a significant influence on the cost of producing shoes for UMKM Heriyanto for all types of shoes. Thus the excess of this raw material must be reduced because it can affect the amount of raw material costs directly on production costs. If UMKM Heriyanto can implement the calculation of this quality cost, then in the next production it can reduce the cost of excess raw materials and UMKM Heriyanto can make production cost efficiency of 15%.&#x0D; &#x0D; Keywords: qualitycosts, production cost, cost effieciency

Allocative Efficiency of Maize Production in Chikun Local Government Area of Kaduna State, Nigeria

This study analyzed the allocative (cost) efficiency of maize production in Chikun Local Government Area of Kaduna State, Nigeria. Purposive and simple random sampling techniques were used to select 100 respondents. The data collected were analyzed using descriptive statistics and stochastic frontier cost function model. Results revealed that 87% of the respondents were males with 99% of the farmers in their working age group of between 21-60 years. Most (81%) of them were married with 52% of the maize farmers having household size of more than 5 people. Also, 52.0% had post primary school education. The results of the maximum likelihood estimate parameters of the stochastic frontier cost function revealed that cost of maize output, cost of labour, cost of fertilizers, cost of seeds and cost of transportation were significant at 1% level of probability. The allocative efficiency indices revealed that allocative efficiency of the sampled farmers ranged from 1.05 to 3.25 with a mean of 1.31, implying that an average farmer in the study area has costs that are about 31% above the minimum defined by the frontier. This shows that 31% of their costs are wasted compared to the best farmers producing the same maize output using the same technology. The study therefore recommends that adequate farm inputs should be provided at low cost to the farmers and adequate training should be given to the maize farmers in the area of minimizing their expenses on farm inputs in order to avoid cost wastage and become more efficient in allocation of their resources.