Production Cost Efficiency Research Articles

MODEL PERENCANAAN DAN PENGENDALIAN PRODUKSI DI INDUSTRI PENGOLAHAN BUAH CARICA (CARICA PUBESCENS)

The competition in the carica fruit processing industry is increasing, so that efforts are needed to increase production efficiency through good production planning and control (PPC). CV XYZ is one of the carica fruit processing companies which has PPC problems. PPC activities done intuitively and not systematically causing a decision in PPC is ineffective and production process is inefficient. Those problems can be resolved by developing a PPC model in accordance with CV XYZ’s business process. So, this research objective was to develop a PPC model at CV XYZ. The model consisted of four sub-models which were related to each other. The first sub-model was Sub-model of Demand Forecasting and the second sub-model was Sub-model of Carica Fruit Availability Forecasting. Those two sub-models used the Auto-regressive Integrated Moving Average (ARIMA). The third sub-model was Sub-model of Production and Packaging Planning using Integer Linear Programming (ILP). The fourth sub-model was Sub-model of Carica Fruit Inventory Control using Material Requirement Planning (MRP). PPC model can clarify the PPC system at CV XYZ and produce optimal plans. PPC model improves efficiency of total production cost up to 39.86% and total inventory cost up to 27.56%. Keywords: carica industry, model, optimal, production planning and control

PENGARUH TOTAL QUALITY CONTROL DAN JUST IN TIME TERHADAP PENINGKATAN KUALITAS PRODUK DAN EFISIENSI BIAYA

The research entitled Effect of Total Quality Control and Just In Time on improving product quality and cost efficiency aims to analyze the effect of Total Quality Control (TQC) and Just In Time (JIT) on improving product quality and cost efficiency. This research was conducted at one of the manufacturing companies in Surabaya, namely UD. Sukri Dana Abadi. This study used descriptive qualitative method. The type of data used in this study is the type of primary data where researchers obtain data through direct data collection efforts. Methods of data collection is done by conducting interviews and observations on the object under study. The results of this study indicate that Total Quality Control (TQC) has an effect on improving product quality and cost efficiency, where the quality of the resulting product is in accordance with the specifications and Standard Operational Prosedur (SOP). While Just In Time (JIT) shows a significant effect on improving product quality and cost efficiency. The storage fee before Just In Time is Rp. 7,463,577 while the storage cost after Just In Time is Rp. 3,732,788 then there is a difference of Rp. 3,731,788 which means Just In Time can reduce costs by Rp. 3,731,788.

Empowerment of Micro, Small Medium Enterprises (MSMES) in Coconut Oil Development

Entrepreneurship development at the household level is the forerunner to the growth of an MSME. In the village of Antiga, Manggis District, Karangasem Regency, there is a home-based business engaged in the production of coconut oil (kelentik oil). Currently the level of marketing is only limited to traditional markets while the target is to be able to market products in modern markets. Therefore, this study has the objective to know the level of efficiency of production costs incurred by the producers of coconut oil (kelentik oil) in Antiga village, Manggis district, Karangasem regency; to know how to empower Micro, Small and Medium Enterprises producing coconut oil (kelentik oil) and to analyze the factors that influence the intention of buyers or consumers to buy coconut oil (kelentik oil) in Bali. The research method is a qualitative method. The result is that the production process is still traditional so that production cost efficiency is achieved. Furthermore, the empowerment of MSMEs is not yet optimal as business partners in marketing their products. Several factors influence consumers' intention to buy coconut oil (kelentik oil). So the input that can be given is to improve relationships or networks to be able to expand the market and improve product packaging.

Agroecological intensification: Can organic conversion improve the production efficiency? A perspective from smallholder kale production systems Kenya

The increasing resource and ecological challenges in agriculture necessitate agricultural intensification and resource optimization. This study focuses on agroecological intensification using organic practices. It compares the production efficiency of the organic and non-organic smallholder kale production systems in Kenya. Using survey data collected from Kenya, the study estimated production (cost and revenue) efficiency of the kale production system by conducting data envelopment and stochastic frontier analysis and subjected the efficiency measures to propensity score matching analysis. The results show no significant difference in cost efficiency between organic and non-organic kale producers. However, revenue efficiency and income per unit production cost are lower among organic than non-organic kale producers. The results also show that the efficiency and productivity of the organic smallholder kale production system are limited by a lack of inputs (especially manure) but not labor. This implies that improving the efficiency of the smallholder organic kale production system requires more use of organic manure as well as research and training on organic pesticides. The finding concurs with literature that reports organic input problems and lower productivity in organic than non-organic production systems in developing countries and Kenya, especially in vegetables. It also shows that the organic production system is more labor-intensive than the non-organic system. • Study compared production efficiency of organic and non-organic kale production system. • Estimated production efficiency using data envelopment and stochastic frontier analysis. • Compared production efficiency using propensity score matching. • Revenue efficiency and income per unit cost lower in organic than non-organic system. • Efficiency and productivity of organic production system limited by inputs but not labor.

Correlation between Weather Variables and Electricity Demand

In the industrial era 4.0 as it is today, along with the increasing need for electrical energy, energy efficiency is an essential factor in achieving energy production cost efficiency. Efficiency will be achieved if electricity production can be adjusted to the customer’s electrical load. However, adjusting the electricity production poses a challenge, namely the difficulty of predicting the daily electricity load of customers. There are many factors that affect the electric load. One of the main factors is the weather. Therefore, this study focuses on the correlation of weather parameters on load demand. The weather parameters consist of temperature, rainfall, solar radiation, and wind speed. Case studies were conducted in Bali Island and Central Java Province. This paper looked for correlations between weather parameters with the load demand, especially in the island of Bali and Central Java Province.

Pelatihan Perhitungan Harga Pokok Produksi (HPP) Bagi Pengusaha Laundry Indonesia (HIPLI) Wilayah Jakarta

The company's success in determining the selling price of its business products is largely determined by the company's success in determining or calculating the production cost. An error in determining the production cost can lead to errors in determining the selling price of the product and finally will impact competitive capability with other similar businesses. The information generated from the calculation of the cost of the product is not only useful in determining the selling price of the product, but it is also useful for companies to analyze the efficiency of production costs and calculating the company's periodic gross profit/loss. The limited knowledge and skills of laundry entrepreneurs who are members of the Indonesian Laundry Entrepreneurs Association (HIPLI) in the Jakarta area encourage the Accounting Study Program, Faculty of Economics and Business, Trisakti University, to collaborate with HIPLI (Indonesian Laundry Entrepreneurs Association) Jakarta area to organize a Community Service program by providing training in Calculation of Cost of Production (HPP). The result of the activities showed that continuous training for the laundry entrepreneurs is needed for the HIPLI member in Jakarta
 Keywords: Cost of goods production, selling price, direct material, direct labor, factory overhead

Hydrogen production using solar energy and injection into a solid oxide fuel cell for CO2 emission reduction; Thermoeconomic assessment and tri-objective optimization

The integrated biomass gasification-Solid Oxide Fuel Cell (SOFC) technology combines benefits of renewable and hydrogen energy-based systems. In this work, this system is incorporated with solar-powered hydrogen production and injection into the SOFC to provide higher hydrogen concentration in fuel mixture of the SOFC. Proton Exchange Membrane Electrolyzer (PEME) is employed for hydrogen production, meanwhile its required power is generated by solar Photovoltaic-Thermal (PVT) panels. The proposed system with hydrogen injection is modeled and its performance is evaluated and compared with that of conventional integrated biomass gasification-SOFC system in terms of thermodynamics, environmental impacts and economics. In thermoeconomic assessment, the environmental damage costs resulted from CO2 emissions as the primary greenhouse gas is taken into account. Via conducting a parametric study the major design variables are determined and then, a tri-objective optimization is performed based on levelized product cost, CO2 emissions, and exergy efficiency. It is found that, the proposed system has significantly lower CO2 emissions compared to the conventional system. Under optimal operation, the proposed system with hydrogen injection yields lower CO2 emission by 12.9% and higher output power by 8.7% at the expense of 6.3 percentage points reduction in exergy efficiency, compared to the conventional system. Despite the additional costs associated with the solar PVT panels and electrolyzer, the proposed system yields almost the same product cost compared to the conventional system. This point can be accounted as an important and remarkable advantage for the proposed system in this work.

Pengaruh Dan Hubungan Karakteristik Petani Terhadap Penggunaan Lahan Sawah Dengan Sistem Pergiliran Komoditi Di Desa Yosowinangun Kecamatan Belitang Madang Raya Kabupaten Oku Timur

This research was conducted in June–July 2020, with the aim of knowing the magnitude of the increase in income and production cost efficiency with the existence of commodity rotation farming in Yosowinangun Village and to determine the effect and relationship of farmer characteristics on commodity rotational farming income in Yosowinangun Village. The method used is a survey method centered on Yosowinangun Village, the population of which is mostly lowland rice farmers who also operate rotational farming of rice and carp commodities. Furthermore, the sampling method used in this study is using the simple random sampling method. The number of samples taken in this study were 14 samples from 20 farmer populations who were engaged in rotational farming of rice and carp commodities.
 The results showed that the increase in income obtained by farmers with the use of paddy fields with a rice and carp commodity rotation system was Rp. 1,645,001,-/Ha/production, while the efficiency of the use of production costs shows an R/C ratio value of 1.99, based on the criteria that the R/C Ratio > 1 means that the use of production costs in the commodity rotation system farming is efficient. Furthermore, there is a significant and strong relationship between the dependent variable and the income of the rice and carp commodity rotation system farming with a confidence level of 95%, with a correlation coefficient (R = 0.999), with an F-test value (Fcount = 545.516 > Ftable = 3 ,63).

EFISIENSI BIAYA DENGAN PENERAPAN SISTEM ACTIVITY BASED MANEGEMENT (ABM) UNTUK MENENTUKAN HARGA POKOK PRODUKSI

This study aims to determine the efficiency of production costs of PT.Perkebunan Nusantara XII Kebun Mumbul RSS (Ribbed Smoked Sheet) Factory after the implementation of Activity Based Management (ABM).This type of research is descriptive qualitative. This research was conducted by identifying the activities that occur during the production process. Where the company data that has been collected will be compiled, processed, and analyzed to determine value-added and non-value added activities and impose costs into activities according to the amount of resources used or use direct loading to activities. Then compared with the theories that have existed so far. From the results of the comparison, a conclusion was drawn. The results of this study indicate that the application of the Activity Based Management(ABM)method at the RSS (Ribbed Smoked Sheet) factory can lead to production cost efficiency. This is because the amount of production costs in the ABM method results in lower production costs compared to the calculation of conventional methods. Keywords: efficiency, ABC, ABM

Analysis of Readiness to Use Target Costing Method in Production Cost Efficiency Efforts at Risha Bakery

Companies do not always have the ability to determine the selling price of the product as desired because there are a number of competitors offering a certain price. In order to maintain the quality of a product and have a competitive selling price, companies need to sort out the costs that are not needed in the production process so that profits can be more optimal. The target costing method is a method of determining the selling price based on market prices. Target costing aims to reduce production costs so as to optimize profit or profit. This study aims to analyze the readiness to use the target costing method at Risha Bakery. This type of research approach used in this research is a qualitative approach using descriptive analysis. The results showed that the readiness of Risha Bakery can be seen from several factors including setting the selling price as a means of competition with competitors, the desire of the company to get an increase in profit, setting cost targets, and reducing inefficient production costs or value engineering. Thus, Risha Bakery can be considered ready to use the target costing method.

OPTIMASI KOMBINASI ALAT BERAT PADA PROYEK PEMBANGUNAN GEDUNG RSUD SANJIWANI GIANYAR

Construction equipment, especially heavy equipment, is one of the important resources in the implementation of construction projects. Heavy equipment can streamline the number of workers and the completion of projects can be faster. The selection of heavy equipment must be in accordance with the work during construction, and the efficiency of the equipment must be considered. The construction project of the Sanjiwani Hospital, Gianyar Regency is a construction project that requires heavy equipment, so this project needs management in terms of time and cost efficiency of using heavy equipment. The purpose of this study was to analyze the most optimum combination of heavy equipment in terms of time and cost in excavation and soil embankment work, so that losses due to project delays can be avoided. The method used in this research is the calculation of production capacity and cost efficiency on each heavy equipment. The results of the analysis show that the effective combination of heavy equipment for excavation work is 9,153.89 m3 and embankment is 456.80 m3, namely a combination of 2 Komatsu PC200-8 Excavator, 3 Komatsu WA200-1 Wheel Loaders, and 11 Hino Dutro Dump Trucks capacity 9 m3. The work can be completed in 185 hours at a total cost of IDR 162,363,500.00. The use of this combination can speed up the time by 95 hours (33.93%) and can save costs of IDR 47,468,500.00 (22.62%) of the existing condition.

Design Optimization on Cost Efficiency and Benefit Increase of Project Construction Unit Production PT.X

The increased consumption of poultry in Indonesia, opening up greater business opportunities in the industry. The rapid project construction in the livestock business should be questioned whether the implementation of project has been carried out properly? The evaluation of production requirements, project design scenarios, the cost of project, and the value of every component that have been carried out should be identified by evaluating the requirements, specifications, standard quality, the machines and equipment. In the last 4 years, PT.X has built 4 new breeding farm units, in far different locations, typical layouts, land areas, varied building and installation designs. This resulted in the creation of master plan that was not standardized. By conducting an evaluation related to design optimization on the construction of the 4 PT X breeding farm unit, the better standard design is obtained in terms of cost and value. The research of the method done by analyzing the production needs as a scenario design that produce the parameter design as the reference in making the new standard design. The result of the optimization is an efficient cost with suitable function for the production and also giving some extra benefit by providing more facilities and utilities.

Effect of Si Content on the Morphology Evolution of the Si Primary Dendrites in Al-Si Alloy Solvent Refining Process

Solvent refining with Al-Si alloy is a promising purification method for the production of solar-grade silicon (SoG-Si) feedstock owing to the advantages of low production cost and high impurity removal efficiency. In this process, larger refined Si primary dendrites should be easily collected after acid leaching, which is favorable to recovery, thereby reducing the production cost. Hence, the growth behavior of the precipitated Si crystal must be investigated systematically. In the present work, the morphology evolution of solidified Al-Si alloys with a wide range of Si content (30 ~ 70 wt%) was analyzed. The typical plate-like Si primary dendrites grown following the twin plane re-entrance edge (TPRE) mechanism formed in all alloy compositions. As increasing the Si content from 30 wt% to 50 wt%, the Si primary dendrites underwent a coarsening process attributed to the preferred growth along with < 211 > and < 111 > directions, leading to an increase in the experimental recovery rate. However, the preferred growth along < 211 > direction was inhibited when the Si content is higher than 55 wt%. Moreover, the broken effect originating from grain collision and thermal stress on the Si primary dendrites was enhanced by further increasing the Si content, resulting in a decrease in the experimental recovery rate. Therefore, the optimum composition is determined as Al-50 ~ 55 wt% Si for solvent refining solution, based on the cost reduction consideration.

Stability of Novel Anolyte and Catholyte Materials for Organic Nonaqueous Redox Flow Batteries

In recent years, many improvements have been made in renewable energy technologies, allowing them to outcompete fossil fuels in terms of the cost-efficiency of energy production. However, the biggest challenge in the implementation of renewable energies is matching energy production to energy consumption. In an effort to bridge this gap, there has been significant academic and commercial focus on energy storage technologies, with redox flow batteries being of particular interest.Organic nonaqueous redox flow batteries provide several improvements over traditional flow batteries. These improvements include higher accessible cell voltage, enhanced energy density, wider operating temperature range, and reduced operational costs compared to current flow battery technology. Current redox flow battery chemistries often utilize toxic metals such as vanadium for anolyte and catholyte materials. These metals are expensive, difficult to safely dispose of, and require a highly acidic electrolyte. Organic anolyte and catholyte materials provide a potential solution to these problems but also introduce other challenges, most notably stability of the battery materials in their oxidized and reduced states.In this study a number of organic redox-active molecules been evaluated for their use as anolyte and catholyte materials capable of highly reversible one electron and two electron oxidations and reductions. Cyclic voltammetry and spectroelectrochemistry were utilized to determine oxidation or reduction potentials as well as the electrochemical stability of those materials in their oxidized or reduced states.

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.