DEVELOPING MANUFACTURING STRATEGY PLAN FOR PT. OMRON MANUFACTURING OF INDONESIA TO IMPROVE COMPANY’S COMPETITIVE ADVANTAGE

• Main Author: Puji Rahayu, Anik
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/60898
• Institution: Institut Teknologi Bandung

The COVID-19 pandemic has been severely disrupted the global economy around the world. Since the beginning of 2020, the global manufacturing index PMI has fallen lower than 50, it is indicating most businesses falling and deteriorated. And this condition has forces manufacturing companies around the world to think quickly and adapt their business and operations strategy to ensure the health and safety of their employees and keep the organization alive in rapid environmental changes. PT Omron Manufacturing of Indonesia is a manufacturing company that produces electronic components with main order comes from China area. The company’s orders keep decreasing in three consecutive years which indicates a major order decrement. In order to solve the company problem, an analysis of internal and external factors is carried out. The internal factor analysis using resource-based view, VRIO analysis, and value chain analysis. Meanwhile, for the analysis of the external factors using PESTLE and Porter’s Five Forces. The analysis of internal and external factors will be summarized into a SWOT as inputs to be entered on the IE (Internal-External) Matrix. The IE Matrix analysis result, the company’s position is in region V (in the middle) which means to hold and maintain current condition. But if the company doesn’t do anything, it will lead to a competitive disadvantage, so the company should do improvement of the current condition. To get the right strategy, the three strategies have been compared using QSPM techniques, and it is found that fit manufacturing strategy is the right strategy for the company by combining the lean and agile manufacturing systems. There are four alternative solutions of fit manufacturing strategy: (1) Eliminating waste by stabilizing quality and process performance, (2) Just in Time production development to reducing cost, (3) Establish multi-task operators through rotation systems, and (4) Re-engineering existing products. With those four alternative solutions, PT Omron Manufacturing of Indonesia as a manufacturing company expects to cope and adapt to the present condition and stay competitive in the global economic crisis.