ANALYSIS OF STRATEGY TO REDUCE THE COST OF PRODUCTION IN SOLID PHARMACEUTICAL PRODUCTS (MULTIVITAMIN PRODUCTS)

• Main Author: Komang Legiarta, I
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66071
• Institution: Institut Teknologi Bandung

Multivitamins are one of the products that experienced the highest demand disruption due to the COVID-19 pandemic. During the pandemic, people bought up the need for drugs that functioned as endurance for themselves and their families. This creates a void of multivitamin drugs in the market, making it difficult for other people in need. Along with the increase in e-commerce transactions, sales of pharmaceutical products, especially online multivitamin products in Indonesia are projected to continue to grow. Price is one of the supporting factors that can improve purchasing decisions, so that in order to win the competition in the multivitamin product market, companies must be able to reduce production costs. The cost of production is compiled by raw material costs, direct labor costs, and factory overhead costs. In this study, the determination and analysis of strategies in reducing the cost of production of multivitamin products was carried out. The purpose of this study is to determine the strategy in reducing the cost of production of solid pharmaceutical products (multivitamin products) and evaluate whether the strategy implemented will be able to reduce the cost of production in solid pharmaceutical products (multivitamin products). The results of this study are expected to be used as a basis for determining strategies to reduce the cost of production in solid pharmaceutical products (multivitamin products) for pharmaceutical companies. The novelty of this research is the analysis of strategies in reducing the cost of production in solid pharmaceutical products (multivitamin products) and the evaluation of the results has never been done before. The limitation of this research is that this research was conducted in a scope that can be controlled directly by the author as a member of the Production Department at X Company. The research was conducted using a quantitative descriptive method. The research was conducted on multivitamin products produced at X Company, with a research period from October 2020 to April 2022. The data before implementing the strategy was taken from the report on the cost of production of multivitamin products for 10 commercial batches for the period July - September 2020. While the data after the implementation of the strategy was taken from the report on the cost of production of multivitamin products. as many as 10 commercial batches for the period February - April 2022. The data were analyzed using a comparison of the cost of goods manufactured before and after the implementation of the strategy, as well as calculating changes in the cost of production and its constituent components to evaluate the impact of the implementation of the strategy. Strategies to reduce raw material costs on multivitamin products can be done by eliminating brochures, modifying blister dimensions, modifying outer box dimensions, modifying inner boxes, diversifying Vitamin 2, and diversifying alu-foil prints. Strategies to reduce direct labor costs on multivitamin products can be done by changing the coating machine, changing the packaging machine, and increasing the batch size. Strategies to reduce factory overhead costs on multivitamin products can be done by changing the coating machine, changing the packaging machine, and increasing the batch size. The implementation of the strategy in reducing raw material costs resulted in a decrease in raw material cost per tablet by Rp 70.54 (reduce 12%). The implementation of the strategy in reducing direct labor costs resulted in a decrease in direct labor cost per tablet by Rp 5.24 (reduce 18%). The implementation of the strategy in reducing factory overhead costs resulted in a decrease in factory overhead costs per tablet by Rp. 83.08 (reduce 45%). The total decrease in the cost of production per tablet after implementing the strategy was Rp. 157.90 (reduce 19%). Factors that cannot be controlled in this study include unit cost of materials caused by external factors, direct labor rate and factory overhead rate.