ANALYSIS OF STRATEGIES TO REDUCE THE COST OF PRODUCTION IN LIQUID PHARMACEUTICAL PRODUCTS (CASE STUDY HERBAL COUGH SYRUP)

• Main Author: Fileas, Giovanni
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/66111
• Institution: Institut Teknologi Bandung

One of the growing pharmaceutical markets is the herbal medicine market. As a pharmaceutical industry that produces herbal medicines, PT XYZ Farma must be able to answer the market opportunities. The competitive advantage is the key for companies in a competitive market. The company's competitive advantage can be measured by using indicators: price, quality, delivery reliability, product innovation, and lead time. Regarding the price factor, it is necessary to evaluate the cost of production (HPP) which is influenced by direct materials cost, direct labor cost, and industrial overhead costs. This study aims to determine and evaluate the strategies to reduce the cost of production of herbal cough syrup A that is produced at PT XYZ Farma. The strategies are made to reduce direct labor costs, overhead costs, and raw material costs. Efforts to reduce direct labor costs and overhead costs were carried out through batch enlargement and the use of production machines with higher capacities. The implementation of this strategy reduced direct labor costs per bottle by Rp 1.391,08 (down 86,58%) while overhead costs per bottle by Rp 3.298,19 (down by 69,31%). The total decrease in cost of production per bottle after implementing the strategy was Rp 4.616,07 (down 40,51%). To reduce the cost of raw materials, a simulation of the reformulation strategy of liquid pharmaceutical products (herbal cough syrup products) was implemented. With these efforts, there was a decrease in direct material costs by Rp 1.067,66 (down 33,01%). The total decrease in cost of production per bottle with reformulation, lower direct labor costs and overhead costs resulted in the highest decrease in HPP per bottle of Rp 5.445,14 (down 47,79%).