CAPACITY ANALYSIS IMPROVEMENT FOR SEAFOOD VALUE-ADDED IN KML PLANT II

• Main Author: Rochiman Danil, Daldi
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/68565
• Institution: Institut Teknologi Bandung

The demand for value-added seafood products continues to increase every year, this happened because value added seafood is a basic need food that has high nutritional value. PT Kelola Mina Laut (KML) is one of the largest seafood processing companies in Indonesia. One of the factories namely KML Plant II, was built specifically for the production of value-added seafood. The product is distributed in domestic market and is targeted to become market leader in that type. In 2021, KML Plant II had a significant decrease in purchase order (PO) fulfilment. the factory service level decreased from 69% to 58% compared to the previous year. One of causes declined in production is by capacity of production machines that are no longer able to meet the existing demand. The purpose of this research is to determine factors causing decline in service levels. Based on capacity analysis, it was found that there was a significant difference in value of design capacity and effective capacity on grill machine that produces chikuwa and steam machine that produces ebikani. The difference even reaches 75-90%. This research also uses pareto analysis to see which products contribute the most to high unfulfilled purchase order and 5 why(s) analysis to conclude root cause. The proposed solution to increase production is to invest in new machines for chikuwa and ebikani products. Forecasting simulations are carried out on these products to obtain demand forecasts for next 5 years based on historical data from 2020 to April 2022. 4 forecasting methods are used, namely moving average, trend projection, single exponential smoothing, and double exponential smoothing. Economic analysis is also carried out to assess whether the feasibility of investing in new machine is acceptable or not. The result of analysis indicates that trend projection forecasting method provides the lowest MSD value compared to other forecasting methods. Results of demand forecasting will be used as a reference for production capacity and economic analysis. With an investment value of Rp6,037,184,975 on a grill machine and Rp4,550,818,175 on a steam machine, NPV value is positive and payback period is below the company benchmark which is 4 years.