MATERIAL REQUIREMENT PLANNING ANALYSIS IN MICRO, SMALL, AND MEDIUM ENTERPRISE CASE STUDY: GROOVELINE - AN APPAREL OUTSOURCING COMPANY

• Main Author: Iasya, Ade
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78581
• Institution: Institut Teknologi Bandung

Micro, Small and Medium Enterprise (MSME) is a micro to medium business activities which are individually owned. In spite of its relatively small size, MSME have a huge impact on Indonesia’s economic growth (Narasi Statistik UMKM, 2012). Its size and structure make it more resistant towards economics fluctuation, creating a relatively stable economic situation. MSME in fashion industry is one of the most promising business ventures, an apparel outsourcing called Grooveline is one of those. Grooveline is a company which offer the service of T-shirt manufacturing that can be ordered according to customer’s wishes in term of design, color, image to be printed, fabrics, and size. The company has to be able to fulfill its customer demand, yet this objective hampered by the inability of the company to determine what how much raw materials should be purchased and the inability of the company to make a production planning to fulfill the demand’s deadline schedule. These to problems are crucial to be solved as it affect the perception about company’s professionalism, moreover because the company has only established less than a year. Thus, a calculation of Material Requirement Planning (MRP) of each product produced is crucial to the business in order to design an effective purchasing order. The implementation of the aforementioned plan shall prevent the company from wasting materials and to conduct a more effective production and leads to a more profitable business. The calculation of MRP in this study is only discuss about T-shirt product among four products that are being produced by the company. The requirements that shall be fulfilled in order to make a calculation of MRP, includes the availability of product structure, Master Production Schedule, Bills of Material, purchasing and production lead time, a time phased structure, Gross Material Requirement, lot sizing calculation and net material requirement. The final calculation of MRP requirement are being totaled and being compared to the actual purchasing data that the company has performed to satisfy the previous demand. This action is conducted in order to show how much efficiency the company can create when performing MRP from the beginning. Those comparisons compare the saved cost with both value in price and value in percentage. The smallest saving company can get when performing MRP, compared to the actual procurement data is Rp 418,500,- or 7.39% and the largest is Rp 953,500,- or 12.82%. The efficiency result varies month after month since the variation of demand and the actions that company has took to meet the demand. Result of the total calculation has shown that if company has implemented MRP from the beginning, company can save the amount of Rp 4,459,500,- in price and make saving of 11%.