OPERATING EXPENSES PROBLEM-SOLVING THROUGH WORKFORCE AND PROCESS ANALYSIS FOR A RUBBER MANUFACTURING PLANT IN BANDUNG

• Main Author: Sontania, Mesli
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/83071
• Institution: Institut Teknologi Bandung

CV XYZ, a rubber manufacturing plant in Bandung, has been significantly affected by high operating expenses that makes them only having 13.1% gross profit margin in 2023, which is below the industry average. The highest operating cost in the finished goods division comes from labor cost (51.1%) which costs Rp 412,402,500 per year. This happens because the company has a poor use of productive time. To reduce costs, an assessment of workforce and process efficiency is necessary. This research aims to assess the current performance of labor and processes in CV XYZ’s finished goods division and propose improvements. It uses a combination of qualitative and quantitative methods, including field observations, interviews, and literature reviews. Data was collected from observation, company archives, and interviews with key personnel at CV XYZ. The data analysis includes business process analysis, value stream analysis, and workload analysis using the Full-Time Equivalent method. A detailed process mapping using SIPOC and BPMN highlighted waiting waste as the most frequent. The workload analysis shows that eight workers were underloaded, and a worker had a normal workload. Business process reengineering suggests improvement by combining operations or elements. The proposed process reduces laborer idle time during the rubber vulcanization phase. The re-engineered business process is used as a baseline to calculate the new workload distribution. This results in fewer workers and an increased workload, although it is still in the under-load category. This proposed solution saves CV XYZ 33% of direct labor costs, which cost Rp 137,467,500 a year and reduces 17.02% of the operating cost.