The 1st ASIA PACIFIC CONFERENCE ON RESEARCH IN …...Ir. Hardianto Iridiastadi, MSIE, PhD., CPE was born in February 1966. He graduated from bachelor degree in Industrial Engineering,

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The 1st ASIA PACIFIC CONFERENCE ON

RESEARCH IN INDUSTRIAL AND

SYSTEMS ENGINEERING

(APCoRISE) 2018

Cover image: UAE from above by Huda bin Redha via Photogrist.com

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Message from Head of Department

Digitalization is the key lever that will enable companies to remain competitive into the future. Increasingly

shorter innovation cycles mean that industrial enterprises constantly need to shorten their development and

production times. This requires seamless integration of data along the value chain, from the idea of a product to

the real product to service. Making use of the opportunities provided by digitalization to respond faster and

more flexibly to customer requirements will provide an advantage on the market.

Industry in the future will be 100% digitalized and networked via the cloud, as it is now initiated by the industry

revolution 4.0. It will be able to develop and manufacture new products many times faster than at present, and

all perfectly tailored to individual customer requirements. Moreover, the amount of resources and energy needed

will be much lower than today, without compromising product quality.

Department of Industrial Engineering, Universitas Indonesia has a responsibility to encourage academician and

engineers, particularly in this region to actively involved in developing innovative solutions in the era of

Industry 4.0. As the first annual conference, Asia Pacific Conference on Research in Industrial and System

Engineering (APCoRISE) 2018 is a part of our initiative to provide a forum for researchers, engineers, and

professionals to discuss and exchange the current research, the new technology and solutions in industrial and

system engineering. It is to be expected that this conference can foster the development of innovative solutions

by integrating the role of people, process and technology.

Summing all up, I would like to express my sincere gratitude and appreciation to our keynote speakers,

international advisory board and all our organizing and technical committees who provided outstanding

commitment and support to make this conference a success in the first place. I also thank all the conference

participants for attending APCoRISE and wish you a pleasant experience in Jakarta.

Sincerely,

Dr. -Ing Amalia Suzianti

Head of Industrial Engineering Departement

Faculty of Engineering, Universitas Indonesia

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Message from General Chair

It is our great pleasure to welcome you the 1st Asia Pacific Conference on Research in Industrial and Systems

Engineering (APCoRISE 2018) in Depok, Indonesia on April 18th, 2018. This is the first series of APCoRISE

organized by Department of Industrial Engineering Universitas Indonesia, with the main theme “Industrial and

System Engineers towards Industry 4.0”.

The APCoRISE 2018 provides a forum for national and international researchers, engineers, industrial

practitioners for discussing a vast range of industrial and system engineering research area, including production

systems and logistics, systems engineering, ergonomics, product design and development, industrial

management, data engineering, quality systems, operations research, maintenance and reliability.

In this year, we have received 64 submissions. To ensure the high quality of papers in the APCoRISE 2018,

each submission is evaluated by at least two reviewers through a double-blind review process. In addition, we

also do our best to carefully check the writing format of each submission according to the conference template.

After completing those efforts, a total 50 papers that meet the evaluation criteria are accepted for presentation

and inclusion in the proceedings at the end. Therefore, the related acceptance rate of this conference is 78.13%.

We would like to take this opportunity to gratefully acknowledge our keynote speakers who come along the

way to share with us advanced knowledge of their findings. We also want to express our appreciation to the

international advisory board for their invaluable support to the APCoRISE 2018. We would like to send our

highest gratitude also for the board of reviewers who have put in hard work to review each paper in a timely

and professional manner. Furthermore, we appreciate the organizing committee members, including steering

committee, scientific committee, and technical committee for the good job in preparing and organizing the

APCoRISE 2018.

Last but not least, we would like to thank all authors and participants for their contribution and participation in

APCoRISE 2018, to present and discuss their excellent research results. We believe each participant will have

fruitful discussions and enjoy the APCoRISE 2018.

Warm regards,

Dr. Zulkarnain

General Chair of APCoRISE 2018,

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Keynote Speech 1:

The Efficacy of Eye Blink Rate and Facial Expression As An Indicator of

Fatigue and Sleepiness: A Study of Simulated Train Driving

Ir. Hardianto Iridiastadi, MSIE, PhD., CPE

Abstract:

Despite the steady decline in the number of train accidents in Indonesia, train

accidents will remain an important national issue. This is due to the fact that

the number of railway network has grown considerably resulting in greater

operational complexity. Fatigue among train drivers, in particular, has been

considered as a major contributing factor in safe operations of railway

transportation. Currently, however, there is no system in place that can

monitor driver fatigue in real time. This study aimed at evaluating the

efficacy of eye blink rate and changes in facial expression as fatigue indicator

during train operations. A total of 12 male participants were recruited in this

investigation, and asked to perform driving tasks (continuously for 4 hr.) in

a train simulator. Each participant was asked to have sleep durations of 2, 4, or 8 hrs., the night prior to the

experiment. A video camera was utilized to record the driver’s face continuously throughout the experiment.

Based on the recordings, the frequency of eye blink and facial expression indicators were determined every 20

min. Karolinska Sleepiness Scale (KSS) was also employed to help assess the degree of sleepiness perceived

throughout the experiment. Results of this study indicated that sleep deprivations were associated with

differences in initial blink rates. While difficult to quantify, fatigue and sleepiness were also highly associated

with changes in facial indicators. In general, there was an inverted U-shaped pattern of blink rate for all task

conditions. Blink frequency of around 40 to 50 blinks per minute was observed at the beginning of the

experiment, and peaked at roughly 45 to 60 blinks per minute after two hours of driving. There was then a

decline of this measure, reaching at about 40 blinks per minute at the end of the experiment. Normal sleep

duration (8 hrs.) was characterized by relatively flatter pattern. Findings of this study demonstrated that it was

somewhat difficult to use eye blink rate as a measure of fatigue per se. However, it was found in this study that

a decrease in blink rate occurred after the KSS reached a value of 5 – 6. It should be noted that changes in facial

expressions were considered a potential avenue in addressing sleepiness and fatigue. It is suggested here that

driver sleepiness and fatigue could potentially be assessed by observing patterns of blink rate as well as changes

in facial expressions. Their use within the context of real-time monitoring, however, should be done with

caution. Further research needs to be conducted that validates the use of these measures in actual field settings.

Short Biography:

Ir. Hardianto Iridiastadi, MSIE, PhD., CPE was born in February 1966. He graduated from bachelor degree in

Industrial Engineering, Bandung Insitute of Technology, Indonesia in 1995. He also got his Dr. degree in

Industrial Engineering, Louisiana State University, USA in 1997, and his doctoral program in Industrial and

System Engineering, Virginia Polytechnic Indsitute and State University, USA in 2004. Now, he is an associated

professor in Bandung Insitute of Technology. He has done a lot of research since 2005 from various field. He

is also doing a research from Hibah Kompetensi Kemenristek Dikti. Since 2006, he has participated in several

organizations, like International Ergonomics Association (IEA), Indonesia’s Ergonomics Association, and

Insititute of Industrial and Systems Engineering (IISE). During his professional life, he also wrote “Cultural

ergonomic issues in consumer product design” in Human Factors and Ergonomics in Consumer Product Design:

Methods and Techniques (Book Chapter) and Pengantar Ergonomi (Introduction to Ergonomics).

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Keynote Speech 2:

Linking Knowledge Management and Manufacturing Performance:

A Structural Equation Modeling and Neural Network Approach

Prof. Dr. Kuan Yew Wong

Abstract:

Previous studies on knowledge management have centered on investigating

the relationship between knowledge management and organizational

performance, thus reinforcing the importance of managing knowledge in

organizations. Despite this, previous research has not explicitly considered

the linkage between knowledge management and manufacturing

performance. In addition, a prediction model for manufacturing performance

based on knowledge management metrics has not been developed to date.

Therefore, this research examined the relationship between knowledge

management and manufacturing performance, and developed a neural

network model to predict manufacturing performance based on knowledge management metrics. Firstly, a

collective set of knowledge management constructs and metrics, as well as a set of manufacturing performance

metrics were proposed. Hypotheses that linked knowledge management with manufacturing performance were

then generated. A questionnaire survey was conducted to collect data for the proposed metrics. Based on these

data, the metrics were validated and the hypotheses were tested using structural equation modeling. All the

hypotheses were accepted, and the results supported the relational model and substantiated that knowledge

management has a positive effect on manufacturing performance. Subsequently, the metrics were adopted to

develop the neural network prediction model. It was trained, validated and tested, and the best configuration

was determined. The results showed that the neural network model could be used to reliably predict

manufacturing performance based on knowledge management metrics because it generated good predicted

outputs that correlated with actual data. In essence, this research has provided new findings regarding the linkage

between knowledge management and manufacturing performance.

Short Biography:

Kuan Yew Wong received his PhD degree from the University of Birmingham, UK. He is a Professor of

Industrial Engineering at the Faculty of Mechanical Engineering, Universiti Teknologi Malaysia (UTM),

Malaysia. He leads the Industrial and Systems Engineering Research Group, working in close collaboration

with industries and other stakeholders to develop and implement solutions for operational improvement.

Before joining the academia, he was an engineer in a Japanese multinational manufacturing company. He is a

Chartered Engineer, Chartered IT Professional and Fellow of The Chartered Institute for IT (formerly known

as British Computer Society). He has headed and completed various research projects funded by the Malaysian

Ministry of Higher Education, Ministry of Science, Technology and Innovation, Intel Technology Ptd Ltd and

Mexico State Council of Science and Technology. He is also an editorial board member of a number of

international journals. He has received several awards including the Emerald/CLADEA Research Award

(awarded by Emerald Group Publishing, UK), Malaysia’s Rising Star Award (awarded by Ministry of Higher

Education, Malaysia and Thomson Reuters, Asean & North Asia) and Leaders in Innovation Fellowship

(awarded by Royal Academy of Engineering, UK).

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CONFERENCE COMMITTEE The 1st Asia Pacific Conference on Research in Industrial and Systems

Engineering (APCoRISE)

International Advisory Board

1. Prof. Ir. Isti Surjandari Prajitno, M.T., M.A.,

Ph.D.,

Universitas Indonesia

2. Prof. Dr. Ir. Teuku Yuri M. Zagloel, M.Eng. Sc.,


3. Ir. Hardianto Iridiastadi, M.S.I.E., Ph.D.

Institut Teknologi Bandung

4. Prof. Kuan Yew Wong,

Universiti Teknologi Malaysia

5. Prof. Pekka Leviäkangas,

University of Oulu, Finland

6. Dr. Idriss El-Thalji, University of Stavanger,

Norway

7. Prof. Dr. Shi-Woei Lin, National Taiwan

University of Science and Technology

Scientific Committee 1. Dr. rer.pol. Romadhani Ardi,


2. Dr.-Ing. Amalia Suzianti, ST., M.Sc.,


3. Dr. Akhmad Hidayatno, ST., MBT.,


4. Dr. Komarudin, ST., M.Eng.,


5. Dr. Muhammad Salman, S.T., M.IT.,


6. Dr.-Ing Asep Ridwan,

Universitas Sultan Ageng Tirtayasa

7. Budhi Sholeh Wibowo, P.D.Eng.,

Universitas Gadjah Mada

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8. Putu Dana Karningsih, S.T., M.Eng.Sc., Ph.D.,

Institut Teknologi Sepuluh Nopember

9. Dr. Ir. Elisa Kusrini, M.T., CPIM, CSCP,

Universitas Islam Indonesia

Steering Committee 1. Dr. Akhmad Hidayanto

2. Dr.-Ing. Amalia Suzianti

3. Dr. Komarudin

4. Erlinda Muslim, MEE

5. Armand Omar Moeis, M.Sc.

General Chair Dr. Zulkarnain

Secretary Annisa Marlin Masbar Rus, S.T., M.Sc.

Treasury Irvanu Rahman, S.T., M.T., M.P.A.

Publication Chair Andri Mubarak, S.T., M.Sc.

Program Chair Dr.rer.pol. Romadhani Ardi

Technical Committee Billy Muhammad Iqbal, S.T., M.T.

Danu Hadi Syaifullah, S.T., M.Sc.S.F.

Arry Rahmawan, S.T., M.T.

Inaki Maulida Hakim, S.T., M.T.

Maya Arlini Puspasari, S.T., M.T.

Enrico Laoh, M.T.

Rizky Nur Iman, ST.

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Conference Schedule

Time Event

08.00 – 08.30 Coffee Break

08.30 – 08.50 Opening ceremony

08.50 – 09.20

Opening Speech from Dean of Faculty of Engineering, Universitas Indonesia

Dr. Ir. Hendri D.S. Budiono, M.Eng.

Opening Speech from Head of Department of Industrial Engineering, Universitas

Indonesia

Dr.-Ing. Amalia Suzianti, ST., M.Sc.,

Opening Speech from General Chair of The 1st Asia Pacific Conference on

Research in Industrial and Systems Engineering (APCoRISE).

Dr. Zulkarnain, ST., MT.

09.20 – 09.55

Keynote Speaker 1: The Efficacy of Eye Blink Rate and Facial Expression As

An Indicator of Fatigue and Sleepiness: A Study of Simulated Train Driving.

Ir. Hardianto Iridiastadi, MSIE, PhD., CPE

09.55 – 10.30

Keynote Speaker 2: Linking Knowledge Management and Manufacturing

Performance: A Structural Equation Modeling and Neural Network Approach

Prof. Dr. Kuan Yew Wong

10.30 – 11.00 Question and Answer Session

11.00 – 11.05 Souvenir Distribution

11.05 – 11.15 Photo Session

11.15 – 12.45 Parallel Session 1

12.45 – 13.30 Ishoma


15.00 – 15.15 Coffee Break


17.00 – 17.15 Closing

17.15 – 17.20 Best Paper Announcement

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Session 1-Room A

Session 1-Room B

Presentation

Order

Paper

ID Title Presenter Page

1 6

Analysis of Salt Production and Demand also The

Projection of National Salt Self-sufficiency in

Indonesia

Yasir Mulyansyah

Fama p. 4

2 18 Analysis of Agricultural Land Needs to Strengthen

National Food Security Yudhisthira Askar p. 14

3 22 Inventory Determination Model Of Frozen-Meat

For Food-Safety Program In Indonesia

Moch. Yandra

Darajat p. 18

4 50

Critical Success Factors (CSFs) of Six Sigma

Implementation in Indonesia Small and Medium

Industries

Wahyu

Poncotoyo p. 31

5 58 Policy analysis of Sustainable Palm Oil

Certification in Indonesia

Danar Surya

Wiranagara p. 38

6 70

Development of Distribution Channel Simulation

Model in Cement Industry to Overcome Over

supply against Domestic Demand

Febdi Harmanto p. 45

Presentation

Order

Paper


1 20 Supplier Selection Criteria in Oil and Gas Industry

in Indonesia Utami Rianti p. 16

2 21

Performance Analysis for Government Program in

Stabilization Effort of Staple Food Prices in

Indonesia

Erick Aditya

Firmansyah p. 17

3 31 Effort to Increase the Value of Corrugated

Paperboard Material as Fiberboards Yusi Anindhita p.22

4 35 HVS Paper Waste Material Value Leveraging as

Fibreboard Production’s Main Raw Material Rizky Ariyadi p. 49

5 67 Risk Register of Agile Framework in Exploration

Drilling Project Management on Oil and Gas Sector

Sarah Risda

Nafisah p. 43

6 73

Conceptual Model of Customs Clearance

Continuous Improvement Process Using Value

Stream Mapping and Overlapped Design Schedule

Iqbal Firmansyah p. 48

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Session 1-Room C

Presentation

Order

Paper


1 2 K-Means Clustering to Determine Initial Cluster

Hub and Feeder Port

Sesaria Mardhiani

Rachma Puspita p. 1

2 14

Process Monitoring and Control in the White Sugar

Industry Using Multivariate Statistical Process

Control: a case study in Indonesia

Rindang Persada p.11

3 33 Conceptual Development of Harmony Search

Method for High Utility Itemsets Mining Fxika Pradana p. 24

4 53

Development of Risk Management Framework in

Spare Part Purchasing at MRO(Maintenance,

Repair, and Operation Companies

Ratih

Puspaningtyas p. 34

5 54 The Model Conceptualization of Service Quality in

Testing Laboratory

Bernaded Oka

Anggarani p. 35

6 56 Fault Detection in Boiler System Using Data

Mining Technique Riko Taufik p. 37

Session 2-Room A

Presentation

Order

Paper


1 29 User Experience Modeling Guidance on E-

Commerce Website

Gaby Reveria

Hellianto p. 21

2 44 Identification of UX elements for Evaluating

Donation Platform

Michiko Nur

Widawati p. 29

3 51 Markov Model Design for Estimating Expired

Product Returns Ridani Faulika p. 32

4 55 Conceptualization of a Model to Study Personal

Biases and Microeconomic Planning in Indonesia

Yurike Rachma

Azzachra p. 36

5 60 Factors Affecting Intention to Share Knowledge in

Organization Indila Mayrosa p. 40

6 72

Optimal Break on Ergonomic Job Rotation

Schedule at Assembly Lines Incorporating Fatigue

and Recovery Factors

Raka Yogaswara p. 47

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Session 2-Room B

Presentation

Order

Paper


1 9 Workload Balancing of Salesman Visits in Large

Scale Area with Sweeping Algorithm Fauziah Arofah p. 7

2 25

Determining The Order Picking Route In A 3rd

Party Logistic Warehouse - A Heuristic Travelling

Salesman Problem Method Approach

Ingga Wulandhari p. 19

3 59 Optimization of Distribution Center Determination

by Considering Routes and Time Windows Dhanang Pradanta p. 39

4 61

Completion Of Multi-Trip Vehicle Routing

Problem With Time Window Using Branch And

Bound Algorithm

Arini Evian p.50

5 62

Optimizing Service-Level and Total Relevant Cost

for a Stochastic Make-To-Order Production System

in PT XYZ Bandung

Nabilah Muyassar p. 41

6 68

Mathematical Formulation of Aircraft Routing

Under Scheduled and Unscheduled Maintenance

Constraints

Dio Fadillah p. 44

Session 2-Room C

Presentation

Order

Paper


1 15

Integration Cost Model of Predictive Maintenance

and Stock Inventory with Consideration of Multi-

echelon Logistic

Ari Prihandoyo p. 12

2 32

Evaluating Criticality of Performance Risk

Variables in Disaster Response Supply Chain Using

Supply Chain FMEA – A Conceptual Model

Agung Sutrisno p. 23

3 36 Design Criteria for Material Value Conservation in

Manufacturing Context for Grinding Disc

Andini

Maheswari p. 25

4 37

A System Analysis and Design of Responsive

Supply Chain for Micro- and Small-sized Sago-

based Food Industry

Syamsul Anwar p. 26

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Session 3-Room A

Presentation

Order

Paper


1 16

Community Issue Cost Estimation for Waste

Electrical and Electronic Equipment Collection

Reverse Logistic (Case Study: Celebes Route)

Haryadi Wirawan p. 13

2 19

Exploring Potential of Cities for Sustainable

Bioreactor Landfill Gas Plant with Resident-Based

Funding: Conceptual framework

Bevin

Makoenimau p. 15

3 27 Review of Fuel Magnetizer Parameter Effect on

Combustion Efficiency

Aprilia Tri

Purwandari p.20

4 39

Analysis of Knowledge Management System

Implementation In State-Owned Companies :

Review of Critical Success Factors

Nabila Yudisha p. 27

5 52

Conceptual Model of The Effect of Implementation

of Knowledge Management on The Performance of

Logistics Service Providers

Mohammad Ikrar

Pramadi p. 33

6 66

Knowledge Management in Multi-Generation

Workforce: Development of a Quantitative Model

on Critical Success Factor and Strategy

Komang Winadi p. 42

Session 3-Room B

Presentation

Order

Paper


1 4 Risk Impact Analysis on GP Tanker Shipbuilding

Project Feasibility Shabrina Adani p. 2

2 5

Profit Optimization of Maintenance Service

Contract Agent Based on “Multi Client Shared

Spare Part”

Firman p. 3

3 12 A Queuing Model with Priority Service for Raw

Material Supply

Erwien

Yuliansyah p. 10

4 46

Allocation of Coal Barge Fleet for Domestic

Destinations in a Coal-mining Company Using

Mixed Integer Programming (MIP)

Aisha Adilla p. 30

5 49 Risks Analysis for High Level of Automation

Implementation

Dwi Wahyu

Pradono p. 28

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Session 3-Room C

Presentation

Order

Paper


1 7 Lifespan of Small Electronic Devices in Indonesia Fredy Sumasto p. 5

2 8

Conceptual Modelling of Consumer Behavior and

Awareness on E-Waste in Indonesia: A Case Study

in Java Island

Mohammad

Safaat p. 6

3 10

Preliminary Step for Pilot Project of E-waste

Management System in Indonesia. Conceptual

Framework

Maria Tri Yunita p. 8

4 11

Estimation of E-waste Generated in Indonesia

Using Advanced Input-Output Analysis: The Case

Study of Mobile Phones

Sylfannie Santoso p. 9

5 24

Develop purchasing model of reuseable packaging

material based on inventory planning optimisation

and future value asset management

Ricky Mongula p.46

The 1st Asia Pacific Conference on Research in Industrial and Systems Engineering (APCoRISE) 2018

1

K-Means Clustering to Determine Initial Cluster

Hub and Feeder Port

Sesaria Mardhiani Rachma Puspitaa, Komarudinb, Zulkarnainc, Armand Omar Moeisd

Department of Industrial Engineering, Faculty of Engineering


Depok, Indonesia [email protected], [email protected], [email protected], [email protected]

Abstract— Logistic is a part of supply chain that is being

addressed in many countries, including Indonesia. The

costly logistic of Indonesia is caused by imbalance trading

between western and eastern regions in Indonesia.

Challenging conditions come to the stakeholders,

particularly in the logistics sector. In this regard, the

Government also plans to develop 24 strategic ports, which

will be classified the port either as the hub port or feeder

port. This study proposes initial cluster hub and feeder

port. In this study develop 33 strategic ports for container

terminal in Indonesia, because Indonesia consists of 33

provinces and that assumed each province covered by one

strategic port. K-means algorithm will be used as a method

to find the initial cluster. The initial cluster will be helpful

to find the optimal route for Indonesian liner shipping

network.

Keywords— Hub and spoke; Maritime logistics; K-

means clustering; Indonesia

I. INTRODUCTION

The activity of logistics is a part from supply chain

that becomes a concern many countries, one of them

Indonesia. The infrastructure development that mostly

occurs in western Indonesia causes a distribution

imbalance between western and eastern Indonesia. This

shows the high costs of logistics in Indonesia. A Survey

conducted by the World Bank [1] stated that Indonesia

was ranked 63rd from 160 countries around the world on

the Logistic Performance Index (LPI).

As the biggest archipelagic country, maritime

transportation should hold an important role for

Indonesia. Current situation of freight shipments in

Indonesia shows that maritime transportation has much

lower share than road transportation. Based on

information from Indonesian Ministry of Development

Planning [2], maritime transportation share is only 7.9%

compares to 91% for hinterland (road) transportation. As

a result, the Indonesian government aims to improve the

current situation.

The Indonesian government has a program design to

solve the current situation. The program is named

National Logistics System (SISLOGNAS). One of the

program SISLOGNAS is to make the concept liner

shipping network design. This concept offers the liner

shipping network design in a hub-and-spoke manner. The

concept of hub-and-spoke is large ship typically serves

the main ship route comprising some hub ports and a

small ship is deployed to serve a feeder ship route with

several feeder (spoke) ports.

In concept hub and spoke network for Indonesia liner

shipping network, the main route of the maritime network

is developed as ‘pendulum’ route [3]. In pendulum routes,

the ships play role as pendulum: swinging from one side

of the main route to the other side [4]. This route that

connecting between western and eastern Indonesia.

The liner shipping network design become the main

concern of Indonesian government because to improve

the distribution flow of goods between western and

eastern Indonesia. According to Pesenti [5], the shipping

companies can maximize their profit by acting on the

number and type of ships, shipping routes, type of service,

and dates of sailing.

The previous studies have been studies about liner

shipping network design in Indonesia. The previous study

Meijer [6], analyzed the optimization design of route

shipping network pendulum nusantara Indonesia with

types of the network are port-to-port and back & fourth.

Moeis et al [7], researched focus on decision making in

logistic maritime logistics network, implementing

butterfly routes in Indonesia networking problem, and

analyze the impact of pendulum nusantara and sea toll

routes against the company profits. Fahmiasari &

Parikesit [8], stated that pendulum nusantara more

optimal in the service shipping network in Indonesia.

There has been researched about hub-and-spoke

network for a case study in Indonesia. Faisal [9], develop

a design of Indonesia’s maritime network with input 32

ports and initial schematization network using Omintrans

software. Kalem [10] researched the feeder network

design by using List-Based Threshold Acceptance

(LBTA). LBTA is a stochastic method, which searches

iteratively through the solution region. In Mulder and

Dekker [11] use K-Centroid clustering algorithm to find

the initial clusters and corresponding hubs before

considering the network design problem in Europe-Asia

area.


2

Risk Impact Analysis on GP Tanker Shipbuilding

Project Feasibility Case Study: Pertamina Shipping

Shabrina Adania, Armand Omar Moeisb

Industrial Engineering Department


Jakarta, Indonesia [email protected], b [email protected]

Abstract— Fuel oil is a type of energy that plays an

important role in fulfilling the needs of energy in Indonesia.

The needs of fuel oil is spread to various regions in

Indonesia. Indonesian region is surrounded by the ocean,

which led to the need of marine transportation in

distributing the fuel oil such as tanker vessel. Pertamina as

the company that engaged in oil industry in Indonesia, has

an important role in distributing fuel oil to various regions

in Indonesia. However, Pertamina desires to improve its

efficiency in fuel distribution process by sea modes. One of

Pertamina’s action in improving its efficiency in fuel

distribution process is by building a GP tanker vessel with

a specification that corresponds to their fuel distribution

needs. The GP tanker shipbuilding is a high investment

project with a variety of risks that may cause negative

impacts to the financial aspects. This research is conducted

to identify and analyze the possible risks that may occur to

the GP tanker shipbuilding project, both qualitatively and

quantitatively. Value-at-Risk (VaR) is used as an approach

in this research to measure the maximum loss that may

occur in this project which caused by the high risk. The

result of this research is a risk register, the VaR calculation,

risk response planning for the high risk, project go or no-

go decision.

Keywords— Project risk management, value-at-risk,

financial modeling, oil tanker

I. INTRODUCTION

Energy is one of the primary needs that should be

fulfilled for the people in the world, as well as for the

people of Indonesia. The need for energy is always

increasing every year in line with the development of

technology and industry. Based on the data released by

the Agency for Assessment and Application of

Technology or Badan Pengkajian dan Penerapan

Teknologi (BPPT) in 2014, the final energy consumption

in Indonesia keeps increasing, with an average increase

of 2.91% per year. However, until now, fuel still

contributes the largest in Indonesia compared to other

types of energy. According to BP Statistical Review of

World Energy in 2015, the fuel consumption in Indonesia

showed increments every year, which also projected by

BPPT to continue to rise.

So far, fuel is the most important commodity in

international shipping and this commodity is also a

strategic resource in the global economy [1]. Thus, the

increasing need for fuel in Indonesia shall be fulfilled to

help the economic growth. Fuel supply in Indonesia

should be managed properly, hence the demand in the

entire nation can be fulfilled. The process of fuel

distribution is also an important aspect that needs be

considered since the need for fuel in Indonesia is not only

for a certain region only, but also spread throughout

Indonesia.

About 70% of Indonesia’s area is surrounded by the

ocean which has resulted in the requirement of sea modes

such as oil tanker in the distribution of fuel. The use of

oil tanker in the fuel distribution process in Indonesia is

considered to be more effective and efficient both in

terms of cost and coverage areas that can be covered.

This is reinforced by the fact that ships use relatively

cheaper compared to air transport has led to an increase

of 67% in terms of weight removed since 1980 [2].

PT Pertamina (Persero) which is a State-Owned

Enterprises (SOE) or Badan Usaha Milik Negara

(BUMN) has an important role in the process of fuel

distribution in Indonesia. The fuel distribution process

using oil tanker mode is also comprised by this company

through one of its subsidiaries, PT Pertamina Shipping.

The amount of fuel transported by this company varies

to each region depending on its fuel needs which affect

the size, design, and cargo segregation of the tankers

used to transport them. This has resulted the urgency for

the company to build oil tankers with the specifications

in accordance to their needs.

Oil tanker shipbuilding is an expensive investment

which also exposed by numerous potential risks that can

impact negatively to the financial aspects of the project.

Shipbuilding construction project is classified as a high

risk project, whereas supervision should be conducted in

its operational [3]. A project risk management is an

important thing to do in order to avoid adverse impact on

the project entity from risks that may occur [4].

Therefore, it is important to do risk impact analysis to

mitigate and develop risk response planning of the

project.

mailto:[email protected]



3

Profit Optimization of Maintenance Service

Contract Agent Based on “Multi-Client Shared

Spare Part”

Firman,T Yuri Zagloel, Romadhani Ardi

Department of Industrial Engineering


Depok, Indonesia

Abstract - The study aims to develop service contract

model to optimize Agent’s profit but still acceptable

by Client in term of price and negotiation. The model

developed with one unique Agent and Multi-Client in

order to be able to share the spare parts cost which

should always available at the Agent’s stock. This

model will be applied for CNC machine as study case

which usually has common spare parts and due to

high technology usage most of the spare parts are not

easy to repair and will take a long time to repair. This

study will offer three options 1) Agent will carry out

the service activities including spare part

replacement. Client pay fix price and will not charge

for any spare parts replacement, 2) Agent will carry

out the service activities including spare part

replacement but the spare part cost will be charged to

Client. Client will pay fix price only for service

activities. 3) Agent will carry out the service activities

and Agent will charge the service cost every time

service activities performed. The optimization will be

done by Game Theory to decide which option could

give the optimum profit for the Agent and benefit for

the Client.

Keyword – Maintenance service contract,

Reliability, Delay time, Inspection interval

I. INTRODUCTION

In the era of global industry competition, industries

compete to develop their products and services in order

to be able to compete with other industries. One

important factor in the manufacturing industry is the

reliability of their production machines so as to produce

quality products that can compete in the market. The

manufacturing industry will always strive to update and

maintain the machine’s condition both to maintain the

quality of the product and for latest technology usage of

the production machine. On the other hand, machines

imported by industry in Indonesia are increasing from

year to year. BPS data states that in 2015, Indonesian

machine imports reached 10 Billion US $. And these

machines will certainly require both predictive and

corrective maintenance activities.This market is then

utilized by the maintenance service providers who offer

maintenance service contract service for a certain

duration of time to the owner of the machine.

Maintenance service contract is an agreement between

service providers (Agent) and the owner of the machine

(Client) related to preventive maintenance and repair of

the machine. The agreement contains the duration of the

contract, scopes, prices, terms of conditions, and list of

which part becomes the responsibility of the service

provider and which becomes the responsibility of the

machine owner [1]. Some industrial management

considerations in providing maintenance service contract

to service providers are as follows

▪ The company's operating scale is too small so it is

not economical to have its own maintenance

department [2],

▪ Technology that is too advanced or safety

requirements are too high so it’s requires intensive

personal maintenance training and considered too

expensive for the company [2],

▪ Increased operational flexibility that can be

achieved by using maintenance service contract

providers [3]. Specialist contractors can work and

change faster than large department maintenance

[2],

▪ Depending on the type of contract, the financial

flexibility of the industry may increase [2].

In machining manufacturing industry, CNC machine is

potentially machine type and target market for service

maintenance service contract provider. This is because of

its advanced and specific technologies owned by CNC

machines. On the other hand also the high price of spare

part control from CNC machine which resulted in the

company to allocate big fund to provide spare part in

their stock.

On the other hand, the providers of maintenance services

contract must also be able to provide contract packages

in accordance with the expectations of the machine’s

owner from price, scopes, terms and speed of service. So

it is important for maintenance service contract providers

to be able to optimize a comprehensive contract package


4

Analysis of Salt Production and Demand also The

Projection of National Salt Self-sufficiency in

Indonesia Yasir Mulyansyah Fama

Industrial Engineering

Department


Depok, Indonesia

[email protected]

Komarudin Industrial Engineering

Department


Depok, Indonesia

[email protected]

Zulkarnain Industrial Engineering

Department


Depok, Indonesia

[email protected]

Abstract— Indonesia has more than 17 thousand islands, with

a coastline of more than 54,000 km which makes Indonesia the

second longest coastline in the world after Canada. Ironically,

Indonesia has not been able to meet the needs of national salt

regarding quantity and quality. Until now, Indonesia still

relies on imported salt to meet the national needs, especially

on the needs of industrial salt. In this research, a study was

conducted to assess the suitability of policies established by

the government regarding production and demand of salt by

using mathematical model and System Dynamics approach to

project the national needs of both consumption salt and

industrial salt to be entirely fulfilled by local production. The

results of monthly production analysis indicate that the

weather factor still dramatically influences the production of

national salt so that Indonesia even difficulties in meeting the

needs of salt in the rainy season. While the results of the

scenarios showed that Indonesia succeeds in the self-

sufficiency of consumption and industrial salt in 2029 with

technology investment to increase quantity and quality. While

the scenario of expanded plants area indicates that Indonesia

can only meet the needs of non-CAP industry salt in 2020.

Keywords— salt production, self-sufficient, system

dynamics

I. INTRODUCTION

Salt is one of the essential needs of food and industry needs. The need for salt is not only for consumption but also as a raw material or catalyst in the industrial world [1]. Total demand for salt in Indonesia, both consumption salt and industrial salt from year to year continue to increase along with the increase of population and industrial development [2]. According to the Ministry of Marine Affairs and Fisheries in 2015, the national salt requirement is 3.7 Million Ton [2].

Local salt production in Indonesia today is still done individually by salt farmers so that salt production is still relatively low regarding productivity and quality [3]. Several factors make salt yields of local farmers have not been able to achieve industry quality standards. Salt and seawater are equally salty, but there are three critical conditions in the process of salt production according to the standard.

First, seawater as a raw material must have high salinity. Salt content on a beach can reach a top number if the beach has some conditions that there is no river mouth, and tides of seawater contacting the surface of the mainland not more than 2 meters. Second is the beach/shore as the primary

plant fields have a height of about 3 meters above sea level so that seawater should not be porous or seep into the soil (fields). Third, the salt production process is still done conventionally with solar power (solar evaporation), making climate conditions as one of the determinants of salt production. Ideal climatic conditions required are maximum rainfall ranging from 1,000 millimeters to 1300 millimeters (mm) per year with continuous dry drought at least four months per year, rarely cloudy and foggy and low humidity (always hot). So, no matter how long the coastline in Indonesia, if the three general requirements are not met then Indonesia will be challenging to become the leading salt producer in the world.

Based on the results of mapping conducted by the Ministry of Marine Affairs and Fisheries in 2010, Indonesia has a potential salt land area of 37.4 thousand hectares that can be used as salt production area in Indonesia. However, productive salt land used is only 25.5 thousand hectares in 2015 or just about 68.2% of the total potential land available [2]. Potential areas as salt production sites are spread in several regions in Indonesia such as Aceh, West Java, Central Java, East Java and Madura, West Nusa Tenggara, East Nusa Tenggara, South Sulawesi and a small part of Papua. With this potential, it is possible for Indonesia to be able to provide salt commodities to meet domestic demand independently. But what happens is an irony where local salt production is not yet ready to meet the needs of national salt.

According to the Ministry of Marine Affairs and Fisheries in 2015, the production of National salt is 2.8 Million Ton [2]. The existence of a Gap between production and the need for salt consumption in Indonesia enables policymakers in Indonesia to take steps to meet the demand for national salt supply by doing Salt Import.

Based on the enormous potential of Indonesia, self-sufficient salt is not an impossible thing to make. Need to conduct an advanced study and model development of production and national salt needs. In this research, system dynamics approach is made to strive to achieve national self-sufficiency target of salt.

However, this research has been done before. The study states that Indonesia has succeeded in achieving self-sufficiency in consumption salt, but the model built still does not meet the needs of industrial salt [4]. In this paper, authors try to develop a model for the project the national


5

Lifespan of Small Electronic Devices in Indonesia

Fredy Sumasto*, Romadhani Ardi, Zulkarnain



Depok, Indonesia

*Corresponding author: [email protected]

Abstract— E-waste is one of the main problems in the

world, including Indonesia, which has a high level of

consumption of electronic products. E-waste in Indonesia is

expected to continue to increase along with the economic

development in Indonesia and the rapid development of

technology in the world, which of course will be like a time

bomb if not handled. At present, Indonesia's current

condition is more dominated by the informal sector, which

is possible to increase the environmental damage from the

way they process E-waste. In actual condition, electronic

devices that have finished their life are often not directly

disposed but stored or fall into the category of storage time.

This paper investigates the active use and storage time of

mobile phone and laptop based on an online questionnaire

survey taken from households in Java Island. The lifespan

distribution of two small electronic devices is based on the

results of the online questionnaire survey, which were

analyzed using Weibull distribution. The lifespan of mobile

phones and laptops were estimated to be 4.51 years and 4.79

years, respectively. The results of the research

are expected to be an input for the development of

strategies to solve the problem of E-waste in Indonesia.

Keywords— E-waste, lifespan, Indonesia, Weibull

distribution

I. INTRODUCTION

E-waste becomes one of the major problems in the world. The global amount of E-waste is expected to grow every year, with an annual growth rate of 3 to 4% [1]. The rapid development of technology causes a shift in the consumption of electronic products and make lifespan electronic products shorter, especially on small electronic devices. Lifespan small electronic devices that tend to be shorter will affect the annual amount of E-waste. The problem of E-waste can be a serious problem if not handled properly, especially for developing countries that do not have E-waste management system like Indonesia. In Indonesia, the amount of E-waste is expected to continue to increase due to the high consumption of the inhabitants of Indonesia to electronic products. In addition, the condition of Indonesia is currently dominated by the informal sector, so it is possible for high environmental impact because of how they process E-waste. A good E-waste management system is needed in the formal sector in Indonesia to reduce the impact of E-waste. Lifespan becomes one of the key parameters to calculate the amount of E-waste generated. On actual conditions, electronic products that have end-of-life are not directly discarded, but stored or can be categorized in storage time.

In this study, we investigated the active use and storage time of small electronic devices in Indonesia.

The active use is defined as the time of a device between the first time received and the time when the transfer to next owner or disposed. The storage time is defined as the time between the end of active use and the time its final disposal or transfer to the next owner [2, 3].

The paper is organized as follows. Section 2 describes literature review and previous researchers about lifespan distribution. Section 3 describes the method to collect data and to estimate the lifespan of small electronic devices. Section 4 describes the results and discussion about lifespan models. Section 5 discusses some concluding marks.

II. LITERATURE REVIEW

The lifespan of electronic and electrical equipment (EEE) is essential information for the estimation of E-waste generated. There are two approaches for estimation of EEE lifespan [2]. One is the non-parametric approach, which does not assume any statistical distribution to estimate lifespan. The other one is parametric approach, which assumes a statistical distribution function such as Normal distribution, Lognormal distribution, and Weibull distribution. In parametric approach, the observed data approximate to the statistical distribution function.

Methodologies that were used for estimating lifespan generally there are four. Estimation from the number of discarded devices for each lifespan, estimation from the number of devices for each devices age, estimation from the number of devices in use for each devices age at beginning and the end of certain period, and estimation from the total number of devices in use by using mass balance principle [2].

Lifespan distribution of EEE has already been conducted

by several researchers. Lifespan distribution assessment

by using Weibull distribution has been done in Australia

[4], China [5], Czech Republic [6], South Korea [7] and



6

Conceptual Modeling of Consumer Behavior and

Awareness on E-Waste in Indonesia: A Case

Study in Java Island Mohammad Safaat(*), Romadhani Ardi, Amalia Suzianti

Departement of Industrial Engineering


Depok, Indonesia

*Corresponding author: [email protected]

Abstract- Development and advancement of technology are

increasing rapidly in the world create a number of the mass-

produced electronic product to satisfy human need and

contribute to assisting human work. The expansion of mass-

produced electronic product that not support behavior and

awareness consumer can be hazardous waste and can be able

to damage the environment and to endanger human health.

This research is a focus to develop conceptual modeling on

consumer behavior and awareness, mainly to find out an

attitude of a human being when encounter electronic waste.

Conceptually based on Theory of Planned Behavior (TPB)

indicates that intentions can be measured approach when

behavior person occur repeatedly. The conceptual modeling

of consumer behavior and awareness of electronic waste is

build using the Structural Equation Model (SEM) method

which combination of two separate statistical process that is

factor analysis and simultaneity Modelling. The approach

used is a basis of Maximum Likelihood (ML). The base of

structural equations is constructed by connecting the

observed variable with the latent variable through the

simultaneous regression equation. Where is the basic of

Theory of Planned Behavior (TPB) and the four derived

variables that have been developed are: Socio-Psychological,

Socio-Demographic, Technical-Organisational and Study

Specific Variables will be observed variables and each will be

composed with several latent variables as measured by

indicators or manifest variables.

Keywords—E-Waste, Theory of Planned Behavior (TPB),

Structural Equation Model (SEM), Conceptual Modelling.

I. INTRODUCTION

Technology developments and advancements that increase rapidly in the worldwide, it makes the technology become the basis of human needs to support their life. This makes the number of technology products that are not used to waste that is very diverse and dangerous if left without proper handling. The diversity of this waste becomes a problem in environmental sustainability. Various updating of sustainable management techniques and strategies that target consumer behavior and habits are needed to reduce environmental damage and conservation of natural resources against the use of materials in electronic products [1]. Many harmful materials can be found such as circuits, batteries, cathode tubes that are mostly installed in electronic products.

Some rules to understanding of consumers, or people who use electronic products should be studied more. Because if this waste disposal pattern cannot be mapped,

environmental sustainability and other impacts such as health resulting from electronic waste become difficult to suppress. Meanwhile, the addition of the population resulting from the urbanization, transmigration and rapid development of the technology industries makes the rapid depletion of natural resources due to excessive exploitation so that unnecessary consumption becomes increased which leads to an increase in the amount of electronic waste. Therefore consumers can participate in maintaining environmental sustainability by applying the principle of 3R: Reducing, Reusing, Recycling [2]. Some developed countries use this principle to help reduce the adverse effects on the environment by counteracting false attitudes and consumer behavior [3]. Lowering means to produce the lowest possible level of waste, and reducing as much energy and water consumption as potential for energy savings, reuse means making an effort to reuse the product or energy if possible and if it is not recycled or reprocessed energy or materials used in such a way as to reduce excessive use of natural resources and ultimately the sustainability of the environment can be maintained.

There is a distinctly different perception of how the level of awareness and behavior affects the sustainable disposal and management of e-waste in specific countries or societies. Factors such as patterns that can provide more comprehension to consumers in e-waste collection will result in different decisions, deepening understanding of these characteristics becomes crucial because ultimately consumers who will become suppliers of e-waste in the organization or country who managed the electronic waste [4]. Disposal behavior and consumer awareness are the main factors affecting the economic development of e-waste collection applicable in any state [5]. In Indonesia, the current literature develops and investigates the experience of disposal behavior that does not yet exist. Such are the factors that convince consumer decisions to store, donate, sell, dispose or recycle electronic products [6].

The literature review of cosmetic habits based on a meta-analysis of various essential factors divided into three sections ranging from the most influential factors to elements that have only a general effect or factors that are still under review whether they are of substantial or complementary factors. The four most prominent predictors obtained are the comfort, regular morale, information and environmental awareness that


7

Workload Balancing of Salesman Visits in Large

Scale Area of Sales with Sweeping Algorithm

Fauziah Arofah, Komarudin, Zulkarnain



Depok, Indonesia

[email protected]

Abstract- Distribution system in Indonesian retail industry

has its own complexity. This is because Indonesia has a large

number of the retail store. Distribution activities in this paper

are closely related to the presence of salesmen. Therefore, this

paper concerns about balancing the workload of a salesman

which visit within a wide range territory of sales, using 38.900

data of retail stores. Workload balancing of salesman intends

to divide the number of customer base for each salesman to

be more evenly distributed. The result of sweeping algorithm

obtained from information about retail store locations.

Sweeping algorithm is an algorithm consisting of two stages,

namely clustering and route generation. From the calculation

process using this algorithm formed 83 clusters with the

number of customer base in every cluster that is more evenly

compared to the current state. Each cluster represents one

salesman, so it can be said that the workload of each salesman

on this algorithm is more balanced. In addition, total distance

formed from the new route is 21% smaller than current total

distance. This indicates that sweeping algorithm can be used

for workload balancing and can shorten the total distance.

Keywords: sweeping algorithm, workload balancing, large

scale, salesman visits

I. INTRODUCTION

Indonesia as an archipelago country with high

population supports existence of retail industry as one of

growing business. Retailer is the last chain of distribution

process, whereby goods will generally move through

producers-distributors or retailer-suppliers-and end up with

consumers. Retailer generally sells goods and services for

daily needs fulfillment [1]. Therefore, the number of retail

business in Indonesia is very large, so the distribution

system in Indonesia has its own complexity to be solved.

In this connection, researchers will use 38,900 retailers

registered in Jakarta, Bogor, Depok, Tangerang and Serang

areas as an object of research. Record of the customer base

consists of 38,394 stores with twice a week visit patterns

and 253 stores with once a week visitation pattern. This

paper will discuss balancing workload of 83 salesmen of a

company in distributing goods to retail stores. Currently,

the workload of every salesman is considered less evenly

distributed. This can be seen from significant difference in

a number of customer base owned by each salesman, even

though every salesman has the same working hours. Shah

[2] said that the size of the workload given to workers will

affect their performance. The excessive workload can

cause stress to workers and less optimal in work, while too

light workload can also harm company [3]. Workload itself

is the amount of worker’s capacity needed to complete a

job [4, 5]. Maya [6] added that workload can be seen from

the amount of work to be done, the time limit of workers to

complete their task, and individual's own subjective view

of work given to them.

The topic of workload balancing in distribution and

route is interesting to develop. In the previous study, Naderi

[7] conducted staff workload balancing research of health

insurance partner to complete task simultaneously and

minimized travel cost with 150-300 data. In contrast to

Pavone [5] which examines the development of algorithms

balancing distribution routes in mobile robotic networks.

He discusses the allocation of the distribution area into

smaller but similar-sized subregions and assigns an agent

to the responsible person.

Mercardo [8] performed balancing activity from 500

different nodes of region by minimizing distribution scope

using clustering and heuristic concepts. Zhou [9]

concentrated on the design of balanced allocation network

supply chain by maintaining the balance between

transportation cost and service. Decerle [10] created a

balance between route problems and scheduling in home

health care to optimize patient handling. Razzazi [11] said

that with the right balanced allocation can create perfect

scheduling. That exposure [9, 10, 11] reinforces statement

that workload balancing will affect performance.

Aguilar [12] in his research used the balance of

customers’ number in distribution of beverage in each

cluster region as a performance criterion. Based on [12] and

previous research, by using geographical information of

consumers, equal distribution workload of customer base

for each salesman will be done. By doing that, it is expected

to shorten total distance that must be taken which means it

can reduce transport cost.

II. METHODOLOGY

Basically, workload balancing salesman in this paper will be drawn into solving concept of vehicle routing problem (VRP], which has demand and capacity of vehicle. VRP is a solution in distribution process with a large scope that can provide route solutions based on the geographical location of the node, by optimizing the mileage with a certain constraint


8

Preliminary Step for Pilot Project of E-waste

Management System in Indonesia Conceptual Framework

Maria Tri Yunita, Romadhani Ardi, Zulkarnain



Depok, Indonesia

[email protected]

Abstract-The impact of technological development and

economic growth can be seen on the increasing demands for

goods, such as electronic and electrical equipment. The

growth of electronic and electrical equipment causes an

increase in a waste of electronic and electrical equipment

(WEEE) amounts when the products reach their end of life.

WEEE consists of components that are harmful to human and

environment. Therefore, an appropriate management system

of WEEE is required to prevent WEEE become a threat to

human and environment. Indonesia is one of the developing

countries in which proper management system of WEEE has

not yet existed. Until 2017, Indonesian government regulation

classified WEEE as hazardous waste in general, and this

treatment was neither specially differentiated for WEEE.

Previous research has outlined the conditions of the formal

sectors and informal sectors in Indonesia. The result of

previous research indicated that informal sector was a major

force in collection and sorting of WEEE, especially for a

household. It became a challenge to develop a management

system of WEEE in Indonesia. Developing a management

system of WEEE in Indonesia needs the contribution from

government and awareness from EEE producers as the first

step to do the initial project. The purpose of this research is to

build management model for primary e-waste management

system in Indonesia based on literature study of e-waste

management system in developed and developing countries.

The proposed model is expected to illustrate the material and

financial flow of e-waste management system. This research

will assist government and producers in decision-making and

initial steps for implementation e-waste management system

in Indonesia.

Keywords: WEEE, management system, pilot project,

household WEEE

I. INTRODUCTION

Electronic equipment is made up of harmful components, materials, and substances [1]. If the electronic product is unusable, it will be detrimental to human health, environmental stability, and contribute to the greenhouse effect [2]. Electronic waste, or e-waste, refers to all items of electrical and electronic equipment and its parts that have been discarded by its owner as waste without the intent of reuse [3]. The previous research showed that managing e-waste needs concern to each forming product level. Levels are divided into microscopic, mesoscopic and macroscopic. The biggest level is macroscopic. Macroscopic level explained that it takes the government role to set up the right regulation and e-waste management

system to control e-waste flow, from product scale into substance. The second level is mesoscopic. Mesoscopic level explained how to process e-waste from product scale, components and unravel as material in a right way. The material processing required different treatment for each type of parts. The third level is microscopic. This level needs to be considered appropriate treatment for the substance. Recovery as one of treatment option to divide the valuable materials and wastes. The valuable materials have their economic values and residues will be returned to the environment in a right way.

As we can see from a macroscopic level, regulation and a system with government support are the important phases in reverse logistics for electronic products. According to Roger and Tibben Lembke (1999), reverse logistics is an efficient process of design, implementation, and control over the raw materials, WIP goods, finished goods, and information, start from the consumer’s point to the origin’s positions in order to create value or disposal product precisely with efficient costs [4]. Developed countries have implemented a specific regulation on e-waste by integrating the roles of EEE producers, suppliers, distributors, consumers, and industry recycling. Current e-waste management systems in developed countries are influenced by Extended Producers Responsibility (EPR) [5]. EPR is a concept that can be the basis of the policy to improve the life cycle of a product by expanding the responsibility of producers especially for take back, recycling and disposal of the product [6].

In developing countries, they have no regulation about

e-waste management yet. E-waste management is included

in the solid waste category, so the treatment is the same as

solid waste. The Philippines is a part of Southeast Asia that

already has a specific regulation for e-waste management

systems. But, previous research showed that the

Philippines had one industry recycling for e-waste in

Laguna especially for household electronic products. The

industry recycling is a part of the formal sector. Besides,

the other industry recycling only accept e-waste from

industrial to be recycled while household has more

amounts of e-waste. It shows that a specific regulation is

not sufficient but requires an explicit system of e-waste,

from e-waste collection system to disposal [7]. Brazil is


9

Estimation of E-waste Generated in Indonesia

Using Advanced Input-Output Analysis: The Case

Study of Mobile Phones

Sylfannie Santoso, Romadhani Ardi, Amalia Suzianti



Depok 16424, Indonesia

[email protected]

Abstract—Electronic waste (e-waste) shows an increasing

trend from time to time, with Asia contributes the largest

amount, i.e. around 40.7% of e-waste generated worldwide.

Indonesia as a part of Asia should start to construct a formal

management system to properly collected and treated e-waste,

as their contents are both harmful and valuable. This study

will be the first study in Indonesia that used advanced Input-

output analysis (IOA) method to estimate e-waste generated.

Advanced IOA method tried to enhance the estimation results

by involving all three data points, i.e. sales, stocks and

lifespans in the calculation step. The application of this

method is exemplified by the case study of mobile phones in

Indonesia. We used the extended logistic function to predict

the past and future stocks data mobile phones. The extended

logistic function was chosen because it can capture the

dynamic value of e-products’ markets penetration rate. This

suits the condition of mobile phones markets in Indonesia that

has not yet reached saturation. Distribution lifespan was used

to present a more representative state of diverse e-products’

lifespan in Indonesia. The result shows that the average

growth rate of e-waste generated from mobile phones is

around 6.4% each year and about 41 million units (around 4

million tonnes) mobile phones will be discarded in 2028 which

is around 40% of growth compared to the total of mobile

phone units discarded in 2017. The result is expected to

provide a quantitative basis in helping policy decision makers

in Indonesia to develop a strategic regulation regarding e-

waste formal take-back policies.

Keywords—e-waste; input-output analysis; mobile phones;

Indonesia

I. INTRODUCTION

Electronic waste (e-waste) is all types of electrical and electronic equipment and its parts that have reached their end of life or have been discarded by its owner as waste without the intention of reuse [1]. Lately, e-waste has started gaining intention in both developed and developing countries as its amount keep growing tremendously. The e-waste monitor report done by United Nations University (UNU) shows that total 44.7 million metric tonnes (Mt) of e-waste is generated globally in 2016 [2].

The report shows a growing trend in the amount of e-waste generated globally each year. The increasing demand for electrical and electronic equipment, rapid development

in technology and shortening lifespan of electrical and electronic products are several main factors that contribute to the rapid growth of e-waste. It is also affected by the fact that electrical and electronic products are sold at lower prices nowadays which resulted in a higher penetration rate of the products. This phenomenon can be seen clearly in Indonesia especially in the mobile phone market. Since 2011, the total number of mobile phone subscriptions in Indonesia has exceeded its total population and has reached 385.573.398 subscriptions by 2016, which means 149.1 subscriptions per 100 inhabitants [3]. This number showed a very high penetration rate of the mobile phone in Indonesia as the average mobile phone subscriptions per 100 inhabitants in 2016 was 101.5 in the world and 98.9 in Asia & Pacific [3].

According to Baldé et al. [2], only around 20% of the e-waste generated was recycled properly. The main cause is the lack of development and implementation of e-waste legislation especially in developing countries, e.g. Indonesia. The government pays very little attention regarding e-waste in Indonesia that can be seen from the nonexistence of formal e-waste legislation. The lack of reliable e-waste data is the main reason as no statistics are available to show that e-waste in Indonesia is growing rapidly and will cause problems in the future. Better e-waste statistics will provide a quantitative basis for the policy makers to develop and to identify best practices regarding e-waste formal take-back policies in Indonesia. Its objective is to minimizing e-waste generation in Indonesia, prevent informal recycling, increase awareness of recycling and even create jobs in the recycling sector. Official take-back or recycling system can also benefit financially as several resources, i.e. gold, silver, and palladium are valuable. It also helps in preventing the environmental and health risks that happened when e-waste is not treated properly.

E-waste generation data can be quantified using several methods. Wang et al. [4] classified e-waste estimation methods into four groups, i.e. disposal related analysis, time series analysis, factor models and Input-Output Analysis. The Input-Output Analysis method was selected after doing a comprehensive literature review of all methods available. Further discussion about the method selected will be discussed in Section II. In addition to IOA method, this study also tried


10

A Queuing model with priority service for

raw material supply A case study in the Indonesian sugar industry

aErwien Yuliansyah Putera, bAkhmad Hidayatno, cKomarudin


University of Indonesia

Depok, Indonesia [email protected], [email protected], [email protected]

Abstract–The sugar is predominantly made from

sugarcane, which must be processed after harvested. The

sugarcane is derived from several locations of farms and

delivers by trucks to the sugar factory. This condition will

cause some delayed time for sugarcane which has a potential

effect to the quality. The quality will decrease because a losing

juice of sugarcane. The delayed time will increase if there is a

queue when the truck arrive in the factory for waiting to

process. The First-Come-First-Serve queue discipline

implement in most of sugar factories, which does not concern

about the delayed time of sugarcane. In order to reduce the

loss of sugarcane juice because of the delay time, a new

approach of queuing system be discussed in this research

which consider about the delay time of sugarcane. This

research develop the queuing model using priority service,

where the formerly harvesting sugarcane will enter the milling

station to be processed in order minimize the loss of sugarcane

juice.

Keywords–Sugarcane, delayed time, queuing system, first-

come-first-serve, priority service

I. INTRODUCTION

Sugar is one of the basic needs of society in Indonesia. Indonesia was famous as a sugar-producing country in the colonial era, but now Indonesia is known as importing country for sugar product due to meet domestic demand because of less sugar production. Demand of sugar including household consumption and industries, which is increasing year by year. This condition is further complicated by the national sugar production capacity that does not increase because of many reasons. The data shows a decrease in sugar production over the past few years as figure 1.

*estimation

Fig. 1. Indonesian National Sugar Production (source: Ministry of Agriculture)

Therefore, Indonesian government have the Sugar self-sufficiency national program which the scenario can fulfill national demand in 2025 for both household and industry’s demand, then continued with the ability and chance to export sugar before 2040 [1].

Fig. 2. The National Program scenario of Sugar Self-sufficiency (source: Ministry of Agriculture)

The condition of old sugar factories and problem in harvesting and transportation of sugarcane has affected the yield and quality of sugar, resulting in higher cost of sugar production [2]. Some factors responsible for sugarcane deterioration. From the previous study concluded that the quality of sugarcane decline along the sugarcane is postponed before processed. Sugarcane is ideal for milling in the period of 0-24 hours, because in that time the sugarcane is still fresh and there has not been much chemical change from the sugarcane [9].The destruction of sugarcane during the post-harvest process affects the quantity and quality of sugarcane. Once the cane is cut down it will automatically evaporate on the stalk of sugarcane. The percentage of this weight loss depends on the temperature, humidity, storage method and the condition of the time it is felled. The decrease in the weight of the sugarcane directly affects the weight gains of the crystals received [8].

The biggest cause of sugarcane degradation after it is felled is milling time. The milling delay is caused because the cut sugarcane is not directly brought to the factory, the sugarcane brought to the factory is not directly milled or the factory can be disturbed to stop milling. On sugarcane wetted on the ground or in the factory emplacement can be infected by microbes. Microbes and bacteria utilize the sugar contained in




11

Process Monitoring and Control in the white sugar

industry using Multivariate Statistical Process

Control: a case study in Indonesia

Rindang Persada*), Isti Surjandari, Zulkarnain

Industrial Engineering Department, Faculty of Engineering


Depok, Indonesia

Email: [email protected], [email protected], [email protected]

Abstract— Nowadays, quality has become one of the most

important factors to winning global competition. To produce

quality products, manufacturers need to implement good

process control. Therefore, there needs to be a method of

monitoring and controlling the process to ensure product

quality and process control. With regard to the many

variables that determine the quality of white crystal sugar

products, a multivariate perspective is more appropriate to

use than univariate in order to avoid inefficiencies and

incorrect conclusions. In this study, Hotelling T2 control chart

are used to monitor the process simultaneously. In order to

identify which variables are causing uncontrolled processes,

Mason-Young-Tracy (MYT) decomposition can be used.

From this study, the variable that causes the process to be out

of control is the grain size. Finally, fishbone diagrams are used

to identify potential factors that cause uncontrolled processes.

Keywords—Hotelling T2 control chart, MYT decomposition,

fishbone diagrams, white crystal sugar.

I. INTRODUCTION

Quality has become an important factor for manufacturers to win the competition and become an important decision factor for consumers in selecting goods and services [1]. Nowadays, continuous improvement and quality improvement becomes an absolute thing for companies to produce quality products and reduce defective products. To obtain a global acceptance, the company must pay attention to quality control which is one of the efforts to improve the competitiveness. Quality control in the process is very important because this will affect the quality of the final product.

To ensure product quality and process control, a quality control method is required. One of the methods of quality control is Statistical Process Control (SPC). Statistical Process Control is an analytical decision making tool to see when a process is working correctly and when it is not. Variations are present in any process, the decision whether the process is working correctly or needs improvement is the key to quality control [2]. According to [3], SPC is the use of statistical techniques and tools for management and process improvement. The main tool associated with the SPC is the control chart. Control chart is a plot of process characteristics, usually used in limited time. When used to monitor the process, it helps the user to determine the right decision for process improvement.

From the description above, the use of SPC in industry is very important to monitor the process whether the process runs in control or out of control. In addition, SPC is a powerful tool as a benchmark for companies to make decisions in terms of continuous improvement in order to be able to compete effectively in the global market.

In this study, the use of SPC is not applied with univariate perspective, but with multivariate perspective or Multivariate Statistical Process Control (MSPC). This study uses MSPC method because multivariate analysis can monitor multiple variables together by considering correlation, whereas in univariate method only can monitor variables separately by ignoring correlation. In addition, the use of univariate methods can have an erroneous and biased conclusion. Thus, a multivariate method is required to control two (or more) quality characteristics simultaneously.

There are three types of multivariate control diagrams: T2 Hotelling, multivariate exponentially weighted moving average (EWMA), and multivariate cumulative sum (CUSUM). The most widely used control chart is the T2 Hotelling control chart which is analogous to the Shewhart univariate control chart. The principle of T2 Hotelling is to monitor the average vector of processes. Cumulative sum (CUSUM) and EWMA control charts were developed to provide more sensitivity to small shifts in the univariate case, and they can be extended to multivariate quality control problems [1].

Due to the importance of process control in various fields, there are several studies related to MSPC including research in product quality review assessment [4], in monitoring the cylinder lubrication process of marine diesel engine [5], in monitoring the nanomaterial process [6], as a tool for analyzing drinking water [7], and in measuring reactor performance [8].

The application of multivariate analysis in the manufacturing industry is still rare. This is due to the difficulty of calculation and interpretation in reading signals in the multivariate control chart. Nevertheless, multivariate analysis is very useful and powerful when implemented in process control. Therefore, it is necessary to apply the multivariate





12

Integration cost model of predictive maintenance

and stock inventory with consideration of multi-

echelon logistics

aAri Agung Prihandoyo, bT Yuri Zagloel, cRomadhani Ardi

Department Of Industrial Engineering ,

Universitas Indonesia,

Depok , Indonesia [email protected], [email protected], [email protected], c [email protected]

Abstract— Stock management attempts to ensure that the failed

equipment items can be replaced immediately to maintain a

sufficient productivity level. Maintenance relies on the

availability of parts in order to reduce failure downtime and costs.

It is clear that maintenance and inventory management are

strongly interconnected and should both be considered

simultaneously when optimizing a company’s operations.

Moreover, the ordering time of parts and their stocking quantities

should be planned so that holding costs are minimized by

avoiding at the same time, stock-outs. This study optimizes of

maintenance and stock inventory with consideration of multi-

echelon logistic by implementing prediction maintenance with

Cox regretion and Economic Order Quantity (EOQ) for stocking

item. In this study, there are predictive maintenance of equipment

users, safety stock on location and distribution center,

transportation cost, and stock suppliers in the multi-echelon

system identified. The equipment and logistics challenges of

mining companies to predict replacement and stocking tyre

provides a real context for the presentation of this research. This

paper adopts the SPSS Modeler to obtain the integration model of

maintenance and stock inventory. Under this integration model,

maintenance activities as well as the ordering and holding

activities for tyre at each decision point are determined according

to the maintenance requirement determined by the state of

deterioration of the entire system and the state of the tyre

inventory.

Keywords—Maintenance and inventory; cost model;

optimization; ; multi echelon; mining.

I. INTRODUCTION

Supply chains have become increasingly complex in

recent years. Strategic, tactical and operational levels are

taken into account in SCM and various variables must be

subjected to analyze at these levels. Supply chain network

design is an important issue in SCM, which considers both

strategic and tactical decisions[14]. Multi-echelon logistic

is one of the important issue in pratice. The strategic level

deals with such issues as amount of goods, transportation,

location and facilities’capacity. The demand for parts for

industrial plant is predicated on the operation and

maintenance of the plant. Therefore, the planning of parts

inventory should be driven by operational and maintenance

requirements rather than the observation of demand. This

is because operation and maintenance schedules provide

partial information about the demand for parts in advance,

and the forecasting of parts demand based on historical

usage is sub-optimal [2,3]. Furthermore, maintenance

planning that assumes 100% availability of parts is also

sub-optimal [16] and on the assumption that these are

available without any lead time [7]. These assumptions are

not always realistic and it would be too expensive for a

company to sustain such a system. Maintenance relies on

the availability of parts in order to reduce failure downtime

and costs. Since maintenance and inventory management

are strongly interconnected [17] an accurate reliability

evaluation is essential for taking reliable maintenance

modeling and parts inventory planning decisions [8]. The

decision about the predictive maintenance of equipment

requires a balance between the cost due to premature

replacement and the cost of unexpected failure.

Therefore, it is important to coordinate operation and

maintenance planning and stock inventory control.

Integration model of maintenance and inventory multi

echelons in a supply chain is the output of this research.

Integration model defined by identification of literature

review. The equipment and logistics challenges of

mining companies to predict replacement and stocking

tyre provides a real context for the presentation of this

research. This predictive maintenance focuses on tire aging

and tire failures due to increased chronological tire age,

miles driven, and harsher environmental conditions. We

use the Cox model by defining the constrains to get

predictive demand and scheduling of maintenance

equipment. By this cox regretion model survival analisis of

item can be calculated and then predicting the replacement

time [4]. Safety stock on site ( equipment user location)

and distribution center, reorder point, reorder quantity,

transportation cost, and stock suppliers in the multi-

echelon system identified in this paper. This paper is

organised as follows. Section 2 critically reviews the

integration model literature. Here we aim to justify the

integration model of predictive maintenance and stock

inventory with consideration of multi-echelon logstics. In

section 3, we describe our integration model including their

assumptions and cost factors. In section 4, we discuss our

use-case for implementing integration model. Our results

and






13

Community Issue Cost Estimation for Waste

Electrical and Electronic Equipment Collection

Reverse Logistics

(Case Study: Celebes Route) Haryadi Wirawan, Romadhani Ardi,Zulkarnain



Depok,Indonesia

[email protected]

Abstract— Reverse logistic holds the key for Waste

Electrical and Electronic Equipment collection. The problem

that occurs in reverse logistics is the higher cost in order to

reach some areas. One of the conditions that cause the problem

is due to the cost of the community issue in each region is

different and fluctuated. Those condition makes the logistics

service providers must set the upper limit for these costs. The

condition is also complicated by the policy to process the

material in one place that already has permission. Logistics

network must be considered in order to meet this requirement.

This study use MILP approach to estimate the total cost needed

including the community issue cost for logistic provider to

transport the material from its source to end. This study is

associated with the providers of electronic waste processing

services and government policies related to the area of material

processing.

Keywords : Reverse Logistics, Community-issue Cost, Waste

Electrical and Electronic Equipment

I. INTRODUCTION

When electrical and electronics equipment broken or thrown away by customer, it gets new meaning as WEEE (waste electrical and electronic equipment). It is supposed to be our concern to manage the WEEE as a hazardous material and treated differently in order to minimize the risk of environmental damages. Manufacturer as a stakeholder has pushed away the supply chain networks further with reverse logistics as is balance toward forward logistics. Every product sold needs to be delivered for every consumer with the help from forward logistics. As a balance in the world, reverse logistics also help consumer to return their purchased and disposable product such as waste. Moreover, the use of electronic device in daily needs also pushed waste even further with the terms of WEEE.

European Commission with the new Directive 2012/9/EU account on WEEE as a complex mixture of materials and components with hazardous content, and if not handle properly can cause environmental and health issue[1]. TABLE I shown below also clarify category of WEEE that needs to be handle properly with newest category applied effective after 15 August 2018 and

existing category that has been applied from 13 August 2012 to 14 August 2018.

TABLE I. WEEE Category

No Existing Category Newest Category

1 Large household appliances

Temperature exchange

2 Small household appliances

Screen and monitors

3 IT and telecommunications

Lamps

4 Consumer equipment Large equipment

5 Lightning Equipment Small equipment

6 Electrical tools Telecommunication

7 Toys and leisure equipment

8 Medical devices

9 Monitoring and control

10 Automatic dispensers

Collection process is the main part of properly handle the WEEE in order to minimize the environmental issue. Good collection process needs to be accounted from reverse logistics systems and facilities.. Those two focus ideas were important in order to minimize logistics cost. World Bank reported in 2014 that some of developed countries in especially in South East Asia shown below in TABLE II. already have lower logistics cost than the rest of developing countries also in South East Asia territory [2].



14

Analysis of Agricultural Land Needs to

Strengthen National Food Security

Yudhisthira Askar Industrial Engineering


Depok, Indonesia

[email protected]

Komarudin Industrial Engineering


Depok, Indonesia

[email protected]

Zulkarnain Industrial Engineering


Depok, Indonesia

[email protected]

Abstract—Rice is the most important staple food in Indonesia

that influence the national food security. High levels of rice

consumptioncausing food demand to increase. Indonesian

government declared rice self-sufficiency program in order to

strengthen national food security. Rice distribution and

consumption level throughout the region need to get more

attention. Through this research, we will built a mathematical

model to optimize the needs of agricultural land which covers

the whole region of Indonesia. The result of this study are

expected to be useful in planning and mapping the needs of

agricultural land in Indonesia.

Keywords—rice, national food security, agricultural land

needs, mathematical model

I. INTRODUCTION

Rice is a major staple food that has an important role in food security in Indonesia. Food security of a country has a very important meaning not only seen from the economic and social values but also the political stability of the country. The existence of food shortages, even hunger, may cause disruption of government and national political stability. History has proven that the instability of national food supplies triggered riots and disturbances of national stability.

Indonesia is the third largest rice consumption level in the world after China and India in 2015 [7]. It is about 38.6 Million Tons. The first rank is occupied by China with a consumption rate of 148.4 Million Tons and India as the second rank with a consumption level of 99.3 Million Tons. Indonesia's population of more than 90% makes rice as the main source of food and only a small portion that utilizes other commodities as the main food source [12]. This pattern of consumption is increasing with the existence of government programs in the fulfillment of basic food (through rastra program) which use rice as the main commodity.

Indonesia's rice production level is under China and India. Rice production in Indonesia by 2015 is 37 Million Tons. China, the world's largest rice producer, has a production rate of 145 million tons, while India with 106 million tons [8].

The high level of rice consumption in Indonesia causes the country try to meet the needs by importing. Based on SSR (Self Sufficiency Ratio) in ten ASEAN countries, the value of SSR Indonesia is less than 100%, that is 98.11%. This means that rice production in Indonesia has contributed

98.11% to domestic rice consumption, while the rest of 1.89% is met from imports.

The Government has launched a strategy to increase the availability and utilization of land as stated in the RPJMN 2015-2019 to achieve the target of food self-sufficiency. In order to implement the strategy of increasing domestic rice production capacity, it is necessary to analyze the needs of agricultural land for national food security.


Several studies were conducted in order to optimize and analyze the strategies and policies in agriculture. Research on the need of agricultural land in West Lampung in 2012 using descriptive analissis method against agricultural data that affect the level of land needs [14]. Another study projected the production and consumption of rice for the next three years using linear regression method and ARIMA. The scope of the research is to cover national needs and consumption [12].

Planning of agricultural production for some commodities can be done using Optimization Multicriteria Mathematical Programming method with some purpose function [9]. In Canada, a study has been done to analyze tactical planning in increasing the supply of flaxseed raw materials using the Mix Integer Piece-wise Linear Programming approach [17]. In addition, the Multi-Stage Linear Programming method [5] and the Linear Programming Mix Integer method [4] are also used in the optimal agricultural strategy planning in Europe and India.

Some study give an alternative solution to address the issue of when and how much food should be moved from one place to another to meet demand. In India, researcher formulated a linear model of mathematical programming to minimize foodgrain storage costs and transportation costs [15]. While in Indonesia, an integer linear programming method used to solve the multi-periode problem of rice supply chain. The results of this research are the optimum distribution and allocation of domestic rice in order to minimize the total cost of storage and transportation [10].

Indonesia as a country with a high level of rice consumption has its own problems in planning agricultural strategy. In this research, we use Mix Integer Linear Programming (MILP) approach to analyze the level of agricultural land requirement in Indonesia so that it can fulfill


15

Exploring potential of cities for sustainable

bioreactor landfill gas plant with resident-based

funding: Conceptual framework

Bevin Philip Pratama Makoenimau, Farizal, Djoko Sihono Gabriel



Depok, Indonesia

[email protected]

Abstract — Energy supply and municipal solid waste are

critical issues that happened globally, not to mention in

Indonesia. Indonesian government targets to reach 25% (45

GW) of NRE development by the year of 2025 within the

national energy mix. On the other hand, waste production

increases as the number of population and economic level

grows. Waste to energy technology through the

implementation of Sustainable Modular Bioreactor Landfill

Gas Plant is one of many alternatives which can solve the

problem of national energy supply as well as the municipal

solid waste generation. Challenging conditions come to the

funding sector to build and operate this plant since this plant

has very expensive investment and operational costs.

Resident-based financial model is used to cope with these

conditions. There are 2 scenarios, namely without and with

electricity rate discount. The purpose of this study is to

explore the potential of several cities to take part in financing

the plant and implementing it, since we believe there are

several demographic factors affecting society in participating,

such as education level, economic condition, etc.

Keywords — Waste to Energy; Resident-based Financial

Model; Sustainable Modular Bioreactor Landfill Gas Plant;

Demographic Factors

I. INTRODUCTION

As a country with large population and growing economic, Indonesia faces the problem of energy supply and municipal solid waste (MSW). As illustrated in [1, Fig. 1], Indonesia’s energy consumption has been increasing for the last 10 years (2007-2016), especially on fossil fuels. However, this condition is not followed by an increase in petroleum production. Petroleum production decreased from 287.3 MBOE in 2006 to 251.87 MBOE in 2015. The production decline is generally caused by old production wells, while production in new wells is still relatively limited [2].

Fuel consumption continues to rise as the impact of economic and population growth, while domestic crude production continues to decline and stagnant refinery capacity causes an increase in crude oil and fuel imports [2]. In addition, the actual use of fossil fuels tends to damage the environment. As a result, switching to alternative energy sources that tend to be more environmentally friendly and renewable is an appropriate step for consideration by the Indonesian government.

On the other hand, waste production will directly be affected by the population and economic growth [3, 4]. Increasing consumption trend leads to huge increase in waste production, especially in the form of municipal solid waste [5]. Increased waste production, causing the landfill can no longer accommodate the incoming garbage. Moreover, untreated waste causes environmental pollution through methane (CH4) emissions and leachate production. Therefore, the proper waste management should be done.

Several methods for managing waste in landfill can be done, and one of the most popular including in Indonesia is landfilling. Landfilling is one of the easiest method (especially in terms of cost) and the most flexible to be applied [6]. This method is done by providing land which is then dredged and filled by mass of waste. However, waste handling conducted in various landfills has not shown optimal performance; seen from the mountains of waste that formed as illustrated in [7, Fig. 2].

Fig. 1. Indonesia’s energy consumption (2007-2016)

Indonesian government targets to reach 25% of new-

renewable energy (NRE) development by the year of 2025

within the national energy mix. This shows that NRE will

play a crucial role in the future energy mix to achieve

energy independence [8]. One of the many alternative of

renewable energy sources in Indonesia is biogas. Biogas is

a gas produced through the anaerobic fermentation of

organic materials [9]. Biogas produced in the landfill is

called landfill

0

500,000

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16

Supplier Selection Criteria in Oil and Gas Industry

in Indonesia

Utami Rianti


Department


Depok, Indonesia

[email protected]

Farizal


Department


Depok, Indonesia

[email protected]

Djoko S. Gabriel


Department


Depok, Indonesia

[email protected]

Abstract — The role of suppliers is increasingly important

to enhance corporate excellence, not least for state-owned

enterprises. In Indonesia, the procurement process in a

state-owned company is regulated by Ministry of State

Owned Enterprises Regulation No. PER-15 / MBU / 2012

and for some cases the procurement consists of several

stages. Especially for oil and gas industry in Indonesia, the

procurement process follows PTK-

007/SKKMA0000/2017/S0, regulated by SKK Migas. Final

stage of procurement process usually highlights the cost.

Main purpose of this literature review research is to give

suggestion to State Owned Enterprises in Indonesia on

supplier selection issues especialy regarding the methods

and the criterias that should be considered. Research on

supplier selection problems varies greatly. Various decision

making techniques such as multi criteria decision making

(MCDM), mathematical programming (MP), and artificial

intelligence (AI) have been proposed to tackle the supplier

selection problem

Keywords — Supplier, Supplier Selection, Decision Making,

Literature Review, Oil & Gas Industry, Indonesia

I. INTRODUCTION

To stay survive and become the first in the market is

the main goal of all company. Therefore tight and

unavoidable competition happen in every industrial

sectors. Basically, consumers expect to obtain products

that have value at the same level as the price given. One

of many ways that a company can take is to pay attention

to the supply chain system used. Supply chain is the

whole process involved directly or indirectly in fulfilling

customer demand [1]. Supply chain management has

turned into one of the key tools for companies to control

costs and improve economic performance in the face of

increasingly competitive markets lately [2]. Supply

Chain Management is a set of approaches to streamline

the integration of various parties in the supply chain,

such as suppliers, manufacturers, and storage, with the

aim that goods are produced and distributed in a timely

manner, to reduce costs and provide customer

satisfaction.

Supplier selection is one of the main focuses of

supply chain management since most companies have to

spend considerable funds [3]. For some companies

especially manufacture which producing goods, the

procurement process may cost a lot. Whether it is the

process of procurement of raw materials, delivery

services from suppliers to factories, third party services

for product distribution, and others. The supplier

selection process is essentially a multi-criteria decision-

making process since many criteria to be considered in

this process. Decision is usually taken based on many

qualitative and quantitative criteria related to the

suppliers that ultimately make it a multi-criteria decision

making (MCDM) process. Research related to the

analysis of selection criteria and measurement of vendor

performance has been the focus of many academics and

procurement practitioners since the 1960s.

The variation of studies related to supplier selection

more differentiate the method used in determining the

best supplier. In addition, research also focuses on the

criteria that will be considered. Extensive multi-criteria

decision making approaches have been proposed for

supplier selection, such as the analytic hierarchy process

(AHP), analytic network process (ANP), case-based

reasoning (CBR), genetic algorithm (GA), data

envelopment analysis (DEA), fuzzy set theory,

mathematical programming, simple multi-attribute

rating technique (SMART), and the development of

those methods also their hybrids. A study conducted by

Dickson in 1966 has made a list consist of 23 influential

criterias in the supplier selection process. There are at

least three journal articles reviewing the literature

regarding supplier evaluation and selection models

[4,5,6]. Since those articles review up to 2000, a paper

written by Ho in 2010 extends them by surveying the

multi-criteria supplier evaluation and selection

approaches through a literature review and classification

of the international journal articles from 2000 to 2008

[7]. A great developments on study of supplier selection

have emerged over the last five years, many new ideas,

techniques, and approaches have been contributed. A

literature study attempted to use methodological decision

analysis in four aspects including decision issues,

decision makers, decision environments, and decision

approaches by reviewing 123 journal articles [8]. Lastly,

a literature review show how fuzzy set theory, fuzzy

decision-making and hybrid solutions based on fuzzy can

be used in the various models for supplier assessment

and selection in a 50 year period [9].


17

Performance Analysis for Government Program

in Stabilization Effort of Staple Food Prices

in Indonesia

Erick Aditya Firmansyah, Farizal, M. Dachyar



Depok, Indonesia

[email protected]

Abstract - In maintaining stable food prices, the government

has implemented various programs to minimize food price

fluctuations in the market. One of them is presenting a place

that provides staple food with an easily accessible location to a

remote area. In this case, Rumah Pangan Kita (RPK) is one

form of the government program that provides staple food to be

affordable by the community, both from affordability and price

certainty. Measurements using the Data Envelopment Analysis

(DEA) approach are used to determine the performance results

of each RPK unit and then combined with the simulations

applied in comparing the effect of RPK performance on food

price stability.

Keywords—stable food prices, performance measurement,

data envelopment analysis

I. INTRODUCTION

The current uncertain weather conditions, even more,

lead to extreme weather and provide various social impacts

in society. One of the floods that soaked rice fields in some

areas in Indonesia, as happened in Demak and Kudus,

Central Java and harvest failure that occurred up to 138

hectares, losses experienced by farmers reached Rp. 3, 9

billion more assuming the plant under standard conditions

at least 6 tons per hectare [1].

The end of 2015 has predicted El Nino symptoms of

Indonesia, In addition to affecting weather changes but have

an impact on food disparities [2]. El Nino is a symptom

where the deviation of marine conditions that leads to

variances in atmospheric conditions that ultimately result in

the occurrence of climate aberrations [3]. This climate

deviation has a global impact, it can vary the effect on each

region but for Indonesia cause long drought. One of the

sectors that will be affected is the agricultural sector, where

the results of these farms have the potential to decline or

even lead to crop failure. If the disturbance occurs, it will

affect the availability of food crops and the impact on food

prices on foodstuffs.

According to Bank Indonesia in the official

announcement, inflation was under control by administered

prices (the price of commodities managed by the

government), which experienced deflation and core

inflation remained under control, amid rising volatile food

inflation. Each year, the administered price component with

an inflation rate of 5.82 percent (yoy). Inflation in the

volatile foods category increased from last month. This

inflation rate is higher than the average volatile food

inflation in January four years ago at the level of 1, 63

percent (mtm). The increase sourced from commodities of

rice, chicken meat, fresh fish, chili, and red pepper.

Annually, volatile foods inflation reached 2.62 percent

(yoy) [4].

From a cost standpoint, logistics costs for food

production are in the range of 10-15% of the product sale

price, which presents primary factors and general discussion

items between producers, wholesalers, and retailers.

Relating to the management of food supply chain

sustainability from a corporate perspective has become an

important priority since the food supply chain is an integral

part of the global economy [5].

The impact on food availability is giving leverage on

food market price fluctuations. If the government is not able

to provide the food commodities that the community needs,

then the food prices volatility cannot avoid. The

Government may intervene in the market directly by

implementing Market Operations as an effort to stabilize the

price of basic food as stipulated in article 2, paragraph 3

through Perum BULOG (Presidential Regulation No. 48,

2016). Based on his book [6], now and in the future, there

are three areas of food problems faced by Indonesia. First,

food sovereignty, that is how the Government sees the right

of the state and the nation that independently determines the

food policy to become the people's right to live. Secondly,

food self-sufficiency based on the ability of the Indonesian

government to produce diverse food, especially from within

the country to ensure adequate food supply for the future.

Third, the condition of the fulfillment of food for the state

up to the individual, which reflected in the availability of

adequate food, both from quantity and quality.

The current level of food security of a country can be

measured, some institution have formulated a particular

index


18

Inventory Determination Model Of Frozen-Meat

For Food-Safety Program In Indonesia

Moch. Yandra Darajat1 Komarudin2, Akhmad Hidayatno3 1 Post-graduate Student at Industrial Engineering Departement

Universitas Indonesia, Indonesia

2,3 Lecturer at Industrial Engineering Departement

Universitas Indonesia, Indonesia

Abstract – This research discussed about the application of

inventory simulation and optimization model in food safety

program in Indonesia. Frozen-meat is a complementary

product for hot-meat that supplies inadequately in the

country. The problem is to maintain its quality that takes

cost more from any other commodity which not obligate to

be stored in frozen. It takes application in frozen-meat due

to high cost in holding the commodity. Under these

circumstances, simulation-based model followed by

optimization using OpenSolver are proposed. The purpose

of this research is to determine the appropriate inventory

model for frozen-meat in order to minimize holding cost. By

using Weighted Moving Average method and Holt-Winter

Technique, the data was simulated to predict the demand

in the future. The result shows that smaller annual storage

costs compared can save storage costs by up to 30%.

Keywords - inventory model; demand forecast; food-safety;

simulation; optimization.

I. INTRODUCTION

Development of the quality of Human Resources (HR),

is one of the goals of Indonesia's development, it is

closely related to the improvement of community

nutrition, health and education level. One source of

nutrition is food of animal origin in the form of protein

derived from beef. The domestic need for meat will

continue to increase along with the increase of

population, the increasing of economic level, the

awareness of the society of nutrition, and the existence

of foreign community. Beef imports to meet market

demand are still continuing, as Indonesia's local meat

production is still unable to meet domestic demand,

besides imported meat has several advantages, namely

more tender, high degree of marbling so that it is

preferred by consumers [1].

The Center for Agricultural Data and

Information Systems (Pusdatin) in the 2016 Beef

Outlook presents data on national beef production and

consumption as shown in Table 1. It shows the national

meat consumption is still deficit in 2014 and 2015 at 196

thousand tons and 207 thousand tons and according to

projections will continue to experience supply shortages

until 2020 [2].

Based on data from the National

Socioeconomic Survey (SUSENAS) in 2015, Indonesian

beef consumption is 2.40 kg/capita/year, Figure 1 is

relatively small compared to the consumption of

Figure 1. Demand of National Meat 2007 – 2017 (Source: Pusdatin –

Ministry of Agriculture, extrapolated)

developed countries. Indonesian people generally only

eat beef when there is a celebration or religious holidays.

Nevertheless, Indonesia can not yet become a self-

sufficient state of beef, to meet the demand for beef,

especially in big cities like Jakarta, is still widely

obtained from imports. This shortage of supply becomes

an opportunity for livestock business which indicates that

the business opportunity of beef is still wide open. On the

other hand, this deficiency becomes an obstacle that must

be fulfilled by the state to its people [2].

In order to achieve food security, availability is not

enough, the food must also fulfill the principle of

affordability and stability. That is, the food should be

within an affordable price range to be purchased by all

levels of society and the source of its supply is always

there at all times.

These programs take time to get results. During the

waiting period, people can not wait to meet their needs

for meat. Therefore, the government continues to open

faucet imports of livestock products including beef. In

2016 the government officially opens imports of buffalo

meat from India to supplement the supply to meet the

people's need for meat at an affordable price. This is done

because in recent years the supply of meat to Indonesia

is formed in an oligopolistic market where most of the

supply comes from two countries, Australia and New

Zealand, so that the new supply tap is opened to be a

counterweight to the supply of meat to the country. The

imported meat is imported in the hope of


19

Determining The Order Picking Route in A 3rd

Party Logistics Warehouse – A Heuristic

Travelling Salesman Problem Method Approach

Armand Omar Moeis



Jakarta, Indonesia

Nur Baiti Ingga Wulandhari



Jakarta, Indonesia

Abstract— As South Asian markets have become more

competitive, companies are trying to lower their overall

supply chain costs. There is a growing trend to outsource

logistics activities to 3rd Party Logistic companies in order

to ensure efficiency. Whilst on the other hand, 3PL

companies also have to ensure their productivity and

profitability within their operations, including warehouse

related activities. Order picking within the warehouse

accounts more than half of the overall total warehouse

operations. Thus this paper seeks to determine the shortest

route for each order picking with the use of a heuristic

travelling salesman method. A set of primary case study

data was processed using the model that has been built. It

shows that with the use of a heuristic salesman method,

travel distance of order picking could be decreased to more

than 20%. As a continuum, operating time will also be

minimized.

Keywords— Warehousing, Logistics, Order Picking,

Optimisation, Heuristic Travelling Salesman

I. INTRODUCTION

It has been stated in the Global Agenda Council on Logistics and Supply Chain Systems in 2011, that the ratio of world Gross Domestic Product (GDP) has increased from 39% in 1999 to 54% on 2011. The global industries have also increased to more than 20 trillion USD in 2011. As a result, global companies are striving grow and compete amongst each other. In order to stay competitive, cost minimization and margin growth are pivotal aspects, where it can be achieved by minimizing supply chain costs starting from production to end customers. Logistics and supply chain has become one of the most intriguing and spotted field of study that can help companies strive in the global market. Warehousing is one of the aspects within the field of logistics, where the most time consuming operations take place.

The management of supply chain also includes logistics operations. A company may not always operate its logistics activities internally, but an alternative way could be managed via a 3rd Party Logistics (3PL). 3PL could be defined as an outsourcing firm that will manage the entrance of the good into storage and then send it back to the customer or distributors. Moreover, value added activity could also be performed by 3PL companies. The trend of outsourcing has become a trend since the 19990

especially in South East Asia, where companies are starting to realize that it is better to have a storage space nearer to customers and distribution points. Instead of having more warehouses, giving the responsibilities to storage goods to a 3rd party is a good choice. The goal of sending food at the right time to consumers will likely increase.

A 3PL firm itself need to understand their operations

well to be able to reduce costs and to ensure customer

satisfaction. TFL Logistics is a 3PL company located in

Shah Alam, Malaysia. In warehouse operations, there is

an activity which is called order picking. Order picking

can be referred as the activity of goods collection with

regards to the completion of customer orders. This orders

will then be sent to distribution centers either in bulks or

item base orders and then directly will be sent to

customers. Order picking is the most time consuming

activity in the whole warehousing are. Which there is a

need to minimize this lead-time.

In TFL, order picking is still done manually. It is done

by printing a picklist, and thus picking the items one by

one from the list. Though this process has become too

long that most customers had made complaints. This is

thus seen as an urgency to minimize picking lead-time. A

heuristic graph theory can help TFL to reduce its lead-

time. By implementing such theory into a visual basic

program, TFL could use this program to minimize its

operating time.

II. THEORITICAL OVERVIEW

A. Warehouse Definition

In short the definition of warehouse is a location to locate goods, whether it is a final gods or a good that needs to be further processed into becoming finished goods when it is needed again in a period of time. A warehouse has time and location utilization:

- Time Utilization: “Value created or added to a product by making something available at the right time.” [1]

- Location Utilization: “Value created or added to a product by making something available at the right place.” [1]


20

Review of Fuel Magnetizer Parameter Effect on

Combustion Efficiency

Aprilia Tri Purwandari


Faculty of Engineering


Depok, Indonesia

[email protected]

Amalia Suzianti




Depok, Indonesia

[email protected]

Abstract—Reduction of fuel consumption and emissions

has been the most serious concenrn of scientiest and also

industrial societies. Some researchers foud that by applying

permanent magnet on the fuel line of combustion engine

can improve fuel economy. The device is called magnetizer.

It has been widely applied in various vehicles, water

treatment, and also gas stoves. The magnetic field has

positive effect on combustion engine. It can reduce

hydrocarbon molecular force of the fuel and actively

interlock with oxygen, then produce more complete

combustion. The fuel consumption efficiency and reduction

of emission can be improved. Number of experiments that

use magnetizer to increase combustion efficiency and

reduce emission in various application were done and

available in literature. The device has applied with various

parameters, such as type of permanent magnet, magnetic

strength, polarity, etc. The different types of the fuel

magnetizer will produce the different quality of combustion

engine. The present work is a magnet parameter review of

some experiments that apply magnetizer to increase

combustion efficiency.

Keywords- fuel magnetizer; magnet parameter;

combustion efficiency

I. INTRODUCTION

Hydrocarbon have been the most important sources

of energy for human life. The dominant use of

hydrocarbons is as a combustible fuel source, such as

liquid fuels for internal combustion engine. Hydrocarbon

also is used directly as heat such as in home heaters and

for cooking which use either petroleum or natural gas.

The importance of combustion cannot be denied, but

common properties of hydrocarbons produce emission.

In vehicles, unburned fuel produces many harmful

chemical compounds such as carbon dioxide (CO2),

carbon monoxide (CO), various hydrocarbons

compounds, nitrogen oxides (NOX), and sulfur (SOX),

and dust particulates that lead to the health and the

environment problems.

The structure of hydrocarbon of fuel is highly stable

and it led the molecules are not actively interlocked with

oxigen during process of air fuel mixing.

Several studies have demonstrated the usefulness of

magnets in improving the efficiency of combustion in

ICE. The magnetic field is known to control the spin of

the electron. Spinning electrons will absorb the energy

and finally flip into allignment and the cluster of

hydrocarbon molecules breaks into fine particles which

tend to adhere more oxigen electrons. Ultimately,

complete combustion at its optimumvalue is obtained,

hence polution will reduced [1].

The presence of a strong magnetic field in

hydrocarbon molecules in diamagnetic fuel will cause

rejection reactions between molecular hydrocarbons, so

as to establish an optimal space between hydrocarbon

molecules. This distance will increase the interaction

between hydrocarbon molecules with oxygen, in other

words the fuel molecule becomes more actively binds

more oxygen, so that combustion can be more complete

[2-5]. Figure 1 is an illustration of changes in the shape

of a fuel molecule before and after it is affected by a

magnetic field.

Mechanism of Magnetizer [14]

https://en.wikipedia.org/wiki/Natural_gas

https://en.wikipedia.org/wiki/Petroleum

https://en.wikipedia.org/wiki/Fuel


21

User Experience Modeling Guidance on E-

Commerce Website

Gaby Reveria Hellianto




Depok, Indonesia

[email protected]

Amalia Suzianti




Depok, Indonesia

[email protected]

Abstract— In digitalization era, internet become one

famous media that is widely used for various purposes

around the world which gives many advantages. Many

organizations start to view this situation as new media

provider to do business expansion as an innovative way of

doing activities that meet the communities’ expectations of

economy-related aspects of convenience, known by the term

of e-commerce, which became one of the alternative options

for the organizations as an information medium which

facilitates the presence of interaction between sellers and

buyers without limited time and space, where their

progress was supported by the use of the website. How the

user experience in interacting with the website become an

important key in the advancement of e-commerce. This

research provides a guidance to do user experience

modeling on e-commerce website using a different

approach in order to be able to increase the success of e-

commerce business performance through the use of the

website.

Keywords- UX Modeling Guidance, Structural Equation

Modeling, E-Commerce Website

I. INTRODUCTION

Rapid development of technology and

communications has brought us to the era of

globalization. Globalization is a comprehensive process

or worldwide where everyone is not bound by the state or

territorial boundaries, meaning that individuals can

connect and exchange information wherever and

whenever through electronic and print media. Humans

can easily obtain a variety of unlimited views due to

globalization caused by the emergence of technology [1].

According to Thomas L. Friedman [15], globalization

can be divided into three stages. The first stage was called

globalization 1.0, where existing technology used

horsepower, steam power, wind power, hydropower, and

so on. The main actor of the time was the state, how the

countries that exist through their wall boundaries each to

cooperate with other countries in order to meet the needs

of life. Then, there was globalization 2.0 which began in

the 18th century of Industrial Revolution, where the

technology that evolved was machine technology. The

main actors of the global unification process of the time

were multinational corporations that shrunk the world

from moderate to small size. Lately, there is globalization

3.0 that began in early 2000, where human life is colored

by the use of digital technology. At this time, the world

shrinks from small size to very small size. The main

actors of this period are individuals and small groups

converged with the Internet and connected in the digital

world. In this era, each individual can easily obtain

information and also be the resource through the internet

network. Each individual can easily appear to the public.

This era is then known as the era of digitalization which

is growing today.

The variety of advantages and ease of access gained

from the internet are broadly known nowadays. Almost

everything can be done online, ranging from education,

entertainment, social networking, communication, to

businesses. Many companies view this situation as a new

space or medium to expand business as an innovative way

of conducting economic activities that meet people's

expectations, especially in the aspects of ease. It is known

as e-commerce (electronic commerce) which means the

dissemination, buying, selling, marketing of goods and

services through electronic systems. E-commerce can

involve the transfer of electronic funds, electronic data

exchange, automated inventory management systems,

and automated data collection systems [5].

Currently, e-commerce is an alternative choice for

companies as a medium of information that facilitates the

interaction between sellers and buyers without being

limited by space and time [11]. Supported by the

increasingly sophisticated information technology

development and ease of obtaining, the development of e-

commerce is growing more and more in many companies,

especially in Indonesia. ICD Research Institute in 2017

revealed that the development of e-commerce in

Indonesia is the highest in Southeast Asia, with growth of

57% from 2014-2017. This figure is higher when

compared to other countries, such as Malaysia (18%),

Thailand (26%), and Philippines (32%).


22

Effort to Increase the Value of Corrugated

Paperboard Packaging Materials as Fiberboards

Yusi Anindhita*, Djoko S Gabriel, Rahmat Nurcahyo, Kurnia W Prasetyo



Depok, Indonesia

* [email protected]

Abstract— In the industrial sector, packaging has become

an important item every day, and its use is increasing in

accordance with the global economy. Type of packaging with

the most use is to use paper and paperboard. Paper materials

also have some weaknesses, including the process of

decomposition by nature that takes 2 - 5 months. The most

widely produced paper material in the world is Corrugated.

After End-of-life (EOL) paper packaging products

accumulate and become garbage. This research study

was conducted to increase the value of material in terms of

value, function and performa by implementing from some

approach, design principle, process or treatment from

material and other effort called material value upgrading.

One use of corrugated paperboard paper to increase the value

of material after the End-of-life (EOL) period has been

completed, using the Design For Other Usage principle for the

manufacture.

Keywords— Material Value Upgrading, Design of

Experiment, Fiberboards, Corrugated Paperboards

I. INTRODUCTION

Paper is an important part of human life. Paper is useful

as a medium for recording and disseminating data and

information, packaging requirements, laboratory

experiments, yarn / textile, and tissue. One of the benefits

of paper that is very widely used as a packaging. Currently,

paper consumption in the world is 394 million tons / year

and is expected to increase to 490 million tons / year by

2020 [1].

In Indonesia, one type of paper produced is wrapping

paper, and its consumption increased by 88,940-90,930

tons during 2009-2011. Paper is one of the human needs in

daily activities, so that the daily use of paper is very large.

The enormous amount of paper needs, besides encouraging

the production of the paper industry, it also raises other

issues such as environmental issues, which include issues

are tree felling in forests, garbage, water and air pollution.

Based on data from the Ministry of Environment, with a

population of almost 250 million people and estimation of

waste pile per person 0.7 kg, the number of national waste

pile per day reaches 175 thousand tons. Garbage profile in

Indonesia is still dominated by organic waste (60%), plastic

waste (15%), paper waste (10%), and others (metal, glass,

cloth, leather) about 25%. Landfills in TPA (69%), grave

(10%), recycled by principles of 3R (7.5%), burn (5%) and

others unmanaged (8.5%).

A number of studies [2] regarding the process of

recycling paper which is deinking process and costly. [3]

examines the Conservation of Values of Materials, which

is the implementation of several approaches, design

principles, processes or treatment of materials and other

endeavors in order to minimize the reduction of value

degradation and maximize residual value and improve the

life cycle and total value of the goods. The new Design For

X concept was developed by combining reuse and

recycling as an environmentally friendly approach to the

cycle of the goods [4].

According to [5], composite boards are boards

composed of materials composed of mixtures or

combinations of two or more different macro constituents

in the form or composition of the material and insoluble

with each other. The constituent elements of a composite

material consist of a matrix and a reinforcement.

Fiberboards is one kind of product that can be used from

particles of wood or other lignocelllosic mterial bonded

with synthetic adhesives or other binders then hot pressed

[6]. One of the basic human needs other than food is the

board. An increase in the number of population led to an

increase in housing demand. No doubt the need for

partition and furniture is also increasing. Materials partitioning and furniture in the present and

future have to think of looking for basic materials other than wood for logging trees can be minimized. Therefore, alternative materials other than wood are composite.

This research intends to provide more value than the use

of corrugated paperboard packaging for commercial

purposes and to conduct valuations in order to obtain a

financially feasible material value option called material

value upgrading.

Therefore the researcher will utilize the paperboard

waste mateial which will be used as fiber board

manufacture with designed for partitio board.


A. End of Life Products

End of life product may be reenterd into the market as remanufactured, reconditioned, repaired, reused or recycled or may be recycled to produce new product [7].



23

Evaluating Criticality of Performance Risk

Variables In Disaster Response Supply Chain

Using Supply Chain FMEA – A Conceptual

Model

Agung Sutrisno

Department of Mechanical Engineering

Sam Ratulangi University

Kampus Bahu Manado, Indonesia

E-mail address: [email protected]

Hyuck Moo Kwon

Department of Systems Management and Engineering

Pukyong National University

Busan, South Korea


Indra Gunawan

Faculty of Professions

The University of Adelaide

Adelaide, South Korea


Mohammad Asjad

Department of Mechanical Engineering

Jamia Militia Islamia University

New Delhi, India

E-mail Address: [email protected]

Cynthia E.A.Wuisang

Department of Architecture Engineering

Sam Ratulangi University

Kampus Bahu Manado, Indonesia


Abstract— Becoming country prone to the occurrence of

natural disasters, determination on critical risk variables

affecting successful operation of disaster response using

supply chain FMEA (Failure Mode and Effect Analysis)

method is undeniably important. However, scientific studies

concerning on determining critical performance risk

variables using above method are rarely found in references.

In filling in this gap, this paper presents a conceptual model

on integrating disaster response supply chain FMEA with

Supply Chain Operational Reference (SCOR) to determine a

conceptual risk-based performance evaluation model in

disaster response supply chain. A framework on integrating

Service Supply Chain FMEA with SCOR is presented and

followed by its illustrative example. Discussion on the merits

and limits of the model and opportunities for further study

are provided.

Keywords—Disaster Response Supply Chain; SCOR;

FMEA; Taguchi Loss Function.

I. INTRODUCTION

Driven by the increase of natural and man-made disasters globally within the last two decades, improving methodology for evaluating criticality of the risk in performing humanitarian service operation is undeniable important for saving lots of human lives and economic growth. Following [1], studies intended to improve performability of tools and method for assuring performance of humanitarian operation is still becoming top priority demanding for investigation. Considering on condition that humanitarian service operation is accomplished under condition of large uncertainty and involving multiple players in a networked operation with

probable differing interests, the risks of undertaking disaster response to prevent derailment of its goal. While studies on accessing the risk in profit-oriented supply chain is widely discussed in references as exemplified by [2] the opposite is in contrary in humanitarian service operation [3]. Investigative endeavor in disaster response supply chain is mostly concerning on logistical issues [4]. The use of SCOR model as exemplary model for appraising performability of supply chain is mostly devoted to profit oriented supply chain. The existence of study proposes a method for appraising the risk based on deviation of humanitarian supply chain performance dimension is very rare in references. Initial study devoted to evaluate the risk of humanitarian response supply chain is provided by [5]. However, investigative effort intended to measure risk criticality linking to performance of humanitarian supply chain is vacant in literature. Secondly, the approach to estimate the risk of humanitarian operation is assuming equality of performance hierarchy and unable to link the risk drivers and affected supply chain performance dimensions. Motivated by this discrepancy, in this paper, a conceptual model as alternative approach for accessing the risk of performing response in supply chain using AHP and Taguchi Loss Function is presented. The goals of this study are two-fold, first introducing a framework of integrating Supply Chain Operational Reference into Disaster Response Supply Chain (DRSC) and second, presenting a decision support model for evaluating criticality of risk variables in disaster response supply chain using integration AHP and Taguchi Loss Functions. The structure of the paper is as in the followings. In section II, an overview of SCOR and a model depicting integration of SCOR into






24

Conceptual Development of Harmony Search

Method

for High Utility Itemsets Mining

Fxik Pradana, Isti Surjandari, Zulkarnain Department of Industrial Engineering



Kampus UI Depok, Indonesia

[email protected], [email protected], [email protected]

Abstract — High Utility Itemsets Mining (HUIM) is an

extention of Frequent Itemset Mining (FIM) which

considers itemset utility value in transaction database. As a

part of data mining activities, the research in HUIM has

received much attentions. Many algorithms have been

proposed to tackle the challenges found in HUIM

implementation that are huge execution time and memory

usage. This research proposes one of metaheuristic

methods, named Harmony Search, as an alternative to solve

HUIM challenges. The algorithm starts with low potential

itemsets pruning, generating high potential solution

candidates, and solution candidate improvement process.

The advantages in metaheuristic method characteristics are

expected to be able for reducing execution time and

memory usage in HUIM while maintaining the quality of

HUIM outputs.

Keywords—data mining, high-utility itemsets, harmony

search

I. INTRODUCTION

As a consequence of rapid technology development,

data circulation has been growing extremely big, various,

and fast nowdays. To extract interesting information from

such ‘Big Data’, data mining techniques are employed

and have been developed in many researches. One of data

mining activities that has received much attention is High

Utility Itemsets Mining (HUIM) which aims to find most

useful itemsets in transactional database.

Unlike the Frequent Itemset Mining (FIM) which is

purposed to find interesting correlation between items by

considering only their coocurrences in transaction

database, HUIM considers the items’ utility factor in each

transaction. The terms of utility in this case refers to the

item’s importance level such as selling profit, cost, or

other parameters determined by analyst (Sahoo, Das, &

Goswami, 2015). Considering the utility value in

transaction database, HUIMs finds not only most frequent

itemsets but also having considerable value in transaction

database.

II. RECENT STUDIES

Many researches have been conducted to develop

HUIM for various kind of implementations. HUIM was

originally developed to find most profitable itemsets and

patterns in market basket data. HUIM also was proposed

for stock investment (Lin, Huang, & Tseng, 2017) and

cross-selling marketing strategy (Lee, Park, & Moon,

2013). For other applications, HUIM also can be utilized

for web recommendation system (Sahoo, Das, &

Goswami, 2015) or even can be beneficial in biomedical

and DNA data analysis (Ahmed, Tanbeer, Jeong, & Choi,

2011).

Despite of HUIM potential in various field of

implementations, there are challenges in its

implementation concerned by many researches.

Naturally, HUIM has exponential problem space where

the required execution time will be increasing greatly as

the number of considered items in transaction database

get higher. The utility consideration also omits downward

closure property which commonly implemented in FIM

to prune low potential itemsets, thus HUIM takes

significant longer execution time and larger memory

usage (Chu, Tseng, Liang, & Tyne, 2009; Sahoo, Das, &

Goswami, 2015; Mai, Vo, & Nguyen, 2017). Additionaly,

the lack of anti-monotone property makes multiple

database scanning process is required in HUIM which

delay High Utility Itemsets (HUIs) finding process

(Ahmed, Tanbeer, Jeong, & Choi, 2011). These

challenges drive many researches to provide better HUIM

algorithms over the time.

Recent studies show that various approaches were

proposed to gather complete set of HUIs (Lin, Hong, &

Lu, 2011; Sahoo, Das, & Goswami, 2015; Mai, Vo, &

Nguyen, 2017; Jin & Wang, 2017). The findings of these

studies show that the proposed methods perform better

than their own referred methods, however the algorithms

consume huge execution time and high memory usage.

Moreover, the complete set of HUIs mining potentially

scans low potentially itemset or even generate large

number of useless HUIs solution candidates which is a

waste in HUIM. The approaches may become not suitable

for HUIM implementation in dynamic environemnt with

rapid data changing which affects discovered information

during mining process.

As an alternative, several metaheuristic based

approaches were proposed to resolve HUIM challenges

(Kannimuthu & Premalatha, 2014; Lin, et al., 2016;

Kabir, Xu, Kang, & Zhao, 2017; Wu, Zhan, & Lin, 2017).

Metaheuristic is well-known as an optimization approach

that can find high quality solution, instead of global

optimal, by using reasonable resources especially for NP-

hard optimization problems. The combination of

designed fitness function, improvement mechanisms, and


25

Design Criteria for Material Value Conservation

in Manufacturing Context for Grinding Disc

Andini Maheswari



Depok, Indonesia 16424

[email protected]

Djoko S. Gabriel1, Rachmat Nurcahyo1 1Industrial Engineering Department,

1University of Indonesia,

Jakarta, Indonesia

Abstract— Indonesia as a developing country, continue

to strive the development. Especially in the project field,

which focuses on steel structure, power plant and piping.

Automatically requires support tools, grinding disc is one

of the supporting process activities, while the actual use of

grinding discs is not maximal, not to mention the

comparison of demand and utilization of materials used

from grinding disc has not been thought of management is

resulting after the End-of-life (EOL). Used grinding discs

are forgotten to be conserved. The determinant indicator is

seen in the low selling price and there is no residual value,

the low value of the grinding disk material when its function

is gone, making the rest of the material does not have the

privilege to be used or to be recycled, most residual of the

grinding disk material becomes waste. Re-manufacturing

brings the product into a functional state with a more

optimum product warranty, and is expected to reduce the

potential for environmental hazards, raw material levels,

energy used in production stages and increased use and

function of grinding disc materials, then based on these

problems the researchers re-designed the grinding disc to

be more effective by using QFD and DFMA integration for

new grinding disc design. With the use of new grinding

design, the material efficiency as much as 20%. Because

waste material is reduced from 37% in one grinder, to only

17%, as well as lower material cost per month by almost

50%. So the new grinding design is effective to reduce waste

impact and material efficiency.

Keywords— Waste Disc Grinding; Re-Manufacturing;

QFD; DFMA; Value Conservation; Material Value

Conservation.

I. INTRODUCTION

Indonesia as a developing country, continue to strive the development. Especially in the project field, which focuses on steel structure, power plant and piping. Automatically requires support tools, grinding disc is one of the supporting process activities.

Based of observation data that the use of grinding is not maximal, especially on grinding wheel type (Grinding Wheel) which size 7". This makes the number of grinding discs used to accumulate and become waste. The abundance of disc scraps are wasted, as manufacturing generates over 60% of non hazardous waste annually (Nasr, Varel 1996).

Fig. I. Grinding process

GRINDING DISC 7 X 6 MM NEEDS AT 3 EPC COMPANIES IN

2017.

Usage per year 138,293 Pcs/year

Usage per month 11,524 Pcs/month

Price 35,000.00 IDR

Cost per year 4,840,248,000.00 IDR

Cost per month 403,354,000.00 IDR

Based on field observation, it is known that the

use of grinder is not maximal especially on Grinding

Wheel type which is 7". This makes the number of

residual of disc become waste that is not utilized.

CALCULATION OF NEW GRINDING VOLUME AND

GRINDERS THAT HAVE BEEN USED.

Description R D Round V %

New Grinder 90 180 565.49 25446.90 100%

Residual 55 110 345.58 9503.32 37%

WASTE GRINDING COST (37%)

Info Keterangan (Per Bulan)

Waste % 37%

Volume (pcs) 11524

Price Rp 35,000.00

Total cost Rp 403,340,000.00

Waste 37% Material Rp 150,630,061.63

Waste Cost Rp 6,455,575.00

Total Loss Rp 157,085,636.63


26

A system analysis and design of responsive supply

chain for micro- and small-sized sago-based food

industry

Syamsul Anwar

Departement of Agroindustrial Logistic Management

Polytechnic of ATI Padang

Padang, Indonesia

[email protected]

Taufik Djatna

Departement of Agroindustrial Technology

Bogor Agricultural University

Bogor, Indonesia

[email protected]

Abstract—In today’s global business competition, the

micro- and small-sized sago-based food industry should be

responsive to any customer’s demand changing. The ability

to provide a quick delivery and availability of products

varieties with competitive price are key strategies to enter

a competitive market. In this respect, any efforts are

required to support an effective collaboration and

coordination among business entities in the responsive

supply chain environment. This study aimed to analyze and

to design a responsive supply chain system for micro- and

small-sized sago food-industry. The study applied a system

analysis and design approach. Firstly, the system’s entities

and requirements are identified and analyzed by using the

input-process-output approach. Secondly, the product

delivery network model is determined by the

responsiveness measures and product-consumer

characteristics. Thirdly, the suitable suppliers are

determined based on their responsiveness performance

which measured by the Bayesian networks model.

Fourthly, the distribution routes and potential location of

retailers are determined by the Minimum Spanning Tree

(MST) approach. Fifthly, the proposed system is described

by the Business Process Model and Notation (BPMN v.2.0).

The proposed models to support the responsive supply

chain system were verified and validated for deployment

evaluation.

Keywords— micro and small industry, responsive

supply chain, sago-based food products, system analysis

and design

I. INTRODUCTION

In today’s global business competition, the responsive supply chain (RSC) is considered as one of the powerful strategies for firms including small and medium enterprise (SME). The RSC has the ability to respond a wide range of quantitative demands, providing a high service level with a shorter lead time, handling a large variety of products, and handling uncertainty in supply [1]. It requires the effective cost solutions, high flexibility and responsive to any market or customer’s demand changes [2, 3] both from within and from outside the system [4]. In related to key success factors for global supply chain, the SME has several limitations such as lack of responsiveness, ineffective information sharing, and low innovation [5]. The SMEs need to coordinate its activities with members of its supply chain include supply chain integration, information sharing, relationship

management, and technology transfer [4]. In this regard, a supply chain integration activities result in better coordination [6] and supply chain competitiveness [5]. Majority of SMEs lack resources and don’t know how to support the coordination and flexibility of their supply chain [4]. Therefore, integration of processes in a responsive supply chain is required to improve the SME’s competitiveness.

Sago is a carbohydrate-containing commodity which most utilized as food ingredients at several regions in Indonesia [7]. The commodity is mostly processed as the sago-starch (an intermediate product) which further utilized mainly by the micro-and small-sized industry (up to twenty workers). Most of the industry is widely spread in Meranti Island district, Riau province. The industry produces various traditional sago-based food products includes noodle, crackers, cookies, and others. However, the sago-starch absorption of the industry is still very low as compared with the amount of wet sago-starch that is sent out of the region mainly to Cirebon, West Java. So far there has been no significant growth of the industry. It does not seem an effective coordination and collaboration among business actors. Moreover, there are a limited distribution and marketing networks.

The implementation of supply chain management will create value for the company, from the first business steps, and allows the development of important competitive advantages [8]. In this regard, a system approach is required to evaluate elements of the system with respect to the system’s goal. The analysis of the system’s entities and stakeholder’s requirements are first important steps in the system analysis and design approach [9]. This process to ensure the designed system is appropriate or compatible with users of the system. Therefore, the analysis of the existing system is an urgent step for the development of the responsive sago-based food industry supply chain.

In designing a supply chain, it is important to consider the supply chain strategy which commonly involves a choice between responsiveness and efficiency. The appropriate choice depends on how the product changes in value over the time interval between production and delivery to the customer [10]. In the case of our study, the sago-based food products are considered as perishable products of medium to high level. The configuration

Center for Education and Training, Ministry of Industry,

Indonesia


27

Analysis of Knowledge Management System

Implementation In State-Owned Companies :

Review of Critical Success Factors

Nabila Yudisha

Industrial Engineering Departement


Depok, Indonesia

[email protected]

Amalia Suzianti

Industrial Engineering Departement


Depok, Indonesia

[email protected]

Abstract— The advance and rapid development of technology

are forcing companies to always innovating further.

Innovation requires knowledge, tools to identify, manage, and

share knowledge, known as knowledge management system.

Nowadays, there are numbers of companies using knowledge

management system as tools of innovation. So are state-owned

companies, which keep on innovating and improving their

services to be more efficient and transparent. This research is

focusing on the relationship knowledge management system

and its contributing factors in state-owned companies using

a quantitative method. Model resulted by implementing

knowledge management system has a significant relationship

with contributing factors. However, this research is limited to

the data acquired, which is from a single company, and data

processing method thus resulted in a less reliable result.

Keywords: Knowledge Management

System, Quantitative, State-Owned Companies

I. INTRODUCTION

Knowledge Management System (KMS) is designed to

improve the knowledge management (KM) effectiveness

and efficiency. The company utilizes the information and

communication technology to implement the KMS.

However, the application of KMS differs from the

application of information systems on traditional

companies because there is no exact needs specification

about input, process, and output of KM [1]. Implementing

KMS is not just about technology; but rather concerning

the organizational culture, structure, processes, and human

factors [2]. As a result, KMS implementation is relatively

more difficult, risky, and technically innovative [3].

Companies usually invest time and resource to implement

KMS [4]. It is not only private companies implementing

KMS, public companies also apply KMS to improve their

knowledge.

Several studies related to the KMS model relationship

of supporting factors in the company, such as the

Nor'ashikin Ali (2016) research which formulated the

model of the KMS success by including the organizational

and health care factors. Yu-Min Wang (2016) analyzed the

effect of innovation, organization, and environment on

KMS implementation. Yujong Hwanga (2018) measured

the relationship between information management

motivation and the different types of KMS commitments

within the organization, which was an initial but important

step to bridge the gap between individual information.

Gabriele (2017) learned about the relationship between

KMS, Open innovation, KMC, and finally knowing these

relationships affected the company's innovation capacity.

Muhammad Shujahata (2017) examined the model of the

neglected worker knowledge productivity role and the

relationship between KM Process (creation, sharing, and

utilization) and innovation. Jeevan Jyoti and Asha Rani

(2017) identified KM to understand the relationship

between high-performance work system and organizational

performance in the telecommunication sector.

BPJS Ketenagakerjaan is a State-Owned Companies in

Indonesia which works in the insurance sector, a public

program providing protection for workers to overcome

certain socioeconomic risks and its implementation by

using social insurance mechanisms.

Based on the literature above, this research will

determine the model of a relationship between knowledge

management system and supporting factors to BPJS

Ketenagakerjaan company. The discussion focuses on

Organizational, Employees and Innovation factors. The

variables that will be the latent variables of research include

organizational culture, leadership, technological skills,

work motivation, incentives, product/service innovation,

and customer problem solving related to demographic

parameters such as age, gender, education, and experience.


A. Knowledge Management System (KMS)

Knowledge management is a process of identifying,

capturing, distributing, leveraging, maintaining, and

applying knowledge to help the organization compete by

increasing innovativeness and responsiveness [11].

Knowledge is divided into two types, namely tacit and

explicit. Tacit is the knowledge that exists within us

ourselves, whereas explicit is the knowledge that has been

documented to be easy to spread is like a book [12]. To

facilitate the management of knowledge, knowledge

management system is needed.

The Knowledge Management System (KMS) is an

information and communication technology system which

combines and integrates a contextual treatment of each

explicit and tacit knowledge with reuses the knowledge to

produce a value [12]. KMS has an important role in



28

Risks Analysis for High Level of Automation

Implementation

Dwi Wahyu Pradonoa, Zulkarnainb, Komarudinc




Abstract— Many industries come to the global

competition which increase their operational cost. The best

way to win this competition is by increasing the competitive

advantage through innovation and technology. Automation

is one of the way to increase the competitive advantage

because of its benefits : increase production output, reduce

labor need, increase production efficiency and

effectiveness. However, there are so many failures in the

automation implementation because of lack of risks

consideration in the early phase estimation, especially when

implement the higher level of automation, namely :

machine automation, load/unload automation, and transfer

part. The research will begin with literature studies on the

risks of automation implementation projects in various

industries, taken from journals in the year of 1988 to 2016,

categorized in some aspects : organizational, knowledge,

resources, and skill availability. Then use the interview and

questionnaire to experts to verify the risks related to the

highest level of automation, leverage the risks, and propose

the conceptual model and procedure to take the

appropriate decision of automation implementation. This

research take the case study in automotive industry which

widely implement this level of automation.

Keywords—risk, automation, decision, level of

automation, automotive

I. INTRODUCTION

Economic growth has a positive impact on industry

growth, but it also brings consequences for cost growth

in its supporting components. Among the increased

labour costs, production process costs, market

competition where consumers are deciding product

quality that prioritizes service, warranty, and reliability.

To keep the competitiveness, companies need to

increase competitive advantage. Competitive advantage

is about how a company actually puts generic strategies

into practice [1]. There are two types of corporate

competitive advantage, namely low cost and product

differentiation [1].

One of the important factors of manufacturing cost is

labor cost. To reduce this cost, the choice of automation

strategy became popularly used by companies. Morgan

Stanley Research noted that timeline of adoption in this

recent year is that companies apply the automation in

their limited driver for substitute the process function

(see Figure 1).

Figure 1 Timeline for adoption of automation and new

technology implementation, modified from Morgan

Stanley Research

Automation has several level, divided into five level

[2], as shown in Figure 2. The level of automation

applied depends on the industry, the type of work, the

level of difficulty, and the level of quality required.

Figure 2 Level of Automation, modified from Creating

Continuous Flow (Mike Rother & Rick Harris, 2001),

published by The Lean Enterprise Institute

Some companies are found refraining from

implementing high-level automation systems due to

maintenance and repair

Phase 4 (two decade):

100% autonomous

penetration, utopian

society

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

Technology

Penetration

Phase 3

Complete

autonomous

capability

Phase 2

Limited driver

substitution

Phase 1

“Passive”

autonomous driving

Machine

Cycle

Unload

Machine

Load

Machine

Transfer

Part

Level #1

Level #2 Auto

Level #3 Auto Auto

The Great Divide

Level #4 Auto Auto Auto

Level #5 Auto Auto Auto Auto


29

Identification of UX elements for Evaluating

Donation Platform

Michiko Nur Widawati

Department of Industrial

Engineering


Depok, Indonesia

[email protected]

Amalia Suzianti


Engineering


Depok, Indonesia

[email protected]

Romadhani Ardhi


Engineering


Depok, Indonesia

[email protected]

Abstract— In this digital era, many products and

services adapt to digital lifestyle by employing technology

such as internet and online platform. Charity organizations

have also move to digital platform as various fundraising

platforms have been developed in form of website or mobile

application, to reach digital native or boomer generation to

donate the resource they have for making a good change or

help others in need. Some studies found several factors

which may affect people’ ability to give for fundraising,

such as the resource one possesses, and environment factor

where people can make donations as easy as possible. In

order to increase donations for charities using digital

platform, an organization can enhance the platform it

adopts by making the donation process easier to attract

prospective donors and to retain existing donors and

maintaining loyalty. This study concerned with the factors

affecting loyalty in donation using website donation

platform and enhance the donation website to facilitate fast,

easy, and convenient donation process. Therefore, this

study will identify the factors based on literature and

classify relevant UX elements should be considered to

enhance the donation website platform. The output of this

classification will be utilised to evaluate and enhance UX of

a website platform developed by a newly established

donation fundraising organization concerned with forest

and conservation in Indonesia.

Keywords—donation; charity; loyalty; website; UX.

I. INTRODUCTION

In Indonesia, the growth of digital crowdfunding

platform is quite rapid. The Indonesian people are open to

financial technology (fintech) which also includes

fundraising, with users growing from 30% in 2016 to

60% by 2017 based on data from Indonesian Fintech

Association (AFTECH) [1]. [2] and [3] classified

crowdfunding into four business model types based on

rewards or feedback provided by the project owner to the

society or donors of the campaign, i.e. equity-model,

lending-model, reward-model, and donation-model.

Among the four crowdfunding models, donation-model

has been widely adopted for some time in Indonesia.

Various fundraising and charity organizations which

adopt this donation-model in Indonesia have also utilized

internet-based platform. Several of them are "Kitabisa"

which was established in 2013 with a website for various

fundraising objectives, "Aksi Cepat Tanggap" which was

established in 2005 and utilizes website for social and

humanitarian action including responsive activities

emergency to post-disaster development with global

scope, and "Dompet Dhuafa" which has been established

since 1994 and confirmed to be an amil zakat institution

since 2001 to overcome poverty. Those organizations are

mainly concerned with human and social issues.

However, there are also a few fundraising organizations

concerned with nature and environment issue such as

"Lindungi Hutan" which was recently established in

2016, engaged in forest conservation and nature

conservation in Indonesia. The platforms had already

mentioned continue to be active in collecting donations

and volunteers to support programs, social activities they

conducted, or campaigns created by the community as

platform users.

Several aspects drive the success of charity

organization in collecting donation to support a cause or

helping those in needs. Research shows the factors drive

a person to donate to others, including the resources

owned by donors [4] that are perceived to be changing

for others, as well as environmental factors which are

represented by fast, easy, and convenient donation

process from the perspective of prospective donors [4]

[5]. In order to collect enough donation, fundraising or

charity organization should fulfill those factors and be

able to increase the participation of society to support the

charity activity.

In terms of participation, donor participation can be

enhanced by gaining new users and retaining existing

users by maintaining customer loyalty. According to [6]

if a person supports a fundraising organization once, then

that person will have a high chance of contributing back.

In relation to digital platform for donation, the charity

organization should enhance loyalty of its existing

donors and attract new donors or users to participate and

donate in the fundraising platform. This can be achieved

by fulfilling the factors driving one’s intention to donate

[4] [5] and maintaining loyalty of existing the donors[6]

who have already utilized the fundraising donation

platform.

As a newly established organization with a newly

developed fundraising platform, Lindungi Hutan (LH)

plans to improve its website to increase the number of

successful donation. With a relatively low number of

donors supporting its campaigns, LH should attract


30

Allocation of Coal Barge Fleet for Domestic

Destinations in a Coal-mining Company Using

Mixed Integer Programming (MIP)

Inaki Maulida Hakim



Depok, Indonesia

[email protected]

Aisha Adilla



Depok, Indonesia

[email protected]

Abstract--Coal has been predicted to remain the

dominant source of electricity in the world for the next 35

years, but the global coal market has the attributes of being

volatile and difficult to predict. Consequently, Indonesian

coal-mining companies need to increase the efficiency of

their business processes in order to stay competitive. One of

the ways this can be achieved is by streamlining the

company's logistics processes, including resource

allocation. This research aims to determine optimal

allocation of coal barge fleet for domestic destinations that

maximizes profit, with the research object being an

Indonesian coal-mining company located in Southern

Borneo. The method used to determine the optimal

allocation is Mixed Integer Programming (MIP). Results of

the research include optimal allocation of coal barge fleet

for domestic destinations, total profit gained by the

company, and factors that influence the magnitude of such

profit.

Keywords—Barge; Coal; Logistics; Mixed Integer

Programming; Operations Research; Profit; Resource

Allocation

I. INTRODUCTION

The volatile state of the global coal market has had a

negative impact on revenues of Indonesian coal-mining

companies. In 2016, of five such companies, three

experienced decreased revenues from the previous year

[1].

To adapt and remain competitive, Indonesian coal-

mining companies need to increase the efficiency of their

business processes in order to reduce the negative impact

of market volatility on revenues. One of the ways this can

be done is by minimizing costs, including the cost of

logistics. Logistics cost is one of the most critical types of

costs to be reduced because at this point, at $861 million,

logistics cost reaches 26% of Indonesia's GDP. This is

one of the worst numbers in Asia, behind Singapore with

8%, Japan with 9%, South Korea with 13%, and Malaysia

with 14% [6].

This research is focused on an Indonesian coal-mining

company with a vertically integrated, pit-to-power

business model located in Southern Borneo [4]. Although

the business process in this company is already under

way, problems have been encountered in terms of

allocation of barge fleet for the distribution of coal to

domestic destinations, which is usually done by logistics

planners during capacity planning at the beginning of

each month. The problem is the lack of a systematic

method for allocating the company’s barge fleet, which

results in some drawbacks. One of them is the possibility

of the result being sub-optimal, causing overfleet or

underfleet of barges - the negative impacts of which can

spread to other parts of the company’s supply chain.

After observing the problems that occur in the

coal-mining company, the researchers decide to conduct

a study that aims to determine the allocation of coal barge

fleet for domestic destinations that will maximize the

profit earned by the company using Mixed Integer

Programming (MIP) as an optimization method. Such a

study will make contributions to both the particular coal-

mining company and to research in general – the former

by supplying a systematic method for barge fleet

allocation for the distribution of coal to domestic

destinations, and the latter by demonstrating the

application of MIP to solve real-world problems.

II. SIMILAR WORKS

In terms of delivery route optimization, Maraš et al.

have discussed barge transportation route optimization in

a situation where container ships are to pick up and

transport containers at several ports in a network of inland

water, with the end point being a port downstream. Maraš

et al. used optimization methods such as Mixed Integer

Linear Programming (MILP) with the objective function

being to maximize the profit earned by the logistics

company [5].

In terms of resource allocation, Lu et al. conducted

research on allocation of barges for tugboats in a harbor

at the end of the Yangtze River in China [8]. As with

Maraš et al., Lu et al. used optimization methods such as

Mixed Integer Linear Programming (MILP) with the

objective function being to minimize total transportation

time and cost penalties due to delays. Bredstrӧm et al.

also conducted a similar study, but about the supply

chain of supplying calcium carbonate slurry to paper

manufacturers in Europe with the objective function

being to minimize logistics costs [2]. Lu et al. conducted


31

Critical Success Factors (CSFs) of Six Sigma

Implementation in Indonesia Small and Medium

Industries

Wahyu Poncotoyo




Depok, Indonesia

[email protected]

Teuku Yuri Zagloel, Romadhani Ardi




Depok, Indonesia

[email protected] , [email protected]

Abstract - This study aims to develop and build a

conceptual model of Critical Success Factors (CSF) in the

context of successful implementation of Six Sigma in Small

and Medium Industry in Indonesia and its impact on

industrial performance. Critical Success Factors: top

management engagement and commitment, training and

education, teamwork, cultural change, and industrial

infrastructure. To build a conceptual model and a deep

literature study hypothesis was conducted in this study.

Based on existing theory, the initial conceptual model can

be built by having six hypotheses. However, the initial

conceptual model was developed by involving 2 senior

Black Belt and 1 Yellow Belt experts by conducting semi-

structured interviews and discussions to conclude

hypotheses between Critical Success Factors that are not

well supported by good literature studies. After conducting

semi structured interviews as well as discussions with

experts, the final conceptual model can be constructed by

having thirteen hypotheses. This study provides empirical

evidence for the Critical Success Factors in implementing

successful Six Sigma in small and medium industries in

Indonesia. The findings of this study provide a basis for

industry practitioners and academics to focus on Critical

Success Factors to facilitate successful implementation of

Six Sigma in Indonesia. This study adds to the list of quality

management literature from one point of view of Asian

countries, namely Indonesia.

Keywords–Critical Success Factors; Six Sigma; Small

and Medium Industry; Indonesia

I. INTRODUCTION

In the World, Indonesia ranks 16th in Gross

Domestic Product (GDP) in 2016 at $ 932,259 [1]. This

makes Indonesia the country with the highest GDP in

Southeast Asia (ASEAN) followed by Thailand at 25th,

Philippines, Singapore and Malaysia ranked 35th, 36th

and 37th, Vietnam is ranked 46th, Myanmar ranked 70th,

Cambodia is ranked 106th, Laos is ranked 113th, and the

last one is Brunei Darussalam in 125th place. GDP is a

summary of the main statistics of an economic activity

[2] and is an important variable in analyzing a country's

economic growth [3]. As much as 20.51% of GDP in

Indonesia is produced by manufacturing industry [4].

Today is modern economy, small and medium

industries play an important role in sustaining the

economy of a country and even the world economy.

“Small and medium industries are the source of modern

economic life [5]”. To contribute to the economic

growth, small and medium-sized industries are

demanding increased production levels to meet

increasing market demands. On the other hand, the

research findings conclude that the success of small and

medium-sized industries has a direct impact on economic

development in both developed and developing countries

[6]. They have the ability to produce jobs at minimum

cost, are pioneers in the field of innovation and have high

flexibility that enables them to meet customer needs [7].

In 2015 there are 3,385,851 units of small and medium

industries in Indonesia [4]. Small and medium-sized and

large industries can be classified on the basis of profits,

units of electricity consumed, the amount of labor and

considered as machines for economic growth in Europe

[8]. In Indonesia the definition of industrial scale is

regulated in the Regulation of the Minister of Industry

number 64 of 2016 [9].

However, when compared to global competitiveness

levels for 2016 - 2017, Indonesia ranks 41st [10]. In

terms of competitiveness in Southeast Asia (ASEAN),

Indonesia must be defeated by Singapore, Malaysia, and

Thailand respectively ranked 2nd, 25th, and 34th. To

improve competitiveness, many ways can be done.

Increasing productivity is a way to improve

competitiveness. In improving productivity, one way is

to do continuous improvement program (Continous

Improvement). By continuously improving the industry

will further improve itself to achieve its ideals in

fulfilling the customer's wishes.

As a business strategy, Six Sigma focuses on

improving understanding of customer needs, industry

productivity and financial performance [11]. A survey of

2,870 respondents was undertaken by Dusharme (2006)

that examined the continuous improvement program that

gave the best results. The survey results show that 53.





32

Markov Model Design for Estimating Expired

Product Returns

Ridani Faulikaa, Romadhani Ardib, Zulkarnainc




Abstract— With the increasing awareness of environmental

impact caused by industrialization, reverse logistics (RL)

has been the center of attention by many researchers in

logistics and supply chain. Besides environmental issues,

there are also concerns in the financial side that lead the

discussion on how important a proper product returns

planning is. Expired products in consumer goods industry

are important to be managed as the manufacturer has the

responsibility based on government’s regulation. Managing

expired product returns will also protect consumers from

being exposed by the hazardous and toxic material when a

product is reaching its end-of-life period. Forecasting

product returns for expired products in consumer goods

industry has become a challenge due to high uncertainty

regarding quantity, timing, and product quality returned

by customer. This paper develops a Markov model design

to forecast return timing and quantity of expired products

in consumer goods industry. We use the interrelationship

between events in the supply chain to design the Markov

model which will be helpful for planning the cost needed to

pull back the expired products for final disposal.

Keywords— Markov model; Reverse logistics;

Forecasting; Expired product returns; Consumer goods

I. INTRODUCTION

Industrialization has brought so many positive

impacts to our lives. However, there are also some

negative impacts driven by industrialization, such as

pollution, scarcity of resources, and some other

environmental issues [1]. Indonesian government through

Government Regulation No. 101/2014 [2] about

Management of Hazardous and Toxic Wastes has

regulated that every party must manage the hazardous and

toxic wastes that they produced. According to wastes

categorization based on its source, one of the hazardous

and toxic wastes is from expired products.

With the presence of the regulation, every company,

especially that runs the business in infant milk industry,

which produces or sell products that contain hazardous

and toxic contents is responsible to manage their product

which has been expired to be destroyed according to the

correct mechanism that is safe for the environment. That

condition has forced companies to perform reverse

logistics to pick up their expired products to be destroyed

properly. Reverse logistics is interpreted by American

Reverse Logistics Executive Council as the process of

planning, implementation, and control the flow of

materials, in-process inventories, and finished goods with

efficient and cost-effective way, from point of

consumption to point of origin in order to recapture the

value of goods or for proper disposal [3]. Reverse

logistics is focusing on the flow of pulling back products

from consumer to producer in order to recover product

value by partial or total re-use of the product [4], to repair,

or to dispose in a proper way which is safe for the

environment [5]. The management of wastes that is

coming from expired products is also conducted as a

protection to consumers. With the presence of reverse

logistics activities to pull back expired products, the risk

of misuse on expired products can be minimized.

Another concern that leads to reverse logistics activity

is from financial point of view. Companies need to plan

their reverse logistics activity properly because as stated

by [6], many companies did not consider reverse logistics

ddue to product returns into their business planning.

Many companies think of cost reduction and efficiency,

but they did not realize that reverse logistics brings a

significant impact on the companies. Reverse logistics

may incur a higher cost than forwarding logistic, therefore

companies must consider reverse logistics properly into

their business planning to avoid companies lose profit [7].

Wu and Cheng (2009) [8] stated that companies estimate

their reverse logistics cost is 5-6% of total logistics cost.

However, further studies found that in average,

companies spent 9.49% of their total logistics cost for

reverse logistics activities.

There are still very few studies about forecasting

product returns. According to Krapp, et al. (2013) [9],

there are only 159 articles found in Science Direct with

keyword forecast + product returns, 91 articles with

keyword forecast + closed-loop supply chain, and 228

articles with keyword forecast + reverse logistics. Toktay

et al. (2000) [10] researched product returns by using

product returns data of Kodak camera, then cultivating

the data by using the discrete-time distributed-lag model

method. They manage the ideal condition by creating

such an ordering policy. Toktay et al. (2000) [10] assume

that product returns can happen in very distant future by

applying infinite planning horizon. Kiesmüller and Van

der Laan (2001) [11] uses demand stream to estimate

random returns for reusable product and then to

determine an optimal order-up-to policy. However, they

assume an ideal condition, such as constant lead time and

the constant probability that a product will be returned


33

Conceptual Model of The Effect of

Implementation of

Knowledge Management on The

Performance of Logistics Service Providers

Mohammad Ikrar Pramadi


Engineering


Depok, Indonesia

[email protected]

Romadhani Ardi


Engineering


Depok, Indonesia

[email protected]

Zulkarnain


Engineering


Depok, Indonesia

[email protected]

Abstract—This study aims to model the important factors in

the implementation of knowledge management (KM) in

logistics service provider (LSP) companies in Indonesia and

their influence on LSP performance itself. Important factors

that support KM implementation to achieve the expected LSP

performance are culture, organizational structure, strategy

and leadership, human resources and information technology.

LSP performance is measured based on SCOR (Supply Chain

Operation Reference) approach. The validation of the

research model was conducted through semi-structured

interviews with logistics experts, and subsequently conducted

literature studies to develop conceptual models and developed

a number of hypotheses empirically. Structural Equation

Model (SEM) is used to perform data analysis in the next

stage. The results of this paper can show a conceptual model

with all the important factors of KM implementation that

affect the success of KM implementation and affect the

performance of LSP. This study will serve as a basis for

empirical evidence of the importance of implementing KM in

LSP companies in Indonesia and also focus on important

factors that support the successful implementation of KM to

support better LSP performance. The influence of KM

implementation on LSP performance still continues to be a

research study. This study adds a list of literature on KM and

LSP performance especially from the point of view of

Indonesia.

Keywords—Knowledge Management, Logistics Service

Provider, SCOR

I. INTRODUCTION

The ever-increasing global competition has resulted in a shift in thinking in the business and industrial world from "big" companies to lean and mean.

Logistics outsourcing has always been an option for companies to divert logistics activities that exist within the company's value chain to outside companies through contractual cooperation.

In this transfer of activity comes the strength in the industry known as the logistics service provider or logistics service provider. Over the past two decades there have been changes that make a substantial contribution to logistics

service providers (LSPs). Logistics Service Provider is defined as “a company that provides some or all of logistics services to create value for customers by developing a longer-term and mutually beneficial relationship for the customer” [1]. Coyle, Bardi and Langley provide a reference that 3PL is an external organization "which does all or part of the company's logistics function" [2]. This broad definition indicates that the outsourcing of any logistical activity (transportation, warehousing and inventory management) can be qualified as 3PL [3].

In today's increasingly competitive dynamic environment, logistics services are becoming increasingly complex and knowledge-intensive. In a study of 3PL [4] it can be shown the diversity of logistics services offered by

a 3PL based on their capabilities. Research in the logistics discipline indicates that

service capability is critical in creating customer value [5] and contributes to higher customer satisfaction and company performance [6] and provides different competitive advantages. The management of knowledge assets has become very important for 3PL companies to achieve performance goals [7]. Basically the working relationship between 3PL and its customers is built through a customer project. For 3PL through this customer project, customers are a source of knowledge and even a source of ideas for innovation [8] [9]. So the source of knowledge obtained must be managed properly to produce the expected performance. For 3PL, expected performance as critical role in supply chain [10] can include reliability, responsiveness, flexibility, cost measures & asset management efficiency.

Knowledge management (KM) is defined differently by different authors and changes from organization to organization and its program is largely determined by organizational goals and the achievement of specific results [11]. KM seeks to improve performance by utilizing and maintaining present and future values of knowledge assets [12]. Key concepts include conversion data, organizational insights, experience and knowledge skills are reusable and




34

Development of Risk Management Framework in

Spare Part Purchasing at Maintenance, Repair,

and Operation Companies

Ratih Puspaningtyas, Romadhani Ardia, Zulkarnainb


Faculty of Engineering Universitas Indonesia

Depok, Indonesia

[email protected] [email protected], [email protected]

Abstract— This research aims to develop risk

managementframework in a spare part purchasing

process that occurs in Maintenance, Repair, and

Operation (MRO) companies, since purchasing plays a

big role in providing spare parts used in maintenance

and operation activities in the right time, right quantity

and right price. The final framework is expected to help

the company to identify, evaluate, and choose the right

risk mitigation systematically. The metodology used in

this research are deep literature review to find the key

variable of purchasing, sparepart characteristic, and

the process of risk management. Then it is continued

with an in-depth discussion with some experts to get

new insight in sparepart purchasing risk management.

To get a valid information, the expert classification such

as experience, current position in the company, and

educational background should be met the

requirements. The initial framework is built by

synthesizing expert opinion and literature review. Then

it is validated by the expert before a case study is

conducted in power plant company. The finding of this

study provides a guidance for practitions and

professionals in purchasing process so the risk can be

minimized. Risk management framework has been

developed in many fields. This paper provides a risk

management framework for spare part purchasing in

MRO company.

Keywords-risk management; framework; sparepart;

purchasing; MRO companies

I. INTRODUCTION

One of the most important elements in machine and

equipment maintenance activities in an industry is spare

parts [1]. Spare parts damage or unavailibility could give

the company bad effects such as financial loss [2].

Characteristics of spare part requirement can not be

equated with the production material in general. The level

of spare part fulfillment is as high as the stock-out risk that

impacts on the company's financial statements [3]. The

number and variations are quite large, the demand and the

repair time is difficult to predict, and the price of each part

can be very expensive [4]. The costs incurred for operations

and maintenance account for 60% of the total cost, while

the cost of purchasing the spare part itself is 25-30% [5].

More competitive purchasing activities, of course, will

provide a distinct advantage to the company [6].

The role of purchasing is to ensure that the company

gets the required supply of goods at a right price to support

the achievement of organizational performance [7]. However, in the last 2 decades, purchasing has been seen

as a strategic function in a corporation because 50-90% of

total cost of goods sold (COGS) comes from the purchase

cost [8]. As a strategic function in the company, an

effective risk management is needed to assist them

achieving the performance target such as right quality, right

cost, etc. Establishing an effective risk management

framework could help the organization too to reduce the

probabilities and consequences of risk that could happen,

and also keep the organization working in the normal way.

MRO companies are rated appropriately as an object in

this research for many reason. The main activity in this kind

of company are modification, inspection, and equipment

condition detection [9]. Their performance target is to

provide high equipment readiness. For a kind of company

like this, spare parts availibility are importantly considered

to support their main activities.

Until now, there are some authors conduct the

researches on purchasing risk management. Nagali et.al.

(2015) implemented purcasing risk managemen in Hewlett

Packard Company and succesfully save more than 425

million dollars in the last six years. Beside that, Verbano &

Crema (2013) listed some indicators in energy procurement

process. Risk factors identification in e-procurement

process also conducted by Ramkumar et al. (2016). He also

proposed a framework to asses the risk identified before

Related to the lack of research in purchasing risk

management, Mogre et al. (2017) gave their direction to

conduct some researches to know how risk management in

puchasing section can help a supply chain reduce the risk

This investigation builds on earlier research and

constructs a framework that is tested specifically for the





35

The Model Conceptualization of Service Quality

in Testing Laboratory

Bernaded Oka Anggarania, Isti Surjandarib, Zulkarnainc



Kampus UI Depok, Indonesia [email protected], [email protected], [email protected]

Abstract—A company should assure the quality of a

product before commercialized. It is determined by test

result, which is issued by a testing laboratory. The test result

is supported by personnel competency and equipment, known

as technical aspects. To enhance the overall performances,

non-technical aspects of service quality also should be

considered. Thus, identifying both aspects is necessary to stay

in the high competition. A model conceptualization can help

to identify factors that impact on the testing laboratory

performance, whereas performance measurement is

underlying on the level of customer satisfaction and loyalty.

Due to lack of research discussed critical success factors in the

testing laboratory and in order to deliver high quality of

service to customers, hence, the motivation of this study is

constructing a model conceptualization that combines service

quality factors, customer satisfaction, and customer loyalty.

In this paper, the factors of service quality, encompassing

information, administration, turnaround time, personnel,

equipment and test result.

Keywords—service quality; customer satisfaction; customer

loyalty; testing laboratory; model conceptualization

I. INTRODUCTION

A laboratory used to test a sample, which is received from a source. It issues a test result that contains analytic result, sample measurement or testing activity [1]. Quality of product, which is going to be commercialized is determined by the laboratory test result, hence quality assurance should be considered for sustaining in high-competitive of market share [2]. Due to the importance of product quality, various companies are challenging to test their products before commercialized. The increasing demands on testing and calibration in healthcare, forensics, food, and energy [3] because of products and sources diversity and growth in customer demands impact on rising number of testing laboratories [4]. Not only the companies, the laboratories also challenged to consider the quality of their test result by maintaining the capability to meet the demands [3].

Encountering this problem, a good quality management is needed. For the laboratory, good quality management ensures that facilities and equipment in a good condition, reliable and safe and instruments also should be accurate, consistent and traceable [1]. Not only focus on the reliability and accuracy of the result but also concentrate on how to obtain the result through technical and management aspects, such understanding the requirements of control

management by personnel [5]. In addition, benchmark also required to adopt guidelines from the best laboratory practice, particularly accredited laboratory, and improve the performance of the laboratory [3].

Accreditation provides higher levels of assurance to those using the laboratory due to standard performed, unreliable results minimized, international recognition obtained, and the efficiency and effectiveness of the laboratory improved [3] and also competency evaluated [6]. Additionally, image and reputation are also created. To obtain an accreditation, ISO/IEC 17025:2005 is implemented. ISO/IEC 17025:2005 as an international quality standard provides quality improvements of the laboratory by managing management systems, such as testing and calibration procedure, personnel, and laboratory facility [7].

As mentioned above, it implied that the laboratory plays a pivotal role in a business world. Most of the laboratories, however, only considered technical aspects, such as personnel competency, equipment reliability, and test result quality. While, for being a successful laboratory in market share, management commitment, information and registration process, known as non-technical aspects should be maintained simultaneously with technical aspects in order to provide the best overall performance of service quality, which is lead to customer satisfaction and indirectly effect on customer loyalty. Both aspects will be critical success factors of the testing laboratory. Thus, identifying of service quality factors required, which is illustrated in a model conceptualization. Model conceptualization has been acknowledged that could identify quality problems and help in planning quality improvement program [8]. Hence, the motivation of this study is constructing a model conceptualization of service quality factors of the testing laboratory that positively influence on customer satisfaction and customer loyalty.

This study is organized as follows. Section 2 explains research methodology of this study which is encompassing the review of study and hypotheses development. Section 3 and Section 4 present result of final model conceptualization and conclusion, respectively.

Section 4 present result of final model conceptualization and conclusion, respectively.


36

Conceptualization of a Model to Study Personal

Biases and Microeconomic Planning in Indonesia

Yurike Rachma Azzachra, Akhmad Hidayatno, and Komarudin



Depok, Indonesia

[email protected], [email protected], [email protected]

Abstract—Microeconomic planning (saving, spending,

and investment) in Indonesia is economical issue that affect

whole country’s economic performance. It will be argued here

that personal biases are the main factor to control dynamical

personal economic planning that will affecting economic

decision of masses to whole country. This paper looks at

integrating various personal biases that stated in economic

behavior theory with microeconomic model. The model will

be built with system dynamics approach to gain better

understanding of feedback loop in system. The conceptual

model shows there is a positive feedback loop on individual

microeconomic planning which influenced by personal biases

as determinant factors. Making regulations, either controls

credit given for assets, assures future spending, or motivates

people to open new investment account, may control saving

while increase spending and investment rate. This conceptual

model completes the first step of building a system dynamics

model which will be a baseline to formulate, testing, and

implementation in next steps of research.

Keywords—system dynamics; conceptual model; economic

behavior; saving; spending; investment

I. INTRODUCTION

Humans are living creature that blessed with rational logic thinking which used as a kind of tools for making decisions and judgements, that is what we assumed at first. In contrary, people tend to show irrational behavior that affect less rationality in their decisions. After many years of research, we now know that human tend to make decision in irrational way affected by various biases even the same as shown in our primate relatives in animal kingdom [1], despite how complex our decision-making process as in describe as series of cognitive operations performed consciously, including the elements from the environment in a specific time and place [2].

Behavior theory stated that emotions and psychological aspects is indeed affecting our decisions when faced to uncertainty, making humans behaving unpredictably, inconsistent, incompetent, and mostly with irrational ways [3, Sec. 1]. There are many factors involved beyond just mathematical or logic calculations to determine our decisions, for example gender and age [4], risk perception, risk attitude, emotions, beliefs, and values [5], uncertainty, motivation, and social influence [6].

There are two major types in decision making model [7], a rational logic model and one with concept of bounded rationality. Behavior theory is one with direction to bounded rationality which impose limitations on decision makers'

ability to process information needed to make complex decisions that restrict decision makers to finding solutions that are less than optimal [8]. This model which combining economy and psychology has provided the conceptual foundation for much behavioral decision research. The previous review of this field [9] described a long list of human judgmental biases, deficiencies, and cognitive illusions. In the intervening period this list has both increased in size and influenced other areas of psychology [10].

Apparently, decision research area has broader not limited to psychological aspects, but also in economic and financial area. These decision processes have captured many theories related to financial or economical decision-making that has been hard to ignore. Starting in 1980s after behavioral decision is learned, some searches its connection to financial aspects, e.g. benefit of martingale betting system [11], making choices under risk aversion [12], and market behavior on equity premium rate [13]. These research area then adopted thoroughly for a decade as first breakthrough in study about how psychology explains biases of various tasks of judgement under uncertainty, risk, and framing effects on financial aspect [14], introduced together with loss aversion theory [15].

This theory of behavioral economic is openly opposed by some experts in neo-classical economic theory which is more confidence to making decisions based on mathematical counts to support economics decisions. All the while opposed by others, on October 2017, Thaler together with Robert Shiller analyses investor psychology, in conjunction with limits to arbitrage, can affect prices in financial markets [16]. This theory explains that basically humans is irrational, illogical, and put emotions forward, which showing various personal biases, in making economic or financial decisions.

Individual economic decision-making may affect economic condition of whole country. Sterman [17] had shown in the study of system dynamics simulation called “Beer Game” about how experimental method can be paired with simulation to construct parts which can move decisions on individual actor level into system’s behavior, and finally giving theory that can be tested to explain rises on macro behavior which is built from micro human system structure. This also prove life-cycle hypothesis which offers a coherent microeconomic theory of individual saving that is capable of delivering important





37

Fault Detection in Boiler System

Using Data Mining Technique Riko Muhammad Taufik *), Zulkarnain, Isti Surjandari

Industrial Engineering Department of


Depok, Indonesia

Email : [email protected], [email protected], [email protected]

Abstract—Quality depends on equipment’s reliability

especially in industrial manufacturing equipment, such as

boiler. Boiler’s reliability relies on its performance. It is

important to maintain boiler’s performance as designed.

Boiler’s performance depends on many parameters, which

is related to the operating procedure. Therefore, many

parameters correlation could cause lot of complexities in

boiler’s operating process. Even in a small load boiler such

as boiler in food manufacturing industry. The boiler’s

performance efficiency area ranges between 15-30 percent.

It has a potential risk to fail, when the range approaches to

zero. A fault detection is necessary to get boiler’s

performance works as reliable as it designed. The key is to

monitor parameters correlation and detect any fault that

could happen before it occurs. The problem is, there are lot

of parameters correlation could happen in boiler’s

operating process that could cause failure. By analyzing

many parameters correlation in boiler operation, Data

Mining could approach a fault detection easier. The

purpose of Data Mining is to monitor boiler performance

parameters. An Artificial Neural Network (ANN) would

present a smart fault detection model if it is combined with

back-propagation, because it will train the program itself

and learn which condition should be alarmed. Then, to

program the parameter correlation, Java’s NetBeans are

used for ANN-backpropagation with three hidden layers.

At the end, the proposed model could detect a fault by

monitoring boiler’s performance.

Keywords— Boiler performance, data mining, fault

detection

I. INTRODUCTION

Nowadays, competition between products is so tight.

Only product with the best quality will survive. When a

quality is asked reliability comes first to answer. Many

products being sold in low price but they were no longer

reliable when guarantee time has passed. In industrial

manufacturing it is important to choose equipment with

the best quality.

Boiler is the main equipment for industrial

manufacturing process. It is very necessary to operate

boiler at the best performance. Even though, boiler has

many equipment to control the performance. Boiler are a

complex system, with many parameters correlated. Boiler

needs a standard operating procedure to make production

more efficient, and more reliable. An early detection in

burner system boiler is needed to make boiler performs as

designed. Lots of sensor are placed on boiler instruments

to record and monitor parameters in real time [1] and

saved it into database. Therefore, it would present big data

with parameters shown in table 1.

TABLE 1. BOILER PARAMETER

PARAMETERS

Time

Unit

10-Jan-17

04.00 05.00

Steam pressure Bar 10.2 10.1

Header Pressure Bar 10 10

Feed water pump unit 1 1

Feed water pressure Bar 18 22

Feed water tank level % 70 70

ID Fan Speed Hz 31.9 31.2

FD Fan Speed Hz 25 25

Secondary fan % 40 40

Flue Gas Temperature Celcius 208.9 211.6

Fluid Bed Temp1 Celcius 808 891.3

Fluid Bed Temp2 Celcius 802 830.5

Deaerator Temp Celcius 67.2 68.1

Boiler water level % 56.5 61.1

Screw Feeding 1 Hz 11.4 14.9

Screw Feeding 2 Hz 17.1 17.9

Draft Control mmH2O 20 20

ACS1 mmH2O 37 38

ACS2 mmH2O 180 182

ACS3 mmH2O 208 207

Conductivity S/cm 4315 4516

Dozing rate % 40 40

Chemical Level % 80 78

Water flow meter m3/hour 1422 1430

Pressure ID Fan mmH2O 240 230

Boiler with mass scale workload has a big efficiency

performance’s range, between 60-80 percent. Different

from a small load boiler, such as food manufacture boiler,

it has really small performance’s range area, usually

under 30-35 percent. When boiler works at small load and

under the designed performance’s range, a failure risk

could easily occurred Because it has a bigger chance to

fail when the performance’s operation range is lower. So,





38

Policy analysis of Sustainable Palm Oil

Certification in Indonesia Increasing volume of its supply and uptake

Danar Surya Wiranagara



Kampus UI Salemba, Jakarta - Indonesia

[email protected]

Akhmad Hidayatno, Komarudin



Kampus UI Depok – Indonesia

Abstract—Sustainable palm oil certification has become an

important issue in the production and supply chain of this product

in Indonesia. As a major supplier and major agribusiness

commodity, the implementation of sustainable aspects gives

effect to the volume of production and its uptake. This study

examines the effect of all factors on sustainable palm oil

certification with a dynamic system model to determine the

conformity of policies and requirements applicable to the factors

of influence and impact. The result of the model shows that in

mandatory certification policy system, rule enforcement factor

becomes the most important factor. While in the voluntary

certification system, the pressure from buyers in the supply chain

hierarchy becomes the most important factor. The volume of

certified palm oil trading is determined by the attractiveness of

each business entity in the supply chain of the applied certification

system. Both of these factors play a major role in the volume of

supply and uptake of sustainable palm oil, and will promote

positive impact to environment, social, and financial growth

Keywords—Sustainable Palm Oil certification; system

dynamic; supply chain; attracting factors

I. INTRODUCTION

Indonesia is the world's largest producer of palm oil. By 2015, Indonesia produces 53.3% of the world's total palm oil, and is the largest producer in the world. Together with Malaysia, Indonesia controls 84% of the world's palm oil market.

Palm oil is produced from oil extraction of mesocarp of oil palm trees fruit (Elaeis guineensis Jacq), which was originating from Africa. This plant belongs to the palm species such as coconut trees, and only grows in areas with a tropical climate at an altitude below 1000 m above sea level.

The supply chain of palm oil products starts from the Plantation. Iyung Pahan (2006) [1] explains the general process of oil palm supply chain, in which some plantations sent their Fresh Fruit Bunches (FFB) to the mill, where produce crude palm oil (CPO) and palm kernel (PK). Some Mill also has a palm kernel processing facility into palm kernel oil (PKO). This supply chain called the upstream supply chain.

The next supply chain called downstream supply chain, that processing CPO, PK and PKO into various goods that can be utilized by consumers. This supply chain includes

CPO, PK and PKO, CPO traders, refinery, consumer goods processors, distributors and retailers. The length of the supply chain depends on the geographical and local situation, as well as the type of product made from raw materials of CPO, PK and PKO.

Fig 1. Palm Oil Industry Supply Chain (source: Iyung Pahan, 2006, with modified drawing)

The positive impacts of the palm oil industry have been expressed in many previous studies, locally, nationally and globally. Almasdi (2005) states that the palm oil industry has a significant impact on increasing access to economic resources and improving the welfare of local communities. World Growth Research, found that the palm oil industry and its supply chains increased the rate of the Indonesian economy through the development of various types of production and services in each supply chain.

Nevertheless, the palm oil industry is still seen as having a negative impact, especially on the environment and social life of the community. NBPOL, the palm oil company from Papua New Guinea, published their joint study with World Wide Fund for Nature (WWF) on the impact of the palm oil industry on the environment. These significant impacts have led to the emergence of sustainable palm oil production initiatives in a product certification system scheme.

The sustainable palm oil production standards adopted in Indonesia currently comprise two requirements, namely the Indonesian Sustainable Palm Oil (ISPO) issued by the Ministry of Agriculture of the Republic of Indonesia, and the Roundtable on Sustainable Palm Oil (RSPO), which is a requirement made by global stakeholders of palm oil. In



39

Optimization of Distribution Center

Determination by Considering Routes and Time

Windows

F. Dhanang Pradanta


Engineering


Depok, Jawa Barat, Indonesia

[email protected];

[email protected]

Komarudin


Engineering



[email protected];

[email protected]

Akhmad Hidayatno


Engineering



[email protected]

Abstract— Distribution model with one Distribution

Center (DC) to serve all delivery points in one big city area is

not enough to guarantee continuity delivery of goods. The

addition of the sub-DC is conducted to serve groups of

shipping points that are considered inefficient delivered from

the Distribution Center. What conditions such that sub-DC

needs to be added will be studied in this research.

Optimization of Distribution Center determination following

its sub-DC is then calculated for the delivery of goods to be

more efficient. Model CVRPTW (Capacitated Vehicle

Routing Problem with Time Window) run using Localsolver

solution, based on Python 2.7 programming. The real case for

the distribution of goods in Jakarta is then used as a

benchmark to test whether the model is feasible and has good

accuracy. The experimental results show that sub-DC

addition increases total operation cost, but the combinations

number of store serve by sub-DC can give optimal minimum

total operation cost added.

Keywords— Distribution Center Determination;

Capacitated Vehicle Routing Problem with Time Window;

Local Search

I. INTRODUCTION

In the distribution of goods from the Distribution Center to the delivery points, the decision in determining the type of vehicle and delivery destination in one carrier travel route is of very importance. The limitation of the receiving hours at the point of delivery is also a limitation in the determination of the travel route. Determination of the vehicle types, routes and acceptance deadlines become many components that must be calculated.

Traffic conditions in major cities, such as the city of Jakarta, resulted in some failure of shipments because although the routes used by transport vehicles are sufficient to arrive at specified delivery points, in fact, some cases can not arrive at the delivery point, going stock out. This is what then needs to be calculated, studied whether one Distribution Center is enough to serve all the delivery points in big cities like Jakarta and surrounding areas. Whether a sub-Distribution Center is required or just one Distribution Center, and how a sub-Distribution Center is efficient enough to operate to avoid stock outs, will be examined in this paper.


Lin et al. (2014) summarized the evolution of green vehicle routing problem [2]. Vehicle Routing Problem (VRP) was first introduced by Dantzig & Ramser in 1959, with the model of determining the delivery route considering the truckload capacity was completed with the integer linear formulation model to get the optimum value; the VRP with Stochastic Demand began to be investigated by Tillman in 1969, and subsequently investigated by Laporte during 1992-1996; constraint time in VRP, VRP with Time Windows was first done by Russell, with two categories: hard time windows with vehicles that had to come before the specified time, and soft time windows, time difference still received with a penalty; multi-depot VRP, first studied by Tillman 1969; location routing problem, to make a decision to open one or more depots and design the delivery route started first by Watson-Gandy & Dohm in 1973.

Many methods for completion of VRP optimization with time windows and stochastic traffic and demand. Miranda and Conceição (2016) used metaheuristic to break the stochastic VRP [3]. Kim, et al. (2016) used Markov's decision model to solve the problem and applied a rollout algorithm approach to complete Dynamic VRP under Traffic Congestion [5]. The UCT Method (Upper Confidence Bounds applied to Tress) is used by Mandzikua and Swiechowski (2017) to obtain VRP solutions with traffic congestion, by adding a Monte Carlo Tree Search Algorithm simulation [6].

VRP multi-depot settlement method is also growing rapidly. Zhou, et al. (2017) using the Multi-Population Genetic (HMPG) Hybrid to solve multi multi-echelon multi-depot problems [7]. Mixed Integer Programming (MIP) and Adaptive Large Neighborhood Search to solve Multi Depot Multi-Period Vehicle Routing Problem with a Heterogeneous Fleet problem used by Mancini (2015) [10]. The integer programming model is used by Wang, et al. (2017) to minimize the cost of the Collaborative Multiple Centers Vehicle Routing Problem [13]. Several location-determining journals also demonstrate the importance of location determination to get an optimum







40

Factors Affecting Intention to Share

Knowledge in Organization Conceptual Framework

Indila Mayrosa, Farizal, Rahmat

Nurcahyo Department of Industrial

Engineering University of

Indonesia

Depok, Indonesia

[email protected]

Abstract—Knowledge management (KM) has been

regarded as one of the necessary strategies for various

institutions, organizations, and various service providers.

Knowledge management is an approach that can be

implemented by organizational management to improve

competitive advantage. As one of the stages in knowledge

management, knowledge sharing (KS) plays a very

important role in determining the success of KM

implementation. Sharing knowledge across cross-

functional or cross-departmental can succeed and develop

things within the company. Previous researchers consider

that if companies want to achieve success in motivating

employees to share knowledge, then the way to achieve it

is not only by improving the system when running a

business strategy but also by changing their behavior and

habits so that knowledge sharing can run consistently and

based on willingness. In fact, companies that have

implemented KM, less than 10% have made it a culture

within the company. This is due to the lack of intentions of

employees to share knowledge. Theory of Reasoned Action

is used as the basic framework of this study, combined

with several motivations that affect behavior in sharing

knowledge. This research will provide an overview of

the company factors that can influence or motivate

employees to engage in knowledge sharing and become

preliminary studies before the company implements

knowledge management.

Keywords: knowledge sharing; Theory of Reasoned

Action; intention to share knowledge

I. INTRODUCTION

Nowadays, to survive in business is to have a better competitive advantage, which is by improving productivity and efficiency [1]. Knowledge is considered as the most important factor that influencing global economic innovation [2][3]. Knowledge is also one of the important intangible assets owned by the company to perform the business process. Thus, Knowledge Management is considered as one of the ways to achieve competitive advantage [4] [5].

As one of the stages in knowledge management, knowledge sharing (KS) plays a very important role in determining the success of KM [6]. This is because KS has been regarded as the main focus and the most important process in KM [7]. Sharing knowledge across cross-functional or cross- department can

succeed and develop things [8] such as company innovation [9], the success of new products [10], performance and learning about the market [11], and shorten and lighten the workload. However, the utilization of existing knowledge within each individual is only possible when individuals share knowledge with other individuals. It is a challenge for companies to motivate their employees to share their knowledge with others in their teams and other departments [12] [13]. Therefore, the interest of knowing how the intention in sharing knowledge in departments will continue to increase.

Previous researchers shared that if a company wants to achieve success in motivating employees to share knowledge, the way is not only by improving their systems when executing business strategies but also by changing their behavior and habits so that knowledge sharing can run consistently and based on willingness [14][15][16]. However, there is a common problem in KS within the company, which is where workers are reluctant to share their knowledge, even though they have implemented KM. In fact, companies that have implemented KM, less than 10% succeeded in making it a culture within the company [17]. This is because they tend to harbor knowledge for various reasons. This further complicates the movement of individual knowledge into the company's knowledge. Knowledge is personal and the problems contained in KS must be solved based on individual behavior rather than technology. If the problem is not resolved, it will lead to difficulties in accepting and applying new knowledge, fear of weakness, or organizational blindness where the organization is unaware of the potential for new knowledge or the inexistence of knowledge exchange among workers [18]. Meanwhile, the process of creating, recognizing, storing, accessing, and applying the knowledge will continue to be done in completing individual tasks or team tasks. Most of the time, sharing knowledge is in the condition where the method is just there but not applied well, and it is still not being a rule in the company. Indeed, getting others to participate in knowledge management can be considered as the hardest part [17]. This situation is also aggravated by the natural tendency of a person to seek knowledge



41

Optimizing Service-Level and Total Relevant

Cost for a Stochastic Make-To-Order Production

System in PT XYZ Bandung

Nabilah Muyassar, Ari Yanuar Ridwan, S.T., M.T. , Budi Santosa, S.T.,M.T.

Industrial and System Engineering Faculty

Telkom University

Bandung, Indonesia

[email protected] ,[email protected] , [email protected]

Abstract— PT XYZ is a company that produce chocolate

and cocoa product. The company originally comes from

Swiss and it open the factory in Bandung. The company

supplies the chocolate to another companies. There are four

types of product, cocoa mass/liquor, cocoa powder, cocoa

butter, and cocoa cake. All type of product produces many

SKUs, its around 40 SKUs and each type of product

produced in one machine at the same time. PT XYZ kept

the on-hand inventory in three warehouses, one owned and

the other two are rented. To kept good fulfillment in

demand, PT XYZ kept the inventory as much as they can.

This condition lead to high in inventory stocked that lead to

high inventory cost, they also produce the finished goods for

next time more than the demand in that time. It can be said

that PT XYZ undergo overstock condition because of there

is mounted on-hand inventory, around more than 70%

from inventory kept that planned. The stochastic inventory

policy for multi-item problem solving the problem with

increasing in inventory cost as much as 40% or can be

converted to Rp250,540.81 and the service level also

optimized become 99.31%.

Keywords— Economic Lot Scheduling Problem, Multi-item,

Service Level, Overstock Condition

I. INTRODUCTION

Inventory is one of important thing in running the

company, as the availability of inventory become one of

factor in on-time demand fulfillment and also produce

good service level. Since there is a fluctuation in

demand, then it is common to keep the on-hand inventory

or maybe work-in-process inventory, but sometimes

there is condition when inventory exceed the planning or

maybe out of stock. This overstock condition is

happened in PT XYZ. On-hand inventory that kept by PT

XYZ is exceed their plan, which is 70% of customer

demand in a horizon, this is cause by PT XYZ always

produce the on-hand inventory in maximum level in

order to fulfill the demand. As additional information,

each SKUs in each type of product produced once in a

time, so for example, 16 SKUs in cocoa powder are

produced at the same time in cocoa powder process, the

difference is just in packaging.

To break down the problem that occurred, we can divide

the SKU that encounter out of stock, overstock,

sufficient, and the last is the condition where there is no

inventory kept in the warehouse because no demand

occurred in then months. This graph below, that divide

the condition become stockout, overstock, sufficient, and

no inventory, will show us the percentage :

Figure 1 : Graph of On-hand Inventory Status

As we see from the graph above, we know that the most

happened inventory status in ten months is that PT XYZ

encounter overstock. PT XYZ not really concern about

how many amount of finished product that should be

prepared to face the fluctuated demand, this makes many

SKUs encounter overstock condition. Moreover, the

overstock condition can lead PT XYZ to high inventory

cost because they keep many products in their

warehouse. Another disadvantage is that the space in

warehouse become smaller.

Figure 2 : Graph of Demand, On-hand and Ending Inventory and

Production

From the graph above, we see that PT XYZ produce a lot

of product, it causing the ending inventory number is

high and it can make the cost for holding and also pallets

for placing the finished product become high too. In this

case, PT XYZ also produces four types of product, cocoa

powder, cocoa cake, cocoa mass/liquor, and cocoa





42

Knowledge Management in Multi-Generation

Workforce: Development of a Quantitative Model

on Critical Success Factor and Strategy

I Komang Artha Winadia, Amalia Suziantib, Romadhani Ardic,




Abstract— Customer demand on product and services are

continuously growing and changing along with introduction

to new technology. To keep up with this challenge,

organization should continuously increase their competitive

advantage, where knowledge management has been regarded

as a major part of this endeavor. However there is some aspect

that is rather overlooked by knowledge management

researcher and practitioner, which is the phenomenon of

multi generation work force within an organization. In terms

of modern workforce, tensions and conflicts are inevitable if

the employees from every generational cohort fail to

understand and accept the unique and different

characteristics of each group, and to embrace their

similarities. As the race to gain competitive advantage

between businesses growing intensely from time to time, there

is a need emerging from practitioners for a strong guidance in

developing a correct knowledge management strategy in

respect to multi-generation work force phenomenon. By

incorporating knowledge management critical success factor

obtained from literature review, we design a model that can

be used to choose appropriate knowledge management

strategy in a multi generational workforce organization. For

future development, the proposed model should be tested and

validated using real data from organization that made of

multi generation work force.

Keywords— Knowledge Management; Multi Generation

Workforce; Critical Success Factor; Strategy ; Quantitative

Model

I. INTRODUCTION

Customer demand on product and services are

continuously growing and changing along with

introduction to new technology. The rate of technology

development has increased rapidly during the last decade

that directly affect customer behavior. The advancement of

technology created new market that never existed before,

thus create new opportunity and subsequently new

competition. To keep up with this challenge, organization

should possess and continuously increase their competitive

advantage, where innovation is a key factor [1]. One of the

common approach to support innovation in an organization

is knowledge management.

Knowledge management can be defined as the process

of creating, sharing, using and managing the knowledge

and information of an organization [2]. Knowledge

management has been regarded as a major part of

organizational success in achieving their objectives. Since

its introduction in early 1990s, a lot of organization has

implemented knowledge management as an integrated part

of their business strategy [3]. The main reason of this

occurrence is that because the increasing recognition

towards knowledge as a valuable asset within the

organization [4].

Copious academic research has been conducted in the

area of knowledge management, especially in terms of

knowledge management implementation. From that

perspectives, it is safe to say that there is a sufficient

theoretical foundation available for practitioners to

implement knowledge management strategy. However

there are circumstances that force organization to

continuously improve their innovative power [5], such as:

• A disruptive Business environment;

• Customer loyalty and switching provider behavior

is highly determined by the purchase experience;

• Fast and furious competition. First-mover

advantages are significant and mistakes are

quickly exploited by competitor .

These condition entitled organization to enhance their

knowledge management strategy in order to gain the

competitive advantage. Judging from current researches,

the aspect that is rather overlooked by knowledge

management researcher and practitioner is the phenomenon

of multi-generation work force within an organization.

Multiple generations had worked in the same

organization for quite a while, however they were usually

separated by job descriptions and system hierarchy [6].

Right now it is very common to see younger people

supervising older employee with their own generational

differences. These differences could potentially ignite

work tensions and conflicts if employees from each

generation fail to compromise [7].

Although this condition is already being observed by

several knowledge management researcher, such as [4] ; [8]

; [9], they mainly emphasize on the differences that follows

generational cohorts and does not provide any insight on


43

Risk Register of Agile Framework in Exploration

Drilling Project Management on Oil and Gas

Sector

Sarah Risda Nafisaha, Amalia Suziantib, Romadhani Ardic




Abstract— The energy sector in particular the oil and gas

industry is the industry that became the main income in the

State of Indonesia before 2015, but in the same year there was

a significant change in oil and gas prices. The decreasing of oil

prices is a challenge to every oil and gas company that

impacted to company’s investment and opportunities in

drilling projects with limited time and cost. Other challenge it

to conducted company project Management to influence the

emergence of the company organization system, technology

implementation, project acceleration and concern to

operation implementation in cost effective and efficiency,

especially in drilling project management that need to be

concern is from the prioritization of each stage of the

preparatory, drilling and post-drilling process, as well as

intensive monitoring and control every day and conducted

daily coordination meetings to be able to speed up the

preparation system, by accelerate and prioritize the project

company still need look up into the risk as well. This paper

will be conducted risk register within agile method in project

management drilling exploration oil and gas and consider the

risk by the expert.

Keywords— Agile Framework; Risk Register; Project

Management; Drilling; Exploration

I. INTRODUCTION

In 2015 was the biggest challenge to oil and gas

company because of the decreasing of oil and gas prices

pattern. The oil price pattern initially has a value of about

100 (one hundred) to 120 (one hundred and twenty) barrels

of oil / day to about 50 (fifty) to 60 (sixty) barrels of oil per

day [1] Based on the Non-Tax State Revenue (PNBP)

report, Oil and gas revenues decreased by Rp.2.7 trillion,

among others, influenced by the weakening of crude oil

prices [2].

This is the basis for the system of planning and

implementation of oil and gas industry project management

especially in the full cycle upstream phase, starting from

exploration drilling activity stage, exploitation to oil and

gas production. Exploration well drilling is a mandatory

phase of ensuring subsurface data that begins to ensure oil

and gas reserves predicted by an exploration team of a

company or institution.

Project Management Drilling is a management project

that requires an investment cost of more than 5 (five)

million US Dollars, requiring preparation of approximately

one to two years from the approval stage of the drilling cost

budget plan, environmental permit process to traffic permit

permits, making process of location until commencement

of drilling activity.

During exploration drilling preparation, company need

to engage and communicate with local residents and local

government in assisting the smoothness of project

management in the area of drilling which certainly employ

hundreds of workers in the implementation from local

workers to expert / international workforce.

This, of course, poses a challenge to every oil and gas

company as it is affected by the decline in investment and

opportunities in drilling projects with limited time and cost

[3]. Project management continues to influence the

emergence of the latest technology and change the pattern

of project management so that it can adapt the pattern of

changes associated with declining oil and gas prices as well

as declining investment [4]. The organization and the oil

and gas industry team must, of course, ensure as a whole

and be able to begin adopting an agile management project

pattern [5]. with some state of the oil and gas industries

experiencing limited time and costs, and some companies

with organizations with a strong centralized system, project

management is required with the current and future agile

framework implementation [6].

Agile is a pattern or system for managing team patterns and

project management [7]. Agile is a pattern of management

projects that will be implemented in the current decade,

using agile all forms of activity to be easier to think,

understand and implement [4], and daily intensive

monitoring and control and daily coordination meetings to

speed up the system its preparation by scrum muster [6]

team competence in solving problems is required [9] and

the importance of the leadership of each project

management member to influence all forms of drilling

project implementation. With the declining investment of

oil and gas, this research will be out the management

pattern of exploration well drilling project by using agile

method to see the effect on time and cost of project

management, and make sure the interplay between risk

management and certainty and the contextual variability of

risk management practice [8]. After the project has been


44

Mathematical Formulation of Aircraft Routing

Under Scheduled and Unscheduled Maintenance

Constraints

Dio Fadillaha, Akhmad Hdayatnob, Komarudinc




Abstract-- Airline business is highly regulated by

local authority and also international civil aviation

organizations (ICAO). Crew pairing and

maintenance are the examples of mandatory aspects

that shall be considered and also well planned by

airlines to prevent violate the regulations. While

running the business, maintaining airworthiness for

aircraft for every airline is the most important thing

that every airline shall be considered. There are

many studies about aircraft routing and tail

assignment to solve day by day operation to reach

optimal operation. This research concern about daily

tail assignment and aircraft rotation to minimize the

cost of misalign of aircraft routing in regards of

satisfying maintenance requirements. Maintenance

requirements are divided into scheduled maintenance

as per maintenance program and also unscheduled

maintenance under deferral of discrepancies during

operations. Considering scheduled maintenance and

rectification of discrepancies (unscheduled

maintenance) are put into developed model and

proposed for new approach for solution by using

genetic algorithm and compared in regards of

computation time and the efficiencies for large

networks of airlines operations.

Keywords—Aircraft Routing Problem;

Scheduling; Maintenance; Airlines; Unscheduled

I. INTRODUCTION

Daily aircraft assignment is the routine task for

airline to run its business. Each type of aircraft is

different and unique in regards to operational constraint

and also maintenance task. Every daily aircraft

assignments there are multiple flight-legs which are

make a flight chain. This flight chain (also called line of

flights) should cover all of airline’s routes in everyday

operation without neglecting operational constraint such

as maintenance requirement for each aircraft operated

[1]. It is well known that during daily operation, there

are possibilities of operational disruptions which can

disrupt the plan of aircraft routing and aircraft rotation.

Disruption of daily operation can be caused by

discrepancy of an aircraft [3]. Aircraft manufacturer

builds guidance to defer aircraft maintenance due to

system inoperative during aircraft operation. Deferral

of rectification for the aircraft is well booked under MEL

(Minimum Equipment List). MEL helps pilot in

command to decide whether to fly the aircraft, fly with

discrepancy or cancel the flight. MEL helps minimize

the aircraft operation cost while still ensuring for

operation safety. But it shall be rectified in the timely

manner [2];[3]. Planning for these rectifications by

making aircraft routing and scheduling to force defective

aircraft to return to maintenance station for rectify the

problem. Scheduled maintenance contains various type

of checks to be performed [4] with different time to

complete those checks. Type A-Check can be done for

each aircraft depending of which aircraft type within 4-8

hours and repeated every subsequent cumulative flying

cycles or days after last inspection [5] ; [6]. On the other

hand there are major inspections for the aircraft with

longer turnaround time to be carried out. C-check and

D-Check can be carried out within one month due to the

inspection require deeper inspection and more detail

through the entire aircraft and repeated every four years

depending on aircraft type [5];[6];[7]. Scheduling and

planning for maintenance are very important to

maximize revenue and enhance daily operations for each

airline.

Requirement for maintenance for each aircraft has

been studied recently among the researchers. Aircraft

routing for satisfying maintenance constraints is the

operational research approach to solve the problem.

Aircraft Maintenance Routing Problem (AMRP) has

divided into two approaches: operational approach and

tactical approach. While tactical approach focused on

aircraft availability within defined time window with

cyclic approach, the operational approach use exact

flying time and including changing fleet and retiming for

aircraft routing optimization without repeated sequence

in defined time window [5].

Tactical approach papers only consider the number

of required aircraft shall be maintained at the end of day

operations. Previously researchers determine short term

planning for maintenance requirement with weekly flight

planning [9];[6];[12];[13], but there are also shorter

flight planning time windows considered such as thre




45

Development of Distribution Channel Simulation

Model in Cement Industry to Overcome Over

Supply against Domestic Demand

Febdi Harmantoa, Romadhani Ardib, Zulkarnainc




Abstract— Cement is a strategic commodity that is a

basic need for infrastructure and property development

such as consumption for residential houses. It is

important for cement industry companies in Indonesia to

set up a mature cement distribution strategy in order to

remain competitive in the cement market where the

growth of cement consumption have not been able to

absorb the capacity of cement plants production in

Indonesia. The potential of over production capacity in

the next few years will be difficult to avoid that it is very

important for cement companies to utilize off site storage

facilities and the modes of transportation used to keep the

business going well so that they can can have a good

distribution channel system structure. This paper

addresses this over supply issue by using a case study

approach conducted in a cement manufacture in

Indonesia, where there will be several distribution flow

of vehicle movement from plant to out plant facilities

such as warehouses, terminals and distributor warehouse

which are impacted. Our study focused on using design

of experiment ( DOE) and a simulation model by

developing an alternative model which can solve the

problem that affect the model by utilized facilities and

transport availability in the distribution system.

Keywords— Cement Industry; Distribution

Channel; Simulation Model; Design of Experiment (

DOE); Over Supply

I. INTRODUCTION

Key factors for supporting domestic cement demand are infrastructure development, commercial and industrial, potential market, housing, cement consumption, and demographic bonus [1]. For any organization to be effective there should be effective distribution management process toconvey finished products from the manufacturer to the final consumers. This is because without distribution the best product will not be delivered and the marketing mix will break down and fail. As a result of this, firms are increasingly adopting supply chain management to reduce cost, increase market share and sales, and build solid customer relations. Distribution channel consists of a group of individuals or organizations that assist the process in

getting the product to the right place at the right time. Distribution plays a vital role, primarily because it ultimately affects the sales turnover and profit margins of the organization. If the product cannot reach its chosen destination at the appropriate time, then it can erode competitive advantage and customer retention [2].

There are seven provinces in Indonesia Archipelago with thousands of islands that can be grouped as a unit cluster development in the form of island. The seven provinces are Riau Islands and Bangka Belitung (Babel) Province which are located in the western part of Indonesia (WPI). Province of North Maluku, Maluku, West Nusa Tenggara (NTB), East Nusa Tenggara (NTT) and North Sulawesi (Sulut) are located in the island province of eastern Indonesia (EPI). But in this description it is limited only to observe how the development of transportation in the province of archipelago in Eastern Indonesia [3].

Indonesia’s property boom over the past 5 years has contributed to the surge of cement demand, owing to its growth prospect coupled with the high margin, Indonesia has become on of the most attractive markets in the global cement industry and lured many new entrants to enter. Consequently, Indonesia was experiencing a significant increase in cement production capacity, most notably in the past of couple of years. However, due to the recent slowdown in economy and property sector, cement demand was growing in much slower rate (5-6%) compared to its supply ( 15-18%) [4]. Figure 1 shows an over supplied market condition and figure to shows cement sales by geographical market in Indonesia :

Fig. 1. Indonesia domestic cement consumption (adapted from [4] )





46

Develop Purchasing Model of Reuseable

Packaging Material Based On Inventory Planning

Optimisation And Future Value Asset

Management

Ricky Apollos Mongula Industrial Engineering Department



Depok, Indonesia

[email protected]

Teuku Yuri Zagloel, Romadhani Ardi Industrial Engineering Department



Jakarta, Indonesia


Abstract—In line with increasing concerns for the

environmental impact caused by industrialization

and means to establish sustainability environment, in

accordance with enviromental law industries have to

be responsible on their waste through initiatives to

prevent waste generation, collecting and re-use the

waste. In the other hand, there is also concerns from

financial perspective most of industries prefer to use

consumeable packaging material than reuseable

packaging material (RPM) due to they are objection

to have an extra cost to manage reverse logistic

activity, materials recovery process and inventory. In

order to merge between the environmental and

financial perspective, requires comprehensive study

to develop mathematical model which synchronize

several aspect including purchasing, robust reverse

logistic process, inventory and asset value for

supporting business decision. It is expected to

convince the industries move using RPM. Objective

of this paper is to develop purchasing model which

project timing and quantity RPM to be purchase,

manage them as asset, manage inventory at optimum

level without any failed to fulfill customer orders

along with valuation of asset to measure financial

healtiness.

Keywords—reuseable packaging material; purchasing;

inventory; asset value; reverse logistic.

I. INTRODUCTION

Indonesia is the second biggest country after

China who disposed plastic waste to ocean. Highest

consumption of plastic is caused by increasing the

economic and population growth. In an attempt to

control waste, Indonesia formed law UU 18 / 2008 and

government regulation PP 81 / 2012. On the regulations,

mentioned list of initiatives to reduce a waste such as

limiting waste generation, waste recyle and reuse waste.

Furthermore, business owner or industries in doing

production activities must use materials that generate

less waste as much as possible, enable to reuse, recycle

and easy decomposes naturally.

The most prefered packaging materials in

Indonesia is plastic with total share 60% then followed

by paper 27% and the rest for metal and glass with total

market value 77 trilion Rupiah in 2015 and it keep

growing become 83 trilion and 87 trilion in 2016 and

2017 [1][2]. Plastic packaging industries is growing

average 5 % every year with total volume 4.6 million

tons [3], same growth followed by other packaging type

like paper and metal except glass. Packaging industries

are growing significantly in recent year dominantly

contributed by fast moving consumer goods (FMCG)

and food beverages industries. According to Indonesia

Ministry of Industry, in 2016, food beverages industries

are assisting 9.5% growth which are over than national

economic growth rate. In the other side, FMCG

industries has positive growth 8.3% in 2017 [4] compare

than 2016, good rebound after 2016 was only growth

5.6% [5]

In terms of business considerations, some of

industries such as manufacturing, FMCG, food

beverages are most likely choose to use use non-reusable

packaging material for their products. Using non-RPM

considered cheaper, easier to implement in production

and easier to manage along supply chain. Moreover,

there are a lot of plastic packaging industries who ready

supply packaging needs, and even some of them owned

plastic packaging factory for ensuring packaging

supplies are always available to accomodate their

production requirement. In other side, using RPM which

have longer shelf life can help to reduce quantity

consumption of packaging, more environment friendly

and good for sustainbility purposes. Nonetheless, the

disadvantage are highest initial purchase cost,

transportation and other costs which are incurred from

cleaning, fixing, storing, managing it [6].

In order to build a competitive business and in line

with the mission of realizing a sustainable environment,

industries as a users of packaging material are expected





47

Optimal Break on Ergonomic Job Rotation

Schedule at Assembly Lines Incorporating Fatigue

and Recovery Factors

Raka Yogaswara




Depok, Indonesia

[email protected]

Komarudin, Akhmad Hidayatno




Depok, Indonesia


Abstract— A lot of automotive industries still using manual

process for some process that providing the highest degree

of customization and including largest number of complex

tasks. In this case, workers that work on repetitive manual

tasks, such as assembly lines, are exposed to the risk of

work-related musculoskeletal disorders (WMSDs). Job

rotation is usually adopted in order to reduce the ergonomic

risk and achieve better production rate. However, in the

design of workforce scheduling, there are still some criticcal

human factors that haven’t included yet. In this paper,

authors propose mixed integer non-linear programming

models aiming at finding an optimal ergonomic job rotation

schedule. The ergonomic risk and its acceptability is

evaluated using OCRA method (ISO 11228-3:2007).

Moreover, break schedules that appear between each job

rotation are calculated by incorporating fatigue and

recovery factors. Optimal break schedules is needed to

reduce the accumulated fatigue at the end of the process.

Results obtained revealed the effectiveness of the models as

they proved to be adequate tools to jointly address the

reduction and balancing physical workload among

workers, which are consistent with required production

levels.

Keywords—Job Rotation, Assembly Lines, Break

Schedules, Mixed Integer Non-Linear Programming,

WMSDs, OCRA Method, Fatigue, Recovery

I. INTRODUCTION

Production and process flexibility are still recognized as being the effective answers to both dynamic and uncertain market demand in globalized turbulent markets. [8]. A lot of automotive industries failed to optimize the automation strategy, since automation doesn’t always provide reliable solutions at a feasible production cost. [8]. As an example, manual assembly process is preferred to final assembly stage, providing the highest degree of customization and including largest number of complex tasks.[6]. As a consequence, human labor continues to play criticcal role as they are more reliable and feasible. In this case, increasing attention, is being paid to repetitive manual task performed in assembly lines, where most frequently workers are subjected to work-related musculoskeletal disorders (WMSDs) due to high physical workload.

Nowadays, WMSDs have received a considerable amount of attention in the assembly process of

manufacturing industries. Several researchers have considered the ergonomic risk in designing assembly process to minimize WMSDs. [7] In Europe, WMSDs are the most common occupational injuries (almost 40% of all work related injuries). [8]. There is a need to incorporate the huan factors into conventional scheduling theory and to asses the ergonomic risk of WMSDs in the most reliable way. OCRA method is widely acknowledged to asses the risk of upper limb MSDs due to the presence of multiple low load and repetitive task. [3] In particular, the OCRA index is illustrate in the international standard ISO 11228-3:2007 and in the European standard EN 1005-5:2007, under the scope of the safety of machinery. [7]

In order to balance workload and the related ergonomic risk among workers, to cross train them at a low cost, and to achieve better production rate, job rotation is the most widespread labor flexibility instrument in the case of low load and repetitive assembly tasks[8]. Job rotation is approved to be an alternative to the redesign of critical jobs. If the job rotation plan is well designed, it will helps prevent WMSDs by reducing the amplituded of the risk and the duration of the exposure of workers to risk factors associated with these types of disorder, among them: the adoption of awkward static postures, the repeatability of movements, or load lifting[1] Furthermore, job rotation can increase worker’s satisfaction, reduce stress and boredom, and also decreases absenteeism.

Most current researches focus on the minimizing the ergonomic risk or maximizing the production rate, whereas the characteristics of workers were not sufficiently considered [7] Individual factors of direct workers such as fatigue and recovery phenomena cause dynamic variability of human performance .Unsufficient recovery times can lead to human error which not only increases the production cost, but also negatively affects health and safety of the workers.[4]

In this paper, authors propose an OCRA-based two step approach for an integrated of both production and ergonomic issues un work environments characterized by low load and repetitive manual tasks. The first model aims at finding the best job rotation plan balancing the ergonomic risk and workload among workers based on





48

Conceptual Model of Customs Clearance

Continuous Improvement Process Using Value

Stream Mapping and Overlapped Design Schedule

Iqbal Firmansyah

Deapartment of Industrial

Engineering


Depok, Indonesia

[email protected]

Farizal

Deapartment of Industrial

Engineering


Depok, Indonesia

[email protected]

M. Dachyar



Depok, Indonesia

[email protected]

Abstract—This study aims to develop a methodology for

implementing lean manufacturing principles in an Express

Courier Services Industry. Customs clearance is the main

process in express courier industry and the objective here is

to apply lean principles to the eliminate waste to the processes

and parameters which are common between process and

optimization of human resources or worker allocation. Value

stream mapping is used first to identify different waste

present in the current state and with the help of simulation

model a future state is developed. A simulation model is

developed for both the current state and a future state value

stream map is developed by using lean principles in the

simulation model. The model is validated and verified for the

accuracy of the project and the results are compared for

before lean and after lean implementation. All the data for the

simulation model is taken from the operation department of

an express courier industry and used for applying lean

principles. The future state value stream mapping showed an

improvement in the throughput, reduction in waiting time,

inventory and lead time after lean implementation. Design

process scheduling is conducted by optimizing human

resources or workers allocation to several tasks in customs

clearance process.

Keywords— Lean, Value Stream Mapping, Design Process

Scheduling

I. INTRODUCTION

Lean manufacturing is a modern technique that many

industries in Indonesia have been trying to adopt in order

to remain competitive in an increasing global market. The

main objective of this approach is, decreasing cost by

eliminating various non-value-added activities. Lean

basically originated from Toyota Production System which

was developed by Ohno and Shingo. Many tools of lean

manufacturing (e.g. 5S, Kaizen, total production

maintenance, value stream mapping and single minute

exchange of dies etc.) have been used widely in

manufacturing industries. Lean manufacturing has been

increasingly adopted particularly within the automotive

and aerospace manufacturing industries. It focuses upon

minimizing waste in all aspects of its operations [1]. In

short the benefits of eliminating non-value-added waste

across value stream are significant as it positively impacts

profitability and creates value for customers which in turn

lead to competitive advantage. Financial performance for

an organization can be impacted from both a cost

perspective and a growth perspective. Thus the emphasis

has shifted to improving gross margins through cost

reduction. There is such a large untapped amount of cost

reduction that can be generated by eliminating waste across

value streams. It is not uncommon to have ratios of 5 to

30% value added contents in value stream components.

That means there is the opportunity to eliminate 70 to 95%

of waste in the value stream [2].

Overlapping of sequential activities occurs on most

construction projects, fast-track and non-fast-track alike.

For example, even in projects executed under the

traditional contracting method, construction activities often

start with incomplete design drawings or missing detail in

the shop drawings. Nonetheless, the amount and likelihood

of overlapping intensifies on fast-track projects, which are

bound by strict time constraints. Fast-tracking falls under

the umbrella of concurrent engineering and is described as

overlapping successive activities to reduce project duration

[3]. A more specific definition of fast-tracking is the

compression of design and production schedules by

overlapping activities [4]. Blackburn [5] documented the

success of concurrent engineering in reducing product

delivery times in the manufacturing industry by as much as

20 to 50%. Considering downstream concerns in upstream

phases of project design, as opposed to a strictly sequential

stage-gate workflow, is the core philosophy of concurrent

engineering. Yassine and Braha [6] report that, in the

manufacturing industry, the primary benefits of concurrent

engineering are achieved by overlapping product and

manufacturing design phases. The basic overlapping model

deals with overlapping two sequential activities, referred to

as an upstream feeding activity (A) and a downstream

dependent activity (B) (see Fig. 1a). The main objective of

a basic overlapping problem is to find the greatest possible

overlapping magnitude between A and B that minimizes

total lead-time (see Fig. 1b). The





49

HVS Paper Waste Material Value Leveraging as

Fibreboard Production’s Main Raw Material

Rizky Maulana Ariyadi



Depok, Indonesia 16424

[email protected]

Djoko S. Gabriel1, Rachmat Nurcahyo1, Kurnia W.

Prasetyo2 1Industrial Engineering Department, 2Biomaterial Dept

1University of Indonesia, 2Indonesian Institute of

Sciences

Jakarta, Indonesia

Abstract— This study will discuss how to leverage the

value of HVS (Houtvrij Schrijfpapier) paper waste

material that is widely used in offices or other industrial

works in order to become a product that is more valuable

than the new HVS paper products. The new product is a

fibreboard that the end result can be used to make

household furniture that has been using wood from cutting

trees as raw materials. The method that will be used is to

consider the end of life of a product so that it can be done

way of design for other usage. The results of this study will

prove that HVS paper waste can be a main raw material to

make household furniture that is in accordance with

industrial standards applicable in Indonesia and in the

world.

Keywords— HVS Paper Waste; Material Value

Leveraging; End of Life; Design for Other Usage: Material

Value Upgrading

I. INTRODUCTION

Currently, fiberboard is increasingly being used in the furniture industry to replace bulk wood such as oak, beech, etc. Indeed, this material presents good mechanical properties, is easy to use in machine, homogeneous, and there are dimensions that are varied also cheaper than bulk wood. In other words, according to the Ministry of Industry of the Republic of Indonesia, there will be an increase in paper needs in Indonesia shown by Table 1as well as in the world as we know that according to M’hamdi et al [13], to make 1 ton of paper it takes 1.35 tons of woodwaste.

TABLE 1. MINISTRY OF INDUSTRY OF THE REPUBLIC OF

INDONESIA DATA

No DATA AMO

UNT QNTY

1. Indonesia's paper production

capacity in 2013 13.9

Million

Ton

2 Indonesia's paper production

capacity by 2017 17

Million Ton

3 World paper needs in 2016 394 Million

Ton

4 World's paper needs estimation

by 2020 490

Million Ton

5 The need for wood raw materials

2016 35.3

Million

m3

6 The need for wood raw materials

2017 45

Million m3

No DATA AMO

UNT QNTY

7 Average paper needs in

Indonesia 36

kg/capita/

year

8 Average paper needs in ASEAN 72 kg/capita/

year

In the world, a lot of research on paper, this study proves that waste paper can be utilized efficiently as a potential raw material for the production of poly-3-hydroxybutyrate industrial bioplastics at low cost [3]. Cellulose nanocrystals have been successfully extracted from industrial waste paper without subjecting the alkali treatment and bleaching of industrial waste paper waste prior to the hydrolysis of acids of different concentrations, which makes the extraction process simpler [12]

In 2010 Khalil et al [11], conducting a trial experiment to fabricate fiber boards with materials from empty bunches and rubber wood wherein the manufacturing process and the type of materials used in the production of fiber boards also have a significant effect on mechanical properties and dimensional stability of the board but has passed the standard. In addition, in 2012 Aisyah et al [1] also conducted research on making fiberboard with kenaf core (Hibiscus cannabinus) as function of re fi ning conditions which in 2013 Ali et al [2] conducted a follow-up study by examining the effects of resin properties and fiber vapor content made of kenaf fibers.

Having seen from some previous research, there is no known research that produces fiberboard with waste material of HVS paper with comparison of some adhesive and concentrate used in its production process.

Future work should include the development of methods for estimating production levels and the amount of reusable paper waste that can be produced with a certain amount of raw materials and other influential production factors (Cheung & Pachisia, 2015) is a research gap in this study.


50

Completion of Multi-Trip Vehicle Routing Problem

with Time Window Using Branch and Bound Algorithm

Arini Evian

Department of Industrial Engineering Telkom University Bandung, Indonesia [email protected]

Abstract— PT.ABC is a food industry that produces chocolate

and cocoa products that has been established for 175 years and located

in Bandung. In the distribution process PT ABC has 29 local

customers around West Java, with the delivery confirmation done one

day before the loading date to customer. Delay in delivery to customer

is the main problem of PT ABC that needs to be solved, they reach

21% delay in the distribution of customer orders for 6 month. This

increases the transportation cost because PT ABC should pay the

penalty cost. There are 4 factors that impact delay of the distribution

process, but the delay in departure of the fleet has the biggest rate,

about 61%. It is caused by the absence of schedule in fleet departure

and the absence of the right designing route for each customer. In this

research, this case will be done by creating a schedule and vehicle

routing problem with the characteristics of Multi-Trip Vehicle

Routing Problem and Vehicle Routing Problem with Time Window

using Branch and Bound Algorithm to minimize the travel distance.

In the end, the travel distance can be minimized by 17,1%.

Keywords— Vehicle Routing Problem; Multi-Trip Vehicle

Routing Problem; Vehicle Routing Problem with Time Window;

Scheduling; Branch and Bound Algorithm;

I. INTRODUCTION

Ari Yanuar, Rio Aurachman

Department of Industrial Engineering Telkom University Bandung, Indonesia

[email protected], [email protected]

Table I.1 Total Delay of Delivery to Customer

Month

Total

Total Delay of

Delivery

Departure Delivery Achievement

January 575 94 84%

February 534 114 79%

March 534 294 45%

April 421 8 98%

May 528 148 72%

June 381 11 97%

Based on the table above, the average of total delay of

finished good delivery to customer is 111 order, with average of delivery achievement is 79%. Below is the reason of delivery delay on customer order:

Graph I.1 Reason of Delivery Lateness in PT ABC (Source: Data of PT ABC

On the supply chain the delivery of goods occurs at the

beginning of the incoming materials (inbound logistics) and

when the finished goods are delivered to the customer

(outbound logistics), and at the right time and place. And will

involve transportation services. In the scope of distribution

activities, companies should be able to design an appropriate

distribution network. Decisions on the design of distribution

networks should consider trade-offs between cost aspects,

flexibility aspects, and responsiveness to consumers. When the

customer order cannot distribute well, it will cause decrease in

the service level of customer. The lateness of the distribution

delivery to customer happened in PT.ABC with total customer

around 70 local customers, but in this research the researcher

used the customers that were located around west java. Below,

in Figure 1.1 shown the number of delivery delays occurring

during the period January to June 2017:

Based on the graph I.1 above, there are 4 reasons of delivery

delay. The main reason is because the delivery lateness is late in

the departure of fleet. It is caused by the absence of schedule in the

fleet departure and the absence of right designing route for each

customer. During the distribution process, the selectio

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