Beruflich Dokumente
Kultur Dokumente
INDUSTRIAL ENGINEERING – 2
Created by :
Ayu Rizki Rahmadini (004201500002)
Rianita Savira (004201500026)
Satrio Kartiko N (004201500029)
Selya Elinta (004201500030)
Teejay David Golung (004201500034)
President University
Jababeka Education Park, Jl. Ki Hajar Dewantara, Kota Jababeka, Cikarang Baru,
Bekasi 17550 – Indonesia
Phone (021) 8910 9762-6, Fax (021) 8910 9768
Email: enrollment@president.ac.id, http://www.president.ac.id
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CHAPTER I
INTRODUCTION
1.1 Background
Aggregate Planning is the procedure of creating a production schedule for a given
period of time (usually 6-18 months) by listing out all the requirements that are
crucial for uninterrupted production. The planning covers various elements such
as man power, raw material, and financial planning. It is an important tool for
companies as helps in streamlining the immediate production processes by
aligning them with the long-term strategic plans and goals of the organization.
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Basically, the characteristics of aggregate planning are planning horizon from
about 3 to 18 months with the periodic updating, aggregate resources quantities
stated in common terms, aggregate product demand stated in common terms and
influence both the supply and the demand by adjusting the production rates,
workforce levels, the inventory levels etc.
1.2 Objective
The objectives of this project are:
To be able in matching the rate of production and the rate of demand, so
that products are made in exact and proper number.
To understand in utilizing productivity of human and equipment resource.
To know how to determine the most minim cost of production.
To know how to calculate MPS based on Workforce/Chase Strategy,
Inventory Strategy, and Transportation.
1.4 Steps
Choose the best forecasting demand based on the forecasting report.
Select some alternatives to conduct aggregate planning, which are
Workforce, Inventory and Transportation Method.
Calculate the total cost based on each method.
Choose the lowest cost as the best method as the best method for case.
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CHAPTER II
LITERATURE STUDY
2.1.1 Cost
There are seven types of cost in aggregate which are reguler time cost, over time
cost, stock out cost, subcontacting cost, hiring cost, and lay off cost, which are:
(Ong, 2013)
Reguler time cost is the cost of producing a unit on regular time.
Over time cost is the cost of producing a unit on over time.
Inventory-holding cost is the lost opportunity resulting from tying up
money in finished goods inventory plus the cost of space in which to store
the finished goods. Interest, space, taxes, insurance, obsolescence, and
other costs are sometimes included in this cost.
Stock out cost is the expected losses resulting from failure to meet the
demand for the product. If the customer merely waits for delivery –
backorders If the customer goes elsewhere – lost sales.
Subcontracting cost is the total per-unit cost if the production is
subcontracted to an outside source.
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Hiring cost is the expected cost to increase the work force by one person.
This includes items such as personnel department cost (advertising,
interviewing, investigation of references, and physical examinations),
training cost, inefficiencies, and the cost during early learning periods.
Layoff (firing) cost is the cost associated with reducing the workforce by
one person. Unemployment compensation cost, and even lost goodwill
should be included.
2.1.2 Capacity
There are several options that planners can change supply by adjusting labor,
inventory, and subcontracting, which are: (Aggregate planning, 2017)
Hire and lay off workers, the extent of which how much the worker are,
will impact changes in the workforce level that will impact directly on
capacity.
Part-time worker, the use of part-time can fill the capacity that have not
achieved.
Inventories, inventory can be built up during periods when production
capacity exceeds demand and drawn out in periods when demand exceeds
capacity.
Subcontracting, a company can obtain temporary capacity by
subcontracting during periods of high demand.
Overtime, the use of overtime can be especially effective in dealing
seasonal demand peaks by reducing the need to hire people during off-
season.
2.1.3 Demand
There are several options that can shift demand from peak periods to off-peak
periods or create demand during off-peak periods so that the overall demand
corresponds more closely to capacity (Aggregate planning, 2017).
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Pricing, an important factor to consider is the degree of price elasticity;
the more the elasticity, the more effective pricing will be in influencing
demand patterns.
Promotion, the timing of promotion efforts and knowledge of response
rates and response patterns will be needed to achieve the desired demand.
Back orders, back orders allow orders to be taken in one period and
deliveries promised for a later period
New demand, developing a demand for a complementary product that
makes use of the same production processes achieves a more consistent
use of labor, equipment, and facilities
The worker needed, production rate, hiring cost, unit produced, net inventory and
total cost can be calculated with a formula, which are:
𝑑𝑒𝑚𝑎𝑛𝑑
𝑤𝑜𝑟𝑘𝑒𝑟 𝑛𝑒𝑒𝑑𝑒𝑑 = 𝑚𝑜𝑛𝑡ℎ (2 − 1)
𝑑𝑎𝑦𝑠 𝑢𝑛𝑖𝑡𝑠
𝑥
𝑚𝑜𝑛𝑡ℎ 𝑤𝑜𝑟𝑘𝑒𝑟
𝑑𝑎𝑦
2-5
𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟 (2 − 4)
𝑊𝑜𝑟𝑘𝑒𝑟
𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑 (2 − 5)
𝑤𝑜𝑟𝑘𝑒𝑟
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 (2 − 7)
𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠 (2 − 9)
𝑤𝑜𝑟𝑘𝑒𝑟
𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟 (2 − 10)
𝑊𝑜𝑟𝑘𝑒𝑟
𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = 𝑊𝑜𝑟𝑘𝑒𝑟 × (2 − 12)
𝑤𝑜𝑟𝑘𝑒𝑟
2-6
𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 × 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 (2 − 14)
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 (2 − 15)
2-7
Table 2.3 Production Cost Calculation
2-8
CHAPTER III
DATA COLLECTION
The result of the best method comes from the error calculation that has been done
on Report Forecasting. The summary of the error calculation in Table 3.2 shows
that the error calculation for cyclic regression analysis, constant regression, and
linear regression are smaller than the others. For the MAD calculation, the value
of these three methods are below 167, for the MSE calculation, the value of these
three methods are below 51,000, and for the MAPE, the value of these three
methods are below 13%. These three methods considered to be passed the first
test or error test since these methods have the smallest result of error calculation
compared to the other methods.
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Table 3.2 Summary for Error Calculation of All Methods
But to be considered as the best method, these method also have to pass the second test or validation test. Therefore, the validation
test should be done to the best three methods from error test. The result of the validation test is shown in Table 3.3
Table 3.3 The Result of Validation Test for Best Three Methods in Error Test
Verification Tracking Signal Normality Independence Identical
Constant Regression Not Passed Not Passed Not Passed Passed Not Passed
Linear Regression Not Passed Not Passed Not Passed Passed Not Passed
Cyclic Regression Not Passed Not Passed Passed Passed Passed
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In the result of validation, it shows that the best method is cyclic regression since
this method passed normality, independence, and identical test.To know more
about the result of the test, so those tests are shown below. The first is normality
test. Suppose level of significance is 5%, the null hypothesis and alternative
hypothesis is:
𝐻0 = 𝑟𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑖𝑠 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑 𝑛𝑜𝑟𝑚𝑎𝑙𝑙𝑦
H1: 𝑟𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑖𝑠 𝑛𝑜𝑡 𝑑𝑖𝑠𝑡𝑟𝑖𝑏𝑢𝑡𝑒𝑑 𝑛𝑜𝑟𝑚𝑎𝑙𝑙𝑦
Regarding Figure 3.1¸ the p-value of plot is greater than 0.05, so the null
hypothesis is not rejected and alternative hypothesis is rejected. Value of AD is
0.361 which means quite small. It concludes that the error from Cyclic Regression
is distributed-normally. And the assumption of normality is fulfilled.
The next is autocorrelation test for independence test. Using Minitab application
the result is appeared on Figure 3.2.
2-11
Autocorrelation Function for Error
(with 5% significance limits for the autocorrelations)
1.0
0.8
0.6
0.4
Autocorrelation
0.2
0.0
-0.2
-0.4
-0.6
-0.8
-1.0
1 2 3 4 5
Lag
Based on Figure 3.2, it can be seen that the residual is not correlated each other,
because ACF (red lines) does not touch the blue vertical line, it can be concluded
that the error terms is independent or randomized.
The next is finding the validation of identically testing. The first is to find the
result of standardized error.
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Table 3.4 The Result Standardized Error (continued)
Error Standardized Error
7 0.034091
-41 -0.21185
-41 -0.2082
113 0.576144
134 0.683044
-1 -0.00365
339 1.73184
226 1.153505
217 1.111134
-291 -1.48979
-90 -0.46242
26 0.134417
1650
Forecast of Cyclic
1600
1550
1500
1450
1400
-2 -1 0 1 2
Standardized Error of Cyclic
Figure 3.3 shows the scatter plot of forecast vs. Standardized error of cyclic. It can
be seen that from the graph above, the result of Scatter Graph which y-axis is
forecast and x-axis is standardized error good. Since, the result of points is not
distributed evenly, so graph is homogeneous.
2-13
From the test that already done, it can be concluded that the cyclic regression
analysis is the best method since it has the smallest value of MAD, MSE, and
MAPE, which means that using this method, the error is less than the other
methods. The cyclic regression analysis might not passed the verification and
tracking signal, but based on the IIDN it is shows that this method is normally
distributed and independent, therefore this method is considered as the best
method.
27
2s2
22
Figure 3.5 Calender of November 2017 until December22017
2-14
2
2 3
2 2
2 2
2 2
2s 2s
2 2
Figure
2 23.6 Calender of January 2018 until February 2018
2 2
Table 3.5 The Shift Schedule
2 2
Time/Day Monday Tuesday Wednesday Thursday Friday Saturday
2 2
Shift 1 10 workers 10 workers 10 workers 10 workers 10 workers 10 workers
Shift 2 10 workers 10 workers 10 workers 10 workers 10 workers 10 workers
Total 20 workers 20 workers 20 workers 20 workers 20 workers 20 workers
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CHAPTER IV
DATA ANALYSIS
Based on the assumption that is shown on CHAPTER III, there will be three
calculations of aggregate based on Workforce (No Backorders) or Chase Strategy
method, Inventory/Level Strategy method and Transportation method.
7 𝑥 60 𝑚𝑖𝑛
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 =
188 𝑚𝑖𝑛
𝑢𝑛𝑖𝑡
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 = 2.234 𝑤𝑜𝑟𝑘𝑒𝑟
𝑑𝑎𝑦
2-16
Table 4.1 Table 4.1 The Result of Workforce Calculation (continued)
Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Total
8 Hiring Cost 15,000,000 5,000,000 2,500,000 0 5,000,000 10,000,000 37,500,000
9 Workers Laid Off 0 0 0 0 0 0 0
10 Laid Off Cost 0 0 0 0 0 0 0
11 Workers Used 26 28 29 29 31 35 178
12 Labor Cost 81,120,000 94,640,000 98,020,000 82,940,000 9,6720,000 104,650,000 558,090,000
13 Units Produced 1394.043 1626.383 1684.468 1425.319 1662.128 1798.404 9590.745
Round Down 1394 1626 1684 1425 1662 1798 9589
14 Net Inventory 36 11 6 3 14 123 193
15 Holding Cost 2,700,000 825,000 450,000 225,000 1,050,000 9,225,000 14,475,000
16 Backorder Cost 0 0 0 0 0 0 0
17 Total 98,820,000 100,465,000 100,970,000 83,165,000 102,770,000 123,875,000 610,065,000
Based on Table 4.1 the unit per worker can be calculated by multiplying the
production rate with days in the month. For the example is September 2017, there
are 24 working days, so the unit that can be produced by worker is:
𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠
𝑤𝑜𝑟𝑘𝑒𝑟
= 2.234 × 24 = 53.617
Based on the calculation above the result of unit/worker for September 2017 is
53.617. The next is calculation for Worker Needed. The demand/month comes
from the forecasting in cyclic regression before. The demand is rounded-up. For
the workers needed can be calculated by:
𝑑𝑒𝑚𝑎𝑛𝑑/𝑚𝑜𝑛𝑡ℎ
𝑊𝑜𝑟𝑘𝑒𝑟𝑠 𝑁𝑒𝑒𝑑𝑒𝑑 =
𝑑𝑎𝑦𝑠
× 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒
𝑚𝑜𝑛𝑡ℎ
1,358
𝑊𝑜𝑟𝑘𝑒𝑟𝑠 𝑛𝑒𝑒𝑑𝑒𝑑 𝑖𝑛 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 2017 = = 25.328
24𝑑𝑎𝑦𝑠 × 2.234
2-17
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = IDR 2,500,000 × 6 = IDR 15,000,000
After calculation the hiring cost, if there is firing cost it goes directly calculating
the unit produced. For the example is calculating the unit produced for September:
𝑢𝑛𝑖𝑡
𝑈𝑛𝑖𝑡 𝑃𝑟𝑜𝑑𝑢𝑐𝑒𝑑 = × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑
𝑤𝑜𝑟𝑘𝑒𝑟
= 53.617 × 26 = 1,394.043
The calculation of unit produced will be round-down. So the result for unit
produced in September is 1,394.043. The net inventory is unit produced
subtracted by demand required. For more detail, the net inventory for September
is:
𝑁𝑒𝑡 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 = 𝑢𝑛𝑖𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑 − 𝑑𝑒𝑚𝑎𝑛𝑑 𝑟𝑒𝑞𝑢𝑖𝑟𝑒𝑑
= 1,394 − 1,358 = 36
Labor cost is gotten from workers used multiplying by total days in the month
multiplying again with labor cost/worker. In September the company has 26
workers needed and 24 days, the regular time cost is 130,000/worker each day, so
the labor cost of this month is:
𝐿𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡 = 26 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 × 24 𝑑𝑎𝑦𝑠 × 𝐼𝐷𝑅 130,000
= IDR 81,120,000
Total cost can be found by calculating the total from all cost. The example is total
cost for September.
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑖𝑑 𝑂𝑓𝑓 𝐶𝑜𝑠𝑡 + 𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 + 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = 𝐼𝐷𝑅 15,000,000 + 0 + 𝐼𝐷𝑅 81,120,000 + 𝐼𝐷𝑅 2,700,000
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 𝑖𝑛 𝑆𝑒𝑝𝑡𝑒𝑚𝑏𝑒𝑟 = 𝐼𝐷𝑅 98,820,000
The total cost for period September 2017 until February 2018 is:
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑇𝐶 𝑠𝑒𝑝𝑡 + 𝑇𝐶 𝑜𝑐𝑡 + 𝑇𝐶𝑛𝑜𝑣 + 𝑇𝐶𝑑𝑒𝑐 + 𝑇𝐶𝑗𝑎𝑛 + 𝑇𝐶𝑓𝑒𝑏
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = IDR 610,065,000
2-18
After calculating all of the cost per month, the total cost for all the 6 month equals
to IDR 610,065,000. In the workforce strategy, mostly are the addition of the cost
of firing and hiring the workers every months to the total cost. However, this
strategy can minimize the inventory cost.
2-19
Another example is October 2017, using equation (2-8) the result of worker
needed is 27 workers.
3,009
𝑊𝑜𝑟𝑘𝑒𝑟 = = 27
26 × 2.234
Based on Table 4.2, the maximum worker of Chase Strategy per month is 30
workers. In level strategy the total worker needed is constant, so the maximum
worker is used to prevent deficiency production.
The production rate for Inventory Srategy is 2.234. In September 2017, there are
24 working days, so the unit produced by each worker is:
𝑈𝑛𝑖𝑡
= 𝑃𝑟𝑜𝑑𝑢𝑡𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 × 𝑑𝑎𝑦𝑠
𝑤𝑜𝑟𝑘𝑒𝑟
= 2.234 × 24 = 53.6
2-20
𝐶𝑜𝑠𝑡
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑖𝑟𝑖𝑛𝑔 × 𝐻𝑖𝑟𝑒𝑑 𝑊𝑜𝑟𝑘𝑒𝑟
𝑊𝑜𝑟𝑘𝑒𝑟
𝐻𝑖𝑟𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐼𝐷𝑅 2,500,000 × 10 = 𝐼𝐷𝑅 25,000,000
The labor cost can be determined by multiplying labor cost/hour, days and
workers used. To calculate the labor cost in September 2017 is using eqution (2-
11) as shown below:
𝐿𝑎𝑏𝑜𝑟 𝐶𝑜𝑠𝑡 = 𝐿𝑎𝑏𝑜𝑟 𝑐𝑜𝑠𝑡 × 𝑑𝑎𝑦𝑠 × 𝑤𝑜𝑟𝑘𝑒𝑟𝑠 𝑢𝑠𝑒𝑑
= 𝐼𝐷𝑅 130,000 × 24 × 30
= 𝐼𝐷𝑅 93,600,000
To calculate the holding cost in September 2017 is using eqution (2-14) as shown
below:
𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝑐𝑜𝑠𝑡 = 𝐻𝑜𝑙𝑑𝑖𝑛𝑔 𝐶𝑜𝑠𝑡 × 𝐶𝑢𝑚𝑢𝑙𝑎𝑡𝑖𝑣𝑒 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
= 𝐼𝐷𝑅 750,000 × 250
2-21
= 𝐼𝐷𝑅 18,750,000
The total cost for period September 2017 until February 2018 is:
𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑇𝐶 𝑠𝑒𝑝𝑡 + 𝑇𝐶 𝑜𝑐𝑡 + 𝑇𝐶𝑛𝑜𝑣 + 𝑇𝐶𝑑𝑒𝑐 + 𝑇𝐶𝑗𝑎𝑛 + 𝑇𝐶𝑓𝑒𝑏
𝑇𝑜𝑡𝑎𝑙 𝐶𝑜𝑠𝑡 = IDR 745,825,000
The working-hour is assumed as 4 hour, it means the maximum person work for
overtime is 4 hours. There maximum total workers work for overtime is 12
workers. There will be 31 workers constantly work per month. Table 4.5 shows
the result of data that will be used. Assume the Overtime Worker is maximum
12. The days come from the total working days per month.
2-22
Table 4.5 The Data Used in Calculation
Month Working Days Hour Worker Overtime Worker
Sep 17 24 168 31 12
Oct 17 26 182 31 12
Nov 17 26 182 31 12
Dec 17 22 154 31 12
Jan 18 24 168 31 12
Feb 18 23 161 31 12
The result of Subcontract is assumed as 200 per month. The Reguler Available
Capacity is found by the calculation below. The example is Reguler Available
Capacity for September 2017. The result will be round-down.
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦
= 𝑃𝑟𝑜𝑑. 𝑅𝑎𝑡𝑒 × 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 𝐷𝑎𝑦𝑠/𝑚𝑜𝑛𝑡ℎ × 𝑊𝑜𝑟𝑘𝑒𝑟
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 2.234 × 24 × 31 = 1,662.128
For the Overtime is found by calculation below. The example is calculation for
Overtime Capacity in September. The result will be round-down.
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 =
𝐷𝑎𝑦𝑠
𝑃𝑟𝑜𝑑. 𝑅𝑎𝑡𝑒 𝑓𝑜𝑟 𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 × 𝑊𝑜𝑟𝑘𝑖𝑛𝑔 × 𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝑊𝑜𝑟𝑘𝑒𝑟
𝑚𝑜𝑛𝑡ℎ
𝑂𝑣𝑒𝑟𝑡𝑖𝑚𝑒 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 = 1.27 × 24 × 12 = 367.659
2-23
Table 4.6 The Capacity in Transformation Method (continued)
Month Reguler Round Down Overtime Round Down Subcontract
Nov 17 1800.638298 1800 398.2978723 398 200
Dec 17 1523.617021 1523 337.0212766 337 200
Jan 18 1662.12766 1662 367.6595745 367 200
Feb 18 1592.87234 1592 352.3404255 352 200
The cost for each month is the same for the period from September 2017 until
February 2018. The result of cost is determined by the calculation below (the
result will be round-up:
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐶𝑜𝑠𝑡
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐶𝑜𝑠𝑡 =
𝑃𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛 𝑅𝑎𝑡𝑒
𝐼𝐷𝑅 130,000
𝑅𝑒𝑔𝑢𝑙𝑒𝑟 𝐶𝑜𝑠𝑡 = = 𝐼𝐷𝑅 58,191
2.234
2-24
Table 4.8 The Result of Calculation
Period
Sep-17 Oct 17 Nov-17 Dec 17 Jan-17 Feb-17
Period Demand
RT OT SC RT OT SC RT OT SC RT OT SC RT OT SC RT OT SC
1662 367 200 1800 398 200 1800 398 200 1523 337 200 1662 367 200 1592 352 200
Capacity 1662 367 200
Sep-17 1358 Cost 58191 94000 156667
Plan 1358
Capacity 304 367 200 1800 398 200
Oct 17 1651 Cost 133191 169000 231667 58191 94000 156667
Plan 1651
Capacity 304 367 200 149 398 200 1800 398 200
Nov-17 1689 Cost 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1689
Capacity 304 367 200 149 398 200 111 398 200 1523 337 200
Dec 17 1428 Cost 283191 319000 381667 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1428
Capacity 304 367 200 149 398 200 111 398 200 95 337 200 1662 367 200
Jan-17 1651 Cost 358191 394000 456667 283191 319000 381667 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1651
Capacity 304 367 200 149 398 200 111 398 200 95 337 200 11 367 200 1592 352 200
Feb-17 1789 Cost 433191 469000 531667 358191 394000 456667 283191 319000 381667 208191 244000 306667 133191 169000 231667 58191 94000 156667
Plan 1592 197
Total 1358 1651 1689 1428 1651 1592 197
2-25
After calculating the result of total Reguler Time , Overtime, and Subcontract
result each period, the next step is claculating MPS or Master Production
Scheduling.
Table 4.9 Master Production Scheduling
Available Unused Production Planning Ending Total
Period Demand
Capacity Capacity RT OT SC Inventory Production
Sep 17 1358 1662 304 1358 0 0 0 1358
Oct 17 1651 1800 149 1651 0 0 0 1651
Nov 17 1689 1800 111 1689 0 0 0 1689
Dec 17 1428 1523 95 1428 0 0 0 1428
Jan 18 1651 1662 11 1651 0 0 0 1651
Feb 18 1789 1592 0 1592 197 0 0 1689
9369 197 100
It can be seen that the result of RT in September 2017 is 1,358. Reguler time
production for period Oct 2017 is 1,651, for November 17 is 1,800, for December
is 1,523, for January 2018 is 1,651, and February 2018 is 1,592. There is one
overtime production in February 2018, since the reguler time production cannot
cove the demand, it is 197 units. The result of Total Reguler time is 9,369 with
overtime is 197 and Ending Inventory is 100. The production cost calculation is
determined. The result is shown on Table .
2-26
CHAPTER V
CONCLUSION
There are three methods used, Chase Strategy, Level Strategy, and Transportation
Method. All of the demand comes from the cylic regression analysis on Report
Forecasting (N=3). The total working days is 145 days. The result of total cost
calculation is shown on Table 5.1.
Based on the result above, it can be seen that Transportation Method has the
lowest total cost. It can be concluded that the Transportation Method is the best
result for Cyclic Forecasting and the assumptions that has been shown.
2-27
REFERENCES
2-28