Member of Group :

• Isna Rahayu Yuliarti (2018370001)

• KMS Sofyan Effendy (2017370020)
• Nabilah Permata Firdausy (2018370009)
• Tiara Risa Damayanti (2018370016)
Daefoerta Jacket is the solution for people with
that common problem that might occur in
their daily life. This exclusive jacket has a
special function to allow people to leave their
bag at home and decrease their total
luggage. Besides focusing on the function, the
company also accentuate the model of
jackets as part of the product’s excellence
both serving the nice style and fashion is shown
by the usage of Batik on the jacket.

• To plan and design a fashionable innovative

product with the concept of Batik
• To apply the re-engineering concept into
the product
• To establish an exclusive fashionable jacket
company
 Time Horizons for Strategic Decisions
Intermediate-term decisions
Forecasting Product
Demand, The channel of
Distribution, The manpower Short-term decisions
for the total production
Shift Scheduling,
have inventory and
material control

Long term decision

Location, Market, Quality

product
Framework for Operations Strategic Dimensions

High-quality material and

multifunctional jacket fit for daily
activities. With only wearing a
jacket, the customer can bring the
pocket book, handphone, wallet,
important cards and at the same
times.

Approach to
Capacity Strategy
Based on the company’s
forecasting plan, policy B is the Strategic Initiatives: Business
proper strategy to be chosen. Process Re-engineering

In this project, the company

recombines the utility of the jacket with
the batik motif from Indonesia. Those
are the things that become the
company’s focus in producing the new
exclusive jacket.
Forecasting Technique by Customer Survey Technical Demand
Forecast
The company is using open surveys for the potential
customer and gain the data from other brands that
engaged in the apparel business to forecast the
demand.
 Sales Plans
✓ Will maintain a fix pricing strategy. We
carry on our reputation and quality of
our jacket.
✓ Provide reselling and partnership
program
✓ Website-based store for easy order.

• Iwearzule
• Budget plan ( based on the • Public Culture
forecast) • Sunday Sunday Co
• Segmenting: teenagers or adults, • Queen beer
middle to upper economic ability

• Multi-pocket that can store

many kinds of stuff
• Using Batik which reflects and
represent it exclusiveness and
Indonesia
 Operation
Plan

The Location Production capacity

The workstation of the The manufacturing
manufacturing will be
of the jackets are
located at Karawang
International Industrial
produced manually
City. The capacity of by the tailors and
the electricity is 7500 supported by
watt and the rent for machinery..
the building is around
5.000.000 per year
(70*50) ft.
 Stakeholders

Daeforta Material supplier

Interest: increases the turnover from
the goods orders
Interest: gain as much
Power: it has the power to
profit determine the price, quality of raw
Power: concept materials by their own.
makers, brand owners,
conduct the
production. costumer
Employee Interest: buy and use
Interest: gain the experiences, jackets at affordable
getting wage prices and good
Power: they have the quality
privilege to get the safety, Power: being
good environment of the interested and loyal to
worker be the Daefoerta’s
• Taylors
• Operating Sewing Machine 8100E :4
• Operating Fabric Cutting Machine Yamato T2-88 :4
• Fusing :2
• Controlling the product(Quality Control division) :2
• Packaging division :2
• Administrator for websites and social media :1
• Chief Executive Officer :1
• Chief Marketing officer :2
• Public Relation Officer :2
• Supply Chain division :3
• Secretary :1
• Finance and accounting division :3
 Production Process
• Step of production
• Raw Materials from Supplier 1. Jacket design and determination of • Product Distribution
1) Fabric cotton jacket specifications 1) Through outlet or
2) Batik fabric cotton 2. Selection of jacket material department store stores
3) Dacron 3. Pattern cutting 2) Through Website-based
4) Zipper 4. Fusing store
5) Small rope 5. Sewing and Zipper fitting 3) Through reseller.
6) Yarn 6. Product checking or quality control
7) Product package (paper bag) 7. Finishing
8. Product packaging

• Additional Equipment and Facilities • Machine Used

1. Cartoon, pencil, ruler, and newspapers to
make the patterns.
2. Rader, chalk sewing, carbon sewing to
move patterns into the fabric textile
3. Vertical knife, scissors, and band knife to
cut the pattern on the fabric.
4. Sewing machine shoes, spools, needles,
penders, thimbles, thread inserts to support
1) JUKI Sewing Machine 8100E (High Speed):
to sew jacket at high speed 5000 stitches per
minutes.
2) Fabric Cutting Machine Yamato T2-88:
to cut the fabric at high speed
3) Portable Steam Iron TY-5128:
to spruce the jacket in to a nice one.
Financial Salary
Plans Plans
Tailor / hour 5000
Period Demand
Officer / hour 8000

1 50 Tailor salary per day 40000

Officer salary per day 64000

2 45

Total Salary of Tailor 200000

3 60
Total Salary of Officer 256000
4 50
Total salary per one 8208000
period (18 days)
Moving-Average Two Step Ahead Forecasted

Period Profit Net profit

M2 (3) 47.5
1 15000000 6792000

2 13500000 5292000
M3 (4) 52.5
3 18000000 9792000

4 15000000 6792000
M4 (5) 55
5 16500000 8292000
Relevant
Cost
Machining Cost
Machine Amount Cost Total

4 18,000,000
JUKI Sewing Machine 8100E (High Speed) 4,500,000

2 3,300,000
Fabric Cutting Machine Yamato T2-88 1,650,000

2 640,000
Portable Steam Iron TY-5128 320,000

Total Rp. 21,940,000

 Supply
Chain Management
Daefoerta receive demand through both
online and offline store. The online
based system is using independent Plant Anticipated Production

website that everyone can access for it. Jakarta 60

Besides, Daeforta will corporate with

retail shop such as Matahari Department
Warehouse Total Shipment Quantity
Store for offline sales.
Jakarta 19

Bogor 11
• Transportation Problem Depok 7

Tangerang 11

Warehouse Percentage of Total Production (%) Bekasi 12

Jakarta 32

Bogor 18 Shipping Cost per unit in 1000 IDR

Depok 12 TO

Tangerang 18 Jakarta Bogor Depok Tangerang Bekasi

Bekasi 20 Jakarta 180 108 72 108 108

 Jacket
(end item)

Hand Part Assembly (2) Body Part Assembly (1)

Lead time = 1 day Lead time = 1 day

Band Collar (2) Hand Part (2) Front Right (1) Front Left (1) Back (1) Band Collar (1)
Lead time = 1 Lead time = 1 Lead time = 1 Lead time = 1 Lead time = 1 Lead time = 1
day day day day day day

Right Pocket (4) Left Pocket (4)

Lead time = 1 Lead time = 1
day day
 LEVEL 1 MRP
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross Requirement 17 20 19 13 14 12 15 14 15 17

MRP for Jacket Schedule Receipt - - - - - - - - - - - - - - -

On hand inventory - - - - - - - - - - - - - - -

It takes 5 days to
produce 15 jackets. Hence, the Net Requirement 17 20 19 13 14 12 15 14 15 17

company must begin production

now on jackets to be shipped in
5 days. For that reasons, we will LEVEL 2
consider only forecasts for
demands that are at least 5 days Hand Part Assembly (2) Lead time = 1 day
into the future. If we label the Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

current week as week 1, then Gross

Requirement
34 40 38 26 28 24 30 28 30 34

Daefoerta requires forecasts for Schedule - - - - - - - - - - - - - - -

the sales of trumpets for day 5 to Receipt
15. On hand - - - - - - - - - - - - - - -
inventory
Net 34 40 38 26 28 24 30 28 30 34
Requirement
Time phased 34 40 38 26 28 24 30 28 30 34
net
requirement
Planned order 34 40 38 26 28 24 30 28 30 34
released
 Body Part Assembly (1) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross Requirement 17 20 19 13 14 12 15 14 15 17

Schedule Receipt - - - - - - - - - - - - - - -
On hand inventory - - - - - - - - - - - - - - -

Net Requirement 17 20 19 13 14 12 15 14 15 17
Time phased net 17 20 19 13 14 12 15 14 15 17
requirement

Planned order 17 20 19 13 14 12 15 14 15 17
released

LEVEL 3
Band Collar (2) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross Requirement 68 80 76 52 56 48 60 56 60 68

Schedule Receipt - - - - - - - - - - - - - - -
On hand inventory - - - - - - - - - - - - - - -

Net Requirement 68 80 76 52 56 48 60 56 60 68
Time phased net 68 80 76 52 56 48 60 56 60 68
requirement
Planned order 68 80 76 52 56 48 60 56 60 68
released
Hand Part (2) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross 68 80 76 52 56 48 60 56 60 68
Requirement
Schedule Receipt - - - - - - - - - - - - - - -
On hand - - - - - - - - - - - - - - -
inventory
Net Requirement 68 80 76 52 56 48 60 56 60 68
Time phased net 68 80 76 52 56 48 60 56 60 68
requirement
Planned order 68 80 76 52 56 48 60 56 60 68
released

Front Right (1) Lead time = 1 day

Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross 17 20 19 13 14 12 15 14 15 17
Requirement

Schedule Receipt - - - - - - - - - - - - - - -
On hand - - - - - - - - - - - - - - -
inventory

Net Requirement 17 20 19 13 14 12 15 14 15 17
Time phased net 17 20 19 13 14 12 15 14 15 17
requirement

Planned order 17 20 19 13 14 12 15 14 15 17
released
Front Left (1) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross 17 20 19 13 14 12 15 14 15 17
Requirement
Schedule Receipt - - - - - - - - - - - - - - -
On hand - - - - - - - - - - - - - - -
inventory
Net Requirement 17 20 19 13 14 12 15 14 15 17
Time phased net 17 20 19 13 14 12 15 14 15 17
requirement
Planned order 17 20 19 13 14 12 15 14 15 17
released

Back (1) Lead time = 1 day

Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross 17 20 19 13 14 12 15 14 15 17
Requirement

Schedule Receipt - - - - - - - - - - - - - - -
On hand - - - - - - - - - - - - - - -
inventory

Net Requirement 17 20 19 13 14 12 15 14 15 17
Time phased net 17 20 19 13 14 12 15 14 15 17
requirement

Planned order 17 20 19 13 14 12 15 14 15 17
released
Band Collar (1) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross 17 20 19 13 14 12 15 14 15 17
Requirement
Schedule Receipt - - - - - - - - - - - - - - -
On hand - - - - - - - - - - - - - - -
inventory
Net Requirement 17 20 19 13 14 12 15 14 15 17
Time phased net 17 20 19 13 14 12 15 14 15 17
requirement
Planned order 17 20 19 13 14 12 15 14 15 17
released

LEVEL 4
Right Pocket (4) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Gross 17 20 19 13 14 12 15 14 15 17
Requirement

Schedule Receipt - - - - - - - - - - - - - - -
On hand - - - - - - - - - - - - - - -
inventory

Net Requirement 17 20 19 13 14 12 15 14 15 17
Time phased net 17 20 19 13 14 12 15 14 15 17
requirement

Planned order 17 20 19 13 14 12 15 14 15 17
released
Left Pocket (4) Lead time = 1 day
Day 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15

Gross 17 20 19 13 14 12 15 14 15 17
Requirement

Schedule Receipt - - - - - - - - - - - - - - -

On hand - - - - - - - - - - - - - - -
inventory
Net Requirement 17 20 19 13 14 12 15 14 15 17

Time phased net 17 20 19 13 14 12 15 14 15 17

requirement

Planned order 17 20 19 13 14 12 15 14 15 17
released
Evaluation Criteria for Key Perform
ance Indicator
1.Production Volume: Track the quantities that we are
able to produce
2. Production Downtime: Analyze and optimize our
maintenance
3. Production Costs: Monitor the costs implied in the
production
4. Defect Density: Track the damaged items right
away
5. Rate of Return: Measure how many items are sent
back
6. Right First Time: Understand the performance of our
production process
7. Asset Turnover: Acknowledge your assets in relation
to our revenue
8. Unit Costs: Track and optimize our units costs over
time
9. Return on Assets: See how profitable our business is
relative to its assets
10. Maintenance Costs: Evaluate our equipment
costs in the long run
 Five Principles of Lean
Value Stream Seek
Map Perfection
continuous improvement
by involving the entire
The process is determined what
value streams of
value is added by steps, materials,
technologies, assets, and
features, movements, and it the employee
eliminates wasteful steps. departments.

We define into 8 dimensions of

perceived quality : The product is produced and
Creating the value chain delivered as it is needed by
Performance, Reliability,
without the interruption, the customers. We only
Durability, Serviceability,
delays, or bottlenecks. produce based on the
Aesthetics, Features, Perceived
Quality, Conformance to demand for the customers.
Standards
Create Flow Establish
Identify Pull
value
 Study case 5S in our project

Sort (Seiri) Set in Order (Seiton) Shine (Seiso)

• We define the daily need items,
the weekly and also the monthly
item.
• We only use the 3 machines
and remove all item that is not
used for the production.
• machinery, raw materials, iron,
and packaging item is clearly
identified
• Never mix the items into one
place/workstation
• Materials and cleaning tools are easily
accessible
• Use checklist to defined and list the
items for cleaning
• Do it periodically in order to create
the healthy working environment

Sustain (Shitsuke) Standardize (Seiketsu)

Combine all the previous 5S to
be implemented in everyday
life and make it not just for the
routine, but for the culture.
• Define base of implementation in quality
improvement
• Set the working hour and non-working hours
• Create the schedule includes the shift in
everyday scheduling
 7 WASTE IN MANUFACTURING
• Defect
We have a quality control process in order to identify and control which product is not meet the
criteria of standardization.
• Overproduction
We always do the forecasting based on the customer needs. We also establish pull in order to
produce the product when it is only needed by the customer.
• Waiting
We will decrease our waiting process by reducing the change over in the value stream mapping.
• Non-used talent
We only hire the high skill people who can do sewing process, who have a high creativity to do
the packaging and design the jackets.
• Transportation
We only order the raw materials once a week to make it effective and reduce the cost of
shipment.
• Inventory
We only order the raw materials or component based on the demand that is coming from the
customers.
• Motion
We try to optimize our uptime and decrease the downtime in daily production.
• Excess processing
We try to always minimize all the additional processes that are not needed for the product and
reduce the production costs.
Deterministic Subject to Fixed Demand
Classification of inventories
– Raw materials and component. The resources
from the 3 different suppliers that are required for
processing. 1st supplier, buy fabric cotton and
Batik fabric cotton. 2nd supplier, buy for the
zipper, small rope, and yarn. 3rd supplier, buy
1
raw materials such as plastic and paper bag for
packaging
– Work-in-process (WIP). We have 3 inventories in
the production which are materials before the
cutting and sewing process, the material before
the sewing process, the material before the
Quality Control, Ironing, and Packaging.
– Finished goods. These are the items of our jacket
that have been produced in one-week
production and it is waiting to be shipped out.
• Study Case to Our Compan
y (deterministic demand)
Given:

Demand = 15 pcs of jackets in one week = 15 * 52 =

780 pcs of jackets in one year
Set order = USD 40
Unit cost = USD 10
Interest rate of relevant cost
5% of cost capital
2% of Taxes and insurance
3% cost of storage

Total Interest rate = 10%

Solution
Economic order Quantity (Q) = 250 unit
Cycle time (T) = 0.3205 per year
Average Annual Cost = $ 250
• Study Case to Our Company (uncertain demand) to cotton supply
Given:
We assume that the demand is a
continuous review and it is known all
the time. There is a positive lead time
and the demand is stationary and
random. Hence, we focus on the
batic cotton and fabric cotton.
Given :
• Vairable cost = $10 with 10% of
annual interest
• Shortage cost is $25 and order
amount is $40
• The sells average is 780 per year
and the holding cost is $1
✓ Q and R
The optimal order will be 261 if the fabric and batik
cotton has reached 56 rolls.
✓ Safety Stock
The safety stock will be 26 rolls both fabric and batik
cotton
✓ The Average time between placement orders
We should have 26 rolls of safety stock for every 4
months
✓ The proportion of order cycles in which no stock-
outs occur
There will be no stock out around 98 %
✓ The proportion of demands that are not met
There will be stock out around 2%
 ABC Analysis
Item Annual Average Annual Profit Annual Profit Cumulative Function Percentage Classification Item
Volume Profit per (based on Annual Profit of Total
Item frequency)

Jacket 312 50,000 15,600,000 31,200,000 31,200,000 0.36 36% Jacket size L
size S A
Jacket 624 40,000 24,960,000 24,960,000 Your Content
56,160,000 0.65 Here 65% Jacket size M
size M

Jacket 1040 30,000 31,200,000 15,600,000 71,760,000 0.84 84% B Jacket size S
size L
Jacket 624 20,000 12,480,000 12,480,000 84,240,000 0.98 98% Jacket size XL
size XL Your Content Here C

Jacket 156 10,000 1,560,000 1,560,000 85,800,000 1 100% Jacket size XXL
size
XXL
Your Content Here

Your Content Here

VALUE STREAM MAP
 Task Immediate Predecessors Time

Assembly Line Balancing 1

2
-

1
10

45

3 2 10

4 3 30

5 3 30

6 4,5 15

7 6 20

8 6 20

9 7,8 15

10 9 45

11 9 5

1. Draw the pattern on fabrics 12 9 7

2. Cut the fabrics based on pattern 13 10,11 5

3. Label the cut parts
4. Fuse the parts using straight pin 14 12 5

5. Sew the 15 13,14 10

6. Check the assembled parts quality 16 15 5

7. Stick the company’s label
8. Iron the jacket 17 16 7

9. Pack the jacket to the box and plastic 18 17 2

10. Store the ‘ready to ship’ jacket
Total 286

Every 140 minutes produce 1

Ratio 286/140 = 2.04 → 2
 Facilities Layout and Location
• Horizontal Flow Pattern
Regarding to our process layout, we use
U flow in our production layout.

• Activity Relationship Chart

Terminology:
A Absolutely necessary.
E Especially important.
I Important.
O Ordinary importance.
U Unimportant.
X Undesirable.
Facilities Layout and
Location
1.Horizontal Flow
Pattern = Use U flow
2.Types of layout :
Process Layout
Illustration of the Product