EXECUTIVE SUMMARY

Nowadays, the main use of asphalt is the road making. Permeable asphalt
methods are beginning to be used for low-impact roadways and walkways. Most
asphalt surfaces are designed to sweep water away from high traffic areas because
standing surface water can wreak havoc. If an asphalt driveway, parking lot or
roadway is not properly maintained, surface water can weaken the pavement,
causing cracks to expand and encouraging the formation of potholes. In the natural
environment, rainfall sinks into soil, filters through it, and eventually finds its way
to streams, ponds, lakes, and underground aquifers. The built environment, by way
of contrast, seals the surface. Rainwater become runoff which may contribute to
flooding. For these reasons, managing a puddle is a significant issue in land use
planning and development.

In the early 20th century rose an unprecedented demand for an affordable,

tough, and impervious pavement with which to construct better roads. This need
was met with the creation of asphaltic concrete, or more commonly known as hot
mix asphalt pavement. The emergence of asphalt pavement allowed for the rapid
expansion of human society, allowing the population to sprawl outwards from
cities. As automobiles became more prevalent in society, the amount of asphalt
pavement increased exponentially. Aside from that, there is this porous asphalt
roads allow for land development plans that are more thoughtful, harmonious with
natural processes, and sustainable. They conserve water, reduce runoff, promote
infiltration which cleanses storm water, replenish aquifers, and protect streams.

The best method to manage a puddle is a significant issue in land use planning
and development. Based on that, innovation product is ready to be made to help
people overcome a puddle on pavement. This innovation product is expected to
meet consumers’ expectation. The important and first step to make water drainage
asphalt is identifying consumers’ needs. Several interviews have been conducted
with the expert in making the pavement. In addition, questionnaires were distributed
to users.
 Based on the survey that have conducted to 138 correspondents from road
users and 11 correspondents from company that is responsible in making the
pavement, the consumers’ needs that is needed to be fulfilled and satisfied with the
product are able to find out. Based on the results of the questionnaires, it appears
from 80,4% respondents said that the main problem on the road that exists today is
a puddle. To complete the proper road specifications for this water drainage asphalt,
respondents also chose the right location for installation, the texture of the asphalt,
period of puddle they find still not too disturbing, and lifetime for this asphalt until
it need to be maintained. The results are, 54,5% respondents chose highway are the
right location for this kind of asphalt should be installed, expected road
specifications are smooth roads chosen by 63,8% major respondents, a puddle
should be drain less than 1 hour chosen by 90,4% majority respondents and more
than 5 years until the maintenance are needed are chosen by 80,4% respondents

Then, list of their needs & tidy up it. There are 10 needs after tidy up process.
After that, classified needs into five groups, there are regulation, retailing, product
performance, operability and product perception. Then, decided the rank of each
need. The regulation aspect for this product is chemically proven by laboratory test
and environmentally friendly. The retailing aspect for this product is in affordable
price. The product performance aspect for this product can last for long time with
good quality, the water drains through the pavement. Operability aspect for this
water drainage asphalt can easy to apply and can be applied to multiple part of
pavement. The last, the product perception aspect for this product if that product is
easy to maintained.

After list all of customer’s needs, then define the specification of the product
both qualitative and quantitative. Make list of metrics from that specification first.
Then, do benchmarking to compare the testing product to existing product. Most of
product test proven, environmentally friendly, use clear process, and good
durability, do benchmarking to compare the testing product to existing product. The
product chosen as comparison is asphalt porous, asphalt concrete. Based on data
benchmarking, the price is similar also the product can long last for the time with
good quality.
 The built environment seals the surface which may contribute to flooding,
also it can weaken the pavement, causing cracks to expand and encouraging the
formation of potholes. For these reasons, managing a puddle is a significant issue
in land use planning and development. This future product is going to have a
hydrophilic surface that can absorb water. Hydrophilic surface has a special affinity
for water, so it has the ability to dissolve water. The solubility process in a
hydrophilic surface is governed by the balance of intermolecular forces between
molecules of liquid and solid, together with an entropy change that accompanies
dissolution and solvation.

Based on the survey that have conducted to correspondents from road users
and from company that is responsible in making the pavement that have been
interpreted in the last assignment, the concept of asphalt that is water drainage is
formulated. The concept formulations are combination of the existing asphalt
products and the genuinely new from brainstorming activity and results 102 product
concepts. Those concepts are then selected by RVF method to eliminate the
unrealistic concepts where 80 product concepts are eliminated and leaving 22
product concepts. Those product concepts are selected by two-stage concept
selection methodology which are concept screening and concept scoring. During
the concept screening method, 22 product concepts is marked with “+”, “0”, and “-
“ compared to a reference for 5 criteria which are performance, durability, texture,
engineering ease, and market where concepts number 1, 4, 6, 9, 10, 12, 13, 17, 20,
21, and 22 are passed through the screening process.

The concept that has been selected may be expressed in more detail so a
deeper selection criterion is needed for make analysis for every concept that has
been selected before. Those criteria have certain weight which are determined by
value engineering methodology. The 12 product concepts are rated with “1”, “2”,
“3”, “4”, and “5” where each of rating is described for each criteria which have
been mentioned. Each rating are multiplied with its weight and summed to get the
final score.

The final score for each concepts are then compared to rank the concept and
result concept number 9 as the best concept. From this selection methodology, the
selected concept is water drainage asphalt that has a mixture of bitumen with oven
aging method that contains styrene butadiene styrene and silica sand with the
angularity <82%, aggregate diameter <50mm, and hardness material, with manual
installation techniques, and reapplied as the maintaining techniques, that have all
the additional value.

To see whether the concept propose fulfilled consumer’s needs and to see
their interest on the selected concept, concept testing is conducted towards 15
respondents. The results are most respondents show interest in waterproof asphalt
that can drainage the water, the price is around Rp15.000, and have a strong
structure. Therefore, it is concluded that the product concept is accepted by the
potential customer.

The final product specification is then determined based on the previous data
where it is categorized from drainage rate, tensile strength, lifetime, price, particle
size, aggregate diameter, angularity and contact angle. To find out about the new
product’s position and chance in the market, a perceptual mapping is generated to
depict the product’s existence relative to the available similar products. This
product is compared to porous asphalt, concrete asphalt, and mixture bitumen. The
parameters used to compare these products are water drainage rate, mechanical
properties of product, applicable in any kind of pavement, product lifetime and
durability, the complexity of manufacturing process and equipment, the complexity
of installation technique, easy to find the materials for manufacturing process, the
complexity of maintenance technique, and the last one is have an affordable price.

The final concept of product has better value to answer customer’s needs
especially in drying rate, product weight, and product size and also from the
additional values that will be presented on the product as well from customer’s
testing step that have been done.

The final product specification is determined from information that have

been gathered based on the survey and analysis to decide consumer needs. After
determining the specifications, the ingredients are formulated the in order to fulfill
the customers’ needs. The ingredients that will be used silica sand, styrene
butadiene styrene, methyl ethyl ketone as the solvent for the styrene butadiene
styrene and the aggregate that’s been settled into some diameter.
Our product concept is water drainaging asphalt. The main ingredients of our
product are silica sand and styrene butadiene styrene. Silica sand that used in our
product have a good durability and ability to increase the drainage rate of the water.
Moreover, our product ingredient, styrene butadiene styrene can increase the
strength of the asphalt. And the diameter of the aggregate is one of the factors that
help the drainage rate of the water.
The name of the company is PT. ASYP SUKSESI and the brand of the
product is “Wasph” which is a shortened term for water drainage asphalt. The
tagline of the product is “Solution for your pavement” which means the product that
we made are expected to be a solution for the problems of the pavement nowadays
and can be used all around Indonesia. The logo is comprised of gears arranged in
triangle shape, using black as the background and the brand’s name under the logo
to emphasize the main function of the asphalt.
To begin the manufacturing process, a market research is needed to establish
a good product with great revenue. Our product is segmented to use in the roadways.
After finding the market segmentation, the supply, demand, market size, and market
share are analyzed to find out the market capacity of the product. According to our
calculation, the demand approximation we generated is around 69205,95 tons/year.
This number has been calculated based on 1800 km road in Indonesia and the road
construction that is being and will be done around Indonesia.
In the manufacturing process, certain materials and process are needed. The
materials needed are silica sand, styrene butadiene styrene, methyl ethyl ketone and
aggregates. The production process involved are mixing, screening, drying,
packaging and shipping. Therefore, the equipment needed for our plant are, mixing
tank, elevator, dryer, boiler, exhaust fan.
In manufacturing process, process scheduling is related to the time needed
to conduct a manufacturing process. To determine the manufacturing process time,
manufacturer needs to know the time needed for each process specifically that has
been stated in the previous point. In the scheduling part, we determined the most
efficient time of the product manufacturing cycle so there will not be useless energy
consumption and make the manufacturing costs get higher and less efficient. We
can see the process scheduling of our product manufacturing process in figure
below, which needs total 23 hour for 3 batch.
After preparing the materials, the silica sand is mixed with styrene butadiene
styrene, methyl ethyl ketone and bitumen. Mass balance is calculated based on daily
production capacity of our manufacturing process. Every day, production of Wasph
is around 23 hours 30 minutes per day. The product can be packed into a gallon/
drum of asphalt that contains 155kg in each drum. There are about 1353 drums
produced in a day.
Location and plant layout are the act of planning all of the manufacturing
aspects. The aim of designing the plant layout of with their facilities is to create a
smooth flow of production process. PT. ASYP SUKSESI plant will be planned in
Niaga Road, Cilacap, Central Java. This area has an adequate infrastructure and
close enough to airport (Tunggul Wulung Cilacap Aiport, only 15 km away), harbor
(Tanjung Intan Cilacap Port, only 1.2 km away), and train station (Cilacap Station,
only 2 km away). This plant also has direct access to the road to ease the
transportation and good distribution. PT. ASYP SUKSESI will also have an
advance communication system since it is close to the city of Cilacap, good waste
and water treatment, moreover a good security system. Another important
consideration is this location is close to the raw material supply, Pertamina RU IV
Cilacap Area, which only 4 km away from the Wasph plant.
A precise economic analysis of this product, water drainaging asphalt, is
needed to be done to determine whether the product will be successful in the market
or not. The market analysis is conducted based on cost calculation of supply chain
and distribution area, total capital investment, operational cost, economic analysis,
and profitable analysis. The success of its market is illustrated through the net
present value (NPV), internal rate of return (IRR), return of investment (ROI), and
payback period (PBP).
The supply chain of PT. ASYP SUKSESI is majorly obtained from Indonesia
except for styrene butadiene styrene and methyl ethyl ketone which is imported
from China. Since its first production, Wasph is estimated to produce 1353 drum
per day which needs more than 12056 kg of raw material for each day of production.
To fulfill and guarantee this raw material demand, a raw material order scheduling
is determined which can be seen in chapter 1.3. The final product of Wasph is
distributed to construction companies which is handling construction road which
reach a total number of 1000 km around Indonesia by trucks which are provided by
our own company. Meanwhile, market strategy is need to reach the target customer
and is forecasted to be done through website, billboard, and so on where it is
estimated to cost around Rp 12000.
The calculation of total capital investment is done by adding fixed cost, both
direct and indirect, and working capital. The direct cost is estimated to cost
51,183,923,187.87 while the indirect cost is estimated to cost Rp
10,896,465,285.10. So, the total fixed cost is Rp 60,397,029,361.69. The working
capital, the capital need to run the plant at the very beginning of time until we can
get profit, is calculated by assuming that the plant needs a month to operate before
receiving any income which is calculated by dividing each operational cost per year
by 12. The working capital of Wasph is Rp 12,523,563,376.21. So, total capital
investment for this product is Rp 72,920,592,737.90. PT. ASYP SUKSESI
operational cost consists of manufacturing cost, fixed cost, and other expenses
called general expenses. Our operational cost is Rp 271,524,956,472.57 per year.
To fulfill the capital needed PT. ASYP SUKSESI will use loan from bank whose
interest is around 10% and is estimated to be returned within 5 years of plant
production.
Afterwards, the price of the product is calculated by analyzing the net present
value (NPV) of the cash flow. In a range of 10 years of production, the minimum
product pricing, which is Rp 12000, is obtained by iterating the calculation until the
NPV is zero with MARR value of 13%, furthermore the product pricing is set from
the previous assignment which is Rp 15000. The NPV of PT. ASYP SUKSESI by
applying this product pricing is Rp 124,280,685,992 with IRR 33.35%.
To procure the feasibility of our product, profitability analysis is done by
calculating rate of investment (ROI) which is 76%, payback period (PBP) of 3.54
years, breakeven point (BEP) of 16,934,486.25 units, internal rate of return (IRR)
of 33.35 %, net present value (NPV) of Rp 124,280,685,992 and sensitivity analysis
from the major part from cost breakdown analysis which are raw material price and
labor salary with the addition of product price fluctuation since it is one of the most
important variable which affects the stability of the company. The sensitivity
provides an insight to our product feasibility due to the change in those variables
where the influence of operating labors is not significant but it causes changes in
IRR and NPV, product price cause a bigger value of IRR and NPV, while the
increase of raw materials cost causes a decreasing IRR and NPV. Meanwhile, the
influence of labor cost is not that significant, but it causes changes in PBP. The
product price causes the highest fluctuation at value about 10 years change of
payback period. The increasing of raw material cost causes a rise of PBP while an
increase of product price results in a decline of PBP.
To summarize, an accurate economic analysis is needed to be done to
determine whether our product manufacture will be profitable or not where Wasph
production is economically feasible based on the economic analysis and profitable
analysis. More analysis and risk taking calculation may need to be done to help us
in dealing with price fluctuations yet Wasph Water drainaging asphalt is considered
safe to be marketed.