CHAPTER III MANUFACTURE 3.

1 Market Opportunity As a dietary food brand, LaRice is a new player from the healthy food market which can be a potential brand. Our main target is all those who are interested in a healty lifestyle. But for more segmented our target, we used recommendation from nutritionist and data from BALITBANGKES who said about minimum age to consume dietary food is over 25 years old to minimize malnutrition that might be occurred in people under that age. The main source of demographic data is population census, which is conducted every ten years, so we use data of Indonesian population aged above 25 years old according to BPS (Badan Pusat Statistik) in 2010. The product distribution for early years is limited to province located in Java, like DKI Jakarta, West Java, East Java, and Central Java. The limitation is made to make more effective about distribution cost, because we are recently manufacturer which is not mature yet. As following are detailed for each province:
Table 3. 1 Population People Over 25 in Java

Province

Amount of People over 25 y/o 6232328 27964187 21047447 24359407 79603369

Amount of People

DKI Jakarta West Java Central Java East java Total

9588198 43021826 32380687 37476011 122466722

Source : Badan Pusat Statistik, 2013

Based on data above, we can get approximation of percentage Indonesian population over 25 years by this formula : and we get that market opportunity of LaRice is about 65% of the total population.

3.2 Production Capacity The next step is determining the production capacity for LaRice. The data used is the number of healthy foods production from Badan Pusat Statistik in 2013, which is around 816 ton. But according to annual report of Kalbe Farma, there are 45% (367.2 ton/year) amount of nutrition bar production from total healthy snack production in Indonesia. As following table are nutrition bars import and export data in Indonesia according to BPS :
Table 3. 2 Amount of Imported Nutrition Bars

year weight (ton)

2010 39.2

2011 15.5

2012 5.7

2013 0.345

Source : Badan Pusat Statisik, 2013 Table 3. 3 Amount of Exported Nutrition Bars

year weight (ton)

2010 2.1

2011 4.9

2012 5.3

2013 17.3

Source: Badan Pusat Statistik, 2013

To calculate the amount of nutrition bar in Indonesia, we can use production capacity data, imports, and exports in 2013, with the following below: Amount of nutrition bar = Production capacity export + import (in 2013) = 367,2 ton 17,3 ton + 0,345 ton = 350,245 ton After obtaining the amount of nutrition bar in Indonesia, we also can calculates the percentage of nutrition bar to the other healty food by doing the following calculation: % nutrition bar from other healty foods = = = 42,92%

The next step is to know data demand from healthy dietary snack. The data that we used is the amount of other medical food in Indonesia due to lack of healthy dietary snack demand data from BPS. So the amount of other medical food demand per capita is :
Table 3. 4 Other Medical Foods Demand

Year 2010 2011 2012 2013

/capita/year /year (kg) (kg) 0.0156 1241813 0.0209 1663710 0.0261 2077648 0.0354 2817959
Source: Badan Pusat Statisik

/year (ton) 1242 1664 2078 2818

By obtaining a percentage of nutrition bar, we can define the demand of nutrition bar in Indonesia:
Table 3. 5 Nutrition Bar Demand

Year

2010 2011 2012 2013

other nutrition bar medical food (ton) (ton) 1242 533.09 1664 714.23 2078 891.92 2818 1209.55

Source: Badan Pusat Statistik, 2013

After get the nutrition bar demand in Indonesia from 2010 until 2013, we can plots those data in graphic below :
Nutrition Bar (ton) 1500.00 1000.00 500.00 y = 220.71x + 506.14 0.00 0 1 2 year 3 4

Figure 3. 1 Graphic of Nutrition Bar Demand in Indonesia Each Year

By using the trendline above y = 220.71x + 506.14 we can determine the demand for nutrition bar in 2014: Demand in 2014 = 220.71 x 4 + 506.14 = 1388.98 ton

Using the demand equation above, we can determine the demand each year from 2010 to 2013 and for the supply we can assume that from amount of nutrition bar production adding with amount of import every year according data from BPS. And we can make the chart of its as following:
Table 3. 6 Nutrition Bar Demand and Supply in Indonesia

Year 2010 2011 2012 2013

demand (ton) 506.14 726.85 947.56 1168.27

supply (ton) 406.40 382.70 372.90 367.55

1200.00 1000.00 800.00 600.00 400.00 200.00 0.00 1 2 3 4 demand (ton) supply (ton)

Figure 3. 2 Nutrition Bar Demand and Supply Chart in Indonesia

We can also forecasting nutrition bar demand from 2014 until 2020, as following table:

Table 3. 7 Forecasting of Nutrition Bat Demand

Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

demand (ton) 506.14 726.85 947.56 1168.27 1388.98 1609.69 1830.40 2051.11 2271.82 2492.53 2713.24

The next calculation is to calculate the lack of nutrition bar demand fulfillment by calculating the average of demand and supply afterward calculate the different between both of them (demand supply) from 2010 until 2013, and we can get 454.82 ton. From that deficit, we assumed that the maximum production capacity of LaRIce can fulfill 2.19% of the market share, its around 9,96 ton/year. But for the estimate of our production in first year, we used 1.00% of the market share, its around 4,55 ton/year. And we planned to grow the production capacity according to the forecasting growth rate of one of the nutrition bar manufacturer which is 15%, so our production capacity throughout 6 years of the lifetime of plant before reach the maximum of capacity production:
Table 3. 8. Forecasting Maximum Capacity Production

Year

production capacity ton/year 4.55 5.23 6.01 6.92 7.95 9.15

2014 2015 2016 2017 2018 2019

3.3 Main Process Process production of LaRice consist of raw material handling, storage, heating and drying process, grinding process, mixing additional material process, flattening process, filling process, compression process, cutiing process, until packaging process. Purpose of raw material handling is to avoid damage and to facilitate the preparation of production process. One of the raw material that we use is red rice. Yet because of shorter shelf life red rice than white rice, then applied the method of JIT (Just in Time), with reducing in-process inventory and associated carrying costs. Beside that, there are several additional material like dry fruits, mung bean along with binder substance as caramel. After storage raw materials, afterwards mixing the materials into a container like mixer. And then the mixture removed from it, then the mixture split into two separated part, one of them given jam then do the compression process so that they stick together with jam in the middle. Afterwards cutting process do made to adjust size of the required, with total weight around 60 gram and one serving there are 12 pieces, so that size of one piece LaRice around 5 gram. The explanation of each process are listed below. 3.3.1 Process Description The ingredients in making LaRice, as red rice, mung bean, dry fruit, jam, sugar, and othe ingredients like preservative are sent from supplier according to the supply chain. The materials are saved in the storage that have temperature and time control. For each material have different handling. Puffing Red Rice We try to modified the method stated from the patent (US Patent no 4233327) to produce desired puffed red rice. First we must soaking rice in water in 2 hours for make rice more moist; reducing the moisture content rice by exposing it to air at temperature of 40-1200C; pressing the reduced-moisture rice without cracks and fissures therin; drying the pressed rice by exposing it to air at a temperature of 201000C; aging the dried rice in a closed storage at temperature of 15350C for at least 30 minute to equalize the moisture distribution within

the rice; and puffing the aged rice with hot air at temperature of 1604500C. Grinding Fruit To be able to get the appropriate size pieces of fruit, which is less than one cm we have to adjust the size of the cutter. Time of grinding for apple, pineapple and mungbean is little bit different. It is due to differences in the size and type of the fruit itself. Drying Fruit We have to order selected fresh and fully ripened fruits from suppliers. Immature fruit can produce lacks flavor and color, overmature fruit can be tough and fibrous or soft and mushy. Afterward for drying process, first arrange pretreated fruits on drying trays in single layers. Dry at 600C in dehydrator or tray dryer. The length of time needed to dry fruits will depend on the size of the piece being dried, humidity and the amount of air circulation in tray dryer or dehydrator. For us, we dried apple and pineapple for 12 hour. Heating Mungbean The purpose of boiling the mungbean is to damage the epidermis is still on, despite the mungbean have been grinding before. The boiling lasts for 1 hour per batch, and next mungbean move to storage for lowering the temperature. Caramelization Sugar Caramel occurred when we reach temperature around 1700C for 10 to 15 minute. when the sugar was melted and approaching the highest temperature, the molecules of sugars is broken and shape the sticky component. Mixing Preperation For dry fruits we used apple and pineapple, first grinding it into thinner shape and then drying in 700C for 9 hours, and for the mung bean, first we have to grinding it, and after that poach it in around 800C for 10 minute, in order to breaks the wall cell of mung beans. Afterwards,

both of them mix with the previous puffed red rice in mixer, temperature in around 1700C, and temperature out 800C for 2-8 hours. Flattening After manufacturer blend puffed rice with caramels and fill its, the next process is about to flatten the mixture in order to cooled. After that split it into two separated part, and one of them given jam Filling For the filling, we assume that we have already order the specific jam to supplier according to supply chaim Size reduction After the product is harden, manufacturer do some reduction in size in order to full filled the manufacture composition, that is 5 gram per piece. Packaging Finally, the product is ready to marketed, and for the packaging its self, we order to supplier of packaging and storage company with specific composition like the packaging include anti-bacterial film. Drying buah, grinding (kacang hijau dan buah), heating (kacang hijau),