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1.

2 Operational Cost
1.2.1 Manufacturing Cost
Manufacturing costs are the cost that is required to support the production process of
Coughzero The cost consist of raw material cost, operating labor salary, maintenance cost, patent
cost, and fixed cost. The detail of each cost will be explained in the following section.
1.2.1.1 Direct Production Cost
1.2.1.1.1 Raw Material
Raw material cost is a cost that is required to buy the raw materials that will be converted
to the Coughzero product later on in the plant. Because of the big capacity of our plant, the order
is ordered in every day and in every month, we purchase some spare raw materials for safety
stock in the inventory. The raw materials that we will order is mostly come from the China. The
reason is China has the biggest supply and one of the cheapest price regarding pharmaceutical
products price. From China, it will take 7 days for our order to be delivered to our plant in West
Java.
Beside China, we will also order some of our raw materials from local company.
Although it is the best option to reduce the distribution capacity, some materials are not available
in the local company. We chose the local company that is close to our plant to supply the raw
materials and the company that offers low price and quality products. Here are the full details of
the raw material supply calculations in our plant.
Components

Dextrometorphan
Polistirex
Pseudoephedrin HCl
Chlorpheniramine
Maleat
Paracetamol
Pepermint oil
Alcohol
Propylene Glycol
Water

Total
Purchase
d

0.132
0.33
0.022
22
0.44
0
0.066
1188

Total
Purchase
d per
year

Unit Sale

48.18

1 kg

120.45

1kg

8.03

2 kg

8030
160.6
0
24.09
433620

1kg
3 kg
1kg
4 kg
1kg

Price/Unit
Sale

Cost/Purchas
ed

R
C

Rp15,000,000
Rp650,000
Rp20,000,000
Rp3,000,000
Rp800,000
Rp1,000,000
Rp1,000,000
Rp1,500,000

Rp19,200,000
Rp14,400,000
Rp7,200,000
Rp288,000
Rp1,040,000
Rp0
Rp8,000,000
Rp300,000

Fructose syrup
Color additives
content
Suqqus Liquiritae
Sucrose
Benzoic acid
Sodium benzoate
M,p,b-paraben
Sorbitol
Essence
CMC
Grey Paint
Black Paint

5 kg

0.04818

1kg

2682.02
48180
9.636
9.636

6 kg
1kg
7 kg
1kg

4.818

8 kg

3.212
1.4454
0

1kg
9 kg
1kg

16060000

pcs

321200

m2

16060000

pcs

1606000

pcs

36500

100 pcs

417560

100 pcs

417560

100 pcs

0.000132
7.348
132
0.0264
0.0264
0.0132
0.0088
0.00396
0

Blue Paint

44000
880
44000

White Paint

4400
Styrofoam
Wrap Plastic
Corrugated carton
box
Total

Components

Dextrometorphan
Polistirex
Pseudoephedrin HCl
Chlorpheniramine Maleat
Paracetamol
Pepermint oil
Alcohol
Propylene Glycol
Water
Fructose syrup
Color additives content
Suqqus Liquiritae
Sucrose
Benzoic acid
Sodium benzoate
M,p,b-paraben

Rp4,000,000
Rp600,000

100
1144
1144

Rp5,000,000
Rp10,000
Rp15,000
Rp20,000
Rp2,000,000
Rp1,380,000
Rp100,000
Rp1,800,000
Rp800,000
Rp800,000
Rp800,000

Rp0
Rp2,880,000
Rp1,200,000
Rp432,000
Rp144,000
Rp224,000
Rp252,000
Rp168,000
Rp500,000
Rp0

R
Rp6,000
Rp16,000

R
Rp8,400

Rp800,000

R
Rp16,000

Rp200,000
Rp10,000
Rp900,000

R
Rp6,000,000
Rp324,000
Rp24,000

R
Safety
Inventory
(1%/day)

Total
Purchased
Every Year

0.00132

48.6618

0.0033
0.00022
0.22
0.0044
0
0.00066
11.88
0
0.00000132
0.07348
1.32
0.000264
0.000264
0.000132

121.6545
8.1103
8110.3
162.206
0
24.3309
437956.2
0
0.0486618
2708.8402
48661.8
9.73236
9.73236
4.86618

Raw Material Cost +


Safety Inventory (1st
Purchase)
Rp270,000,000
Rp42,900,000
Rp680,000,000
Rp30,000,000
Rp16,000,000
Rp10,000,000
Rp10,000,000
Rp51,000,000
Rp72,000,000
Rp10,800,000
Rp70,000,000
Rp280,000
Rp210,000
Rp360,000
Rp40,000,000

Raw Material C
Inventory (1st P

Sorbitol
Essence
CMC
Blue Paint
Grey Paint
Black Paint
White Paint
Styrofoam
Wrap Plastic
Corrugated carton box
Total

0.000088
0.0000396
0
440
8.8
440
44
1
11.44
11.44

3.24412
1.459854
0
16220600
324412
16220600
1622060
36865
421735.6
421735.6

Rp38,640,000
Rp200,000
Rp18,000,000
Rp6,400,000
Rp14,400,000
Rp19,200,000
Rp8,000,000
Rp6,800,000
Rp4,940,000
Rp16,200,000

Rp

Rp
R
R

Rp4

1.2.1.1.2 Utilities
Utilities is the energy supply that is required to run all the processes in our plant. The
utilities are consisted of electricity and water supply in the plant.
a. Electricity
The electricity in our plan is the most vital utilities need to run our machine. Because
most our machine are driven by the electricity. To calculate the electricity requirements and cost
we need to calculate the power needed by our plan and also the energy/time price from the PLN
data. Here are the calculations:

Table 1. 1 List of Electricity Cost for Industry

(source : www.pln.co.id, accessed on April 28Th 2015)

From the data above our plan is classified into a large scale industry that required energy more
than 300 kVa. The electricity costs will be 991,60 Rp/kWh. From the data above the calculations
of the electricity needed in every year of our plan cycles is given as below:

Table 1. 2 Electricity Cost

No

Equipment

(Power supply
from PLN)
kWh

(Total power /
day) kWh

Loss

1
2
3

Stirer
Pump I
Homogenize
r
Pump II
Filtration
System
Pump III
Heating
System
Filling

47,025
0,855
17,1

4,125
0,75
15

0,5775
0,105
2,1

2,28
0

2
0

0,28
0

1,71
41,04

1,5
36

0,21
5,04

3,42

4
5
6
7
8

Total electircity per cycles (kWh)


Total electircity each days (kWh)
Total electricity per year (KWh)

0,42
71
284

103,660.00
Total electricity costs per year (Rp)

10
2,789,256.00

b. Water
Other the electricity, water is also needed for the utility of our plan. Water is needed for
the dilution process in our industry. Beside for the dilution, the water is also needed in the
mixing process because in Coughzero we use water as one of our main solvent. The needs of our
workers and labors in our plan will be also calculated. We calculate the water supply needed for
the workers with an average daily intake of 30 liter of water per person per day. The tariff is
based on the West Java Water Company tariff as below:

(source : www.pambdg.co.id, accessed on April 28Th 2015)

From the data above, our plan is listed as one of the 4B industries that will be charged with Rp.
16.300/1000 liters. The calculations of our water utility cost is shown in the table below
No
1
2

Needs
Needs
(L/day)
(m3/day)
3500
3.5
18000
18
Total Cost per Day
Total Cost per Year

Office
Plant

Cost (per m3)


16300
16300

Cost per
Day
57050
293400
350450
122,657,50
0.00

Based on the calculations for the electricity and water supply cost each year, the utility cost
for our plant is:
Utility Cost =Electricity Cost +Water Cost

Utility Cost =Rp. 102,789,256.00+ Rp .122,657,500.00=Rp . 245,090,770.25


c. Direct Labors
Direct labors are the employees that is hired to involve directly in the machine operations
and production processes of the Cough Zero. We determine the salary for those labors based
on the UMR (Regional Minimum Wage) policy that is set by the Regional Waging Council.
Because our plan is located in the West Java, we will give the salary of our labors and
workers above the regional minimum salary of Rp. 2.004.637 per month. We calculate the
total amount of money required to hired the labors as below

Direct Labor

Workers
(person)

Salary per
month per
person

Total Gross
Salary

Stirer Operator
4.00

2,500,000.0
0

10,000,000.00

4.00

2,800,000.0
0

11,200,000.00

Pump Operator

Homogenizer

Operator

4.00

2,800,000.0
0

11,200,000.00

Filtration System
Operator

4.00

2,500,000.0
0

10,000,000.00

20.00

3,500,000.0
0

5,000,000.00

20.00

2,500,000.0
0

50,000,000.00

4.00

3,000,000.0
0

12,000,000.00

4.00

3,000,000.0
0

12,000,000.00

Quality Controller

Packaging Labors

Heating Operator

Filling Operator

Cost/year
121,400,000.00
Variable Cost for Bonus (THR) 20%
24,280,000.00
Total Wages Cost/year
145,680,000.00

1.2.1.1.4 Maintenance Cost


Maintenance cost is the cost for caring and servicing by personnel for the purpose of
maintaining equipment and facilities in satisfactory operating condition by providing for
systematic inspection, detection, and correction of incipient failures either before they occur or
before they develop into major defects.
One of the main purpose for the maintenance activity is to stabilize the process efficiency
in the highest rate. The loss of efficiency are often cause by some damage or wearing out of the
machines. In the maintenance cost, the sum of money that is spent is on the purpose of repairing,
adjusting, calibrating or replacement of the component. In our plan, the maintenance will take
time in every months in order to keep the process efficiency high and to avoid larger value loss
in the future
To calculate the maintenance cost, we divided the cost into 3 type. The first is for the
building maintenance which costs 1% of the building capital cost. Second is the main equipment
maintenance which also cost 1% of the equipment price. The last is the maintenance of the
support equipment that is calculated in the same percentage as the building and equipment
maintenance cost

MAINTENANCE COST
Jenis Biaya
Supporting Facilities Maintenance (3% of Supporting
Facilities Cost)
Factory, Warehouses and Buildings (1% of cost of
Csite, DCs, and Cbuilding)
Equipments Maintenance (10% of Total Bare Modul
Cost)
MAINTENANCE COST PER YEAR

Rp

Jumlah (1% dari total)


79,976,500

Rp

43,679,300

Rp

431,073,609
Rp

554,729,409

1.2.1.1.5. Patent and Brand Registration


Patent and Brand Registrations are need in order of our product to be launched for public.
The patent and brand is also essential so that the competitors cannot produce an exact same
product as our product. The Patent and Brand Registration cost is divided into patents cost,
copyright cost, industrial design cost and brand cost
a. Patent
A patent is a set of exclusive rights granted by a sovereign state to an inventor or assignee
for a limited period of time in exchange for detailed public disclosure of an invention. An
invention is a solution to a specific technological problem and is a product or a process. Patents
are a form of intellectual property. The patents is lasted for 10 years and each year the owner of
the patents right is expected to play the maintenance cost each year. The total costs are
calculated below:
Table 1. 3 Patent Registration and Maintenance Cost

Patent
Patent Registration
License Registration
Primary License Request
Patent General List of Quotes Request
Patent Copy of Document Request
Patent Maintenance Cost
Year 2
Year 3
Year 4
Year 5
Year 6
Year 7
Year 8
Year 9
Year 10
Administration Cost
Regional Patent Implementation Request
Total Cost of Patent

Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp

Cost
600,000.00
1,000,000.00
3,000,000.00
100,000.00
10,000.00
700,000.00
700,000.00
900,000.00
1,000,000.00
1,000,000.00
750,000.00
2,000,000.00
2,000,000.00
300,000.00
3,500,000.00
1,000,000.00
3,000,000.00

Rp
21,560,000.00

b. Copyright
Copyright is a legal right created by the law of a country that grants the creator of an original
work exclusive rights to its use and distribution, usually for a limited time, with the intention of
enabling the creator (e.g. the photographer of a photograph or the author of a book) to receive
compensation for their intellectual effort. The copyright must be registered to the council as
calculated below:
Table 1. 4 Copyright Registration and Maintenance Cost

Copyright
Copyright Registration
Copyright Certificate Publishing Cost
Copyright Quotes Registration
Copyright License Administration
Total Cost of Copyright

c. Industrial Design

Rp
Rp
Rp
Rp
Rp

Cost
250,000.00
100,000.00
50,000.00
75,000.00
475,000.00

Industrial Design Cost is the cost that is paid to register the design of our product
so our company is the only one who has the right to sell the registered product. The costs
are listed below:
Table 1. 5 Industrial Design Registration and Maintenance Cost

Industrial Design
Industrial Design Registration
Industrial Design General List of Quotes
Request
Industrial Design Certificate Publishing Cost
Industrial Design Priority Document Request
Industrial Design Copy of Document Request
Industrial Design License Administration
Total Cost of Industrial Design

Rp
Rp

Cost
600,000.00
100,000.00

Rp
Rp
Rp
Rp
Rp

100,000.00
100,000.00
100,000.00
250,000.00
1,250,000.00

d. Brand
A brand is a name, term, design or other feature that distinguishes one seller's
product from those of others. Our brand is need to be registered to legalize our brand
design in the market. The fee for the brand registration costs are:
Table 1. 6 Brand Registration and Maintenance Cost

Brand
Brand Publishing Cost
Lengthening Time of Brand Protection
Brand Certificate Publishing Cost
License Administration
Official Brand Quotes Request
Written Notes of General List of Brand
Request
Total Cost of Brand

Cost
Rp
800.00
Rp
2,000,000.00
Rp
100,000.00
Rp
500,000.00
Rp
200,000.00
Rp
200,000.00
Rp
3,000,800.00

1.2.1.1.6 Fixed Cost


Fixed costs are costs that are independent on the production amount and tend to be in the
same value in every year. Fixed costs are divided into depreciation, taxes, insurance, advertising
and promotion costs, administrative costs, and the indirect employee salaries
1.2.1.1.6.1 Depreciation
In every year, the equipment that are purchased in the beginning of the plan development
will reach the end of its time value. The value of the equipment will be decreasing in every year
until it reach the point where we should buy new equipment to replace the old one. To calculate
the depreciation value of equipment that we had purchased before, we have to know the
equipment lifetime value and calculate the depreciation based on the data. In the end of every
year the equipment will have salvage value that will be used in the cash flow calculation. In
order to calculate the equipment depreciation, we use the declining balance method and lifetime
value for equipment for the 10 years operation in our plan.
To calculate the total depreciation, first we calculate the main equipment depreciation. After we
calculate it, we calculate also the supporting facilities and equipment depreciation. The last is we
calculate the distribution facilities depreciation. After we calculate them all, the depreciation of
each part is then sum up to get the total depreciation.

Equipmen
ts

Initial
Value

Preparation Rp
70,850,78
tank
Lobe motor
pump
Mixer
Filtration
Machine
Tank
storage
Filling and
Capping
Machine
Bottle
conveyor

2
Rp
277,878,1
74
Rp
113,043,8
99
Rp
1,416,688
Rp
70,880,85
0
Rp
354,458,9
18
Rp
141,816,3
68

Year 1
Depreciati
Salvage
on
Value
Rp
Rp
7,085,078 63,765,70
4
Rp
Rp
27,787,81 250,090,3
7
57
Rp
Rp
11,304,39 101,739,5
0
09
Rp
Rp
141,669
1,275,019
Rp
Rp
7,088,085 63,792,76
5
Rp
Rp
35,445,89 319,013,0
2
26
Rp
Rp
14,181,63 127,634,7
7
32

Year 2
Depreciati
Salvage
on
Value
Rp
Rp
6,376,570 57,389,13
3
Rp
Rp
25,009,03 225,081,3
6
21
Rp
Rp
10,173,95 91,565,55
1
8
Rp
Rp
127,502
1,147,517
Rp
Rp
6,379,276 57,413,48
8
Rp
Rp
31,901,30 287,111,7
3
23
Rp
Rp
12,763,47 114,871,2
3
58

Year 3
Depreciati
Salvage
on
Value
Rp
Rp
5,738,913 51,650,22
0
Rp
Rp
22,508,13 202,573,1
2
89
Rp
Rp
9,156,556 82,409,00
2
Rp
Rp
114,752
1,032,765
Rp
Rp
5,741,349 51,672,14
0
Rp
Rp
28,711,17 258,400,5
2
51
Rp
Rp
11,487,12 103,384,1
6
33

Year 4
Depreciati
Salvage
on
Value
Rp
Rp
5,165,022 46,485,19
8
Rp
Rp
20,257,31 182,315,8
9
70
Rp
Rp
8,240,900 74,168,10
2
Rp
Rp
103,277
929,489
Rp
Rp
5,167,214 46,504,92
6
Rp
Rp
25,840,05 232,560,4
5
96
Rp
Rp
10,338,41 93,045,71
3
9

The equipment depreciation cost is show in the table below. D is the amount of the depreciation in each year, and SV is the
amount of the salvage value that an equipment has in the end of each year of usage
Table 1. 7 Main equipment depreciation value

Table 1. 8 Main equipment depreciation value

Equipme
nts

Preparatio
n tank
Lobe
motor
pump
Mixer
Filtration
Machine
Tank
storage
Filling and
Capping
Machine
Bottle
conveyor

Year 5
Depre
Salva
ciation
ge
Value
Rp
Rp
4,648, 41,83
520
6,678
Rp
Rp
18,23
164,0
1,587
84,28
3
Rp
Rp
7,416, 66,75
810
1,292
Rp
Rp
92,94
836,5
9
40
Rp
Rp
4,650, 41,85
493
4,433
Rp
Rp
23,25
209,3
6,050
04,44
6
Rp
Rp
9,304, 83,74
572
1,147

Year 6
Depre
Salva
ciation
ge
Value
Rp
Rp
4,183, 37,65
668
3,010
Rp
Rp
16,40
147,6
8,428
75,85
5
Rp
Rp
6,675, 60,07
129
6,163
Rp
Rp
83,65
752,8
4
86
Rp
Rp
4,185, 37,66
443
8,990
Rp
Rp
20,93
188,3
0,445
74,00
2
Rp
Rp
8,374, 75,36
115
7,033

Year 7
Depre
Salva
ciation
ge
Value
Rp
Rp
3,765, 33,88
301
7,709
Rp
Rp
14,76
132,9
7,585
08,26
9
Rp
Rp
6,007, 54,06
616
8,546
Rp
Rp
75,28
677,5
9
97
Rp
Rp
3,766, 33,90
899
2,091
Rp
Rp
18,83
169,5
7,400
36,60
2
Rp
Rp
7,536, 67,83
703
0,329

Year 8
Depre
Salva
ciation
ge
Value
Rp
Rp
3,388, 30,49
771
8,938
Rp
Rp
13,29
119,6
0,827
17,44
2
Rp
Rp
5,406, 48,66
855
1,692
Rp
Rp
67,76
609,8
0
38
Rp
Rp
3,390, 30,51
209
1,882
Rp
Rp
16,95
152,5
3,660
82,94
1
Rp
Rp
6,783, 61,04
033
7,296

Year 9
Depre
Salva
ciation
ge
Value
Rp
Rp
3,049, 27,44
894
9,045
Rp
Rp
11,96
107,6
1,744
55,69
8
Rp
Rp
4,866, 43,79
169
5,523
Rp
Rp
60,98
548,8
4
54
Rp
Rp
3,051, 27,46
188
0,693
Rp
Rp
15,25
137,3
8,294
24,64
7
Rp
Rp
6,104, 54,94
730
2,567

Year 10
Depre
Salva
ciation
ge
Value
Rp
Rp
2,744, 24,70
904
4,140
Rp
Rp
10,76
96,89
5,570
0,128
Rp
4,379,
552
Rp
54,88
5
Rp
2,746,
069
Rp
13,73
2,465
Rp
5,494,
257

Rp
39,41
5,970
Rp
493,9
68
Rp
24,71
4,624
Rp
123,5
92,18
3
Rp
49,44
8,310

Equipment
s&
Facilities

Initial
Value

Computer
s

Rp
80,000,0
00
Rp
2,700,00
0

Facsimile
s
machine
Photocop
y,
scanner,
and
printer
machine
Clock
Table
desk
Chair
desk
Filing
cabinet
Sofa
CCTV
Meeting
room
furniture
set

Year 1
Depreciati Salvage
on
Value
Rp
Rp
8,000,000 72,000,0
00
Rp
Rp
270,000
2,430,00
0

Year 2
Depreciati Salvage
on
Value
Rp
Rp
7,200,000 64,800,0
00
Rp
Rp
243,000
2,187,00
0

Year 3
Depreciati Salvage
on
Value
Rp
Rp
6,480,000 58,320,0
00
Rp
Rp
218,700
1,968,30
0

Year 4
Depreciati Salvage
on
Value
Rp
Rp
5,832,000 52,488,0
00
Rp
Rp
196,830
1,771,47
0

Rp
67,500,0
00

Rp
6,750,000

Rp
60,750,0
00

Rp
6,075,000

Rp
54,675,0
00

Rp
5,467,500

Rp
49,207,5
00

Rp
4,920,750

Rp
44,286,7
50

Rp
500,000
Rp
18,900,0
00
Rp
4,500,00
0
Rp
20,000,0
00
Rp
3,400,00
0
Rp
10,000,0
00
Rp
10,000,0
00

Rp
50,000
Rp
1,890,000

Rp
450,000
Rp
17,010,0
00
Rp
4,050,00
0
Rp
18,000,0
00
Rp
3,060,00
0
Rp
9,000,00
0
Rp
9,000,00
0

Rp
45,000
Rp
1,701,000

Rp
405,000
Rp
15,309,0
00
Rp
3,645,00
0
Rp
16,200,0
00
Rp
2,754,00
0
Rp
8,100,00
0
Rp
8,100,00
0

Rp
40,500
Rp
1,530,900

Rp
364,500
Rp
13,778,1
00
Rp
3,280,50
0
Rp
14,580,0
00
Rp
2,478,60
0
Rp
7,290,00
0
Rp
7,290,00
0

Rp
36,450
Rp
1,377,810

Rp
328,050
Rp
12,400,2
90
Rp
2,952,45
0
Rp
13,122,0
00
Rp
2,230,74
0
Rp
6,561,00
0
Rp
6,561,00
0

Rp
450,000
Rp
2,000,000
Rp
340,000
Rp
1,000,000
Rp
1,000,000

Rp
405,000
Rp
1,800,000
Rp
306,000
Rp
900,000
Rp
900,000

Rp
364,500
Rp
1,620,000
Rp
275,400
Rp
810,000
Rp
810,000

Rp
328,050
Rp
1,458,000
Rp
247,860
Rp
729,000
Rp
729,000

Table 1. 25 Supporting equipment depreciation value

Equipments &
Facilities

White board
and other
meeting
instruments
Pantry
utensils
Dispenser
Toilet set
Neon Lamps
Industrial
Generator
Transportati
on Vehicles
Recycle bin
Air
Conditioner
for industrial
used

Telephone
Television

Year 1
Depreciati
Salvage
on
Value
Rp
Rp
18,000,00 1,800,000
0

Year 2
Depreciati
Salvage
on
Value
Rp
Rp
16,200,00 1,620,000
0

Year 3
Depreciati
Salvage
on
Value
Rp
Rp
14,580,00 1,458,000
0

Year 4
Depreciati
Salvage
on
Value
Rp
Rp
13,122,00 1,312,200
0

Rp
3,000,000
Rp
1,800,000
Rp
49,500,00
0
Rp
2,000,000
Rp
129,480,0
00
Rp
948,000,0
00
Rp
1,000,000
Rp
208,000,0
00

Rp
300,000
Rp
180,000
Rp
4,950,000

Rp
270,000
Rp
162,000
Rp
4,455,000

Rp
2,430,000
Rp
1,458,000
Rp
40,095,00
0
Rp
1,620,000
Rp
104,878,8
00
Rp
767,880,0
00
Rp
810,000
Rp
168,480,0
00

Rp
243,000
Rp
145,800
Rp
4,009,500

Rp
2,187,000
Rp
1,312,200
Rp
36,085,50
0
Rp
1,458,000
Rp
94,390,92
0
Rp
691,092,0
00
Rp
729,000
Rp
151,632,0
00

Rp
218,700
Rp
131,220
Rp
3,608,550

Rp
200,000
Rp
12,948,00
0
Rp
94,800,00
0
Rp
100,000
Rp
20,800,00
0

Rp
2,700,000
Rp
1,620,000
Rp
44,550,00
0
Rp
1,800,000
Rp
116,532,0
00
Rp
853,200,0
00
Rp
900,000
Rp
187,200,0
00

Rp
15,000,00
0
Rp

Rp
142,808,0
00
Rp

Rp
13,500,00
0
Rp

Rp
1,350,000

Rp
12,150,00
0
Rp

Rp
1,215,000

Rp
10,935,00
0
Rp

Rp
1,093,500

Rp
180,000
Rp
11,653,20
0
Rp
85,320,00
0
Rp
90,000
Rp
18,720,00
0

Rp

Rp
162,000
Rp
10,487,88
0
Rp
76,788,00
0
Rp
81,000
Rp
16,848,00
0

Rp

Rp
145,800
Rp
9,439,092
Rp
69,109,20
0
Rp
72,900
Rp
15,163,20
0

Rp

6,250,000

Total

625,000

5,625,000

Rp
301,261,
000

562,500

5,062,500

506,250

Rp
143,957,
700

4,556,250

Rp
129,561,
930

105,164,0
82
Rp
221,314,
194

Table 1. 26 Supporting equipment depreciation value


Equipments &
Facilities
Computers

Year
Depreciati
on
Rp
5,248,800

Facsimiles machine

Rp
177,147

Photocopy,
scanner, and
printer machine
Clock

Rp
4,428,675

Table desk

Rp
32,805
Rp
1,240,029

Chair desk

Rp
295,245

Filing cabinet

Rp
1,312,200

Sofa

Rp
223,074

CCTV

Rp
656,100

Meeting room
furniture set

Rp
656,100

5
Salvage
Value
Rp
47,239,2
00
Rp
1,594,32
3
Rp
39,858,0
75
Rp
295,245
Rp
11,160,2
61
Rp
2,657,20
5
Rp
11,809,8
00
Rp
2,007,66
6
Rp
5,904,90
0
Rp
5,904,90
0

Year
Depreciati
on
Rp
4,723,920
Rp
159,432
Rp
3,985,808
Rp
29,525
Rp
1,116,026
Rp
265,721
Rp
1,180,980
Rp
200,767
Rp
590,490
Rp
590,490

6
Salvage
Value
Rp
42,515,2
80
Rp
1,434,89
1
Rp
35,872,2
68
Rp
265,721
Rp
10,044,2
35
Rp
2,391,48
5
Rp
10,628,8
20
Rp
1,806,89
9
Rp
5,314,41
0
Rp
5,314,41
0

Year
Depreciati
on
Rp
4,251,528
Rp
143,489
Rp
3,587,227
Rp
26,572
Rp
1,004,423
Rp
239,148
Rp
1,062,882
Rp
180,690
Rp
531,441
Rp
531,441

7
Salvage
Value
Rp
38,263,7
52
Rp
1,291,40
2
Rp
32,285,0
41
Rp
239,148
Rp
9,039,81
1
Rp
2,152,33
6
Rp
9,565,93
8
Rp
1,626,20
9
Rp
4,782,96
9
Rp
4,782,96
9

Year
Depreciati
on
Rp
3,826,375
Rp
129,140
Rp
3,228,504
Rp
23,915
Rp
903,981
Rp
215,234
Rp
956,594
Rp
162,621
Rp
478,297
Rp
478,297

8
Salvage
Value
Rp
34,437,3
77
Rp
1,162,26
1
Rp
29,056,5
37
Rp
215,234
Rp
8,135,83
0
Rp
1,937,10
2
Rp
8,609,34
4
Rp
1,463,58
9
Rp
4,304,67
2
Rp
4,304,67
2

Year
Depreciati
on
Rp
3,443,738
Rp
116,226
Rp
2,905,654
Rp
21,523
Rp
813,583
Rp
193,710
Rp
860,934
Rp
146,359
Rp
430,467
Rp
430,467

9
Salvage
Value
Rp
30,993,6
39
Rp
1,046,03
5
Rp
26,150,8
83
Rp
193,710
Rp
7,322,24
7
Rp
1,743,39
2
Rp
7,748,41
0
Rp
1,317,23
0
Rp
3,874,20
5
Rp
3,874,20
5

Year 10
Depreciati
Salvage
on
Value
Rp
Rp
3,099,364
27,894,2
75
Rp
Rp
104,604
941,432
Rp
2,615,088
Rp
19,371
Rp
732,225
Rp
174,339
Rp
774,841
Rp
131,723
Rp
387,420
Rp
387,420

Rp
23,535,7
95
Rp
174,339
Rp
6,590,02
3
Rp
1,569,05
3
Rp
6,973,56
9
Rp
1,185,50
7
Rp
3,486,78
4
Rp
3,486,78
4

Table 1. 26 Supporting equipment depreciation value


Equipmen
ts &
Facilities

Year 5
Depreciat
ion

Salvage
Value

Year 6
Depreciat
ion

Salvage
Value

Year 7
Deprecia
tion

Salvage
Value

Year 8
Deprecia
tion

Salvage
Value

Year 9
Deprecia
tion

Salvage
Value

Year 10
Deprecia
tion

Salvage
Value

White
board

Rp
1,180,980

Pantry
utensils

Rp
196,830

Dispenser

Rp
118,098
Rp
3,247,695

Toilet set

Rp
10,628,82
0
Rp
1,771,470

Rp
1,062,882

Rp
1,062,882
Rp
29,229,25
5
Rp
1,180,980

Rp
106,288
Rp
2,922,926

Rp
7,645,665

Rp
369,056

Neon lamps

Rp
131,220

Industrial
generator

Rp
8,495,183

Transportati
on vehicles

Rp
62,198,28
0
Rp
65,610
Rp
13,646,88
0
Rp
984,150

Rp
76,456,64
5
Rp
559,784,5
20
Rp
590,490
Rp
122,821,9
20
Rp
8,857,350

Television

Rp
410,063

Rp
3,690,563

Total

Rp
104,945,
163

Recycle bin
Air
conditioner
Telephone

Rp
177,147

Rp
118,098

Rp
55,978,45
2
Rp
59,049
Rp
12,282,19
2
Rp
885,735

Rp
94,450,6
47

Rp
9,565,93
8
Rp
1,594,32
3
Rp
956,594
Rp
26,306,3
30
Rp
1,062,88
2
Rp
68,810,9
81
Rp
503,806,
068
Rp
531,441
Rp
110,539,
728
Rp
7,971,61
5
Rp
3,321,50
6

Rp
956,594
Rp
159,432
Rp
95,659
Rp
2,630,633
Rp
106,288
Rp
6,881,098
Rp
50,380,60
7
Rp
53,144
Rp
11,053,97
3
Rp
797,162
Rp
332,151
Rp
85,005,5
82

Rp
8,609,34
4
Rp
1,434,89
1
Rp
860,934
Rp
23,675,6
97
Rp
956,594

Rp
860,934

Rp
7,748,410

Rp
774,841

Rp
6,973,569

Rp
697,357

Rp
6,276,212

Rp
143,489

Rp
1,291,402

Rp
129,140

Rp
1,162,261

Rp
116,226

Rp
1,046,035

Rp
86,093
Rp
2,367,570

Rp
774,841
Rp
21,308,12
7
Rp
860,934

Rp
77,484
Rp
2,130,813

Rp
697,357
Rp
19,177,31
4
Rp
774,841

Rp
69,736
Rp
1,917,731

Rp
627,621
Rp
17,259,58
3
Rp
697,357

Rp
61,929,8
83
Rp
453,425,
461
Rp
478,297
Rp
99,485,7
55
Rp
7,174,45
4
Rp
2,989,35
6

Rp
6,192,988

Rp
5,573,689

Rp
645,701

Rp
50,163,20
5
Rp
367,274,6
24
Rp
387,420
Rp
80,583,46
2
Rp
5,811,307

Rp
5,016,320

Rp
717,445

Rp
55,736,89
4
Rp
408,082,9
15
Rp
430,467
Rp
89,537,18
0
Rp
6,457,008

Rp
581,131

Rp
45,146,88
4
Rp
330,547,1
61
Rp
348,678
Rp
72,525,11
6
Rp
5,230,177

Rp
298,936

Rp
2,690,420

Rp
269,042

Rp
2,421,378

Rp
242,138

Rp
2,179,240

Rp
95,659

Rp
45,342,54
6
Rp
47,830
Rp
9,948,576

Rp
76,505,0
24

Table 1. 26 Supporting equipment depreciation value

Rp
86,093

Rp
40,808,29
2
Rp
43,047
Rp
8,953,718

Rp
68,854,5
22

Rp
77,484

Rp
36,727,46
2
Rp
38,742
Rp
8,058,346

Rp
61,969,0
69

Table 1. 27 Total Depreciation Cost

YEAR
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
TOTAL DEPRECIATION

Total Depreciation
Rp
404,295,568
Rp
236,688,811
Rp
213,019,930
Rp
296,426,394
Rp
172,546,143
Rp
155,291,529
Rp
139,762,376
Rp
125,786,138
Rp
113,207,525
Rp
101,886,772
Rp
1,958,911,186

1.2.1.1.6.2 Local Tax


Tax is the responsibility that the company have to pay for the government. The amount of
the profit tax is about 30% of the net profit of the company. The tax rate is different for each
company. Because our company is listed as a company that has net profit more than 500 billion,
a 30% tax rate will be applied. To calculate the tax cost for every year, we should apply the tax
rate in the income every year. The calculations is shown below:
Table 1. 9 Local Tax

YEAR

Taxable Income (Rp)

Earnings Tax (Rp)

2015

2016

(8,250,309,885)

2,475,092,965

2017

(2,464,784,366)

739,435,310

Table 1. 10 Local Tax (contd)

YEAR

Taxable Income (Rp)

Earnings Tax (Rp)

2018

3,315,188,788

(994,556,636)

2019

9,090,164,813

(2,727,049,444)

2020

14,860,643,422

(4,458,193,027)

2021

15,114,574,357

(4,534,372,307)

2022

15,147,360,519

(4,544,208,156)

2023

15,176,868,065

(4,553,060,420)

2024

15,203,424,857

(4,561,027,457)

2025

15,227,325,969

(4,568,197,791)

TOTAL

(27,726,136,962)

(Source: Authors Personal Data)

1.2.1.1.6.3 Insurance
The insurance is the amount of money that the company has to pay for the insurance
company. The insurance company is hire to protect assets of our company in case unexpected
thing happens in the future that cost loss of value of the company variable or fixed assets. The
insurance costs paid by the company are including the plant assets and the employees insurance.
It assures if accident happen and also assure the retirement of the employee and the health care.
The total amount of the insurance costs are:
Table 1. 11 Annual Insurance Cost

Insurance Type

INSURANCE COST
Measure

Plant Insurance
Workforces Life Insurance

1% of FC cost

Rp.
200.000,00/per
son
ANNUAL INSURANCE COST

Price
Rp

171,043,115

Rp
3,600,000
Rp
174,643,115

1.2.1.2 General Expenses


The general expenses are paid to support the factory office as a part of the operational
activity to run the company. The general expenses are the routine expenses that are related to the
indirect labor cost. Indirect labor cost are the cost that the plant have to pay for labors who are
mostly work in the office section of the factory. The indirect labors will be associated in the
planning, controlling, and organizing the human resources in the factory. The employees salary
is not included the insurance costs that the employee get every month. The detail of the expenses
for the indirect labor cost will be listed in the table below.
Table 1. 12 Indirect Labor Cost

No

Division

Stakehold
er and
Financial
Departme
nt

President Director

HRD
Departme
nt

HRD Manager

HSE and
Maintenan
ce
Departme
nt

HSE Manager

2
3
4
5
6
7
8
9
10

Supply
Chain
Departme
nt

11

14
15
16
17
18
19
20
21
22

Secretary of President
Director
Finance Manager

Recruitment Staf

Maintenance Manager
Process & Facility
Engineer
Supply Chain
Department Manager
Transport Service
Product Distribution
Control Staf
Supply Coordinator

12
13

Position

Product
Planning
and
Developm
ent
Departme
nt
Sales and
Marketing
Departme
nt
General
Support
and
Service
Departme
nt

Operational Coordinator
Production Manager
Pharmacist
Quality Control
Supervisor
Marketing Officer
Customer Service
Security
Receptionist
Cleaning Service
Office Boy/Girl
Total per month
Total per year

Salary/mo
nth

Rp22,000,
000
Rp7,500,0
00
Rp8,000,0
00
Rp7,000,0
00
Rp5,000,0
00
Rp7,000,0
00
Rp7,000,0
00
Rp6,500,0
00
Rp7,000,0
00
Rp3,000,0
00
Rp3,500,0
00
Rp4,000,0
00
Rp6,000,0
00
Rp7,000,0
00
Rp8,000,0
00
Rp45,000,
000
Rp4,000,0
00
Rp2,500,0
00
Rp2,700,0
00
Rp2,700,0
00
Rp2,700,0
00
Rp2,700,0
00

Amoun
t of
Human
Resour
ce
1

Total (Rp)

Rp22,000,0
00
1
Rp7,500,00
0
1
Rp8,000,00
0
1
Rp7,000,00
0
1
Rp5,000,00
0
1
Rp7,000,00
0
1
Rp7,000,00
0
1
Rp6,500,00
0
1
Rp7,000,00
0
1
Rp3,000,00
0
2
Rp7,000,00
0
1
Rp4,000,00
0
1
Rp6,000,00
0
1
Rp7,000,00
0
1
Rp8,000,00
0
1
Rp45,000,0
00
1
Rp4,000,00
0
1
Rp2,500,00
0
5
Rp13,500,0
00
1
Rp2,700,00
0
3
Rp8,100,00
0
4
Rp10,800,0
00
32
Rp198,600,
000
Rp2,383,200,000

The other component of general expenses are Communication cost, annual research and
development cost, annual distribution cost, and annual financial interest cost for 10 years (our
life expectancy). The details of component general expenses calculation is shown in table
below:
Table 1. 13 Total Communication Cost

(in thousand rupiahs)


COMMUNICATION COST
Mail

Rp
20,000,000
Rp
50,000,000
Rp
12,500,000
Rp
70,000,000
Rp
152,500,000

Telephone & Facsimile


Internet
Office Operationals
ANNUAL COMMUNICATION
COST

So, the annual of general expense can be seen in this table below
Table 1. 14 Annual General Expense

(in million rupiahs)

TYPE
Administrative Cost
Annual Distribution Cost
Annual Research and Development Cost
Annual Marketing Cost
Annual Communication Cost
TOTAL

COST (Rp)
2,000,000,000.00
1,168,440,00
0
3,298,833,560.50
609,000,00
0
127,500,00
0
7,203,773,560.50

From the resource of the general expense above, can be seen that the most dominated
of general expense cost source is Research and Development cost

1.2.1.2.1 Distribution Cost


The distribution cost is used as the cost for transferring and distributing the product from the plant to the distribution center.
The distribution cost will be sorted according to the distance between the plant and the distribution center. Beside that we will also
calculate the distribution cost from the distribution center to the wholesaler or the local drugstore. The distribution will be performed
by the truck that our company has purchased before. The cost consists of fuel cost, driver fee, port fee, toll fee, etc. The calculation is
show in the table below:
Table 1. 39 Annual distribution cost

Kind
of
Cost
Fuel

Drive
r

Jakar
ta

Band
ung

Tange
rang

MARKETING & DISTRIBUTION COST


PRODUCT DISTRIBUTION COST
From Plant in Rancaekek to Distribution Center
Beka depo bogo Aceh
Meda Maka Balikp
si
k
r
n
sar
apan

Rp
500,0
00
Rp
200,0
00

Rp
200,0
00
Rp
20,00
0
Rp
-

Rp
750,00
0
Rp
250,00
0

Rp
750,
000
Rp
250,
000

Rp
200,0
00

Rp
50,000

Shipp
ing
Toll

Rp
200,0
00

Rp
750,
000
Rp
250,
000

Rp
200,
000

Jayap
ura

Rp
750,
000
Rp
250,
000

Rp
200,
000

Total

Rp
3,700,000

Rp
2,500,
000
Rp
200,
000

Pontia
nak

Rp
2,000,
000

Rp
4,000,
000

Rp
2,000,0
00

Rp
2,000,
000

Rp
4,000,
000

Rp
1,220,000
Rp
16,500,00
0
Rp
1,050,000

Total Distribution Cost from plant to DC for 1 years

Rp
3,040,44
0,000

1.2.1.2.2 Marketing Cost


Marketing aims to introduce the products to the consumers then we can get consumers
awareness. Besides, marketing is also used to maintain the image and sell the brand. For
estimating the marketing cost, we need to define the marketing strategy of our product.
Marketing the products aims to help our product, the coughzero to be well known in the society.
The marketing is also needed to introduce our products to the public and launch it to the market.
By the marketing, people will know our product and will be increasing our sales.
1.2.1.2.2.1 Target Setting
Target setting is made so that a more focused marketing to the market in accordance with the
excellence of our products. Water purifier products target market is upper middle class society,
that live in area thats most likely will face disaster.
1.2.1.2.2.2 Market Segmentation
Market segmentation is the division or grouping into market segments of potential
customers with similar characteristics indicating a common behavior of buyers.
Market segmentation divides the market / buyer based on geographic, demographic,
psychografic, or behavior. Four segments of this market will affect consumer demand for the
product..
a. Geography Segmentation
Based on geographic segmentation, the market is divided by domicile. Water purifier
planned to be marketed in several big cities in Indonesia, Jakarta, Medan, Surabaya, Malang,
Palembang. The consideration related to our consumer thats upper middle class society. Most of
them live in big cities.
b. Demographic Segmentation
Based on demographic segmentation, the market is divided based on age, gender, income
level, occupation, education level, religion, or race / ethnicity. Our products are made for
families, single men, single women and the level of economic (income) upper middle and active

working age (20-65 years old), especially those who already have a place of my own. This
product is intended for individuals or families with incomes above the level of 5 million rupiah.
c. Psychographic Segmentation
Based on market psychographic segmentation, it is divided by social class characteristics,
lifestyle, and personality. In terms of functional, our products are intended for individuals or
families with middle to upper economic levels, especially those who already have a place of my
own. It is based on those who already have a place of my own have a greater need for water
purifier for homes, than not having a place to stay. Based on the survey, we decided our products
would be appropriate for consumers with a place to stay at a price of 100 million rupiah.
d. Behavior Segmentation
Based on the behavior of market segmentation, it is divided by the level of knowledge,
attitudes, and usage or their reaction to a product. Based on the level of knowledge, we feel that
there is no need to restrict consumers to a particular school level, because awareness to get clean
air in their homes can be grown through branding, sales promotion and demonstration time.
Awareness and knowledge can not be grown in an instant, because it is our plan to create a
brochure that displays important facts of clean air in our marketing activities. We hope after
consumers purchase and will benefit our product, then consumers will be loyal to our products
and attract other consumers to also use water purifier.
1.2.1.2.2.3 Marketing Mix
In order to establish the right strategy, so that the product gained a strong position in the
market, it is necessary to intermingling marketing (marketing mix). Marketing Mix aims to
create a good and successful in achieving company objectives and provide satisfaction to the
customer. Marketing Mix is also known as the 4Ps, which consists products (goods or services),
price (price), place or distribution (distribution), and promotion (promotion).
a. Product
Coughzero is an portable water purifier which doesnt need electricity to be operated.
This product use three stages of water purification process which make the output water of this
product can be consumed directly. Those three stages are Ceramic Micro Filtration which can
filter the sediment and the other particle which can remove the particle which size is bigger that
0.2-0.8 micron with its porous, Activated Carbon Absrobtion which can absorb the particle

causing the turbidity in the water, and UV-Lamp Technology which can kill the DNA of any
microorganism in the water.
b. Price
We set the product price to be Rp 1,260,000.00 per unit Coughzero. We estimate the price
is quite affordable to the target market and quite able to compete in the market with other
products.

c. Place
Our products will be marketed through wholesalers, pharmacy, local drugstore, and also
through minimarket
d. Promotion
Promotion will be done through advertisements, brochures, website creation products,
account setup facebook, twitter, soft launch, visits to the wholesaler, and demonstrations in malls
/ exhibitions / events.
1.2.1.2.2.4 Advertisement
This product will be advertised through online media and print media such as magazine,
tabloid, and newspaper. The advertisement will be posted in the online site which has many
visitors daily, such as detik.com, tokobagus.com, kaskus.co.id, Google Adsense, Alibaba.com,
ad-gratis, and the others. Meanwhile the print media which is going to be the target of our
advertising media is Kompas, Harian Seputar Indonesia, Readers Digest, etc.
a. Website
As we know that everyone, even children can access the internet nowadays, the website
for this product is a must. This website can provide adequate information concerning the product
information, such as the technology used in this product, the benefits, the location where the
product is sold, and the others. This website can also contain information about the company,
including vision and mission, company profile, or the contact that can be reached when a
prospective customer wants to ask questions or make complaints.
b. Social Media Account

Nowadays, the number of people who doesnt have a social media account such as
Twitter, Facebook, Instagram, or Path, is a minority. It makes the social media can give a huge
influence to someones social life. By making the verified account in these social media, the
consumer will feel close to the producer so they will free to ask about the product.
c. Demonstration at Public Places
Doing is believing. These phrase is so true since many people doesnt want buy any water
purifier in market because they dont believe about the output water of water purifier. The only
way to convince the consumer to buy our product is by doing the demonstration in several public
places. By doing so, the consumer can see directly about the process and the output of the water
purifier.

d. Visiting wholesaler
By visiting the wholesaler, they will know there is a new product recently launched.
Wholesaler are visited mainly wholesaler Water Purifier and Electronics. Visits were made by
Sales Engineer with a brochure and other supplies needed, at which time the visit is described on
the product and product advantages. Visit not only done at the beginning of a new launch, but at
regular intervals to check the wholesaler and the need to maintain good relations with
wholesalers as well as customer service.

By the marketing strategy that was defined above, we can estimate the marketing cost. The
marketing cost estimation is given below:
a. Grand Launching
Then grand launching of our product is essential to launch our product to the market for
he first time. The grand launching costs are include the place rent cost for the grand launching,
the event organizer, and the seminar series cost. The seminar will be held with a cough medicine
theme and the use of alcohol in the pharmacy industry. It purposed to raise awareness to the
cough and promoting our product in the end of the grand launching.
b. Advertisement
For expansion of Coughzero water purifier product marketing, we create products
through printed media, billboard,online advertising and TV commercial. In the printed media,

our product are marketed through the Kompas and Media Indonesia. The calculation for printed
media based on the number of dimensions per year price. For billboard advertising,, we only
marketing in two area radio in Jakarta and Medan. Meanwhile for Online advertising, our
product use four sites, Google Adsense, ad-free, and detik.com. And for TV Commercial we
advertising in SCTV and RCTI.
c. Billboard
Billboard is one of effective media and suitable for our market segmented that is middle
and high class society that usually populated in big city. Here we defined the location of
installation of billboard is in our main distribution cities
d. Sites Development
Beside of marketing advertising with printed media and radio, our product also promoted
by creating and developing website.
The total Adivertisement cost is shown in the table below:
Table 1. 15 Annual Marketing Cost

PRODUCT MARKETING COST

Marketing
Types
Product
Launching
Billboard

Cost

Rp
70,000,000
Rp
40,000,000
Printed Media
Rp
25,000,000
TV Commercial
Rp
450,000,000
Advertising
Rp
Online
24,000,000
ANNUAL Rp
MARKETING 609,000,000
COST

From the data the weve calculated before, we can calculate the total operating cost
and also determine the percentage that contribute the total operating expenditure
annually

Table 1. 16 Total operation expenditures

Type of Cost
Raw Materials
Operating Labor
Utilities
Maintenance
Depreciation
Insurance
Executive Salary
Communication
Marketing and Advertising
Distribution
Research and Development
Total

Amount
Rp

45,345,655,581

Rp
Rp
Rp
Rp
Rp
Rp
Rp
Rp

628,320,000
122,657,500
554,729,409
195,891,119
174,643,115
3,950,800,000
127,500,000
609,000,000

Rp

1,168,440,000

Rp

3,298,833,561

Rp 122,025,641,494

Cost Breakdown

Direct Material
Direct Labor
37%

Factory Over Head


Maintenance
Marketing and Advertising
Distribution

57%

1%

General Expenses

4%
1% 0% 0%

Figure.1 Cost Breakdown of the operation expenditure