Review 1

TPP1033 Sistem Industri Pertanian

 Sistem Industri Pertanian

A system can be defined as a set of interrelated

parts that must work together.
In a business organization, the organization can
be thought of as a system composed of
subsystems (e.g., marketing subsystem,
operations subsystem, finance subsystem), which
in turn are composed of lower subsystems.
Industry is a group of firms producing a similar product
or service.
Agro-industry “an enterprises that processes materials
of plants or animal origin.
Processing involves transformation and preservation
through physical or chemical alteration, storage,
packaging and distribution” (Austin, 1992).
Supply Chain Illustration
 Production and Operations

Operations as part of a business organization that is

responsible for producing goods and/or services.
Goods are physical items that include raw materials,
parts, subassemblies, and final products.
Services are activities that provide some combination
of time, location, form, or psychological value.
The ideal situation for a business organization is to
achieve an economic match of supply and demand.
Having excess supply or excess capacity is wasteful
and costly; having too little means lost of opportunity
and possible customer dissatisfaction.
The key functions on the supply side are operations
and supply chains, and sales and marketing on the
demand side.
 Marketing

Marketing is managing profitable customer relationships.

The twofold goal of marketing are (1) to attract new customers
by promising superior value and (2) to keep and grow current
customers by delivering satisfaction (Kotler and Armstrong,
2014).
Marketing consists of activities involved in making people
aware of a company's products, making sure that the products
are available to be bought, etc. (Meriam-Webster, 2018).
Marketing Process
Marketing Plan

Consumer analysis
Demand Analysis
Competition analysis
Procurement plan
Processing plan
Supply Chain Processes
 Bullwhip Effect

Occurs when slight demand variability is magnified as

information moves back upstream
Supply Chain Illustration
 Supply Chain Management

The design of a firm’s customer relationship,

order fulfillment, and supplier relationship
processes and the synchronization of these
processes with the key processes of its
suppliers and customers in order to match
the flow of materials, services, and
information with customer demand.
 Capacity Planning

The number of units a facility can hold,

receive, store or produce in a period of time.
It is the upper limit or ceiling on the load that
an operating unit can handle. It includes:
equipment, space, employee skills.
 Capacity Measures

Design capacity is the maximum output rate or

service capacity an operation, process, or
facility is designed for
Effective capacity is capacity a firm can
expect to attain given its product mix, methods
of scheduling, maintenance and standards of
quality. Design capacity minus allowances such
as personal time, maintenance and scrap
 Capacity Related Concepts

Efficiency is a measure of how well a

facility is performing. It is a percentage (%)
of actual output over effective capacity.
Utilization is a measure of actual capacity
usage of a facility. It is a percentage (%)
of actual output over design capacity.
 ECONOMIES AND DISECONOMIES OF
SCALE
Economies of Scale and the Experience Curve working

100-unit
Average plant
unit cost 200-unit
of output plant 400-unit
300-unit
plant
plant

Diseconomies of Scale start working

Volume
 Industry and Competitor Analysis

An industry is a group of firms producing a

similar product or service, such as food and
beverages, fitness drinks, furniture, airlines, or
electronic games.
Is business research that focuses on the
potential of an industry.
 Porter's Five Forces

1. Threats of substitutes
2. Threat of new entrants
3. Rivalry among existing firms
4. Bargaining power of suppliers
5. Bargaining power of buyers
5-21
Porter's Five Forces