Cost Control & Improvement

Delivering Value to Our Customers

Ikhsan Londong
Sharing Session
Bekasi, 12 Feb 2019
 Ikhsan Londong
Experiences :
• Freelance Consultant
• Operation Management System (OMS) Advisor at
PT. DHL Supply Chain Indonesia
• Strategy Development & Implementation at PT.
Salam Pasific Indonesia Line
• Division Head of Strategic Program &
Implementation at PT. Indosat, Tbk.
• Business Improvement Manager at PT. DNX
Indonesia – Mining Services
• Industrial Excellence Manager at PT. UNINDO (JV
Schneider Electric, PT. PLN. Tbk)
• Quality, Production, Factory Improvement at PT. LG
Innotek Indonesia
• Risk Management Consultant at Grupo Boa Vista
Key Project Implementation :
• Continuous Improvement: Production, Quality,
Supply Chain, Commercial/Sales, Finance
• Business Transformation Strategy & Implementation:
• Operation/Production System
• Cost Transformation Program
• Greenfield Transformer Factory Project
• Rapid Product Development E2E Improvement
• Customer Complaint Handling E2E Improvement
• Supplier Management Control Innovation
• Outsourcing Management
Cost Control & Improvement Overview (1/2)
(Related to Balance Sheet, P&L Report)

WIP – Raw Material

Key Activity Required for
Raw Finished Sales
Material
WIP – Direct Labor
Good
Cost Control and
WIP- Overhead cost
Improvement :
Revenue  Product, Process,
Cost of
Good Sold
Organization
RM FG (COGS)
WIP
Closing
Closing Balance
Closing Expense knowledge
Balance Balance
 Financial Analysis
Tax, Interest,
Amortization  Change Management
 Reporting
Balance Sheet Report Profit and Lost Report
 Cost Control & Improvement Overview (2/2)
(Cash Flow Management )
When Profit Is not enough?
Inventory Inventory Company have to generated CASH!!
Arrives Shipped CASH IS THE KING !!!

Inventory Reduce Waste in our business

Days
Payables Receivables
Cash GAP

0 20 40 60 80 100 120 140

Customer Happy
Cash Cash Employee Happy
Paid Received Owner Happy

CASH Flow Management : Cash from Operation, Cash used for investment, Cash for Financing
Key Portfolio Cost Control & Improvement Experiences
• ERP System and Transaction Improvement
• Standardization Item Master and Parameterization, Reporting dashboard (MFG-Pro)
• in house ERP system Development (Material Management Module)
• Supply Chain E2E Improvement
• Standardization Demand vs Supply Protocol
• Visual Management Control E2E
• Purchasing & Logistic Improvement
• VMI, Supplier Contract Management
• Warehouse Management system
• Supplier Performance and Lead time Improvement
• Production and Quality Improvement
• Lean Production (APS, SPS, OMS, BeX)
• Factory Improvement (Super line, Kitting system)
• Bunker Cost Optimization
• Product Development Improvement
• Redesign Product (Old stock, non Standard material)
• RAPID Product Development E2E
• G&A, Marketing/Sales Improvement
• Managed Service support function
• Project Manager Greenfield – Transformer Factory Cibitung
• Business Case, Factory Design , Project Plan, Supplier Selection, Implementation
Example Project Snapshot
Demand Vs Supply Standardization E2E
Example Project Snapshot
Warehouse Management system Improvement

Stock Take Evolution 2007 -2008

120
97.3 97.6 98.7 98.7
100 89.3 92.0 86.2
92.4 92.9 94.0
Result Improvement:
80 72.0
63.0
56.0
65.0 Stock Take accuracy Dec 2007 : 63.0%
%

60

40
Stock Take accuracy Dec 2008 : 98.7%
20

0
Dec-07 Avg 2007 Mar-08 Jun-08 Sep-08 Dec-08 Avg 2008
Month

1st Count 2nd count

Supply Chain Improvement E2E – Mining Services
Supply Chain Improvement E2E – Mining Services
Example Project Snapshot
Product Development E2E Improvement- Telco
Green Field Transformer Factory- Snapshot
Project Manager