INDUSTRIAL

MANAGEMENT
 INDUSTRIAL MEANING

1. Steady applications to a task, business or labor

(= ready to carry out a job assignment or a line of
business or an employee who is ready to carry out or
implement a permanent job assignment continuously
and regularly)
2. Any form of economic activity
(= various forms of economic activity)
Economic activities can be carried out by
individuals or companies
3. Productive enterprises generally
(= productive firms produce goods or services that
can be sold in general)
4. Productive occupations as distinguished form
finance and commerce.
(= a place or work that is productive, which is to
produce a good or service)
5. Particular branch of work or trade.
(= specific branch of work or trade)
 CONCLUSION

Industry is a business group that produces similar

goods or services vertically or horizontally
 Industry Classification

• Based on vertical relationships

• Based on horizontal relationships
• Based on the scale of the business
• Based on the level of the type of production
• Based on individual productivity
 Based on vertical relationships

a. Upstream industry: Companies that make products

that can be used as raw materials by the company
b. Downstream industry: Companies that use other
companies' products as raw materials to be
processed into semi-finished or finished goods
 Based on horizontal relationships

Parallel relationship between several products produced

by several companies in the same industry group.
 Based on the scale of the
business
a. Small-scale industry, with investment of 50 million
to 100 million
b. Medium-scale industry, with capital invested 100
million to 500 million
c. Large business scale industry, invested capital of
more than 500 million
 Based on the level of the type of
production
a. Light industries: companies that produce consumer
goods
b. Medium-sized industries: pharmaceuticals,
transportation services, chemicals, car tires
c. Heavy industries: manufacturing car engines,
manufacturing aircraft, mining exploration
 Based on individual productivity

• Primary industry: industries whose products are not

processed directly or without being processed first
(production results
• Secondary industry: industries that process raw
materials into goods that can be reprocessed (silk
thread spinning, electronic components)
• Tertiary industry: an industry that produces products
in the form of services.
 Industry Classification in Indonesia

A. Large Industry Group

(Industry Division)
B. Large Group of Industry
(Industry Major Group)
PRODUCTION MANAGEMENT

Definition 1:
Activities that produce something to meet needs.
Definition 2:
Efforts to change shape or nature or assemble basic
materials into materials of higher value or usefulness
 PRODUCTION

Is a process by which infrastructure resources are converted

into finished goods or services.
Infrastructure sources:
- Building
- Machine
- Means of transportation
- Employees / labor
- Knowledge / skills / expertise
- Money or capital
 ROLE / FUNCTION OF
PRODUCTION MANAGEMENT
1. Produce goods / services according to the provisions.
2. As a manager / controller in the flow of resources so
that they are required to increase their efficiency and
productivity.
 PRODUCTION MANAGEMENT
OBJECTIVES
Determining company policy on matters such as:
- how big and the extent of the operation
- how much is the investment in the factory
- how much labor
- how much income from the investment invested in the
company
- what is the level of service quality
 PRODUCTION PLANNING

A. Product planning
B. Plant layout planning
C. Production system planning
D. Design planning
E. Production standard planning
 PRODUCTION CONTROL

• Done with the awareness that planning basically contains

an element of estimation.
• The likelihood of deviation from occurring must always
be taken into account and the means for resolving it need
to be determined.
 TYPES OF CONTROL

1. Flow controll
>>> is used for continuous production types
continuously where the engine arrangement is one unit

2. Order controll
>>> is used in companies that are the nature of its
production based on order
 RAW MATERIAL CONTROL

1). Influencing factors raw material inventory

• Estimated usage
• Raw material prices
• Cost of supplies of raw materials
• His real use
• Waiting time
PRODUCTION COST CONTROL

Cost is one of the factors that must be considered in

controlling production, that is : raw material costs,
labor costs and factory overhead costs.
The cost of production determines the selling price of
the product.
 LABOR CONTROL

This control is mainly in the intermittent production

process.
For example: carving crafts, handicraft etc.
Necessity: Networking Planning
(Network planning)
 ASSESSING ACHIEVEMENT

Low productivity comes from:

A. There is lost time
(1) General:
Just work during the day as it should be can work day and night
(2) Specific:
- many are absent
- holding tools / holding devices
B. The use is not effective from the existing time.
(1) Poor method
(2) unclear instructions
 DETERMINATION OF
COMPANY LOCATION
• Close to the market
• Close to raw materials
• Close to transportation
• Close to the workforce
• Availability of resources (water, gas or electricity)
• The existence of pollution / waste control
• Easy investment (capital available for investment)
 MARKETING MANAGEMENT

• A management in carrying out the sale of products.

• Marketing can be done by:
- direct selling (direct selling)
- indirect selling (indirect sales)
- selling by order (sales based on order)
- telemarketing (sales made through the internet )
• Marketing management is an activity of analyzing,
planning, and controlling the programs that have
been launched in relation to the desired exchanges
for consumers.
 DESCRIPTION OF THE
MARKET
• The real market:
Meetings between sellers and buyers both directly and
transactions occur
Abstract market:
Meetings between sellers and buyers through
electronic media / print media
 MARKETING ACTIVITIES

• Is an activity to sell and advertise a product or

service to the public
• The market is a meeting place for sellers and
buyers in both "real markets" and "abstract
markets"
• The real market is a market where the process of
selling goods is directly brought by the buyer
after being paid
• Abstract market is a market whose buying and selling
process is indirect, but through a mediator. For
example the capital market, stock exchange.
• Traditional market is a way market payment directly
between the seller and the buyer (without going
through the cashier)
• The modern market is a market that is purchased
through a cashier
• Black market (Black market) is a market where sales
are made illegal(= not openly). For example; sale of
contraband, sale and purchase of drugs
(psychothropica), sales of children / people (trafficking)
 INDUSTRIAL MANAGER DUTIES

• Industrial managers must be able to carry out

management functions in order to achieve work
productivity as defined in the company's vision and
mission.
• The company will exist and develop if all of its
production marketable and get the maximum profit
for the company
Management Level
TASKS: Literature based research
Make a presentation on Production Management, Operations, Supply
Chain in Industry: (Choose one in the field of food / biotechnology /
chemistry).
Food:
Biotechnology:

Chemistry :