Halal Supply Chain Management

SCOR Project and Key Risk Indicator on PT. Albisindo Timber

Company

Created By:
Muhammd Rizqy Abdurrahman Assyifa (18522005)
Rafly Galih Saputra (18522067)
Adiyan Alam Pradana (18522261)
Muhammad Kevin Alfirdaus (18522299)

DEPARTMENT OF INDUSTRIAL ENGINEERING IP

FACULTY OF INDUSTRIAL TECHNOLOGY
UNIVERSITAS ISLAM INDONESIA
2020/2021
 TABLE OF CONTENTS

CHAPTER I .................................................................................................................................... 7

PRE SCOR ...................................................................................................................................... 7

1.1. Strategic Business Summary ................................................................................................ 7

1.2. SCOR Improvement Program .............................................................................................. 8

1.3. Motivation Driving a SCOR .............................................................................................. 11

1.4. Global Organization ........................................................................................................... 12

1.5. Global Network .................................................................................................................. 14

CHAPTER II................................................................................................................................. 16

SET THE SCOPE ......................................................................................................................... 16

2.1. Business Context Summary ............................................................................................... 16

2.2. SWOT Analysis.................................................................................................................. 17

IFAS Analysis........................................................................................................................ 17

EFAS Analysis ...................................................................................................................... 17

IFAS Calculation ................................................................................................................... 18

EFAS Calculation .................................................................................................................. 19

SWOT Diagram......................................................................................................................... 21

SWOT Matrix ............................................................................................................................ 21

2.3. Document the Supply Chain .............................................................................................. 23

2.4. Geographic Map of the Supply Chain ................................................................................ 24

2.5. Improvement Program Charter........................................................................................... 25

CHAPTER III ............................................................................................................................... 27

CONFIGURE THE SUPPLY CHAIN ......................................................................................... 27

3.1. Improvement Program Kickoff .......................................................................................... 27

3.2. SCOR Performance Attributes Selection ........................................................................... 27

 3.3. Collection Detail Data ........................................................................................................ 30

3.4. Benchmark of the Supply Chain ........................................................................................ 39

3.5. Gap Analysis ...................................................................................................................... 40

3.6. Process Modelling .............................................................................................................. 41

CHAPTER IV ............................................................................................................................... 42

OPTIMIZE PROJECTS ................................................................................................................ 42

4.1. Preliminary Project Portfolio ............................................................................................. 42

4.2. Identifying and Grouping Issues ........................................................................................ 44

4.3. Project Portfolio Performance Issue Worksheet ................................................................ 49

4.4. Linking Performance Issues to Projects ............................................................................. 56

4.5. Opportunity Analysis ......................................................................................................... 58

4.6. Prioritization and Sequencing ............................................................................................ 60

CHAPTER V ................................................................................................................................ 62

READY FOR IMPLEMENTATION ........................................................................................... 62

5.1. Rollout Approval ................................................................................................................ 62

5.2. Project Kick-Offs ............................................................................................................... 63

CHAPTER VI ............................................................................................................................... 68

KEY RISK INDICATOR ............................................................................................................. 68

6.1. Identified Risks .................................................................................................................. 68

6.2. Risk Event Consequences .................................................................................................. 72

TABLE OF FIGURE
Figure 1. PT. Albisindo Timber Global Organization .................................................................. 12
Figure 2. PT. Abisindo Timber Global Network .......................................................................... 14
Figure 3. SWOT Quadrant of PT. Albisindo Timber ................................................................... 21
Figure 4. Document the Supply Chain.......................................................................................... 23
Figure 5. Geographical Map of Supplier and Customer of PT. Albisindo Timber ...................... 25
Figure 6. Thread Diagram of PT. Albisindo Timber Supply Chain ............................................. 41
Figure 7. Graph of the System ...................................................................................................... 72

TABLE OF TABLE
Table 1. Performance Improvement scor level 1 Metric of PT. Albisindo Timber ...................... 10
Table 2. Business Context Summary ............................................................................................ 16
Table 3. IFAS Strength Table ....................................................................................................... 17
Table 4. IFAS Weakness Table .................................................................................................... 17
Table 5. EFAS Opportunities Table.............................................................................................. 17
Table 6. EFAS Threat Table ......................................................................................................... 18
Table 7. IFAS Technical Weighting ............................................................................................. 18
Table 8. Calculation of weight, rating, and score in the IFAS ...................................................... 19
Table 9. EFAS Technical Weighting ............................................................................................ 19
Table 10. Calculation of weight, rating, and score in the EFAS .................................................. 20
Table 11. SWOT Matrix ............................................................................................................... 22
Table 12. Supply Chain Definition Matrix ................................................................................... 24
Table 13. Improvement Program Charter ..................................................................................... 25
Table 14. SCOR Level 1 Metrics of PT. Albisindo Timber ......................................................... 27
Table 15. SCOR Level 2 Metrics of PT. Albisindo Timber ......................................................... 28
Table 16. Data Gathering Plan of PT. Albisindo Timber ............................................................. 31
Table 17. Metric Data Collection of PT. Albisndo Timber .......................................................... 31
Table 18. Metrics Data Collection: Detail Data of PT. Albisindo Timber ................................... 35
Table 19. SCORmark Benchmarking on PT. Albisindo Timber .................................................. 39
Table 20. Gap Analysis of PT. Albisindo Timber ........................................................................ 40
Table 21. Preliminary Project Portfolio of PT. Albisindo Timber ............................................... 42
Table 22. Original Issues of PT. Albisindo Timber ...................................................................... 44
Table 23. Issue and Grouping of PT. Albisindo Timber............................................................... 47
Table 24. PT. Albisindo Timber Project Portfolio Performance Issue Worksheet ....................... 49
Table 25. Performance Issue of Projects in PT. Albisindo Timber .............................................. 56
Table 26. Tangible Benefit Estimation ......................................................................................... 58
Table 27. Intangible Benefit Estimation ....................................................................................... 58
Table 28. SCM Cost...................................................................................................................... 59
Table 29. ROI Benefit Calculation ............................................................................................... 59
Table 30. Prioritization and Sequencing Project........................................................................... 60
Table 31.Rollout Approval ........................................................................................................... 62
Table 32. Project Kick-Offs .......................................................................................................... 63
Table 33. Initiate Project ............................................................................................................... 65
Table 34. Test, Pilot, Roll-Out ...................................................................................................... 66
Table 35. List of Identified Risks ................................................................................................. 68
Table 36. List of Evaluated Risk Event Consequences ................................................................ 72
Table 37. Countermeasures of Identified Risk ............................................................................. 77
 CHAPTER I

PRE SCOR

1.1. Strategic Business Summary

Company: PT.Albisindo Timber is a company with a strong background in the wood processing
industry. This company was chosen as a facility for traditional carpentry manufacturing. This
company is located in the city of Kudus, which produces tables, chairs, and a wide variety of
household furniture and decorations.

PT. Albisindo Timber Products:

• Wooden table
• chair
• cupboard
• sofa
• mirror
• pulpit
• marble long table
• window
• and others

PT. Albisindo Timber Suppliers: Bulk purchasing supporting materials such as glass and marble
as complementary materials from suppliers.

PT. Albisindo Timber Competition: Strongly competition against wood furniture products, both
small and large companies

PT. Albisindo Timber Organization: Trained staff and skilled wood craftsmen at PT.Albisindo
Timber

Project: Critical supply chain asset management performance problem centered on SCOR Cash to
Cash cycle time metric on PT. Albisindo Timber.
1.2. SCOR Improvement Program
Outsourcing, insourcing

• Outsourcing is the process of hiring an outside organization that is not affiliated with a
company to complete certain tasks, in this case the company PT. Albisindo Timber needs
assistance in working on glass and marble so that the size has been adjusted by workers
from the producing company so that PT. Albisindo Timber only remains plug and play
against the marble or glass.

• Insourcing, on the other hand, is a business practice that is carried out within the
operational infrastructure of an organization, such as wood carvers completing wood
carvings according to design or customer service staff serving customers directly or
answering emails and phones.

Technology

Technology in the form of machines that help the furniture work process at PT. Albisindo
Timber

• Wood cutting machine

An instrument for changing the size and shape of semi-finished wood products and parts
by cutting the wood and removing the shavings, either manually or by machine (lathes).
Many types of woodcutting machine tools operate at cutting speeds of up to 60-100 m/sec
and feed rates of 100-180 m/min.

• Spray Gun
This spray functions to spray the outer layer of furniture with termite repellent and coating
paint to make it more durable and good

• Sander Machine
Electric powered stationary machines that have a moving abrasive surface (usually
sandpaper); used for smoothing the surface; the abrasive surface is usually a belt, disc, or
 shaft. This tool is useful for smoothing the surface of the wood so that it is smooth and
worth selling.
• Table Saw
is a woodworking tool, consisting of a circular saw blade, mounted on an arbor, that is
driven by an electric motor (either directly, by belt, or by gears). The blade protrudes
through the top of a table, which provides support for the material, usually wood, being
cut.
• Profile Machine
For carpenters, the profile machine has the function of attaching the hinge holder as well
as the glass holes for the shutters. To use a profile machine, of course, requires hand
expertise so that the wood material does not run out in vain. But if you intend to study it's
fine. The point is to be able to master the measuring system to make holes such as in
frames / doors.
• Drilling machine
The main functions of drilling machines include making grooves, holes, widening, and
smoothing them accurately and precisely. According to its development, the drilling
machine has several variants. Starting from hand drills, cordless drills, core drills, sit drills,
impact drills, to engine drills. Each use is tailored to the carpenter's needs.

Marger, acquisition, divestiture

• Marger is an agreement that brings together two existing companies into one new
company. There are several types of mergers as well as several reasons why the company
concluded the merger. PT. Albisindo is not jointly owned with other companies in the
sense that it is independent or independent.
• An acquisition is when PT. Albisindo Timber buys most or all of the shares of another
company to gain control over that company. Buying more than 50% of the target company
shares and other assets allows the acquirer to make decisions about the newly acquired
assets without the approval of other profitable company shareholders, at PT. Albisindo
Timber this company carried out acquisitions in several companies such as sofa and kapok
 companies so that they can updating the types of furniture produced by PT. Albisindo
Timber.
• Divestiture is the disposition of part or all of a business unit through sale, exchange,
closure, or bankruptcy. Divestiture most often occurs as a result of management's decision
to stop operating the business unit because it is not part of the core competency, for
example at PT Albisindo that some units that do not have an effect will be replaced with
important units so as to optimize furniture sales.

Process Standardization

Process standardization can be defined as improving operational performance, reducing costs

through reducing process errors, facilitating communication, benefiting from expert knowledge,
and providing flexibility without sacrificing PT. Albisindo Timber's control. By definition,
standardization is an advantage for PT. Albisindo Timber. However, staff responses to these efforts
have not always been effective.

Strategic Assessment

A process that focuses on making choices to maximize interaction, inclusion, conversation, and
meaning, especially with the main agent who contracts directly with PT. Albisindo Timber.

Performance Improvement

Table 1. Performance Improvement scor level 1 Metric of PT. Albisindo Timber

No Attribute SCOR Level 1 Metric Parity Advantage Superior

1 Supply Chain Delivery Performance √
Delivery Perfect Order Fulfilment √
Reliability
2 Supply Chain Order Fulfilment Lead Times √
Responsiveness
 3 Supply Chain Supply Chain Responses Time √
Agility

4 Supply Chain Total Supply Chain Management √

Costs Costs
Warranty / Returns Processing √
Costs
5 Supply Chain Cash-to-Cash Cycle Time √
Asset Asset Turns √
Management
Efficiency

In the table above, it can be seen that performance improvement is a form of organizational
development that is focused on increasing output and increasing efficiency for certain processes
or procedures at PT. Albisindo Timber. Performance improvement can occur at various levels
including employee level, team level, division or unit level and the organization as a whole so that
it greatly helps the existing production process at PT. Albisindo Timber.

1.3. Motivation Driving a SCOR

The motivation driving a SCOR of the PT. Albisindo Timber are as bellow:

1. Building a technology investment roadmap.

2. In search of return on investment (ROI) for capacity.

3. Creating a supply chain strategy.

4. Implementing supply chain performance improvements.

5 Improving sales and operations planning.

6. Developing organizational talent, support, and competence.

7. Maximize use of existing technology.

 8. Achieving operational excellence.

9. Due diligence as part of a merger or acquisition.

10. Globalizing and managing business processes.

11. Integrating with the greater value chain.

12. Integrating lean, six sigma, and SCOR to build a better project portfolio.

13 Defining and building an effective and efficient supply chain organization.

1.4. Global Organization

An organization, need to determine their own division of department in their organization. This
is to ensure the flow of work in the said company flow faster because it distribute responsibility
among the department.

Figure 1. PT. Albisindo Timber Global Organization

The picture above is a global organization that is applied to PT. Albisindo Timber which is useful
for helping all activities in the production process to sales of products at PT. Albisindo Timber,
which I will explain in each division below:

Supply Chain

This division is responsible for directing or coordinating furniture production activities at PT

Albisindo Timber, as well as purchasing supporting raw materials such as glass and marble, as
well as distribution and financial forecasting, to limit production costs and improve customer
service accuracy and safety.

Designing

This division handles various matters related to graphic design, from illustration, depiction of
carving patterns, the form of furniture to be produced to branding that cannot be separated from
other divisions.

Logistics

The main task of the Logistics division is to provide the equipment and equipment needed during
production activities, this logistics can provide raw materials or equipment such as production
machines or spareparts so that when operators carry out production activities there will be no
obstacles or delays.

Assembling

This division works by adding or installing one type of material or product material so that it
becomes a unitary product at PT.Albisindo Timber, this division is tasked with installing every
piece of furniture such as table legs, cupboard doors, and glass or marble on certain furniture so as
to produce products that are ready and ready to be exhibited at an exhibition or photographed by
the Advertising division.

Advertising

This division works as the person in charge of advertising and making brochures. In this division
PT. Albisindo Timber divides some of the work in this division, the first is documentation, in this
field of work the advertising division will take photos and recordings of what products to enter
into advertising, the second is editing, in this field of work, the advertising division will sort the
results of documentation and do editing so that they are not attractive to the public, the last is in
the field of publicity and printing work, where the advertising division team must upload images
or videos in official website and social media from PT Albisindo Timber, besides that, tabloids,
magazines and brochures will be printed to increase advertising at PT Albisindo Timber so that it
will be more famous and update all available products.

Selling

This division works as the person in charge of product sales, where this division needs to monitor
every order and stock in each regional branch, so that all orders can be fulfilled and there are no
delays and information about ready stock to customers can be appropriate.

1.5. Global Network

PT. Albisindo Timber have a vast of network in Indonesia which help in the sector of supply and
manufacturing the product itself. So based on that, the data on global network that PT. Albisindo
Timber have are below:

Figure 2. PT. Abisindo Timber Global Network

Customers GE:

this company has its main shop in semarang ,buyers from solo and jogja fall within this groups this
is the center of sales as well as the center of furniture production at PT Albisindo Timber, in this
case the company will cover two major cities, namely Surakarta and Yogyakarta.

Customers GB:

The second Market is located in Surabaya and jakarta, In order to maximize sales on the island of
Java, PT.Albisindo Timber created two branches in selling products in two major cities, namely
Jakarta and Surabaya so that they can compete with competitors on the island of Java.

Customers SEU:

Customers located in Palembang, Makassar, and Pontianak (outside Java) the function of branches
outside the island is to fulfill the needs of furniture in the islands of Kalimantan and Sulawesi, so
this is very beneficial for PT.Albisindo Timber in distributing products in Indonesia.
 CHAPTER II

SET THE SCOPE

2.1. Business Context Summary

PT. Albisindo Timber is a manufacturing company engaged in the manufacture of home furniture.
The furniture of the house is mostly made of wood supplied by other companies. PT. Albisindo
Timber is located in Gebog, Kudus, and Central Java, Indonesia. This company was founded in
2000. Their main business apart from making furniture is exporting these products to the world of
furniture. Since its inception, PT. Albisindo has been committed to creating a comfortable work
environment for its employees by adhering to accepted international standards - an approach in a
business unit that puts the interests of employees first.

Table 2. Business Context Summary

Component Description
Business PT Albisindo Timber is a company that produces corner tables, family
Description furniture, and Glassware
Challenges and This company has many branches and partnerships with many suppliers,
Opportunities and has the opportunity to supply furniture needs in Java or outside Java
with good quality and affordable prices.
Value Proposition Our company start providing the competitive value to each customer
segment.
Critical Issues The Performance gaps on such as reliability, responsiveness, agility,
costs, and asset management.
Risks Have a risk when storing wood furniture has the possibility of the
product becoming porous and damaged by termites
Financial Noted the current company income, assets, liabilities and profitability
Performance expectation of our company.
Internal Profile Making internal business structure, function and performance.
External Profile Supply chain and business partners and the customer during delivery
channel
2.2. SWOT Analysis
The SWOT analysis are done using the quantative and qualitative where we use the IFAS,
EFAS, SWOT Quadrant, and SWOT Matrix to determine the position of the company where
they are in the SWOT Quadrant.
IFAS Analysis

The table below were mention about the internal factor of the company.

Table 3. IFAS Strength Table

No. Strength Initial

1 Good organizational structure A
2 Have a good product imagery B
3 Trusted by customer C
4 Good quality of the product D

Table 4. IFAS Weakness Table

No. Weakness Initial

1 Many time to make a product E
2 it’s too expensive F
3 Don’t have many variation G
4 Price of raw material always increase annually H

EFAS Analysis
The table below were mention about the external factor of the company.

Table 5. EFAS Opportunities Table

No Opportunities Initial
1 Big scale of market I
2 Big company market link J
 3 The growth of new family that need the furniture K
in their new home
4 Can be cheaper than other competitor in the l
overseas because the production cost is cheaper
than other

Table 6. EFAS Threat Table

No Threat Initial
1 There are many same product M
2 The speed of other company innovation N
3 The government rule’s that may interrupt the O
business
4 Change of the situation P

IFAS Calculation
The technical weighting of IFAS calculation are:

Table 7. IFAS Technical Weighting

Factor A B C D E F G H TR Scale
A x 1 1 0 1 0 1 0 4 0,137931
B 0 x 0 1 0 1 1 1 4 0,172414
C 0 1 x 1 0 1 1 0 4 0,137931
D 1 0 0 x 1 1 1 0 4 0,137931
E 0 1 1 0 x 1 0 1 4 0,137931
F 1 0 0 0 0 x 1 1 3 0,103448
G 0 0 0 0 1 0 x 1 2 0,068966
H 1 0 1 1 0 0 0 x 3 0,103448
Total 28 1
 Table 8. Calculation of weight, rating, and score in the IFAS

Initial Weight Rating Score

A 0,137931 4 0,551724
B 0,172414 5 0,862069
C 0,137931 4 0,551724
D 0,137931 4 0,551724
Total S 2,517241

Initial Weight Rating Score

E 0,137931 4 0,551724
F 0,103448 3 0,310345
G 0,068966 2 0,137931
H 0,103448 3 0,310345
Total W 1,310345

S-W 1,206897

EFAS Calculation
The technical weighting of the EFAS calculation are:

Table 9. EFAS Technical Weighting

Factor I J K L M N O P TR Scale

I x 1 1 0 0 1 1 1 5
0,178571
J 0 x 1 0 1 1 1 0 4
0,142857
K 0 0 x 1 1 0 0 1 3
0,107143
L 1 1 0 x 0 0 0 1 3
0,107143
M 1 0 0 1 x 1 1 0 4
0,142857
N 0 0 1 1 0 x 1 1 4
0,142857
O 0 0 1 1 0 0 x 0 2
0,071429
P 0 1 0 0 1 0 1 x 3
0,107143
Total 28 1

Table 10. Calculation of weight, rating, and score in the EFAS

Initial Weight Rating Score

I 0,178571 5 0,892857
J 0,142857 4 0,571429
K 0,107143 3 0,321429
L 0,107143 3 0,321429
Total O 2,107143

Initial Weight Rating Score

M 0,142857 4 0,571429
N 0,142857 4 0,571429
O 0,071429 2 0,142857
P 0,107143 3 0,321429
Total T 1,607143

O-T 0,5
SWOT Diagram
The results of the IFAS and EFAS analysis are included in the SWOT analysis diagram, with the
difference between Strengths and Weakness as the X axis coordinates, while the difference
between Opportunities and Threats is the Y axis coordinates. The quadrants in the SWOT diagram
are divided into 4 quadrants. Quadrant I (progressive), quadrant II (strategy diversification),
quadrant III (change strategy), and quadrant IV (endure). Based on the results of qualitative and
quantitative analysis, the results show that the PT Albisindo Timber Company is in Quadrant I
position. This means that the company's position has a strong and opportunity. So the strategy that
must be implemented is an aggressive growth policy or a progressive strategy. The following is a
SWOT analysis diagram based on the results of the SWOT analysis and matrix.

Figure 3. SWOT Quadrant of PT. Albisindo Timber

SWOT Matrix
Based on the SWOT analysis diagram, it is known that the company is in Quadrant I so that it is
illustrated where this company has both strengths and opportunities. Quadrant I position is the best
and most profitable position for the company. The following is a matrix of possible business
strategies.

Table 11. SWOT Matrix

Strength Weakness

1. By maximizing the good

1. By create many innovation to
organizational structure as a make an variation that suitable
company PT Albisindo Timber with the overseas and with the
can make their employee too Indonesia market so that the
eager to make the company can company can maximize the
fulfil the demand in the market customer trust and make sell
and can maximize the customer more product so that can make a
trust to make more profit. bigger profit
Opportunity
2. By decrease the cost and make
the product become even
cheaper with the same quality
and the same use Nata can
maximize customer trust and
make PT Albisindo Timber
even bigger and increase the
profit.
1. In order to compete with other
1. PT Albisindo Timber must
product then PT Albisindo conduct an evaluation in order
Timber product must exploited to know the customer need and
Threat
the customer trust to gain even can know the way to conduct
more trust by increase the production effectively and
quality with cheaper cost so that
 many new customer would create a solution to answer the
come. problem.

2.3. Document the Supply Chain

The supply chain document is all about the company network with other third party such as
supplier, channel partner and customer. Below is the supply chain document.

Figure 4. Document the Supply Chain

Suppliers PT Albisindo Timber Customers

Teak wood: PT Albisindo Timber Head Customers GE:

To supply teak wood as raw Quarters: this company has its main
material for furniture, this PT Albisindo Timber is a company shop in semarang ,buyers
company has suppliers from that produces furniture such as from solo and jogja fall
the city of Ngawi, East Java. corner tables, family furniture and within this groups
glassware, which is based in the
Marble stone: Kudus city, Central Java, Customers GB:
To supply the needs of marble Indonesia. The second Market is
as raw material for tables and located in Surabaya and
furniture, this company has PT Albisindo Timber Factory: jakarta
supplyers from the city of PT Albisindo Timber produces
Bandung, West Java. furniture which has a factory Customers SEU:
located in Kudus Customers located in
Sofa cloth: Palembang, Makassar,
To supply the needs of sofa Channel Partners and Pontianak (outside
cloth as raw material for sofas Java)
and chairs, this company has PT Albisindo Timber Warehouse :
 supplyers from the city of PT Albisindo Timber has a
Solo, Central Java. warehouse located in Central Java,
precisely in the city of Semarang

Below shows the supply chain definition matrix that shows the score of each location based on
the product groups.

Table 12. Supply Chain Definition Matrix

Customers: GE GB SEU
Product Solo Jogja Semarang Surabaya Palembang Makassar Pontianak
Groups and
Jakarta
corner tables 75 70 200 150 180 215
family 10 24 175 250 21
furniture
Glassware 12 15 98

2.4. Geographic Map of the Supply Chain

Picture below is the geographical map of the distribution and supplier direction. The blue arrow is
the distribution direction, and the yellow arrow is the supply distribution direction.
 Figure 5. Geographical Map of Supplier and Customer of PT. Albisindo Timber

2.5. Improvement Program Charter

The Charter Program is a high-level document that states and describes the existence of a project.
This document contains important information that includes a brief description of a project that
will be executed.

Table 13. Improvement Program Charter

Section Subsection Discussion

Purpose, table of contents, Improvement program
Introduction
control/maintenance charter overview
Which supply chain
Scope
selected
Business Objective Performance Metrics
Program
Improvement Program
Definition Supply chain performance
Objective
Definition of program team
Program Organization
and shareholders
Program Five-Phased SCOR
Methodology
Contents Racetrack
 Timeline, detailed
Schedule
activities, meetings
Program Activity
Roles
responsible
Detailed deliverables and
Deliverables and Milestones
milestone
Critical risk and avoidance
Risk and Dependencies
strategies
Measure of success,
Benefits
analysis
 CHAPTER III

CONFIGURE THE SUPPLY CHAIN

3.1. Improvement Program Kickoff

In the improvement program kickoff, it is where an organization ensures that the project start off
on the right perimeter. It is also a foundation where work with it sets a general direction on the
team. In PT. Albisindo Timber, they have an improvement program kickoff before they start any
kind of project. Which they stated that they have steps that a team or the organization need to
always follow for making sure they are on the right path. This steps are the following:

1. What is the Project Goals & Vision

They state that, in a team, they need to be able to communicate with each other about the
project where why it is matters. And the other reasons is that the so that they are motivated
throughout the project.
2. Have the Right Team
To make sure that the project is successful in the long run, the project need to have the right
team for it to be successful. For example in the making of the wooden furniture such as
cupboard. The team that handle this project need to understand their own role and the other
role and their own schedule to ensure that the project finish efficiently and effectively.

3.2. SCOR Performance Attributes Selection

In the SCOR Performance Attributes Selection, we need to identify the appropriate metrics from
the SCOR model based on our company which is PT. Albisindo Timber so that in the process of
performance gaps, we have the right mix of metrics to support the performance gaps which is
identified in the improvement program. So, according to that, below is the SCOR Level 1 Metric
of the company.

Table 14. SCOR Level 1 Metrics of PT. Albisindo Timber

Attribute Level 1 Strategic Metrics

 Customer Supply Chain Delivery
Reliability
Supply Chain Responsiveness RS. 1.1 Order Fulfilment
Supply Chain Agility
Internal Supply Chain Costs
Supply Chain Asset
Management Efficiency
RL. 1.1 Delivery
Performance
RL. 1.2 Perfect Order
Fulfilment
Lead Times
AG. 1.1 Supply Chain
Responses Time
CO. 1.1 Total Supply Chain
Management Costs
CO. 1.2 Warranty / Returns
Processing Costs
AM. 1.1 Cash-to-Cash Cycle
Time
AM. 1.2 Asset Turns

So based on the SCOR Level 1 Metrics of PT. Albisindo Timber, the next step is to create the
Level 2 Metric where it shows the more detailed version of the Level 1 Metric. So, below is the
Level 2 Metric.

Table 15. SCOR Level 2 Metrics of PT. Albisindo Timber

Metric Calculation Level 2 Metric Calculation

RS. 1.1 Order Total fulfilment lead RS. 2.1 Customer Total number of
Fulfilment Lead times of order Authorization to order on confirming
Times Order Entry and authorize an
Complete order to be fulfilled
RS. 2.2 Order entry Total number of
complete to start order that are allowed
manufacturing to be fulfilled are
 start to be
manufactured
RS. 2.3 Start Total number of
manufacturing to order that are finished
manufacturing ship and ready to be ship
RS. 2.4 Total number of
Manufacturing ship order that are ready to
to order received at be shipped from W/H
W/H
RS. 2.5 Order Total number of
received at W/H to order that are shipped
order shipped to from W/H are
customer received by the
customer
AG. 1.1 Supply Total supply chain AG. 2.1 Re-Plan Total re-plan of order
Chain Response Time responses time of Response Time that are necessary
order AG. 2.2 Source Total source planning
Response Time of order
AG. 2.3 Make Total time to make
Response Time response
AG. 2.4 Deliver Total response time
Response Time of delivery
CO. 1.1 Total Supply Total supply chain CO. 2.1 Cost of Total costs of goods
Chain Management management costs of Goods Sold that are sold
Costs order CO. 2.2 Order Total costs of order
Management Cost management
CO. 2.3 Material Total acquisition cost
Acquisition Cost of material
CO. 2.4 Planning Total cost for
Cost planning
 CO. 2.5 Inventory Total cost of
Carrying Cost inventory carrying
management
CO. 2.6 IT Cost for Total cost of IT
Supply Chain infrastructure for
supply chain
CO. 1.2 Warranty / Total warranty / CO. 2.7 Return Total cost of
Returns Processing returns processing Authorization processing return
Costs costs of order Processing Cost authorization
CO. 2.8 Returned Total cost of returned
Product Warehouse warehouse product
Cost
CO. 2.9 Returned Total cost of product
Product return transportation
Transportation Cost
CO. 2.10 Warranty Total cost of product
Cost warranty
AM. 1.1 Cash-to- Total cash-to-cash AM. 2.1 Inventory Total supply days of
Cash Cycle Time cycle time of order Days of Supply inventory
AM. 2.2 Days Sales Total outstanding
Outstanding sales day
AM. 2.3 Days Total outstanding
Payable Outstanding payable days

3.3. Collection Detail Data

Based on the SCOR Level 1 and Level 2 metrics we now can do the performance analysis by doing
data gathering which to compile the data to exactly know the levels of company and supply chain
performance. Below is the data plan that have been gathered about their metric status of PT.
Albisindo Timber.
 Table 16. Data Gathering Plan of PT. Albisindo Timber

Metric Process Owner Due Date Status

Delivery RL. 1.1 Logistics Team 23/4/2021 Complete
Performance
Perfect Order RL. 1.2 Logistics Team 31/4/2021 Complete
Fulfilment
Order Fulfilment RS. 1.1 Supply Chain 3/5/2021 Process
Lead Times Team
Supply Chain AG. 1.1 Supply Chain 4/5/2021 Process
Responses Time Team
Total Supply CO. 1.1 Selling Team 7/5/2021 Not Started
Chain
Management
Costs
Warranty / CO. 1.2 Selling Team 10/5/2021 Not Started
Returns
Processing Costs
Cash-to-Cash AM. 1.1 Selling Team 15/5/2021 Not Started
Cycle Time
Asset Turns AM. 1.2 Selling Team 3/6/2021 Not Started

Based on the data gathering plan, we now can breakdown it more detail on the percentage
distribution among the level 1 metric and level 2 metric. Below is the metric data collection of PT.
Albisindo Timber.

Table 17. Metric Data Collection of PT. Albisndo Timber

Metric Calculation Percent Percent Level 2 Calculation

Metric
RS. 1.1 Total 22.7% 23.5% RS. 2.1 Total number
Order fulfilment Customer of order on
Fulfilment lead times of Authorization confirming
Lead Times order to Order Entry and authorize
Complete an order to be
fulfilled
20.6% RS. 2.2 Order Total number
entry of order that
complete to are allowed
start to be fulfilled
manufacturing are start to be
manufactured
17.6% RS. 2.3 Start Total number
manufacturing of order that
to are finished
manufacturing and ready to
ship be ship
11.8% RS. 2.4 Total number
Manufacturing of order that
ship to order are ready to
received at be shipped
W/H from W/H
26.5% RS. 2.5 Order Total number
received at of order that
W/H to order are shipped
shipped to from W/H
customer are received
by the
customer
AG. 1.1 Total supply 18.2% 14.3% AG. 2.1 Re- Total re-plan
Supply Chain chain Plan Response of order that
Time are necessary
Response responses 38.1% AG. 2.2 Total source
Time time of order Source planning of
Response order
Time
28.6% AG. 2.3 Make Total time to
Response make
Time response
19% AG. 2.4 Total
Deliver response time
Response of delivery
Time
CO. 1.1 Total supply 27.3% 22.1% CO. 2.1 Cost Total costs of
Total Supply chain of Goods Sold goods that
Chain management are sold
Management costs of order 11.8% CO. 2.2 Order Total costs of
Costs Management order
Cost management
16.2% CO. 2.3 Total
Material acquisition
Acquisition cost of
Cost material
26.5% CO. 2.4 Total cost for
Planning Cost planning
5.9% CO. 2.5 Total cost of
Inventory inventory
Carrying Cost carrying
management
17.6% CO. 2.6 IT Total cost of
Cost for IT
Supply Chain infrastructure
 for supply
chain
CO. 1.2 Total 18.2% 31.5% CO. 2.7 Total cost of
Warranty / warranty / Return processing
Returns returns Authorization return
Processing processing Processing authorization
Costs costs of order Cost
37% CO. 2.8 Total cost of
Returned returned
Product warehouse
Warehouse product
Cost
13% CO. 2.9 Total cost of
Returned product
Product return
Transportation transportation
Cost
18.5% CO. 2.10 Total cost of
Warranty Cost product
warranty
AM. 1.1 Total cash- 13.6% 40% AM. 2.1 Total supply
Cash-to-Cash to-cash cycle Inventory days of
Cycle Time time of order Days of inventory
Supply
34.3% AM. 2.2 Days Total
Sales outstanding
Outstanding sales day
25.7% AM. 2.3 Days Total
Payable outstanding
Outstanding payable days
Now that we have create the metric data collection of level 1 and level 2 metric. We now can
breakdown it more detail on level 2 metric percentage with the real time data of PT. Albisindo
Timber data. Below is the detail data of metrics data collection.

Table 18. Metrics Data Collection: Detail Data of PT. Albisindo Timber

Metric Calculation Percent Data Description

RS. 2.1 Total number of 23.5% 214 Total number of
Customer order on customer order
Authorization to confirming and in full
Order Entry authorize an
Complete order to be
fulfilled
RS. 2.2 Order Total number of 20.6% 202 Total number of
entry complete order that are orders delivered
to start allowed to be
manufacturing fulfilled are start
to be 231 Total number of

manufactured order are start to

manufactured

RS. 2.3 Start Total number of 17.6% 278 Total number of

manufacturing to order that are orders finished
manufacturing finished and 209 Total number of
ship ready to be ship order shipped
248 Total number of
order fulfilled
RS. 2.4 Total number of 11.8% 238 Total number of
Manufacturing order that are order delivered
ship to order ready to be
received at W/H shipped from
W/H
RS. 2.5 Order Total number of 26.5% 156 Total number of
received at W/H order that are order delivered
to order shipped shipped from
to customer W/H are
received by the
customer
AG. 2.1 Re-Plan Total re-plan of 14.3% 294 Total number of
Response Time order that are order plan
necessary 227 Total number of
order re-planned
194 Total number of
order not
necessary need
plan
184 Total number of
order plan finish
AG. 2.2 Source Total source 38.1% 276 Total number of
Response Time planning of order source
order planned
198 Total number of
order plan
fulfilled
300 Total number of
order plan
finished plan
AG. 2.3 Make Total time to 28.6% 266 Total number of
Response Time make response time order make
response
AG. 2.4 Deliver Total response 19% 270 Total number of
Response Time time of delivery order response
delivery time
 105 Total number of
order not
response
delivery time
CO. 2.1 Cost of Total costs of 22.1% 254 Total number of
Goods Sold goods that are order sold
sold 157 Total number of
order not
fulfilled
195 Total number of
order pending
CO. 2.2 Order Total costs of 11.8% Rp. 34,500,000 Total number of
Management order order cost
Cost management managed

CO. 2.3 Material Total acquisition 16.2% Rp. 44,800,000 Total number of
Acquisition Cost cost of material order cost
acquisition
material
CO. 2.4 Total cost for 26.5% Rp, 12,000,500 Total cost for
Planning Cost planning planning order
CO. 2.5 Total cost of 5.9% Rp. 22,250,000 Total inventory
Inventory inventory carrying cost of
Carrying Cost carrying order
management
CO. 2.6 IT Cost Total cost of IT 17.6% Rp. 14,900,000 Total IT
for Supply Chain infrastructure for infrastructure
supply chain cost of order
CO. 2.7 Return Total cost of 31.5% Rp. 7,200,000 Total cost of
Authorization processing return
Processing Cost return authorization
authorization

CO. 2.8 Total cost of 37% Rp. 8,900,000 Total cost of

Returned returned warehouse
Product warehouse return product
Warehouse Cost product
CO. 2.9 Total cost of 13% Rp. 6,800,000 Total cost of
Returned product return product return
Product transportation transportation
Transportation
Cost
CO. 2.10 Total cost of 18.5% Rp. 13,500,000 Total cost of
Warranty Cost product warranty order product
warranty
AM. 2.1 Total supply 40% 157 days Total days of
Inventory Days days of finished supply
of Supply inventory in inventory

AM. 2.2 Days Total 34.3% 332 days Total days of

Sales outstanding sales material supply
Outstanding day in inventory

AM. 2.3 Days Total 25.7% 179 days Total days of

Payable outstanding outstanding
Outstanding payable days payable days
3.4. Benchmark of the Supply Chain
In benchmark of the supply chain, this is where we evaluate the score of each metrics based on the
company own percentage of each metrics with three different attribute which is parity, advantage,
and superior. By doing this we can determine the target performance and get the gap to target.
Below is PT. Albisindo Timber benchmark.

Table 19. SCORmark Benchmarking on PT. Albisindo Timber

Attribute Metrics Target Your Parit Advantag Superio Gap

Performanc Org y e (70%) r (90%) to
e (50% Target
)
Supply Chain Delivery Advantage 77% 95.6 97.75% 99.9% 20.75
Delivery Performanc % %
Reliability e
Perfect Advantage 70.9 77.5 85.6% 93.7% 14.7%
Order % %
Fulfilment
Supply Chain Order Parity 7% 2.4% 1.75% 1.1% 4.6%
Responsivenes Fulfilment
s Lead Times
Supply Chain Supply Advantage 3% 22% 23.5% 25% 20.5%
Agility Chain
Responses
Time
Supply Chain Total Superior 3% 7.5% 11.25% 15% 12%
Costs Supply
Chain
Manageme
nt Costs
Warranty / Superior 24.4 15.7 10.4% 5.1% 19.3%
Returns % %
 Processing
Costs
Supply Chain Cash-to- Parity 26.8 28.1 14.55% 1% 1.3%
Asset Cash Cycle % %
Management Time
Efficiency Asset Turns Parity 61.7 56.4 30.95% 5.5% 5.3%
% %

3.5. Gap Analysis

After determining the benchmark of the company, now we can analyze the gap analysis of each
attribute and metric with the real time value of the company attribute such as percentage and time.
Below is the gap analysis of each metric.

Table 20. Gap Analysis of PT. Albisindo Timber

Attribute SAP Metric Composition Parity Advantage Superior Gap

(Level 1)
Reliability S Delivery 77% 95.6% 97.75% 99.9% 20.75%
Performance
Perfect 5 days 4 days 3 days 1 days 2 days
Order
Fulfilment
Response A Order 3 days 5 days 7 days 10 days 2 days
Fulfilment
Lead Times
Adaptability P Supply 15 days 10 7 days 3 days 8 days
Chain days
Responses
Time
Cost P Total Supply 3% 7.5% 11.25% 15% 12%
Chain
 Management
Costs
Warranty / 24.4% 15.7% 10.4% 5.1% 19.3%
Returns
Processing
Costs
Assets A Cash-to- 14 days 12 6 days 1 days 2 days
Cash Cycle days
Time
Asset Turns 40 days 31 20 days 5 days 9 days
days

3.6. Process Modelling

In the process modelling, it is where we provide the SCOR level 2 view of the company supply
chain in the form from geographical map and the turn it into the thread diagrams where we can see
the detail of the process view. And also model begins with the application of SCOR level 3
processes in correspondent to the supply chain. Below is the PT. Albisindo Timber thread diagram
according to the geographical map.

Figure 6. Thread Diagram of PT. Albisindo Timber Supply Chain

 CHAPTER IV

OPTIMIZE PROJECTS

4.1. Preliminary Project Portfolio

In preliminary project portfolio author will provide the information about the attribute, level 1
strategic metrics, performance issues, and the way to overcome it and also the benefit of implement
the way to overcome.

Table 21. Preliminary Project Portfolio of PT. Albisindo Timber

Attribute Level 1 Performance Overcome Implementation

Strategic Issues Benefit
Metrics
Customer Supply Chain RL. 1.1 Incorrect Double Increase
Delivery Delivery order check and customer
Reliability Performance delivered confirm with satisfaction due
the customer to accurately
about the delivered item
item that is
going to be
sent
RL. 1.2 Customer Tighten the The quality of
Perfect receive quality the product will
Order defect order control increase, and
Fulfilment will increase the
customer trust
Supply Chain RS. 1.1 Cannot Calculate Increase
Responsiveness Order ontime to more detail customer trust
Fulfilment deliver the to estimate and customer
Lead Times product the lead time satisfaction
 Supply Chain AG. 1.1 Took so long Make a good The product will
Agility Supply time for coordination be sent on time
Chain supply chain with the and the more
Responses department to supply chain effective
Time response department production time
Internal Supply Chain CO. 1.1 Miss To conduct The accuracy of
Costs Total Supply calculation an the calculation
Chain between cost consultation will increase
Management in the before make
Costs calculation a specific
and cost in number of
real cost
CO. 1.2 Cannot claim Need to Can claim a
Warranty / the warranty create a warranty easily
Returns documentary
Processing in every
Costs production
activity
Supply Chain AM. 1.1 Late payment Don’t offer No late time and
Asset Cash-to- from extended can pay supplier
Management Cash Cycle customer terms on time
Efficiency Time while
supplier need
to be paid
AM. 1.2 In effective Make an Increase investor
Asset Turns asset effective demand for
turnover using of company
assets
4.2. Identifying and Grouping Issues
In this grouping issues and identifying, the author will conduct an analysis in order to analyze the
possible issue that might occur in the process by creating an identify original issues and issues
grouping.

4.2.1. Original Issues

Table 22. Original Issues of PT. Albisindo Timber

SCOR level 2 Metrics

RS. 1.1 Order Fulfilment Lead Times
RS. 2.1 Customer Authorization to Order 10%
Entry Complete
1 Less description product 5%
2 Incorrect description 5%
RS. 2.2 Order entry complete to start 14%
manufacturing
3 Unclear specific deisgn 8%
4 Accuracy of the design with product 6%
RS. 2.3 Start manufacturing to manufacturing 5%
ship
5 Machine maintenance 2,5%
6 Design change 1%
7 Defect product 1,5%
RS. 2.4 Manufacturing ship to order received 8%
at W/H
8 Manufacturing defect product 4%
9 Not fit with the design 4%
RS. 2.5 Order received at W/H to order 3%
shipped to customer
10 Not available transportation delivery 1,5%
11 Increase cost 1,5%
Performance 63%
AG. 1.1 Supply Chain Response Time
SCOR level 2 Metrics
AG. 2.1 Re-Plan Response Time 13%
12 Adaptable to current conditions 8%
13 Abnormal market conditions 5%
AG. 2.2 Source Response Time 6%
14 Late response 2%
15 Unclear response at one time 4%
AG. 2.3 Make Response Time 17%
16 Negligence of shift officer 8%
17 IT infrastructure error 7%
18 Unpredictable communication error 2%
AG. 2.4 Deliver Response Time 7%
19 No transportation standby 3,5%
20 Lateness in delivery 2%
21 Unpredictable issues in the transportation 1,5%
infrastructure
Performance 57%
CO. 1.1 Total Supply Chain Management Costs
SCOR level 2 Metrics
CO. 2.1 Cost of Goods Sold 8%
22 Increase of cost 4%
23Irrelevant cost with goods sold 4%
CO. 2.2 Order Management Cost 10%
24 Too high management cost 2,5%
25 Ineffective management cost 7,5%
CO. 2.3 Material Acquisition Cost 15%
26Material changing cost 8%
27 Not fit material 7%
CO. 2.4 Planning Cost 4%
28Irrelevant cost planned 2%
29 Not fit planned cost 2%
CO. 2.5 Inventory Carrying Cost 7%
30 Inaccurate cost prediction 1%
31Over loaded so that increase the carrying 6%
cost
32 Unpredictable increase cost 8%
CO. 2.6 IT Cost for Supply Chain 6%
33 Software license increase cost 3%
34 Error in IT infrastructure 3%
Performance 50%
CO. 1.2 Warranty / Returns Processing Costs
SCOR level 2 Metrics
CO. 2.7 Return Authorization Processing 4%
Cost
35High processing return cost 1,5%
36 Not efficient returning processing 2,5%
CO. 2.8 Returned Product Warehouse Cost 9%
37 Warehouse overloaded 2%
38 High returning cost 7%
CO. 2.9 Returned Product Transportation 6%
Cost
39 Increase transportation cost 1%
40 Unpredictable increasing trasnporation 5%
cost
CO. 2.10 Warranty Cost 18%
41 High cost due to high risk company 1,5%
42 Increase cost annually 16,5%
performance 63%
 AM. 1.1 Cash-to-Cash Cycle Time
SCOR level 2 Metrics
AM. 2.1 Inventory Days of Supply 2%
43 Miss calculation of inventory load 1%
44 Increase cost due to the time of inventory 1%
using
AM. 2.2 Days Sales Outstanding 5%
45 Not on time payment from customer 1%
46 Incorrect payment date calculation 4%
AM. 2.3 Days Payable Outstanding 1%
47 Not on time payment to supplier 0,5%
48 Incorrect payment date calculation 0,5%
Performance 92%

4.2.2 Issue and Grouping

Table 23. Issue and Grouping of PT. Albisindo Timber

SCOR Pla Source Make Deliver Return Enabl

process n e
es
Level 2 1 1
Defect
2
3
4
5
7
8
9
10
 11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
 41
42
43
44
45
46
47
48

Group Pla Source Make Deliver Return Ena

n ble
Picking 20,21,22,24,23, 5,8,9
25,26,27
Packing 28,29,30,31,32,33, 5,6,7,11
34,35,36 ,15
Transport 46,47,48 1,2,3,4 37,38,39,40,41,42,
ation 43,44,45
Inventory 1,14

4.3. Project Portfolio Performance Issue Worksheet

In here author will provide a detailed information about the level 2 metrics to show the overall
analysis of the activity.

Table 24. PT. Albisindo Timber Project Portfolio Performance Issue Worksheet

Performan issu Issue Individu Level 2 Decei Proble Proble SCO

ce e description al defect defect t m m R
Attribute IDs Weig weight impact proce
ht ss
 RS. 1.1 1.0 Unsuccessf 1 Miss in 3% 2% 6% RS.
Order 1 ul customer order 2.1
Fulfilment order product RS.
Lead detail 2.2
Times RS.
2.3
RS.
2.4
RS.
2.5
RS. 1.1 1.0 Cannot start 1 Revision 2% 1% 2% RS.
Order 2 manufacturi from 2.1
Fulfilment ng customer RS.
Lead design 2.2
Times RS.
2.3
RS.
2.4
RS.
2.5
RS. 1.1 1.0 Cannot start 1 Machine 1% 2% 2% RS.
Order 3 manufacturi under 2.1
Fulfilment ng maintenan RS.
Lead ce 2.2
Times RS.
2.3
RS.
2.4
RS.
2.5
 RS. 1.1 1.0 Cannot sent Defect 5% 2% 10% RS.
Order 4 manufacturi product 2.1
Fulfilment ng goods to RS.
Lead shipment 2.2
Times process RS.
2.3
RS.
2.4
RS.
2.5
RS. 1.1 1.0 Cannot ship 1 Change in 2% 1% 2% RS.
Order 5 product customer 2.1
Fulfilment location RS.
Lead address 2.2
Times RS.
2.3
RS.
2.4
RS.
2.5
AG. 1.1 1.0 Decrease of 1 Decrease 3% 2% 6% AG.
Supply 1 lateness customer 2.1
Chain time satisfactio AG.
Response n 2.2
Time AG.
2.3
AG.
2.4
AG. 1.1 1.0 Lateness in 1 Decrease 2% 1% 2% AG.
Supply 2 production effectiven 2.1
Chain due to late ess of
 Response in source production AG.
Time response time 2.2
time AG.
2.3
AG.
2.4
AG. 1.1 1.0 Unresponsi 1 Decrease 5% 1% 5% AG.
Supply 3 ve the 2.1
Chain coordinatio effectivity AG.
Response n between and 2.2
Time supply efficiency AG.
chain of 2.3
department production AG.
and other line 2.4
department
AG. 1.1 1.0 Lateness of 1 Decrease 6% 1% 6% AG.
Supply 4 delivery customer 2.1
Chain package trust and AG.
Response satisfactio 2.2
Time n AG.
2.3
AG.
2.4
CO. 1.1 1.0 Unpredicta 1 Decrease 5% 2% 10% CO.
Total 1 ble increase income 2.1
Supply in cost CO.
Chain goods sold 2.2
Manageme CO.
nt Costs 2.3
CO.
2.4
 CO.
2.5
CO.
2.6 IT
CO. 1.1 1.0 Miss 1 Cannot 4% 3% 12% CO.
Total 2 calculation accurately 2.1
Supply of ordering calculate CO.
Chain cost outcome 2.2
Manageme and CO.
nt Costs possibly 2.3
miss data CO.
record 2.4
CO.
2.5
CO.
2.6 IT
CO. 1.1 1.0 Increase of 1 Decrease 3% 3% 9% CO.
Total 3 material income 2.1
Supply acquisition CO.
Chain cost 2.2
Manageme CO.
nt Costs 2.3
CO.
2.4
CO.
2.5
CO.
2.6 IT
CO. 1.1 1.0 Increase of 1 Decrease 3% 1% 3% CO.
Total 4 planning income 2.1
Supply cost due to
Chain increase CO.
Manageme cost in 2.2
nt Costs some CO.
variability 2.3
CO.
2.4
CO.
2.5
CO.
2.6 IT
CO. 1.1 1.0 Gap 1 Cannot 2% 1% 2% CO.
Total 5 between record the 2.1
Supply planning outcome CO.
Chain inventory correctly 2.2
Manageme cost with CO.
nt Costs the rea 2.3
inventory CO.
cost 2.4
CO.
2.5
CO.
2.6 IT
CO. 1.1 1.0 Increase 1 Decrease 1% 1% 1% CO.
Total 6 accesses income 2.1
Supply cost of CO.
Chain software 2.2
Manageme CO.
nt Costs 2.3
CO.
2.4
 CO.
2.5
CO.
2.6 IT
CO. 1.2 1.0 Increase in 1 Due to 3% 1% 3% CO.
Warranty / 1 return increase 2.7
Returns processing cost in CO.
Processing cost expedition 2.8
Costs CO.
2.9
CO.
2.10
CO. 1.2 1.0 Unpredicta 1 inventory 2% 4% 8% CO.
Warranty / 2 ble increase increase 2.7
Returns in returned cost due to CO.
Processing product the longer 2.8
Costs warehouse time it CO.
cost take to set 2.9
it in CO.
inventory 2.10
CO. 1.2 1.0 Unpredicta 1 TOL 4% 1% 4% CO.
Warranty / 3 ble suddenly 2.7
Returns transportati increase CO.
Processing on increase cost 2.8
Costs cost CO.
2.9
CO.
2.10
CO. 1.2 1.0 Increase The high 2% 2% 4% CO.
Warranty / 4 prime cost level of 2.7
Returns
 Processing risk in CO.
Costs company 2.8
CO.
2.9
CO.
2.10
AM. 1.1 1.0 Incorrect 1 Wrongly 5% 2% 10% AM.
Cash-to- 1 data about recorded 2.1
Cash Cycle inventory inventory AM.
Time supply supply 2.2
data AM.
2.3
AM. 1.1 1.0 Company 1 Bankruptc 10% 1% 10% AM.
Cash-to- 2 don’t get y in 2.1
Cash Cycle payment at customer AM.
Time the due date company 2.2
AM.
2.3
AM. 1.1 1.0 Cannot pay 1 Miss 5% 2% 10% AM.
Cash-to- 3 creditors on calculation 2.1
Cash Cycle time in AM.
Time customer 2.2
payment AM.
date 2.3

4.4. Linking Performance Issues to Projects

In this process author will provide a solution to a project description so that it would ease the
problem formulation.

Table 25. Performance Issue of Projects in PT. Albisindo Timber

 Project list
Project Project description SCOR level 2 metric
1 Improve rate successful customer order RS. 2.1 Customer
Authorization to Order Entry
Complete
2 Complete order entry RS. 2.2 Order entry complete
to start manufacturing
3 Successfully manufactured RS. 2.3 Start manufacturing
to manufacturing ship
4 RS. 2.4 Manufacturing ship
to order received at W/H
5 Successfully delivered to customer RS. 2.5 Order received at
W/H to order shipped to
customer
6 Accurately plan response time AG. 2.1 Re-Plan Response
Time
7 Correctly choose source response time AG. 2.2 Source Response
Time
8 Increase response time AG. 2.3 Make Response
Time
9 Increase delivery response time AG. 2.4 Deliver Response
Time
10 Decrease cost of goods sold CO. 2.1 Cost of Goods Sold
11 Effectively used cost order management CO. 2.2 Order Management
Cost
12 Decrease material acquisition cost CO. 2.3 Material Acquisition
Cost
13 Accurately create planning cost CO. 2.4 Planning Cost
14 Create an effective inventory cost CO. 2.5 Inventory Carrying
Cost
 15 Maximum use of IT infrastructure CO. 2.6 IT Cost for Supply
Chain
16 Reduce return authorization processing cost CO. 2.7 Return Authorization
Processing Cost
17 Reduce product returned warehouse cost CO. 2.8 Returned Product
Warehouse Cost
18 Reduce transportation cost CO. 2.9 Returned Product
Transportation Cost
19 Choose the best warranty CO. 2.10 Warranty Cost
20 AM. 2.1 Inventory Days of
Supply
21 Create a reasonable sales outstanding AM. 2.2 Days Sales
Outstanding
22 Create a reasonable payable outstanding AM. 2.3 Days Payable
Outstanding

4.5. Opportunity Analysis

Opportunity analysis were conduct by using CRM software ROI it’s used to see the visible result
on spreadsheet.

Table 26. Tangible Benefit Estimation

Table 27. Intangible Benefit Estimation

 Table 28. SCM Cost

SCM system cost Vendor1 vendor2

IT infrastructure cost 80000 70000
project management 100000 120000
Technician cost 120000 100000
unpredictable cost 20000 50000
Total cost 320000 340000

Summary
ROI 10% -2%
Payback in n period of years 0,94 1,01

Based on the result the lowest priced system will achieve 10% return on investment and will
result in full payback in about a year. As we can see from the table above, we can see that the
lowest ROI is 1, 4 in three years.

Table 29. ROI Benefit Calculation

3 year
benefit
ROI
1st year
investment year 1 year2 year 3
annualized
benefit
Project achieved 100% 25% 40% 100% ROI
 Rebuild
cutting
1 machine 1000000 500000 800000 2000000 2
add
automatic
sorting
2 machine 1500000 525000 840000 2100000 1,4
New CRM
system
3 implemented 2000000 1400000 2240000 5600000 2,8
Add
4 conveyor 20000000 8250000 13200000 33000000 1,65
add packing
5 machine 14000000 4500000 7200000 18000000 1,285714

4.6. Prioritization and Sequencing

From the analysis above we can said that we need to concern and prioritize on the row 2 because
its related with the sponsor/investor and it would be beneficial if we can overcome those situation
for future of the company

Table 30. Prioritization and Sequencing Project

Complexity, effort, risk

Impact, High Low
improvement, return High -High ROI -High ROI
- Not expensive -80/20: high impact
Change - Long deployment
- Easy to out -not easy to back out
- 80/20: high impact
Low - Low ROI - 80/20: low impact
-Easy to back out - expensive change
- Low ROI
- 80/20: low impact
area
 CHAPTER V

READY FOR IMPLEMENTATION

5.1. Rollout Approval

Below shows the rollout approval of PT. Albisindo Timber, before doing any project and who
need to approve it by.

Table 31.Rollout Approval

Component Activity Status

Regulatory
Approval of the Central Java Provincial Forestry Service Complete
Export licensing between countries In Process
Licensing of industrial establishment under government Complete
supervision
Logging approval with selective logging Complete
Technical
Issues
Prepare the production area Complete
Delivery of raw materials to production area Complete
Replacement of blades on wood cutting tools In Process
Repairs to the battery in the sanding machine Not
Started
Business Requirements
Determination of logging area according to government Complete
recommendations
Analysis of the right selective cutting method Complete
Good design of furniture shapes and models Complete
Adjustment of market needs with production results Complete
 Measurement on the dimensions of the wood to be produced In Process
Preparation of additional materials for assembling furniture In Process
Data
Migration
Define and implement good and correct logging methods Complete
Define and implement furniture design according to customer Complete
needs
Define and implement good marketing techniques to increase Complete
product sales
Design
View data on the best models and designs according to market Complete
assessments
Design Making In Process
Design Approval Not
Started

5.2. Project Kick-Offs

Below are the project kick-offs of PT. Albisindo Timber for the company. It provides
information regarding the responsibility assignment of each department.

Table 32. Project Kick-Offs

R Recommend: Leadership Team Project Team External Resource

person who
recommends
an option
A Agree: Person M G Whol T A AC W SP R WS CS DS
who must G R e L D C R G R L P
agree with the Team
recommendati
on
 P Perform :
person who
must agree
with the
recommendati
on
I Input : person
providing
input to the
recommendati
on
D Decide : The
single
decision
maker

Wor Task
k Description
Area
Agree Budget R D I P R/I P I R/ R I R R
P
Determine R/ D I P R/I P I R/ R I R R
The Scope of P P
the Project
Outsource or R/ D I P R/I P I R/ R I R R
insource P P
R R
Produce R R P D R/I P P R/ R I R R
deliverable x P
Produce R R P D R/I P P R/ R I R R
deliverable y P
 MG : Manager

GR : General Manager

TL : Team Leader

AD : Auditor

ACC : Accounting

WR : Worker

SP : Supervisor

Regulator : Customer

WSR : Wood Supplier

CSL : Consultant

DSP : Designer Specialist

5.3. Initiate Project

Below is the project initiation checklist of PT. Albisindo Timber. It contains information
regarding the requirement for people, process, and product.

Table 33. Initiate Project

People
Internal External
Make Team for Furniture
Production Making Stakeholder for the company
Book Resource for Making Create RACI for Role and Responsibility for the Production of
Furniture Furniture
Run the Internal Process Run the External Process

Process
Making the Project Process
 Prepare and Set Up tools for
Production
Make RAID log for Risk Probability
Make SoW or PID

Product
Requirements Deliver Outline
Prepare the Requirement about the Furniture
Create the timing plan for the furniture production
Production
Create Product Finish and Deliverables Estimate
Making the Project Goals and Objective
Time
Review and Define Deliverables

5.4. Test, Pilot, Roll-Out

Below is the Test, Pilot, Roll-Out of PT. Albisindo Timber, it contains information regarding the
tasting phase of the company.

Table 34. Test, Pilot, Roll-Out

Pilot Test Description Success Criteria Test Team Schedule

Interface Test - To ensure - All elements - Joko - 2 july
all design were - Wibowo 2020
elements of perfectly
website are aligned
perfectly - Interface
aligned were easy to
- Add text understand
holders
Verification - To ensure - All data - Sulistia - 5 july
Test connectivity were - Marko 2020
of database sycronize
with with the
website website
UI/UX of UI/UX
 multiple - All design
pages that
- Add text implemented
holders on the
product
were the
same with
the initial
design
Validation - To ensure - All display - Suryani - 10july
Test display of were same 2020
correct with the
records records on
from the the website
website
data base
- Add text
holders
 CHAPTER VI

KEY RISK INDICATOR

6.1. Identified Risks

For the Key Risk Indicator for PT. Albisindo Timber, below are some of the identified risks of the
company that we have identified.

Table 35. List of Identified Risks

Code Source Freq Event Consequences

Description
AS1 Asset 14 Broken blade Replace the
on a wood saw saw blade with
machine a new blade
AS2 Asset 7 The Repair the
performance of electrical
the wood connection and
shaving check the cable
machine is not condition
stable
AS3 Asset 2 Damage to Do service and
furniture check for any
production damage
equipment
AS4 Asset 2 Malfunction of Reset the
wood dimensions and
dimensioning do the cleaning
machine on the machine
parts
AS5 Asset 1 Fire in a Extinguish the
warehouse for fire
 storing immediately
furniture or using Fire
wood raw extinguishers
materials and activate the
emergency
alarm
HF1 Human Factor 12 Heavy Injury Lost hand,
broke hand, et.
HF2 Human Factor 5 Broke a Have to replace
machine it with the new
one
HF3 Human Factor 16 Create wrong Warn by
product quality
controller
HF4 Human Factor 10 Broke a product Must pay back
the product
HF5 Human Factor 6 Playing while Replacement,
working injured
LO1 Location 2 Flooding in the production
production area equipment and
because it is wood raw
close to the rive materials can
be damaged
LO2 Location 1 Tectonic Collapse of the
earthquake company
because the building
company is
located at the
foot of Mount
Muria
LO3 Location 2 The occurrence damage to
of strong winds vehicles in the
that can cause parking area
trees to fall in and company
the Parking transport
area because it vehicles
is close to the
sea
LO4 Location 1 The occurrence production can
of landslides in be hampered
the production and lead to
area production
cancellations
LO5 Location 1 Tsunami can Evacuation and
occur because rescue of
the production valuable files
area is close to
the sea
WE1 Weather 3 Weak Streak Cannot dry the
Rain product
WE2 Weather 2 Hurricane Big damage for
the factory
especially for
the roof
WE3 Weather 1 Tornado Cause a loss of
life, make a
damage for the
factory
WE4 Weather 6 High Rain Product can’t
Intensity be dried,
damage in the
 roof, noise for
the factory
WE5 Weather 2 Flood Product would
be damage,
cannot do
manufacture
AD1 Administration 23 Submitted Inform the data
wrong type of for document
document swap
AD2 Administration 38 Wrong Big loss on
calculation of company
financial financial
AD3 Administration 15 Lateness on Delayed
submitting processing the
document data
AD4 Administration 7 Loss of Redo the cycle
important from start on
document creating the
document
AD5 Administration 11 Data processing Redoing on
error data processing

From the above identified risk of the company, we can than graph the system to see the
connection between risk and identified.
 Figure 7. Graph of the System

6.2. Risk Event Consequences

Based on the identified risk and the graph of the system we can then calculate the risk event
consequences by determining the time lost, workers involved, direct costs, and the overall cost of
all the identified risk. Below shows the list of evaluated risk event consequences.

Table 36. List of Evaluated Risk Event Consequences

Code State Event Time Worker Direct Overall Costs

Decripti Lost involved Cost (Rupiah 000)
on (minute) (Rupiah
000)
Min Ma Mi Ma Mi Ma Min Max
x n x n x
AS 1 110 Broken 10 15 1 2 10 20 120 600
blade on 0 0
a wood
saw
machine

AS 2 223 The 13 17 1 2 15 30 70 1000

perform 0
ance of
the
wood
shaving
machine
is not
stable

AS 3 197 Damage 20 27 1 2 10 20 170 800

to 0 00
furniture
producti
on
equipme
nt

AS 4 134 Malfunc 10 25 1 2 10 60 150 1200

tion of 0 0
wood
dimensi
oning
machine

AS 5 202 Fire in a 50 12 15 20 10 10 120 1500

warehou 0 00 00 0 0
se for 0
storing
furniture
or wood
raw
material
s
HF 1 24 Heavy 100 24 1 2 15 60 200 6500
Injury 0 00 00 0

HF 2 43 Broke a 30 60 1 2 10 70 150 1400

machine 0 0

HF 3 3 Create 40 32 1 2 50 80 100 1600

wrong 0 0
product

HF 4 9 Broke a 60 12 1 2 15 90 300 2000

product 0 0 0

HF 5 53 Playing 5 10 1 2 0 60 20 900
while 0
working

LO 1 Flooding 240 36 15 20 10 10 150 1700

in the 0 00 00 0 0
producti 0
on area
because
it is
close to
the rive

LO 2 Tectonic 5 10 15 20 10 10 115 1250

earthqua 00 00 0 0
ke 0
because
the
compan
y is
located
at the
foot of
Mount
Muria

LO 3 The 15 30 15 20 10 10 155 1330

occurren 00 00 0 0
ce of 0
strong
 winds
that can
cause
trees to
fall in
the
Parking
area
because
it is
close to
the sea

LO 4 The 15 30 15 20 10 10 120 1700

occurren 00 00 0 0
ce of 0
landslide
s in the
producti
on area

LO 5 Tsunami 2 10 15 20 10 10 110 1200

can 00 00 0 0
occur 0
because
the
producti
on area
is close
to the
sea

WE 1 Weak 120 36 15 20 10 10 120 2300

Streak 0 00 00 0
Rain 0

WE 2 Hurrican 15 30 15 20 10 10 120 1700

e 00 00 0 0
0
WE 3 Tornado 10 15 15 20 10 10 105 1200
00 00 0 0
0

WE 4 High 120 36 15 20 15 70 155 8000

Rain 0 00 00 0
Intensity

WE 5 Flood 12 36 16 25 18 18 200 2000

0 00 00 0 0
0

AD 1 Submitte 12 15 1 2 0 10 10 1500
d wrong 00
type of
docume
nt

AD 2 Wrong 120 24 1 2 0 50 20 1000

calculati 0 00 0
on of
financial

AD 3 Lateness 10 12 1 2 0 90 15 1800
on 0 0
submitti
ng
docume
nt

AD 4 Loss of 10 36 1 2 0 10 25 1200
importan 0 00 0
t 0
docume
nt

AD 5 Data 15 12 1 2 0 10 10 1700
processi 0 00
ng error

TOTAL
 Below are the identified risk consequences in more detail and the countermeasures of the
risk of every recorded event.
Table 37. Countermeasures of Identified Risk
Code Event-Description
AS1 Broken blade on a wood
saw machine
AS2 The performance of the
wood shaving machine is
not stable
AS3 Damage to furniture
production equipment
AS4 Malfunction of wood
dimensioning machine
AS5 Fire in a warehouse for
storing furniture or wood
raw materials
Counter Measure
Turn off the machine that
connected to the wood saw.
Use protective glove to
remove the broken blade.
Repair the wood saw
machine. Replace the blade
of the wood saw machine.
Turn off the blade that is
connected to the wood saw.
Repair the internal machine
saw wood.
Turn off the production
equipment. Repair the
equipment. Test it to
produce a furniture.
Turn off the machine.
Check on what part of the
object dimensioning. Test it
to produce a furniture.
Turn off al electricity to the
warehouse. Contact a fire
department while doing a
self-extinguish of the fire.
Note on what is burn on the
warehouse.
HF1 Heavy Injury Immediately bring the
injured person to the
hospital. Note who is
injured and what event that
bring it to injury.
HF2 Broke a machine Turn off the machine
electricity. Check on why
the machine broke down.
Note on the name of the
machine,
HF3 Create wrong product Check the data that caused
the wrong production.
Bring the production into a
recycle to transform it into
the raw material.
HF4 Broke a product Check on what product that
is broke. Note the broken
product for recycling into
raw material.
HF5 Playing while working Check on who is playing
while working. Give a
warning to the employee for
playing while working.
LO1 Flooding in the production Immediately move all
area because it is close to precious item to a secure
the rive place. Manage the flooded
warehouse by waiting and
drying. Note on what
product or machine are
broke.
LO2 Tectonic earthquake All employee immediately
because the company is move to a safe area. Note a
located at the foot of Mount machine or product that
Muria broke.
LO3 The occurrence of strong Cut down the tree for
winds that can cause trees moving the tree. Note what
to fall in the Parking area destruction the tree caused.
because it is close to the sea
LO4 The occurrence of Immediately clean up the
landslides in the production soil caused by the landslide
area and note what damage
caused by the landslide.
LO5 Tsunami can occur because Evacuate all employee in to
the production area is close the nearest safe zone. Note
to the sea what damage the tsunami
caused to company.
WE1 Weak Streak Rain Employee are to
immediately close all
opening of the company
and warehouse. Note what
damage caused of the rain
to the product and machine.
WE2 Hurricane Employee are to
immediately close all
opening of the company
and warehouse. Note what
damage caused of the
hurricane to the product and
machine.
WE3 Tornado Employee are to
immediately close all
 opening of the company
and warehouse. Note what
damage caused of the
tornado to the product and
machine.
WE4 High Rain Intensity Employee are to
immediately close all
opening of the company
and warehouse. Note what
damage caused of the rain
to the product and machine.
WE5 Flood Immediately move all
precious item to a secure
place. Manage the flooded
warehouse by waiting and
drying. Note on what
product or machine are
broke.
AD1 Submitted wrong type of Check on what document
document are submitted wrong.
Inform to the person of
which the document are
submitted. Redo the
document.
AD2 Wrong calculation of Check the document
financial calculation. Check on what
financial are wrong. Update
to the right financial.
AD3 Lateness on submitting Check on what document is
document submitted. Give a warning
 to the employee that submit
it late.
AD4 Loss of important document Check on what document
have been lost. Redo the
document to make it up for
the lost.
AD5 Data processing error Check on why the software
error in processing. Redo
the data processing to make
sure the data is correct.

From the above calculation, we can now do the fundamental matrix calculation to the Key
Risk Indicator value of each risk. Below is the resulted table from the fundamental matrix
calculation.
 State

0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 SUM

1st row
3 0.07 0.043 0.03 0.04 0.05 0.091 0.01 0.08 0.08 0.09 0.04 0.05 0.06 0.0123 0.0157 0.0217 0.0031 0.0286 0.0597 0.043 0.0073 0.0457 0.0053 0.0521 0.0337 0.0022 0.0423
of (I- (KRI)
0 71 21 33 16 87 23 23 54 54 64 91 55 68 42 64 56 25 17 83 75 74 83 45 56 83 14 24
Q)^-1

Time mi
0 0 1 1 5 3 4 1 5 3 2 1 5 3 2 1 2 1 1 2 1 2 2 1 4 1 1 1 2
(Hours) n

ma 4.0357
0 0 2 4 7 5 7 2 7 6 6 2 7 5 6 2 4 7 4 4 2 4 4 1 8 2 4 1
x 14

Worke
r mi 1.2857
0 0 1 2 1 1 1 1 1 1 1 1 2 1 1 4 1 2 1 1 1 2 2 1 1 2 2 1
(Numb n 14
er)

ma 3.0357
0 0 1 4 2 4 1 4 3 2 3 4 3 2 4 8 5 4 1 5 1 4 4 5 1 4 4 2
x 14

Cost mi 385.35
0 0 0 40 100 300 50 100 70 200 100 60 70 50 200 150 200 1000 50 250 500 100 2000 0 5000 100 0 100
(Dollar) n 71

ma 1141.7
0 0 50 70 200 500 70 150 720 350 150 180 280 100 500 3000 400 8000 500 1000 5000 200 4000 100 5000 400 50 1000
x 86

Overall
mi
Cost 0 0 70 60 400 400 100 200 100 300 200 200 100 70 300 200 220 1250 100 500 1000 150 2200 50 5035 200 20 400 493.75
n
(Dollar)

ma 1856.4
0 0 700 1100 600 780 1500 500 800 600 600 400 350 1500 600 3450 1070 9100 2350 1745 7100 1200 5200 500 5035 1000 200 4000
x 29