Name : Abdul Qodir (02)
Class : 3-H / Management Accounting
Subject : Cost Management
Type of Company : Construction Company
Competitive Strategy : Cost Leadership
Step in the Activities
Value Chain
Step 1: Performing Research and Development
Environmental by doing several tasks as follows :
Analysis  The Tekhnik Manager conducts
a survey to locations related to
land contours, land area, and
conditions around the
environment.
 Together with the community
conducted a survey of land area
designation, land limits, waste
water disposal of project results
Step 2: Design  Compiling Brand Chart of
Company
 Create a siteplan with a 70%
kaveling composition and public
facilities
 Create a building plan (working
Expected Output Activities Current Operations Decisions : The
Components of Company
and/or Contract Out
Marketing, Developing,
and Servicing Functions
 Complited location plan The cost for the analysis The price of land ownership
analysis, land contour process amounted to Rp. per Ha is Rp. 2.5 billion and
map, and description of 40 Jt, and the cost of the cost of work legalization
environmental conditions land ownership cost Rp. is Rp. 5 jt / Institution
as decision-making 10 billion.
materials
 Obtaining permission
from the environmental
agency (BLH) or analysis
of environmental impact
(AMDAL)
 Complited Brand Chart The cost of making a Brand Chart of Company is a
Design Brand Chart of company identity that is
 Complited siteplan design Company amounted to booked to attract customers,
related to building Rp. 1.2 Jt, Building Engineering Management
structure Design Engineering consists of 2 people at a cost
 Complited product design Management Fee of Rp. 6 Jt / Person
 image) starting from the details
of the gate image and details of
each type of house
Step 3: Project  Create a project budget plan
Administration (RAP) to determine development
needs and plan a building budget
(RAB) for licensing purposes or
banking submissions
 Submit the creation of the
siteplan to the legal authorities to
carry out the licensing process
Step 4: Select  Determine vendors according to
Vendor / inventory of development needs
Supplier  Create a letter of employment
agreement to immediately carry
out the initial work
 Select supplier which suppliers'
place and space strategies
influence business economics
Step 5:  Make purchases, receipts, and
Materials stockings of materials imported
Acquisition from selected suppliers
 Establish and record the material
that goes out and into each
borrong boss as the basis for the
payment of material debt by the
financial part
Step 6: Recruit  Determine the contractor and
Workforce select and provide input on the
draft contract of the boss of the
by creating a detailed type
of house and building
concept
 Complited building permit
(IMB)
 The enactment of the
project siteplan by the
environment agency
 Obtaining permission
from the environmental
agency (BLH) or analysis
of environmental impact
(AMDAL)
 Obtained five major
suppliers in accordance
with agreed agreements
that include product
variations, prices,
payment terms and service
capacity
 There are various
materials needed
according to the inventory
of building needs in the
material warehouse.
 Gotten a trained
workforce based on
procurement
amounted to Rp. 12 Jt
and Developer Fee of
Rp. 25 Jt
Total costs incurred in Land management fee for the
managing Project Village Head amounting to
Administration Rp 5 jt, notary fee etc.
amounted to Rp. 20 Jt amounting to Rp. 6 Jt, as well
as IMB, BLH and AMDAL
process costs rp. 9 Jt
Selected suppliers are All risks that occur have been
the result of the regulated in such a way in risk
selection of companies management, and all policies
in accordance with have been agreed such as
certain criteria and refund and exchange of
agreements in helping goods, period of cooperation
the process of (during the Development
accelerating Process) and technical
development. capabilities of vendors.
Delivery and Shipment The company only submits
costs are fully borne by memos to suppliers in
the supplier with the accordance with inventory
FOB Destination Point needs, while material
system financing is done on credit
according to the agreement
contract between the supplier
and the company's part.
Recruit Workforce Recruitment process consists
Process Cost of Rp. 4 Jt, of accommodation, training to
and wage cost per week the briefing process as many
 funnel to the developer section
 Make a letter of agreement with
the construction party to carry
out work in accordance with
management tasks
Step 7: Specify  The developer coordinates with
Production the construction authorities
Process regarding the location of the
kaveling, consumer data, wake
schedule, work plan drawings,
building technical specifications,
and rules during the construction
process and quality assurance.
 Work closely with the
construction boss, make initial
preparations for construction
starting from the bowplang
(reference point of the house
building), determine the elbow,
determine the zero point /
elevation of the building
 The Coordinator of marketing
directs the construction in
determining the building to be
built first.
Step 8:  The production part carries out
Production construction that starts from
Process preparation and ground work to
yard work.
 The production process consists
of 18 points of work carried out
 Determine which
buildings will be built first
in accordance with the
type and standard of
physical development.
 Finished product based on
management tasks
of Rp. 16,040 Jt, while as 150 people pendafatar costs
to produce one unit of Rp 4 Jt and 31 selected people
house it takes 10 including boss borong with
construction workers for details of costs rp. 90 rb /
a maximum of 2 months person and Rp.120 rb for boss
at a cost borong per day
The process of directing A series of jobs costs Rp. 2.5
and dividing tasks in Jt
accordance with the
ability of workers
adapted to the
management tasks of
developers and the
initial work of buildings
in the form of land
clearing and
environmental analysts
The average cost spent The average cost of basic
in building a house is goods is obtained from the
adjusted to the type of total cost of materials spent in
house with a budget of the process of building houses
Rp. 120 Jt covering an consisting of the process of
area of 120 m2, while soil work to the finishing
 by 10 construction workers with
a deadline of 4 months.
Step 9: Sell  Compiling a list of promotional
Product / targets in the form of
Marketing exhibitions, presentations and
Process other face-to-face meetings
 Plan sales targets, enforcement,
cash flow marketing flow to
SHM signatories through
coordination and communication
with finance and construction in
the field
Step 10:  Receive complaints and make
Customer improvements according to
Service consumer submissions ranging
from complaints of physical
problems of buildings to legal
and financial complaints
 Receive building upgrade
/upgrading submissions in
accordance with consumer
demand
the average construction process, while for the cost of
cost per ruma type is construction workers
Rp. 35 - 50 Jt and calculated Rp. 90 rb / day and
developer costs per the boss of the funnel Rp. 120
housing unit of 10 - 15 rb / day with a maximum
Jt length of 2 months for one
unit of house with 10
construction workers
 Distributed various Total accumulated cost Marketing costs can reach Rp
promotional tools in the for promotional tools 7.5 Jt for rose-type housing
form of print brochures, distributed amounted to units (Rp.250 Jt x 3%), while
leaflets, billboards, Rp. 5 - 10 Jt, while legality costs are required in
signboards, marketing fee of 2 - 3% signing AJB
advertisements in depending on the owner
newspapers, exhibitions, of the company and
banners, events and so on legality costs can reach
Rp 2.5 - 3 Jt per housing
unit
 Completion of the report Building maintenance The cost of upgrading and
on the implementation of costs, building repair repairing due to damage is
repair work in the form of costs and upgrading determined directly in the
complaints and upgrading costs are adjusted to Building Cost Budget Plan
until the news of the last building conditions that with a scale / m2, while for
key handover event to are fully managed by repair costs due to damage the
consumers construction and company is fully responsible
building developers. for risk management where
the construction gets half the
wages
 The Balanced Scorecard Analysis for a Construction Company
Perspective Measures Indicator
Environmental
Perspective:
 Demography Looking at the population growth rate  Population growth
and characteristics of the Probolinggo rate : 1.1 % per Year
Regency Community ( Pt = Po + (L-M)
 Population
characteristic : total
population, age, etnic,
education, and average
number of children
 Economic Savings, NPL, Credit, Inflation, and  Inflation : 7.8 % ( CPIn
Per capita Income – CPIn-1 / CPIn-1 x
100 % )
 Per capita Income : Rp.
861.000 ( Percapita
Income = PDRB / Total
Population )
Classification Level Score / Points
The Level of Population 4.0 / 5.0
Growth Rate at Probolinggo
is 1,1 % so it can be
classified as Medium
Growth Rate
 Rapid growth rate, if the
population growth rate
reaches more than 2 %
per year
 Medium growth rate, if
the population growth
rate ranges from 1% - 2
% per year
 Low growth rate, if the
population growth rate
is less than 1 % per year
The level of Inflation at 5.0 / 6.0
Probolinggo is 7,8 % so it
can be classified as
Creeping Inflation
 Creeping Inflation : < 10
% per a year
 Walking Inflation : 10%
- 30% per a year
 Running Inflation : 30%
- 100% per a year
 Hyper Inflation : > 100
% per a year
  Nature Raw Materials, Electricity Grid
Trajectory, Environmental Change and
Expectations for the Role of
Government
 Technology Cable Telephone Network, Wireless
Telephone Network, Internet Network
and Television Network
SubTotal Enviromental
(1)
Financial Perspective
 Profitability Use more Financial Leverage, by
increasing the amount of debt capital
relative to its Equity Capital, A
company can increase its Return On
Equity (ROE)
 Increasing Tap a new market segment with
Raw Materials, Electricity
Grid Trajectory etc in
supporting company
development
Cable Telephone Network,
Wireless Telephone Network,
Internet Network and
Television Network
 Return on Equity : Rp.
543.450.332 / Rp.
2.879.265.574,
(ROE=Net Profit after
Tax / Self Capital) x
100 %
 Return on Investment :
The Level of Nature effectivity 4.0 / 4.0
and efficiency in suporting the
company development was
conducted by using quisioner
where the result are classified
into five responden opinion, as
follow : 72 % are strongly
agree, 21 % agree, 4,37 % say
enough, 2,63 % are disagreed,
and 0 % said very don`t agree
The Level of Technology 4.5 / 5.0
Resources was conducted by
using quisioner where the result
stated that the level of
effectivity and optimalization in
using technology are classified
into five responden opinion, as
follow : 51,67 % are strongly
agree, 40,83 % agree, 6,67 %
say enough, 0,83 % are
disagreed, and 0 % said very
don`t agree
17.5 / 20.0
The value resulting from the 6.2 / 6.5
calculation of Return on Equity
is 18,65 %
 The value resulting from 5.0 / 6.0
 Contract innovative in Research & Development Rp. 543.450.332 / Rp. the calculation of Return
Quantity and also maintain continuous customer 12.439.832.128, on Investment is 3,25 %
( ROI=Net Profit after  The value resulting from
Tax / Total Assets) x the calculation of
100% Current Rationis 220,24
 Current Ratio : Rp. %
7.106.225.520 / Rp.
3.232.646.789,
(CR=Current Assets /
Current Liability ) x
100%
 Cost Efficiency Finding best formula operating ratio to  Total Assets Turn Over  The value resulting from 7.2 / 7.5
meet most cost efficiency ratio of the : Rp. 3.703.153.866 / the calculation of Total
company Rp. 12.439.832.128 Assets Turn Over
(TATO=Sales / Total is12,56 %
Assets ) x 100 %  The value resulting from
 Inventory Turnover : the calculation of
Rp. 2.921.007.765 / Inventory Turnover is
Rp. 1.102.655.304 54,84
(IT=Total Inventory /
Total Operating
Income ) x 365 Days
SubTotal Financial (2) 18.4 / 20.0
Customer Perspective
 High Ratio Implement Customer Relationship  Customer Satisfaction : The Result of the assessment of 5.0 / 5..0
Customer Management system to build and Customer Compalain 0, Customer Satisfaction is 100 %
Satisfaction Index strengthen relationship between Total Customer 909 ,
customers and also can identify and (CS = ∑ Customer
provide services to meet the needs of Complain / ∑
the customers Customer ) x 100%
 Increase New Dividing customers up based on  Customer Acquisition : The Result of the assessment of 3.5 / 5.0
Customer common characteristic effectively Total Customer n 909, Customer Satisfaction is 38 %
Segment Total Customer n-1 is
 659, (CA = ∑
Customer in a year (n) -
∑ Customer in a year
(n-1) / ∑ Customer in a
year (n-1)) x 100 %
 Good After Sales Develop after sales service strategy  Customer Profitability : The Result of the assessment of 5.0 / 5.0
Service plan Total Customer 909 Customer Satisfaction is 95 %
from the total 959,
( CP = Profit in the
Market Segment
Served / Number of
Customers in the
Market Segment
Served )
 Enhance Creating an MoU with other developers  Customer Retention : The Result of the assessment of 3.0 / 5.0
Strategic Total Customer n 909, Customer Satisfaction is 138 %
Cooperation with Total Customer n-1
Other 659, ( CR = ∑
Development Customer in a year (n) /
Companies ∑ Customer in a year
(n-1)) x 100 %
SubTotal Customer (3) 16.5 / 20.0
Internal Process
Perspective
 High Quality Implement Total Quality Management Innovation Process, which is New concept in terms of shape 4.0 / 5.0
Products & and Good Corporate Governance as a the company`s creativity in and size, the location of project
Management foundation in operation of a company developing new products or is very strategic, the number of
management services to meet consumer facility designs and ergonomic
needs area
 Effective Process Fulfilled Search Engine Optimizer data Operation Process : Processing The Result of the assessment of 5.0 / 5.0
entry time (month) 17, througput Operation Process is 52 %
time (month) 33, (OP =
Processing Time / Throughput
 Time ) x 100 %
 Competitive Improvement in Performance with Developing Criteria for Developing Criteria for 5.0 / 5.0
Prices Developing Criteria for Superior Superior Performance Superior Performance
Performance Assessment (KPKU) as a Assesment (KPKU) Assesment will be measured by
measure performance doing a secondary data using
Kuisioner
 Develop an Conduct coaching and supervision on After-Sales Service Process Customer gathering and several 4.2 / 5.0
Integrated the spot and increase supervision of events related to customer,
Project Quality implementation reminder regarding monthly
Management payment, and the other way to
System establish a good relationship
between the company and
customers
SubTotal Internal 18.2 / 20.0
Process (4)
Learning and Growth
Perpective
 High Quality Implement Competences Training Quality Human Resources in The Level of Quality Human 5.0 / 6.0
Human here was measured through Resourc was conducted by
Resources several dimension, namely : using quisioner where the result
satisfaction, salary, co- stated that the worker
workers, promotions, and satisfaction level are classified
supervision into five responden opinion, as
follow : 44 % are strongly
agree, 38 % agree, 14 % say
enough, 2,67% are disagreed,
and 1,33 % said very don`t
agree
 High Quantity Forecast a Number of Human Quantity Human Resources in The Level of Quantity Human 7.0 / 7.5
Human Resources requirement by project here was measured through Resources was conducted by
Resources several dimension, namely : using quisioner where the result
intensity, affinity and stated that the worker retention
identification and productivity level are
 classified into five responden
opinion, as follow : 45 % are
strongly agree, 39,17 % agree,
8,33% say enough, 5,83 % are
disagreed, and 1,67 % said very
don`t agree
 Optimizing Optimizing the use of technology to Artificial Inteligence (AI) and The Level of Technology 6.0/ 6.5
Technology support the company's operations Machine Learning, Mobile Resources was conducted by
Resources ERP, and Real Time using quisioner where the result
Operations stated that the level of
effectivity and optimalization in
using technology are classified
into five responden opinion, as
follow : 51,67 % are strongly
agree, 40,83 % agree, 6,67 %
say enough, 0,83 % are
disagreed, and 0 % said very
don`t agree
SubTotal Learning & 18.0 / 20.0
Growth (5)
Total Score (1+2+3+4+5) 87.6 / 100.0

A Strategy Map for Construction Company

ENVIROMENTAL
PERSPECTIVE

Demography Economic Nature Technology

FINANCIAL
PERSPECTIVE

Increasing Contract
Profitability Cost Efficiency
Quantity

CUSTOMER
PERSPECTIVE Enhance Strategic
High Ratio Customer Increase New Good After Sales Cooperation with
Satisfaction Index Customer Segment Service Other Development
Companies
 INTERNAL PROCESS
PERSPECTIVE

High Quality Develop an Integrated

Products & Effective Process Competitive Prices Project Quality
Management Management System

LEARNING & GROWTH

PERSPECTIVE

High Quality Human High Quantity Human Optimizing Technology

Resources Resources Resources