________________________________________________ Part I Overview and Case Information

PART I

OVERVIEW AND CASE

INFORMATION

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CHAPTER I
GENERAL INFORMATION
CV. MULIA JAYA COMPANY

All buildings in the world such as houses, shops, markets, hotels, pavilion, places
of worship, and office buildings must have a roof to protect the people inside from
the heat of the sun, wind and rain. The roof in a home building has a very important
role, as beautiful as any house without a roof can not be said of a house, purposes as
a protector and comfort of its occupants whether day or night, hot or cold.

But along with the development of architecture, the roof is not only a mere
protector of a house, now the role of the roof is shifted towards a broader, which is
part of architectural art. There are various types of roofing materials that are often
used in various parts of the world such as fibers, straw, asbestos, zinc, and tile. One
of the roofs of buildings that are often used is tile.

Tile is one of the important components of housing construction that has a

function to protect the house from temperature, solar heat and rain and other
functions. Furthermore, the types of roofing tiles in history have been experiencing
developments along with the times, ranging from tiles made of clay, tiles made of
glass, ceramics, cement and sand (concrete roof tiles), material of metal (metal
roofing) and others.

The origin of tile roofs if traced further is originated from China, during the
Neolithic era, starting around 10,000 BC, and the Middle East some time later. From
this region, the use of tile spread throughout Asia and Europe. Not only ancient
Egyptians and Babylonians, but also their Greek and Roman buildings used clay
roofs and tiles. The earliest findings of clay tiles in ancient Greece came from the area
around Corinth (Greece), where tiles began to replace the thatched roofs at two
temples namely Apollo and Poseidon between 700-650 BC. This tradition continues
in Europe today. Then the Europeans brought the tradition of this clay roof to
America around the 17th century.

If seen, the most commonly used tile in houses in Indonesia are clay tiles that are
brown or reddish brown. While concrete tile is more often used for European-style
houses, especially Germany since time immemorial. In some large countries in
Europe, especially in Germany, concrete roof tile has been widely used for quite a
long time. Concrete tile is gaining in popularity because of its good durability,
strength and attractive appearance.

At the end of this year, the use of concrete roof tiles as a cover for houses is
increasingly favored by the public and developers in Indonesia. Both minimalist
style housing, medium housing and luxury housing, the roof in the form of concrete
tile is widely used. Concrete tile was chosen because of its shape that looks exclusive

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and elegant. In this era, the use of new technology in the production of concrete roof
tiles results in good quality and cheap, making it easier and more affordable for
many people.

Concrete roof tiles are building roofing materials which have a quality standard
determined by SNI 0096: 2007. Based on these SNI regulations, concrete roof tiles
have flexible load quality requirements as the most important quality requirements.
Concrete tile that meets the flexural load test in accordance with the value of SNI
0096: 2007 will provide compressive strength that meets the standards. Concrete tile
has the basic ingredients in the form of sand, cement, water, and can add lime mill,
and fly ash. Concrete tile has quality requirements such as visible characteristics,
size, flatness, flexural load, water absorption and resistance to water seepage
(impermeability). Concrete roof tiles are divided into 2 (two) types, namely concrete
roof profiles and flat concrete roof tiles. Profile tile is a tile whose surface has a
profile, can be in the form of lines. certain ornaments or profiles. Whereas flat tile is a
tile that does not have a profile.

A. THE HISTORY OF CV. MULIA JAYA

Starting on November 11, 2010, at night in a cafe in the city of Semarang, three (3)
Volkswagen Combi antique car enthusiasts namely Mr. Banu Prima, Mr. Ihsan Jaya,
and Mr. Amin Abadi gathered to release miss because they had not met in a long
time on antique car enthusiasts organization. In rainy conditions, accompanied by
hot coffee drinks and the chanting of November Rain from vocalist Axel Rose of the
music group Guns N. Roses that was sung by a band from Semarang Powerslaves,
they shared stories, chatted, and even discussed from light talk to talk that needed
argumentation and thought.

Their subsequent discussion turned out to show a condition where they currently
have almost the same situation and conditions. Mr. Banu Prima, who has a
background in architectural engineering education, just retire his job because it does
not fit into the current job at a conventional bank, he wants a new challenge. Mr.
Ihsan Jaya recently retire his job in finance and accounting, because the company
where he worked went bankrupt. Whereas Mr. Amin Abadi, a business consultant,
is quiet at work and intends to develop his own business because so far he has only
provided consulting to other people's businesses, and feels challenged what if
developing his own business.

The longer, the discussion pursed on the conversation about economic problems.
Then it was agreed to make a joint business between the three people. The product
to be sold is in the form of concrete roof tiles, at the suggestion of Mr. Prima, who
has long known this business in the banking world, who happens to have an
architectural background and handles housing loans at the bank where he
previously worked. This was agreed by Mr. Abadi, who works as a business
consultant who also proposes the form of the company, while Mr. Jaya agrees, the
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important thing is that the company's prospects will be profitable. Finally, they
agreed to establish a company in the form of a CV which is engaged in the
production of concrete roof tiles.

The agreement was then followed up with the establishment of the company, the
share of their respective capital, the determination of the location of production, the
determination of the location of administrative and marketing offices, the purchase
of production equipment, the recruitment of employees, conducting market surveys,
and the determination of suppliers/vendors of the company. The company was
finally established on March 12, 2011 after being submitted to the Department of
Industry and Trade of Semarang City, in the form of the Alliance of Commandments
/Commanditaire Vennoonschap (CV) under the name CV. Mulia Jaya. Meanwhile,
the name Mulia Jaya was chosen because it was a combination of words that had
good meanings and continued to strive to achieve corporate glory.

After that the company was registered with the tax office, and since May 11, 2011
has been confirmed as a taxable entrepreneur/Pengusaha Kena Pajak (PKP) with
PKP number 000. 631.02985.01.6.03. The factory is located at Jalan Pembangunan
Utara no 12, Semarang. As for marketing, the company opened an office in Ruko
Plaza Simpanglima No. 3 Semarang.

Share of company profits, divided based on the share of invested capital and
job positions and work weights agreed with the distribution:

Mr. BanuPrima 40%

Mr. IhsanJaya 30%
Mr. Amin Abadi 30%

The position of director is appointed by a professional salary. Mr. Prima holds

the position of Production Manager, who is responsible for the production produced
by the company. Mr. Jaya holds the position of Finance and Accounting Manager,
who is responsible for financial management and company administration. While
Mr. Abadi held the position of General Manager who was responsible for personnel,
marketing and general affairs.

B. PRODUCTION

1. Product (Finished Goods)

Finished Goods of produced from CV. Mulia Jaya in the form of colored concrete
press tile with the brand Messindo Tile (MT). The use of these brands for historical
reasons. The colors offered to customers/buyers are red, blue, green and brown tile.

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The following is a tile image as a finished roof tile of produced from CV. Mulia
Jaya:

CV. Mulia Jaya

Roof Tile Product

Some reasons why it was chosen to produce concrete roof tiles are:
- Concrete tile has a strong durability
- Concrete tile resistant to biological attack
- Concrete tile has a variety of shapes
- Concrete roof tiles are also available in various colors
- Concrete tile is not easy to change its shape
- Concrete tile is able to reflect heat
- Concrete tile can accept repainting
- The price of concrete tile is cheaper than ceramic tile
- Rustproof concrete tile

Materials used in the manufacture of concrete roof tile in the CV. Mulia Jaya is
sand, cement, water, paint, and thinner. Sand and cement are the main raw
materials, while paint and thinners are supporting materials. For optimal tile quality,
quality materials and a good production process are needed by implementing Total
Quality Management (TQM). The philosophy of implementing TQM is not to
continue the damaged product to the next process starting from raw materials,
entering the production process, to producing finished goods. So the finished goods
produced produce zero defects.

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For the main raw material for tile making, namely sand and cement, sand is
used with minimal soil content and fineness with a sifted process. As for cement,
portland type cement is used, which is specifically used for the manufacture of
strong concrete roof tiles.

While the quality of paint and thinners are selected which have high adhesion
and low water absorption (leak-proof/waterproof). This is so that tiles that are made
are resistant to leakage and durable.

Whereas for tile specifications and technical data generated CV. Mulia Jaya is:

CV. Mulia Jaya

Product Specification Messindo Brand Tile

Specification and Technical Data

Genteng Messindo Tile
length 330 mm
Dimension
width 420 mm
Daya Tutup 9 pcs / m2
Weight 4,2 kg / pcs
usuk 4/6 length 50cm
Construction
reng 2/3 length 25cm

Kemiringan Atap minimun 22° - 30°

2. Production Department and Support Department

The departments in the company consist of the production departments

(main) and supporting departments. The production departments is directly
involved in manufacturing tile products, namely the Mixing Department, the
Pressing Department and the Finishing Department. While the support
department functions to support (support) to the production department, which
consists of the Power Department, the Maintenance Department and the Services
Department/General Support Department.

Complete data from the Production Departments at CV. Mulia Jaya is:

a. Mixing Department
This department mixes raw materials for making tiles using a mixing
machine, a type of molen or mixer. Molen/ mixer engine is driven by an
electric energy, and under certain conditions using a fuel energy. The

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working principle of this machine is a cylindrical tube that rotates to mix

sand, cement and water.

b. Pressing Department
This department press/prints the raw material mixture from the Mixing
Department into mold tiles using a pressing machine. The machines in the
Pressing Department are powered by electricity. The working principle of this
machine is to put the sand cement mixture into the mold/dies which forms
pressure tile using piston. Then the results are released from the mold and
placed in a rack to drying process.

The following machine drawings and concrete tile molding machine

specifications:

CV. Mulia Jaya

Press Machine Concentrate Tile Printing/Pressing

The following specifications of the Press Machine:

• Normal production capacity of 10,000 pieces/day
• Maximum hydraulic pressure: 250 bar (kg/cm2)
• Average hydraulic pressure "200 bar (kg / cm2)
• Maximum press pressure: 100 tons
• Drive dynamo: 5.5 HP / 4.2 Kw
• Electric power: 220/380 V (3 phase)
• Hydraulic pump: 22cc rexroth
• Operators / workers: 4 person

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c. Finishing Department
This department is doing the final process in making these tiles ready for sale.
This process consists of the immersion process, the drying process and the
painting process. The painting tools use a spray paint with air pressure using
a compressor. Supporting materials used in this department are paint and
thinner.

While the departments that support production department, the Supporting

Department, consist of:

a. Power Department
The energy needs of the company are supported from electricity by
subscribing to PLN. However, under certain conditions, this need is still
lacking or the electricity condition is down so that it forms the Power
Department. This department produces electricity from generators. Electricity
from both PLN and this department is used to run production machinery in
the mixing, pressing and finishing stages as well as for office purposes
(administration and marketing).

b. Maintenance Department
This department maintains and repairs production machinery in the Mixing
Department, Pressing Department, Finishing Department. This department is
also responsible for technical support so that the roof tile production process
runs smoothly.

c. Service Department/General Support Department

This Service Department helps the Production Department and other
Supporting Departments. This department provides a variety of needs for the
production department and other supporting departments such as the supply
of spare parts for equipment, logistic, tool/equipment, household equipment,
consumption, and cleanliness

An overview of the production process flow and the roles of the production
department and supporting departments can be described as follows:

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CV. Mulia Jaya

Production Process Flowchart

POWER MAINTENANCE SERVICE

DEPARTMENT DEPARTMENT DEPARTMENT

Raw Finished
MIXING PRESSING FINISHING
Material → DEPARTMENT → DEPARTMENT → DEPARTMENT → Goods

3. Production Process
In general, the main production processes for producing tile press are mixing,
printing, and finishing. The stages of the production process are as follows:

a. Mixing Process
The raw/direct materials that need to be prepared are cement and concrete
sand (river sand). The composition of the material in the manufacture of
concrete roof tile consists of a mixture of 1 m3 parts of sand with 3 sack part of
cement and water. The process of making roof tiles starts with sifting sand to
get a 5 mm filter sand. Furthermore, the material in the form of 1 m3 parts
filter sand and 3 sack part of cement were mixed in a mixing machine/molen
and added water gradually until evenly distributed. At this stage, the
ingredients must have the right moisture content, not too wet or vice versa,
because this will affect the pressing process and the quality of the roof tile
produced.

b. Pressing Process
The next process is pressing/printing which is done using a tile press
machine. The manufacturing process at the printing stage is carried out by
filling the dough into the pressing machine until the product is really solid.
Then at the same time along with the base of the concrete tile removed from
the pressing/printing machine. The concrete tile that has been printed and
then transferred to a temporary shelf and allowed to stand for 24 hours/1 day
1 night. After the sinking process is complete, the base is released and then
the soaking process for 3 days 3 nights. If you only have to arrange this neatly
finished concrete tile for the drying process.

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c. Finishing Process
The company chooses tile paint that has good quality so that it lasts, with
indicators that have good adhesion, anti-mildew, anti-seepage, weather
resistance, good covering and fast drying.

While the process is:

- Clean the tile
So that the attached paint can adhere well and evenly, it must be cleaned
before the concrete tile, especially from the rest (burry) printing.
- Provision of a waterproof coat of paint
It is important to provide a waterproof coating on the concrete tile
because this layer will protect your tile from water, so that water
absorption can be smaller. First do the horizontal coating and the second
vertically or vice versa using a brush. So that this base coat really covers
all the pores of the concrete tile.
- Painting with tile-specific paint
After being given a coat of base paint, it should not be painted
immediately, but dried beforehand until it is completely dry, so that this
waterproof coating can adhere properly to the pores of concrete tile. After
it is completely dry, the concrete tile is painted using a special paint tile as
well as the color selection. The last painting using spray paint using a
compressor machine.

C. PERSONNEL/HUMAN RESOURCES
Personnel in CV. Mulia Jaya, in addition to the founders who also acted as
employees, were also recruited according to their expertise and education
background in placement.

The following details are the employees of CV. Mulia Jaya:

1. Director
A Director is responsible for leading the company, coordinating and
overseeing the overall activities of the company, as well as carrying out
strategic planning and policy. For this position someone was hired
professionally. .

2. Secretary
The secretary is in charge of scheduling, scheduling meetings and handling
telephone calls, as well as company correspondence. Besides helping some of
the technical tasks of the leaders.
.

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3. Production Section
The production department is responsible for the production process,
planning material requirements, scheduling production and making the
production process. The manager for production is held by Mr. Banu Prima.
The sub-division of the Mixing Department who is responsible for receiving
goods from the warehouse is held by Mr. Ahmad Najib. The Electricity Sub-
Division is held by Mr. Armand Maulana. Whereas the Finishing Department
sub-section which receives the goods is held by Mr. Asnawi.

4. Finance and Accounting Section

To carry out the transaction and recording process, the Finance and
Administration Section was generally responsible for finance and accounting.
The manager of this section is held by Mr. Ihsan Jaya.

There are sub sections consisting of:

a. Sub Division of Finance
This section is responsible for carrying out the process of buying and
selling transactions with outside parties, making payments and cash
receipts, and making transaction documents. There are cashiers, sales
invoices, making purchase orders and calculating employee salaries and
wages. The position of Cashier is held by Mr. Rahman Hakim, appointed
by Mrs. Annisa Ratna to make sales invoices and purchase orders as well
as the payroll division mandated by Mr. Sukarya.

b. Sub Division of Accounting

This section is tasked with recording transactions based on transaction
documents that have been made by the Finance Section and making
financial reports for internal parties and for external parties. Personnel for
this section, in early January 2021, resigned for a reason, so the company
recruited you to continue the accounting work it had left behind.

5. Marketing Section
This section is responsible for marketing. Placing advertisements in mass
media is one of the tasks of this section, besides making contact with potential
prospective buyers via email, sms and wa.

6. General Section
This section provides support for all company activities, both production and
non-production. The manager is held by Mr. Amin Abadi. One sub-section of
this section is the Warehouse Section which is held by Mr. FarizAzhar.

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D. PROCUREMENT OF MATERIALS

The material used in making tile consists of raw/direct materials and

supporting materials. The main raw materials used are sand and cement. Sand
raw materials are purchased from CV. Bumi Permai is located in the Muntilan
area (Magelang), where Muntilan sand is obtained in the surrounding area which
is well known for its quality and is an area in the Merapi Mountain region in the
border area of Magelang Regency in Central Java Province and Sleman Regency
in DI Yogyakarta Province.

Cement raw materials are purchased directly from PT Semen Gresik, East
Java. The purchase price of raw materials includes transportation costs for
purchases. The purchase price of cement does not include 10% VAT. The VAT
will be credited to the VAT (Input VAT) debt account. Purchase of raw materials
is done on credit, with a maximum repayment period (maturity) of 1 (one)
month.

Supporting materials used in making roof tile are paint and thinner. The
company cooperates with paint purchases with Toko Pelangi and thinner
purchases with Toko Murni. Purchase of supporting material is done in cash or
credit, depending on the transaction and is added with 10% VAT (ten percent).
The VAT will be credited to the VAT (Input VAT) debt account.

E. MARKETING

The marketing method used by this company is direct and indirect. A direct
way to use the method of word of mouth, distribution and delivery of
brochures/pamphlets, and using social media tools. In addition, to expand the
marketing network, the indirect method is by placing advertisements/
promotions in local newspapers and creating a website with the address
http://www.muliajaya.com.
.
Consumers consisting of individuals, developers and building material
stores. These consumers can come directly to the company to buy the required
tile or order via telephone, sms and wa communication devices for ordering
orders. If an agreement has been made, goods and documents for the sale will be
prepared, mainly the sales invoice.

If everything is ready, then the goods are ready to be sent to customers. For
shipping goods carried out by using a vehicle (truck) company and truck rental
from a transport company. This vehicle rental is carried out if a large number of
deliveries are needed to the customer, due to the company's limited truck
capacity.

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A sale is carried out with a credit system with a repayment period of 30 days,
because the company is a taxable entrepreneur (PKP), each sales transaction is
subject to 10% VAT. A commission of 2% of the tile selling price (excluding VAT)
will be given by the company if the sale is made to developers and building
shops. The commission will be paid by the company on the date of sale.

F. ORGANIZATIONAL STRUCTURE

The following is the Organizational Structure Chart of CV. Mulia Jaya Tile
Company is:

CV. Mulia Jaya

Organizational Structure

DIRECTOR

SECRETARY

GENERAL FINANCIAL
PRODUCTION MARKETING ADMINISTRATION &
REPORTING

Warehouse
Mixing Power
Department Department
Human
Resources
Pressing Maintenance
Departement Cashier
Department
Financial unit

Finishing Service
Department Payroll
Department
Accounting Unit
- General Accounting
- Cost Accounting

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Information:
- The organizational structure of CV. Mulia Jaya takes the form of a mixture of
lines and staff.
- The line of authority can be vertical (line) or horizontal (functional).
- The director is assisted by a secretary.
- Production department is the most complex department, consisting of
production department and supporting department.
- The Financial and Reporting Department is in charge of the finance and
accounting departments. In addition there are payment and cashier functions.
- The Accounting Section consists of the General/Financial Accounting sub-
section and the Cost Accounting sub-section.

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