TEAM AGP
Dita Anatasia (004201500006)
Gresylia Jimmy (004201500011)
Jessica Meilina (004201500014)
Mutiara Mawarsari (00420150019)
Rianita Savira (004201500026)
INTEGRATED PRODUCTION SYSTEM
Monsoon Simulation (MonsoonSIM) is a fascinating simulation learning base for
studying process. It is a sophisticated education mediator with a bunch of business
idea that can be discovered by learners through competitive simulation. Monsoon
Simulation is focused on ERP system. With Monsoon Simulation, learners can get
broad knowledge and good understanding of how business enterprise is run with
ERP basic concept. There are various connection of data and process from various
departments which will affect each others. MonsoonSIM makes learners aware
about the impact from each department to others, and the failure of one department
may impact the whole operation performance.
Monsoon Simulation is embedded with 45 concepts of business over its 12 business
departments. The students can get top 5 knowledge with playing this game, namely:
 Supply Chain and ERP Concept.
 Business Process Integration Concept.
 Running a Large Business Process.
 Integrated Business System Concept.
 Team Work in Large Business.
MonnsonSIM is used to help the students get the abroad knowledge about
production system concept and the entire operation process, in the subject of
Integrated Production System by Mr. Johan Krisnanto Runtuk, ST., MT. In playing
this game, the students in the class is divided into 4 groups, each group has 5
members. To win this game, there are 4 indicator of scoring which are Cash on
Hand, Sales, Net Profit and Utilization. To maximize and to win the game, the main
strategy is team work and communication among the members is required. The
general strategy, the specific strategy, the team members tasks and why this team
won will be explained in next pages.
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1. General Strategy of Monsoon Simulation
The purpose of every game is to win. In order to achieve objective of the game,
there are several general strategies that were used. The first general straegy was
maintaining the stock in each retail. The second was maintaining the cost of
warehouse space and its utilization effectively. The third strategy was buying the
media marketing, each retail has its specified marketing. The forth strategy was
buying the marketing report to know the situation of market from here the strategy
of pricing could be conducted and to know the market share. The fifth strategy was
taking risk in bidding firstly in high price before procuring the finished goods. The
sixth strategy was maintaing the production and MRP properly. The seventh
strategy was maintaining the machine efficiency because it would affect the
production. The eighth strategy was maintaining Human Resource properly. The
last strategy was making good atmosphere in team working. Those strategies is
specified as:
1) Maintain the stock for each retail.
There were three producs in this game, which were apple juice, orange juice
and melon juice. There were three places of retails which are Jakarta, Ende
and Jayapura. Our group agreed that for retails will be used the direct
procurement of finished goods instead of moving stock from warehouse. To
reduce the inventory cost, the area of retailer was considered when moving
or buying products to prevent the additional rent cost for additional space
utilization. In order to determine the number of orders that must be ordered,
we saw the movement of the demand forecast and unit-sold that occurred.
Based on the demand analysis that have been done in Day 1, the demand in
Ende retail is higher than the demand in Jakarta and Jayapura Retail.
Therefore, we decided to buy more products at Ende Retail. To reduce the
cost of purchasing the juice from vendor, our group choose to buy in a high
amount in order to get the discount.
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Figure 1 The Discount of Purchasing Products
Based on the Figure 1, it can be seen that if our group purchases above 20,000 until
will got 10% discount and for 30,000 unit will be gotten 20% discount. Thus, we
decide to purchase 12,000 units for each product to Ende Retail and purchase 8,000
units for each product to Jayapura and Jakarta Retail.
Figure 2 User Interface
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The user interface above help us in monitoring the stock in retail. If the stock
in the retail 10,000 units, we will make a purchase to vendor. Based on the
demand analysis, we agreed to increase the retail location up to 150 m2. Our
group chose to use daily contract rental system instead of discount contract,
so the space rental can be easy to be adjusted. The regular purchase for the
vendor was using two system such as regular purchased for immediate
delivery and regular purchased for future delivery. The regular purchased
for future delivery is an arrangement that allows us to book and pay for
goods sometimes in the future. This system is useful if we want to purchase
goods in high season in order to ensure the availability of the goods. For the
first ten days, we decide to procure good in each retail with different type
of vendors in order to find a good vendor that can give shortest lead time.
In order to maintained stock in retail we work together with marketing
department if the number of inventory is high (over the retail rental space)
and the unit sold is small, marketing department is responsible to increase
the unit sold. The specific strategy will be explained in next chapter.
2) Maintain the cost of warehouse space and its utilization effectively.
Warehouse is located on Balikpapan. Reduce the space warehoue cost can
be done by maintaing the consumed area in order the consumed space was
not exceed the rental space. In purchasing the products to warehouse, our
group considered the space of warehouse, the proper total in purchasing
products is important, so the utilization would not be spilled over which can
affect the additional rent cost. In order to determine the right warehouse
rental space, we saw the movement of the B2B sales through wholesales
forecast. For the first ten days, our group did not used the warehouse in order
to make the cash on hand stable. Therefore, our group agreed to reduce the
space rent from 1000 m2 into 0. Warehouse stock is focused only for B2B,
because B2B had high requirement for juice demand. Starting Day 5, the
rental space was increased because the procurement of finished goods were
conducted since our group won the bidding. The rental space of warehouse
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in the beginning of the time was not outrageously high considering the
bidding was also not too high. Until the machine was bought, and Cash on
Hands was stable, therefore the rental space became higher which was 1000
m2. Our group chose to use daily contract rental system instead of discount
contract, so the space rental can be easy to be adjusted. The strategy of
procuring for warehouse was taking many bidding, after that calculated the
required finished goods for bidding and running the MRP. This strategy was
used because there will be 20% discounts if our group procured finished
goods more than 30,000 units. Around 2 days after procurement, the space
rental would be increased based on the calculation of rental consumed from
total procurement.
Figure 3 The Area Consumed for each Piece of Product
Based on Figure 3, the total area consumed for each juice type was same
(0.003 m2), so for rental space was increased or decreased by the result of
multiplication of total procurement and product dimension.
3) Purchase media for marketing
From resources information and experiences in playing MoonsonSim, our
team purchases media from the beginning to increase our sales and market
share. There are 3 media (Media A, Media B and Media C) available for
marketing each of the 3 juices in each of the area. For initial daily marketing
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investment, we assigned 1000 SGD for all products with different medias.
Since the media selection for each product and each area are impacting to
sales different, the media assigned to the juices will be flexible by means it
will be change based on Return of Investment ((Sales Growth - Marketing
Cost)/Marketing Cost) at the current investment strategy. However, due to
short of the time given, the performance of the benefit will be changed by
monitoring the unit sold. The media and the amount of money invested will
be spontaneously change due to the unit sold performance, if the unit sold
is too small and has a huge gap than the other juice flavours at the same
area, the amount of investment will be increased. And if there is no
improvement in unit sold, the media will be changed. The information of
unit sold will be notify by each person that take case of the retail store. The
Amount of investment will also dynamically change based on our team
position in market share that can be analyse further from marketing report.
4) Purchase marketing report and analyzing price
Marketing report is useful to check our team sales, sell price and market
share investment and market share performance from our competitors.
Marketing Report will be purchased thrice. The First marketing report will
be purchased on day 10 to evaluate our team market share performance than
the other teams before it is too late, then to analyse the percentage of the
market share of the four teams and how were the sell price and the marketing
investments of our groups among the other groups. This information then
will be used to make strategies for selling price and the marketing
investment in the future. The second and the third marketing report will be
purchased to recheck and control the market share performance, selling
price and marketing investments. More marketing report will also be
purchased if there are any problems of sales in the middle of the game. Our
team strategy is to keep our product price stable at the beginning of the
game. However, changes in selling price will be made if there is significance
increment and or decrement in unit sold for the purpose of marketing and
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stock level to increase sales. The information of unit sold will be notify by
each person that take case of the retail store.
5) General strategy of bidding (B2B)
Beside retailers in each city, B2B was also the money producer in Monsoon
Simulation. Therefore it was important to be brave in taking risk bidding
and dealing in this game with considering the stock of juice in warehouse to
prevent the penalty. The main strategy of B2B was conducting B2B firstly,
and then calculated later in MRP. In the beginning of the time, considering
low Cash on Hand, our group only conducted low units of B2B as Figure 4
shown. Our group prefer “bid” to “deal” in this game, because “bid” had
higher margin than ordinary “deal”. The main strategy of bidding, firstly
analyzing the maximum willing to pay for bidders, our group chose the
highest maximum Willing To Pay in bidding to get higher profit. The second
was our group would choose 1 Minimum Bidders rather than 2 Minimum
Bidders to increase the winning probability. The third was considering the
shipment required, whether the shipment could be achieved the requirement
or not. The last was B2B opportunity must be grabbed as soon as possible,
because other teams would get this opportunity.
Figure 4 Bidding in the Beginning of Time
6) Maintain production and MRP properly
Production, MRP and procurement was connected each other. The general
strategy of production was focused on Melon and Orange Juice, to fulfill the
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requirement of B2B demand and reducing COGS in order for higher profit.
The production was started on Day 10, until our financial was in stable
condition to buy the machines, the procurement of machine itself was
conducted gradually because high prices of machines that can affect the
cash flow. Since, the production was focused on Melon and Orange Juice,
therefore the MRP would focus on only Apple Juice. The procurement for
Melon and Oange juice raw materials was manual, and for Apple juice used
MRP system, except in urgent case where shipment required deadline was
near so the procurement of Melon and Orange also used MRP system. Our
machine only focused for producing the Melon and Orange Juice, therefore
MRP system used 0% produced and 100% procured finished goods. MRP
was ran after all of bidding in specified days was finished, so the
procurement quantity would directly high and our group would get the
discounts.
7) Maintain the effeciency of machine
Maintaine the effeciency of machine was important, because the effeciency
of machine would affect the output of production. The degradation of
machine efficiency can decrease the production. The general strategy of
maintaining the machine was keeping the high valued asset, the production
machines, in good working order by comparing the use of predictive and
periodic maintenance. Also ensure that OEE percentage is not less than
90%, with use of periodic maintenance that is automatically run by system
for every 9 days.
8) Maintained Human Resource and Customer Service Area
Human resource area was important, our team could not do activity such as
procurement, B2B, moving stock, produuction and anymore if all of
employees resigned. The general strategy of Human Resource was
comparing the actual employee and the planned, and if the actual was less
than planned, HR team would hire new employee. The second was
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maintaining the employee issue properly by counselling, but counselling
had been conducted several times and the issue still happened, firing staff
could be the only option. Another thing can be done is by recruiting the new
staff, by looking for their work history (their competency).
9) Built a good atmosphere among team
Good atmosphere in team work is really required to be success. Our group
considered that good condition of teamwork will lead the performance of
each team member, even thought there are several days we were panic about
the conditiion of departmenets, but we tried to build good mood to prevent
chaos condition. The last every member had given their best contribution to
win this game.
2. The Specific Strategies
There are several specific strategies that were conducted to achieve the goal of this
Moonson Simulation games. The specific strategies includes in retails, warehouse
and B2B, marketing, price and procurement, Human Resource and the last was
production and MRP.
2.1 Retail Management
Retail is connected with place, and place is one of marketing Mix detailly in 4P.
Place is where the direct customers can buy the products. Retails are the place and
one way to the buyers could get the products from Monsoon Simulation. The impact
if the empty stock in retails, it could lead the empty buyers in a retail and could
decrease the market unit sold, market share and the worse case is income. There
were three retails in this game, which were Jakarta, Ende and Jayapura.
General Condition of Retails
The simulation was conducted in 90 days. As we know, there are three main
products which are apple juice, orange juice and melon juice. The general condition
of demand for each retails can be shown on Figure 5– Sales by Product.
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Figure 5 Unit Sold Per Day
Based on Figure 5, it can be seen that for the first 4 Days Ende and Jakarta has the
largest unit sold among Jayapura. Thus, we asked to marketing department to
increase the unit sold in Jayapura. Marketing department set marketing expense for
Jayapura is bigger than others which can be shown on the figure below:
Figure 6 PO List
As the result from the Day 5, the Jayapura unit sold is increase up to 57% which
same with others retail which can be shown on the Figure below:
Figure 7 Unit Sold Part 2
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The stock of retails were basically from direct procurement neither from Warehouse
nor Production.
Maintained the Area Consumed and Stock in each Retail
In the beginning of the time from Day 1 until 4, we did not activate the warehouse
system. Based on the demand analysis that have been done in Day 1, the demand in
Ende retail is higher than the demand in Jakarta and Jayapura Retail. Therefore, we
decided to buy more products at Ende Retail. Thus, we decide to purchase 12,000
units for each product to Ende Retail and purchase 8,000 units for each product to
Jayapura and Jakarta Retail. This number has enough to cover the demand needed
and lead time of Purchase Order.
The lead-time for each city not each vendor has different times. The lead time
purchase order for Jayapura from VFG1 is 8 days while the VFG2 is 2 days. The
lead time purchase order for Jakarta from VFG1 is 2 days while the VFG2 is 4 days.
The lead time purchase order for Ende from VFG1 is 7 days while the VFG2 is 5
days. Thus, in the beginning we decide to purchase order for Jayapura from VFG2,
for Jakarta from VFG1 and for Jayapura is from VFG2. If the number of lead-time
become longer we will change the vendor in order to get shortest lead-time.
The maximization of space utilization and minimization of rental cost are required
to win this game. Maintain the retail area is important, to reduce the cost each
member had to make sure, the area consumed was lower than the rent area to
prevent the over flow charge of rental cost. In the first 15 days the rental area for
the retail is 150 m2. Because of the demand of in all retail is keep increasing, in Day
15 the rental house in Jayapura is increased to 200 m2 in order to increase the
number of stock in the retail. To optimum the performance, our team tried to
maximize the space utilization without excessing the space capacity.
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A. Maintain Area Consumed and Stock in Jakarta
The first thing to do on Day 1 was to purchase or to procure finished good for three
products for Jakarta Area (Jakarta – Apple, Jakarta – Orange, and Jakarta – Melon).
Before purchasing, the demand of Jakarta had to be checked firstly by looking on
the forecasted demand. According to the forecast, the demand for Jakarta was the
smallest compared to others area (Ende and Jayapura). The average unit sold for
Jakarta was around 600 units. Then, our group decided to buy 8,000 units only for
three products by choosing VFG1 (Vendor 1) and selecting regular purchase –
immediately delivery which means the finished good will be delivered directly to
Jakarta in several days. According to the PO List, it can be seen that the lead time
from VFG1 was only 1 day.
Figure 8 PO List - Lead Time for Jakarta
We need to aware with supplier delivery time. Since it has been provided 2 vendors,
VFG1 has been tried, then it does not matter to try VFG2 whether it is slower or
faster the delivery time.
Figure 9 PO List - Lead Time Retail Jakarta VFG2
After trying VFG2, it can be seen based on figure 9 that delivery time of VFG2 is
3 days which means it is slower than VFG1. Then, it can be concluded that VFG1
can be chosen.
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Then, it happens the special case which is the holiday that causes the demand will
be increased significantly. Then, in order to increase customer satisfaction, this
group has to prepare or maintain that the stock for facing high demand is in the
safety level. The strategy is by purchasing the finished good on day 1, but, this
group will request to the supplier to deliver it on the day of peak demand or to
deliver it in the future by using future delivery.
The number of product should be purchased is according to the forecast. Generally,
the demand for Jakarta is increase 2 times. Then, the demand in the peak demand
becomes more than 1,000 units. Then, we purchase 5,000 units for each product as
the stock for peak demand.
Figure 10 Finished Good Purchase
Then, the area rent should be maintained. We manage the rental space for Jakarta
at the first becomes 150 m2 from 100 m2 (on day 7, but it started at day 9). We
choose the daily contract with no discount, and it means we should pay 7,500 SGD
each day. After that, we manage the space area for Jakarta, but increase it gradually.
After that, on day 16, we rent more space for Jakarta from 150 m2 to 200 m2 since
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we stock many products in the retail. In order to anticipate the peak demand in a
row (example day 84 and day 85), and also we want to maximize the utilization of
the area since the stock in the retail is getting higher, then area rent space should be
bigger. We change it from 200 m2 becomes 250 m2 on day 73.
Figure 11 Unit Sold Day 84 85 - Jakarta
B. Maintain Area Consumed and Stock in Ende
In the beginning of the time, the first thing to do is looking at the forecast module,
to know the and according to the forecast, the demand for Ende is higher compare
the other retails which is Jakarta and Jayapura. After that, in day 1 also, this group
decided to procure finished goods for three products (Ende-Apple Juice, EndeOrange Juice, and Ende-Melon Juice) is 8,000 units with choosing the VFG2
(Vendor 2) and selecting regular purchase – immediately delivery which means the
finished good will be delivered directly to Ende in several days. This group also
pays attention to the vendors that each retailer uses, the shorter lead time distance
that is will be the right vendor for that retail itself. It can be seen from the PO list
figure below.
Figure 12 PO List - Retail Ende Lead Time
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Since this simulation game have been provided the two vendor which VFG1 and
VFG2. So, to know the better vendor, the group member decided to try each vendor.
The delivery time of VFG2 is 4 days.
Figure 13 PO List- Retail Ende Lead Time Delivery VFG2
From figure 12, it can be seen that the delivery time of VFG1 is 3 days, which
means the VFG1 is faster than delivery time of VFG2. So, the VFG2 can be chosen
as the best vendor for Ende.
According to the forecast, there are holidays that causes the demand is increasing.
When it happens, the members of group will anticipate this problem with prepare
or maintain the stock properly. The strategy is by procure the finished goods by
selecting regular purchase – future delivery. It means the members can request to
the supplier or vendor to delivery it on the day of peak demand. This group decided
to buy 5,000 units for each products as the stock.
Maintaining the area rental space also important. In the beginning of simulation
game. The members of this group decided to change the rental space for each retail
from 100 m2 become 150 m2 by selecting the daily contract with no discount. After
several days by maintain the stock, the demand of Ende is keep increasing, in Day
15 the rental space in Ende is increased to 200 m2 in order to increase the number
of stock in the retail. We also increase the retail rental space in Ende up to 250 m2
in day 73 in order to maintain the stock in retail. To optimum the performance, our
team tried to maximize the space utilization without excessing the space capacity.\
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C. Maintain Area Consumed and Stock in Jayapura
Reviewing the forecast in the Day 1 is the important things that have to be done in
order to determine the number of ordered needed. Based on the forecast that have
been done, Jayapura has a lowest demand compare to others retail. Thus, based on
the forecast analysis we decide to purchase 8,000 unit with 150 m2 of the retail
space. For the first ten days, we decide to procure good in each retail with different
type of vendors in order to find a good vendor that can give shortest lead time. The
lead time of purchase order from VFG1 can be shown on the figure below:
Figure 14 PO List - Retail Jayapura Lead Time Delivery
Based on the figure above, it shows that the lead time of the purchased order to
Jayapura from VFG1 is 4 days, while the purchased order to Jayapura from VFG2
can be shown on the figure below:
Figure 15 PO List - Retail Jayapura Lead Time Delivery VFG2
Based on figure above, it shows that the lead time of the purchased order to Jayapura
from VGF2 is 2 days. Thus, we decide to use VGF2 as a vendor to provide products
to Jayapura. The regular purchase for the vendor was using two system such as
regular purchased for immediate delivery and regular purchased for future delivery.
The regular purchased for future delivery is an arrangement that allows us to book
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and pay for goods sometimes in the future. This system is useful if we want to
purchase goods in high season in order to ensure the availability of the goods.
Based on the Forecast module, it shows that the peak demand is happened in the
days 7, thus we decide to purchase 5,000 units using future delivery 6 days before
the peak season. But for the peak season that more than 1 days, we decide to
purchase 18,000 units using future delivery at least 6 days before the peak season.
Based on the forecast that have been done for week 15, the demand for Jayapura is
increasing 300%, thus we decide to change the purchased order in week 13 become
12,000 units for each product. In order to make the utilization in the Jayapura retail
space become better, we also increase the Jayapura space become 200 m2 in day 13.
Figure 16 Unit Sold - Jayapura
Figure 17 Rental Space for Jayapura
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In the first 4 days Jayapura have a smallest demand compare to others retail. Thus,
we collaborate with marketing department to increase the Jayapura retail demand.
Marketing department set marketing expense for Jayapura is bigger than others
which can be shown on the figure below:
Figure 18 Marketing Investment - Jayapura
As the result from the Day 5, the Jayapura unit sold is increase up to 57% which
same with others retail which can be shown on the Figure below:
Figure 19 Unit Sold – Jayapura
From this example, the most important things that have to be done in order to main
sales in each retail is each retail have to maintain their unit sold. Once the unit sold
is decrease, we have to confirm it to marketing department in order to increase the
sales. As the result, in the last days of the competition we can increase the sales of
Jayapura even more than other retail.
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Figure 20 Last Day - Unit Sold for Jayapura
What need to be Improved?
Retail Jakarta
Figure 21 User Interface - Jakarta
At the end of the game, it happens the over-stock of finished good in Jakarta. The
area usage is more than the area rented. It can be happened because we procure
finished good more, more, and more for preventing the lack of stock for peak
demand whether the demand in Jakarta is not as high as others. The stock remaining
for Jakarta – Orange is still high since the Orange does not sell in the market. The
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action that can be done is by telling Marketing team to advertise this product to
increase brand awareness in the market. Another one is by decreasing the price so
people will be more interesting for buying Orange – in Jakarta retail. Then, the overstock will not be happened.
Retail Ende
In this simulation game on day 54 until 57, the stock in Ende is out of stock as it
can be seen in Figure below.
Figure 22 Inventory Remaining - Ende
Maintaining the stock is very important in order to keep the customer satisfaction
and trust to our company. But, balancing the stock availability in holiday season
and the retail space is very difficult. We still face out of stock in holiday season
because the lead time of the product is out of our expectation. Thus, the things that
should be improved in order to maintain the stock especially in holiday season is
future delivery by setting 5 days before the day of peak demand by selecting regular
purchase – future delivery. Future Delivery is an arrangement that allows you to
book and pay for goods sometimes in the future. This is useful if you want to
purchase goods for a special occasion (i.e. holidays) to ensure the availability of the
goods.
Rental Space Over-Flow
Maintaining the stock is very important in order to keep the customer satisfaction
and trust to our company. But maintaining the stock based on the current retail space
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still become a problem. It is shows on the T-Balance above there still over-flow in
the retail.
Figure 23 Over Flow - Retail
Based on the Figure above, it shows that there is still over-flow in the retail rental
space which about 140,800. For the next competition, we have to minimize the
over-flow retail until 0 in order to get high net profit. The first things that we have
to understand is we have to optimize the usage. Thus, the things that should be
improved in order to minimize the over-flow retail is to align the relationship
between the stock in the retail, the number of purchased order and the current retail
space.
2.2 Warehouse Management and B2B
Warehouse is located in Balikpapan. The management of warehouse included the
stock and its utilization. The initial rental area of Warehouse was 1000 m2 as shown
on Figure 24. Therefore our group chose to reduce the space into 0, since in the
beginning of the time there was no stock in Warehouse because our group had not
started production and B2B. The reason behind this action was to maximize the
space utilization and reduce the Warehouse’s rental cost.
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Figure 24 Rental Space - Warehouse
In the beginning of the time, to fulfill the stock in Warehouse, our group conducted
direct procurement, because our cash on hand had not been enough and stable to
produce the juices. Our specific strategy for B2B was being brave when took
bidding when other groups had not chosen B2B. Our group started conducting B2B
in Day 3 as shown on Figure 25. This B2B would be benefecial to increase our cash
on hand in the beginning of the time. Our group agreed to choose 1 Minimum
Bidders because to increase the probability of getting the bidding. Our group chose
maximal 80,000 units of juice in the beginning of the time, because of cash on hand
consideration. Obviously our group chose the highest willing to pay of bidding to
increase the profit optimally.
Figure 25 1st Bidding
The bidding awarded was announce in Day 5, therefore after the announcement, the
procurement of Finished Goods to Balikpapan was conducted on Day 6, the lead
time was 3 days therefore the shipment required in Day 10 would be achieved.
Figure will show the procurement for achieving B2B on previous figure.
Figure 26 Balikpapan Procurement
Since the procurement was conducted on Day 6, around Day 8, the rental space of
Warehouse was increased from 0 to 300 m2, unlike the lead time of procurement
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that required 3 days, for rental space lead time application only required 1 day, so
if Day 8 our group changed the rental space in Day 9 the space would increase
automatically. In Day 10, our financial cash on hand had enough money to buy a
machine, therefore the production started to produce. Therefore in Day 11, our
group chose to procure raw materials for melon as shown on Figure 27.
Figure 27 Raw Material Purchase
Our group agreed that 300 m2 was enough to cover the area consumed. The
production was focused on Melon and Orange therefore for Apple Juice, our group
chose to conduct MRP only for Apple Juice. The MRP was also set 0% for Produce
and 100% for Procure.
The other strategy of getting high sales was in the beginning of the time, our group
took risks in conducting Bidding meanwhile other group was not ready. Our group
chose to bid firstly and calculating the required bidding shipment later in order to
get many bidding and prevent other groups got the bid faster than us. There were
several considerations while conducting the bidding, namely:
1) Found the highest Willing To Pay.
2) If our group had many stock for a specified juice, this specified juice’s
bidding would be prioritized.
3) Searched for 1 Minimum Bidders therefore when other groups was not
ready for bidding, the terms of minimum bidder had been completed so our
group probability to get the bidding was high.
4) Considered the shipment required. If the shipment delivered day exceed the
shipment required, there will be penalty and the penalty was high enough.
Therefore it was important to consider whether our group had enough time
to achieve the delivery day before shipment required day.
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Figure 28 Bidding Strategy
Our principle was bidding firstly and fulfilling the stock later, therefore, in Day 12
our group bids, therefore in Day 14 our group procured Apple Juice for 40,000 units
using MRP module.
Figure 29 Procure Apple Juice for Balikpapan
The procurement for raw materials was conducted manually to get many discounts.
If tha raw materials was purchased above 20,000 units, the discounts would be 10%
and the raw materials was purchased 30,000 units, the discount would be 20%. The
procurement for raw materials was not conducted using MRP because averagely if
our group conducted MRP the purchasement would be smaller and the discount
could not be gotten. Focusing maintaining MRP for only one type of juice was also
easier. Since the cash on hand were already stable in Day 16, therefore our group
procured raw materials in this day along to high bidding between these days.
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Figure 30 Raw Material Purchase
Same as previous explanation, 2 days after procurement, our group would adjust
the space requirement with the procurement quantity. 1000 m2 was enough to cover
the average area consumed. The specified strategy for warehouse rental was using
the daily contract so the adjustment between area consumed and area rental could
be easy. Even though 7 days contracts will get rental cost discount but it was not
comparable with utilization metric score.
Figure 31 Rental Space of Warehouse Part 2
The other strategy conducted MRP after all of bidding ended in specified batch. For
the example “first batch bidding” was submitted until Day 19, until that MRP was
conducted to get high discount in procuring high quantity of finished goods. In Day
22, PO for last batch bidding was created as shown on Figure 32.
Figure 32 Finished Good Purchase for Balikpapan
In Day 23, our group bought again the machine to support the production process.
The output of production was double since our group had two machines. In second
batch bidding process (the days of submitted in day 20-29), the bidding was taken
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to the next level with higher quantity but still considering the days of shipment
required as shown on Figure 33.
Figure 33 2nd Bidding
Unfortunately there were several bidding that has late shipment. This action was
because our group forget to buy the raw materials for Melon Juice and Orange Juice
and the human resource department forgot to hire new staff for second machine in
production, even though there was machine, but the production department still
required staffs. It can be seen from Figure 33 that the days late was only for melon
juice bidding, from here our group learned not to depend only with production
department, if the production process predictly could not achieve the shipment
required for bidding, the manual procurement should be conducted.
Next Figure 34 will show the third batch of bidding which where from Days 30
until 50. In these days, our group had not taken many risks for high quantity for
bidding because of afraid in not fulfilling the shipment requiremed days, Therefore
the quantity was aroung 10,000 units until 30,000 units, except for Apple because
it would use MRP system, the calculation of procurement would be exactly right
and no waiting in production process.
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Figure 34 3rd Bidding
In the analysis, the Melon Juice bidding probably could not fulfill the shipment
required therefore the “urgent” procurement for Melon Juice was conducted
manually as shown on Figure 35.
Figure 35 Urgent Procurement for Melon Juice
In Day 38, our group agreed to procure again the raw materials to fullfil the bidding
requirement for Orange Juice and Melon Juice as shown on Figure 36 . Actually in
this condition space utilization (1000 m2) was almos not enough to cover the area
consumed.
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Figure 36 Raw Material Purchase - Orange and Melon
As usual, after batch of bidding was closed, the MRP would be ran. And the result
of running MRP was shown on Figure 37. The reason of running MRP at the end
of the batch were to get more discounts, to reduce the transportation cost and to
directly simplified the procurement process.
Figure 37 Finished Good Purchase - Apple
For fourth batch bidding which was from Day 50 until 60. In this batch, our group
was brave enough to take risk, therefore the bidding was in high quantity but still
considering the shipment required. The bidding for fourth batch was shown on
Figure 38.
Figure 38 4th Bidding
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To fulfill the high quantity of bidding, the space rental was increased from 1000 m2
to 1500 m2, this was to prevent the overflow rental space of warehouse. The daily
contract was used again in order to make the adjustment space easier.
Figure 39 Rental Space Warehouse Part 3
Raw material was purchased again in big amount as usual in order to get higher
discount in procuring the raw materials. The purchasement of raw material was just
for Orange and Melon since our group only focused producing the Melon and
Orange Juice. Our group conducted twice procurement of raw material in one batch
due to high quantity of bidding.
Figure 40 Raw Material Purchase in Big Number
As usual, at the end of the batch, our group would run the MRP, since there were
Apple Juice bidding in fourth batch. This action was to reduce the total raw material
purchasement cost because of the discounts.
Figure 41 Finished Good Purchase
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In Day 58, our group agreed to buy new machine due to stable cash on hand and
production requirement. With this new machine, the production process could be
increased and the bidding process could be taken to the next level.
Figure 42 Buy Production Machine
The fifth batch started from Day 60 until 70. In this batch since our group had
already had 3 machines therefore the bidding quantity was taken to the next level.
It can be seen from Figure 43 that shows fifth bidding batch.
Figure 43 5th Bidding
It can be seen, there were several day late for Melon Juice, this could be caused by
production department could not fullfil the demand even though the output was
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maximum, or the raw materials was not enough to achieve the quantity of bidding.
Based on Figure 44, the raw materials was purchased twice in this batch, but the
second purchased was at the end of the batch therefore the reason of lateness
delivery was lack of raw materials for production.
Figure 44 Raw Material Purchase
The day lateness was above 70th Day, therefore the “urgent” procurement was
conducted for Melon to save the financial from penalty. The “urgent” procurement
is shown on Figure 45 . The “urgent” procurement was conducted using MRP,
because to know directly the required Melon Juice after production process. There
was no Apple Juice procurement because the quantity of Apple Juice was already
enough to cover the safety stock and quantity of bidding.
Figure 45 Finished Good Purchase - Melon
In this batch, the rental space was reduced and increased again due to unstable area
consumed in warehouse. This adjustement increased if the area consumed was
exceed the rental space and reduced because the area consumed was declined again.
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Figure 46 Rental Space Warehouse - Part 4
The last batch was for Day 71-90 (the last day). Figure 47 shows the last bidding of
this Monsoon Simulation. The quantity was same as previous, actually bidding in
this batch was only for emptying stock in warehouse,
Figure 47 Last Bidding
There were two times of raw material procurement, MRP was not conducted
because it was at the end of the game, purchasing the finished goods would lead to
reduction of cash on hand.
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Figure 48 Raw Material Procurement
At the beginning of the time, the area rental was reduced from 1,500 m2 into 1,000
m2. Since the procurement was conducted twice, the area rental was also increased
to prevent exceeding of area consumed. Figure 49 will show the increasing of rental
area. The area was changed from 1,000 m2 into 1,500 m2.
Figure 49 Increasing Rental Space Area
What need to be Improved to be used as Future Strategies?
There are several things that must be improved with current condition of Warehouse
and B2B Management, namely:
1) In warehouse, the things that could be improve for our team was setting the
auto-replenishment optimally. Our group should learn about the calculation
of demand and lead to set and determine the auto-replenishment. With
optimal auto-replenishment, the result of scoring may be higher. We also
suggest, that the area of warehouse could be more optimally with making
the area consumed exactly same as the capacity for every day in simulation.
This should be conducted constantly.
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2) There are several times when our group has lateness day of delivery for
bidding, it was better if after bidding, the requirement quantity must be
calculated properly.
3) Based on Figure 50, at the end of the game there were still stock. Actually
it was better to make the stock in warehouse empty at the end of the game,
because it could reduce the rental cost.
Figure 50 Inventory Remaining Warehouse - Last Day
2.3 MRP Management System
MRP system was focused only for Apple Juice. MRP was conducted only after all
of bidding in one batch was done in order to get more discounts and reduce the
transportation cost as the fixed cost. MRP system was only focused on direct
procurement, the production raw materials procurement was conducted manually
since the production was focused only for Melon and Orange Juice.
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Figure 51 Buffer Stock
Based on Figure 51, it can be seen our group only set the safety stock for Apple
Juice because the specific strategy for MRP was only focused on Apple Juice.
Figure 52 will show the percentage of procurement and production for MRP system.
Figure 52 Producing vs Outsourcing
Based on Figure 52, out group chose to use 100% procurement for MRP rather than
production. The reasons of why Apple Juice was chosen for the focused on MRP
and 100% procurement were:
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1) Apple Juice has the lowest COGS among other types of juices therefore it
would be waste to make Apple as the priority of production. It was better to
prioritize the production for Melon Juice and Orange Juice that had the
highest COGS to reduce the COGS therefore the net profit in bidding could
be higher.
Figure 53 Cost of Good Sold
2) Demand of Melon Juice and Orange Juice were higher than Apple Juice in
B2B. Therefore it would benefecial to produce the highest demand rather
than Apple Juice. Moreover, the Willing To Pay for Melon Juice and Orange
Juice were also significantly higher than Apple Juice.
Figure 54 Minimum Willing to Pay
3) It was easier to maintain MRP when focused only for one type of Juice and
it was easier for production department to be focused since they did not
require to produce all of juices.
What need to be Improved to be used as Future Strategies?
The only thing that has to be improved in MRP system was optimumly in using this
module. Actually this module was very benefecial because the teams do not need
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to calculate again either the raw materials or the finished goods. Unfortunately, our
group still could not maximumly use this module because of lack of control. This
module could be used for all of types of juices with specified production process.
2.4 Production System
In this module, the team are able to produce apple, orange, and melon juice. The
main objective to produce the finish good is to supply the demand from B2B and to
decrease the COGS of the juices in order to increase net profit. Further information
to implement production are the BOM of the juices and machines as shown on
Figure 55.
Figure 55 BOM for All Juices
Figure 56 Buy Production Machines Interface
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Figure 56 is the interface to purchase machine. There is only one type of machine
available which is Series A. The price of the machine is 300,000 SGD with capacity
of 10,000 unit/day. Each machine also need 3 staffs.
To start a production, machine is needed as well as the raw material and enough
space on warehouse. Thus, a lot of cash is needed to start producing juices. Since,
our capital will not be enough to cover all the expenses, production will be
implemented from day 10.
On day 10, a machine will be purchased and production team will notify the
maintenance team to set the suitable maintanance schedule. At first, we strategize
to only produce melon juice because the COGS of melon is higher than the other,
thus, raw material of 60,000 box, 120,000 straw, 60,000 melon will be purchased
for supply of 6 days. When the raw material arrived at warehouse, production team
will reorder the same amount of raw material.
Figure 57 Raw Material Purchase Interface
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Figure 57 shows the interface to purchase raw material. There are two vendor for
raw material which are VRM1 and VRM2. Our team mostly purchse from VRM2
because the lead time and the delivery time is more stable than VRM1. However,
the VRM1 over a good deal or lower price, our team will purchase from VRM1.
The lead time is not really crucial because the time order sets are long enough (6
days).
After the production for the first machine is stable, a second machine is purchased
on day 23 to produce orange juice which has the second highest COGS. After
purchasing new machine, now the matrix to purchase raw material will be 120,000
box, 24,000 straw, 60,000 orange and 60,000 melon. All the stock is predicted to
be finished produced in 6 days. Same as before, as the raw materials arrived at
warehouse, raw materials will be re-purchased.
Besides what have been done, number of operator in prodction should be
maintained. As already stated before, each machine needed 3 operator to be run. At
first, there are 4 operators working in production department, thus there are no
problem arise. But when the second machine is purchased, production directly
notify the HR department to hire more operators as needed. On day 58, our team
decided to increase production number, thus a machine is purchased and more
operator requested to be hired.
Figure 58 COGS of All Juices (Day 1-10)
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Figure 59 COGS of All Juices (Day 40-50)
Figure 59 shows the COGS for the three juice from day 1 to day 10 when all the
juices are directly purchased from the vendor. While Figure... shows the COGS
from day 40-50 where apple, melon and orange juices are produce by the team
independently. From both of the graph, it can be seen that there are a decrement of
COGS for all the juices. Lower COGS advantage the team to bid lower and get
higher profit in B2B module.
There are days that raw materials are late to be purchased, causing machines idle
for days and cause loss for the company. There are also days that operators are
lacking and cause the machines not produced fully on their capacity. There are also
days that the machines are not maintenance and cause decrement to machine
capacity. However, these problems are overcome swiftly for minimum loss.
What need to be Improved to be used as Future Strategies?
To main the raw material so that there will be no zero production and the capacity
of the machine could be used up to the maximum. Every time a machine
purchased, it will be better to tell the HR and maintenance department directly for
further actions.
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2.5 Forecasted Demand Module Application
In MonsoonSIM, Forecasting was one of the core modules. In the model, the
forecasted data and trends were assumed to be fairly accurate. Hence, the students
should be able to execute their strategies accordingly.
This forecast module also had relationship to the following department such as
Finance and Retail. In this forecast module we can only observe one, namely retail
market demand. The retail unit that was actually sold depends on other factors such
as price, marketing, price elasticity and whether other teams ran out of stock or not.
Generally, if the overall prices are high, the accumulated demand will go down and
vice versa. In this simulations there were 90 days running, there are holidays on day
7, 15, 22, 28, 33, 34, 35, 52, 53, 54, 55, 65, 70, 71, 72, 84, and 85. On these days,
the sales will increase from 200% to 300%. This also means the days of peak
demand. That means at the peak of demand, our team must be maintain the stock
properly. With our strategies to control the prices and inventory. Because holding
excess inventory will also add overhead costs for the business. So, inventory space
must be used optimally. Our team set up some strategies, which were:
a) From the Retail charts, we observe the daily unit sales for each of the
product for each of the area.
b) Compare the unit sales observed in against the Forecast chart for Retail
Sales.
c) Observe any demand spikes in upcoming days.
d) Take an action to determine how much products that we need to procure to
ensure to meet the demand.
2.6 Marketing Strategy
Marketing are activities of a company associated with buying and selling a product
or service. It includes advertising, selling and delivering products to people. In
MonsoonSIM, Marketing is one of the core modules. In the model, marketing
affects our team’s retail sales.
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Market intelligence
Market Intelligence is the information relevant to a company’s markets, gathered
and analyzed specifically for the purpose of accurate and confident decisionmaking in determining market opportunity, market penetration strategy, competitor
analysis, and market growth predictions. Our team set up some strategies for this
marketing intelligence, which are:
a) Make some price changes
b) Make some goods purchase
c) Make some marketing investments
d) After simulation running for about seven days, buying marketing report

Observe the sales is compared to the other teams

Observe the prices are compared to the other teams

Observe the total unit sold are compared to the other teams

Observe the total marketing investment are compared to the other teams
The first marketing report was purchased in Day 10. Here, our market share showed
we are in the second place after PITUNK Team. We thought that our market share
was already high enough. However, after purchased the market report, Team
PITUNK, our biggest competitor, had the highest market share of above 30%.
Began with the market share, we analyzed our sales performance than the average
of total sales from all of the teams. Our sales of all products in all areas were still
higher that the average of total sales. Our selling price of all products were also
either in the middle of the other product all the cheapest. And the last from the
marketing spent were lower than the quarter of the total marketing spent.
From the marketing report, the selling price showed good result. However, we were
lacking in the sales and unit sold. From analyzing the marketing report, the reason
of the low sales was because of the low investment in marketing spent. Then the
next step is to improve the investment in marketing.
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Figure 60 AGP Market Share Day 90
Figure 61 Buy Marketing Report at Day 83
The last marketing report was purchased in day 83 because our unit sold market
share were stable and we wanted to evaluate or team performance. From the
marketing report, it showed that our market share was stable at 23.70 %. But Team
PITUNK’s market share was still the highest and our team still in the second highest
in terms of market share, this might be because the increasing of Team PEJANTAN
market share.
Figure 62 Unit Sold Market Share Percentage on Day 83
As well as the sales market share, Team PITUNK has the highest market share, then our
team, the third is Team PEJANTAN and the last team is Team BULE.
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Figure 63 Marketing Report in Ende Retail
From Figure 63, it shows our team’s total marketing spent for region Ende Apple
Juice. It can be seen that our team had lower average sales comparing to the other
three teams, except on day 74 our team had higher average sales compared to other
teams. For average units sold our team had lower results than other teams but on
day 74 our team was superior from other team. For the price itself, our team did
make it lower because of our strategy to keep reduce the sell price since, we already
got more profit from B2B. Thus, we did not increase our marketing investment. So
it can be seen for our team's total marketing spent lower than the average of other
teams.
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Figure 64 Marketing Report in Jayapura Retails
From Figure 64, it shows our team’s total marketing spent for region Jayapura
Orange Juice. It can be seen that our team had high average sales compared to the
other three teams, on day80, 81 and 83. The first is because the heat of retail in
Jayapura complain that their unit sold is dropping, thus changes for the media dor
each juices including Orange juices is chaged. From the Figure above, it also can
be seen that the price of the juice is decreasing from 27 SGD to 25 SGD. The lower
set price also strategized to increase unit sold and sales. When there is no increment
on sales when there is high increment in unit sold, the selling price of the juice will
be increased once more. For our marketing expense itself, we keep in steady it can
be seen that our investment in marketing is lower than the average of the total spent
in marketing investment.
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Marketing Investment
According to Kumar, Bhaskaran, and
Mirchandani (2013), 80% of global
customers are influenced by media for their preferences and purchasing decisions.
However, it is difficult to measure the impact of media efforts in monetary terms.
Incremental sales, profit and ROI (Return on Investment) can be calculate to
measure the effectiveness of the investment through media. ROI used in finance is
the ratio of net benefits to costs. This calculation plotted the company’s costs and
benefits into a useful profitability measure. Since there is no time related
measurement in ROI, it cannot analyse the time risk and compare the short lived
versus long lived investment to media to competitors (Erdogmus, Favaro, & Strigel,
2004). The higher ROI is better; it shows that the company generating higher benefit
and how costumer preferences for the product in our company than the other
company. This is the aspects that will also influence the significance of our
company market share. A higher market share usually means greater sales, lesser
effort to sell more and a strong barrier to entry for other competitor (The Economics
Times, 2018)
Our team set up some strategies for this marketing investments, which are:
a) Observe the unit sold of the last three days, write down the unit sold per area
per product
b) As soon as possible, set marketing expense using one of the marketing
programs for one of the products in one of the areas
c) Observe the change in unit sold before and after the marketing investment
d) Also compare the sales of the promoted product against the other unpromoted products
e) Analysis of R.O.I (Return On Investment) for each of the program for each
area and each product by using this formula (Sales Growth - Marketing
Cost) / Marketing Cost = ROI
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Figure 65 Marketing Investment Made on Day 3
As what already explained in the general strategy, the marketing strategy used was
by made as the Figure 16 shown. The daily marking investment was made on day
3. After doing some marketing investment, the unit sold would be analyzed from
the unit sold report. The marking division will be actively asked the performance
of unit sold of juices in each area. From Figure 16 it can be seen that the medias
are randomly selected with the same marketing investment of 1000 SGD.
On day 3, the marketing investment in Jakarta for apple juice was Media A for SGD
1000, orange juice was Media A with SGD 1000, melon juice was Media B for
SGD 1000. And the same in Ende apple juice used Media A for SGD 1000, orange
juice used Media B for SGD 1000, melon juice used Media C for SGD 1000. While
in Jayapura apple juice used Media A for SGD 1000, orange juice used Media A
for SDG 1000 and melon juice used Media A for SGD 1000.
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Figure 66 Unit Sold Performance in Jayapura Day 1–11
For Example, Figure 66 shows the graphs of unit sold of the three juices in Jayapura.
It can be seen that the unit sold have an increment on day 5. This is because of the
effect of marketing media. While the increment in day 7 is because of the high
demand caused by holiday. Thus, there is decrement of unit sold on day 8-11 but
still higher than day 1-4.
Figure 67 Unit Sold Performance in Jayapura Day 29–41
On the other hand, Figure above shows that there is decrement in unit sold on day
36 onwards which is lower than day 29-32. When case like this occur, the person
that in charge to the retail will notify the marketing and marketing strategies will be
re-arranged directly from the media chosen, the total investment to medias and the
selling price of juices in the area.
At the end of day 90, the chosen media and the total money invested to marketing
experienced huge differences as can be seen in Figure below.
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Figure 68 Marketing Investment Condition on Day 90
On day 90, the marketing investment in Jakarta for apple juice was Media A for
SGD 3000, orange juice was Media C with SGD 3000, melon juice was Media A
for SGD 3000. And the same in Ende apple juice used Media B for SGD 3000,
orange juice used Media A for SGD 3000, melon juice used Media A for SGD 3000.
While in Jayapura apple juice used Media C for SGD 2900, orange juice used Media
A for SDG 2900 and melon juice used Media C for SGD 2900.
What need to be Improved to be used as Future Strategies?
The market share of our team is still in the second place. It is better to improve and
become the first in market share too. Thus, total money invested for each juices
should be increase. However, this should be parallel with the ability of the retails
to fulfil the increment of demand in the future.
2.8 Pricing Strategy
For the pricing strategy, based on the forecast demand especially on holiday,
Jayapura has higher demand than others. The unit sold per day in peak demand,
Jayapura can sold more than 3,000 units per day. Then, this group decided to
increase the price for Jayapura since the demand is high in the holiday. By
increasing price on peak demand, it will increase the net profit for this group.
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Figure 69 Pricing Strategy
( Left: At the beginning of game, Right: At the end of game)
There is a decrement for all prices of every juices in each city. In Jakarta, the price
of apple, orange and melon juice at the beginning of the game is 26, 29 and 31 SGD.
While at the end of the game, the selling price are decrease to the point of 24, 27
and 26 SGD. For Ende, the price of apple, orange and melon juice at the beginning
of the game is 26, 29 and 31 SGD. At the end of the game the prices of juices in
Ende decrease to 25, 26 and 28 SGD. Same for Jayapura, the selling price for each
juice is decreasing from 27, 30 and 32 SGD to 23, 26 and 28 SGD for apple, orange
and melon juices.
At glance, reducing cost will be loss for the company. However, as the COGS of
each product decrease, decrement of selling price for each juice will not cause a lot
of loss, since it will attract more customers.
What need to be Improved to be used as Future Strategies?
For further improvement, it will be better to decrease the price and maintain at the
current prices. However, to supply the juices from production will be such a great
improvement to increase the net profit since the COGS of juices from production
are much lower or cheaper than purchasing the juices directly from vendor. As can
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be seen from the two figures below, the purchasing price for apple, orange and
melon juices from vendor VFG1 and VFG2 on day 90 is 15, 17 and 19 SGD. While
the COGS at the end of the game is only 13.60, 14.10 and 15.34 SGD for apple,
orange and melon juices.
Figure 70 Purchasing Price for All Juices
2.8 HR Management System
Human resource function is to optimize each employee's contribution by aligning
employee skills, activities, and incentives with business objectives and the
strategies to reach them. It also provides tools to manage, measure, and reward
individual and team contributions.
HR is work based on the simulated headcount plan.
Figure 71 Hedcount By Department
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Planned means the number of person should we have in each the department
whether Actual means the actual person work in those department. Then, if the
Actual is less than the Planned, it means that the HR Team should hire the new
employee for meeting the Planned.
According to figure 72, it can be seen that there is an “issue”. There is an employee
that has an issue problem. The problem can caused by many factors. Therefore, to
solve this problem, the HR Team will give a staff counselling for increasing the
competency index of those employee.
Figure 72 Staff Status
Not only an issue employee, but also there is a resigning employee. In this case, HR
Team has 2 options for solving this problem. The first option is by giving staff
counselling or dismissing the staff. For giving staff counselling it charges as much
as 2,000 SGD whether dismissing staff (fire cost) it charges 8,000 SGD. Actually,
giving a staff counselling is cheaper than dismissing staff. Sometimes this method
can be succeeded for resigning staff. But, if this method has been done for many
times then there is no changing or there is no progress, we do not have another
Figure 73 Hiring Staff
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option which means we have to fire his/her and recruit the new one. For recruiting
the new staff, we looking for the person who has high competency (if it is possible,
100%).
Actually, for hiring the new staff, it charges as much as 15,000 SGD. It can be said
it is expensive. But, we need to hire a new staff to prevent a complaint from
customer. And also hire a new staff is needed to decrease the shortfall case (actual
employee is less than the planned). Then, after hiring the new staff, it needs to be
conducted the training for the new staff so that he or she will understand their job.
Sometimes, HR Team will receive the request from another department such as
from Production if the Production department invest or buy the new machine. Then,
the new machine needs to be operated by people. So, the HR Team will accept the
requisition from those department by hiring a new staff.
It can be concluded that the HR Team should manage the human resource in the
company.
What need to be Improved to be used as Future Strategies?
For the future strategies, more controlling for HR Management System so there will
be no complaints from customer for each department. Make sure that the work
performance of each staff is higher of getting increased.
2.9 Maintenance System
In this MonsoonSim game, the maintenance is about keeping the high valued asset,
the production machines, in good working order. This maintenance module is
related to the several departments which are Finance, Purchasing, Production, and
Human Resource Management.
As we know the machine will degrade proportionally to usage that will affect the
production output. The state of the machine is characterized by a concept called
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OEE (Overall Equipment Efficiency). Basically OEE is about (as the name says)
effectiveness: it is the rate between what a machine theoretically could produce and
what it actually did. So, the fastest way to calculate is:
𝑂𝐸𝐸 = 𝐴𝑣𝑎𝑖𝑙𝑎𝑏𝑙𝑒 × 𝑃𝑒𝑟𝑓𝑜𝑟𝑚𝑎𝑛𝑐𝑒 × 𝑄𝑢𝑎𝑙𝑖𝑡𝑦
OEE of 100% indicates the machine is at its best state of health. Since there are two
characteristic of maintenance, which are Periodic and Predictive, in this simulation
the members of group decided to use the periodic maintenance. By using periodic
maintenance it is also called scheduled maintenance. It is the activities carried out
regularly to maintain the condition or operational status of a building, equipment,
machine, plant, or system. The works are usually carried out irregardless of the state
of the condition of the asset.
After the production department buy the machine, for the current machine capacity
should be 10,000 unit/day per new machine. The maintenance department set the
periodic maintenance for that machine that spent SGD 10,000 for each session, the
set a period of every 9 days. Then, observe the machine capacity eventually comes
back up to normal. The OEE will be shown in figure below.
Figure 74 OEE Percentage
Based on the figure above, it can be seen that using the periodic maintenance will
perform maintenance every 9 days automatically. The predictive maintenance is
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easier to implement since maintenance is done at fixed time period. But, if there is
a decrease in OEE before 9 days, it will make us have to wait for maintenance of
the machine, and it will make OEE in bad conditions.
What need to be Improved to be used as Future Strategies?
From day 80 to 87 there was a significant depreciation, as it shown in figure below.
Figure 75 OEE Percentage - After
The longer, the machine must always be controlled properly. Because if not, the
machine will eventually breakdown, and it will affect the production, shipment, and
may lead up unhappy customer and reduce sales. This condition is very difficult to
do the maintaining using periodic, with an automatic system that makes us unable
to control a problem according to our desires. Regarding the problem, predictive
maintenance is highly recommended. With predictive maintenance, we only do
maintenance when we have detected a problem, hence cut down unnecessary
maintenance works. In predictive maintenance there are color sensors are designed
to detect the state of Availability, Performance, and Quality. The green color to
indicate that the machine is performing optimally, the yellow color to indicate that
the machine is not performing optimally, the orange color to indicate that there is
degradation, requiring attention, and for the red color to indicate that the problems
are serve and require immediate maintenance work to be performed. But each
Work Order will cost a fixed amount of fee.
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Figure 76 Final Result of OEE
It can be seen that the OEE is 94%, which means is good enough from 100%. It will
happened because this group decided to set the maintenance will perform every 9
days. Does not eliminate the possibility that if this group set the maintenance every
5 days for using periodic maintenance, it will increase the percentage of OEE.
3. Team Member Contribution
Good startegies would be waste withoud good team member contributions. Every
action and decision was created based on the thinking from every member and our
contribution. We always tried to create good atsmophere to win this game, therefore
we had tried our best. Therefore Table 1 will show our contribution to win this
Monsoon Simulation.
Table 1 Team Member Contribution
Team Member Contribution
Team Member
Dita Anatasia
Contribution

Monitoring The Unit Sold
Dita monitoring the unit sold every day for Ende,
and coordinate with Jessica to determine the best
price of the product. Give the report to Jessica to
find the better Media and amount of marketing
investment.

Maintainig the Retail Stock for Ende
With the help from Gresylia about the stock, Dita
monitor the unit remaining in Ende, procure
finished good to Ende. Since the demand is
higher, Dita coordinate with Jessica to increase
the price for Ende in order to get more profit
especially in peak demand.
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
Monitoring Forecast Demand
Together with Gresylia and Mutiara, Dita
monitoring forecast demand every day to know
the peak demand or holiday season to purchase
the product as a stock for Ende.

Monitoring the Maintenance
Dita monitoring the maintenance module in order
to help Jessica for running well the production,
after Jessica gave the report on the purchase of
the
machine,
Dita
determines
the
right
maintenance which are Predictive or Periodic
which should be implemented. To maintain also
the OEE percentage on the machine is not less
than 90%.

Maintain Retail-Ende HR
Dita responsible to maintain the employee in
retail-Ende. When there is an issue or problem
related to the employee. Dita is responsible to
counsel the employee. Dita also works with
Mutiara in order to hire new employee for retailJayapura when facing a short-fall.

Monitoring Ende Lead-Time
Dita monitor the lead time from vendor VFG1
and VFG2 to the retail. Until we make a
conclusion to buy the Jayapura product from
VFG2.
Gresylia Jimmy

Monitoring the Unit Sold
Gresylia monitoring the unit sold every day for
Jayapura Retail. Once the unit sold is decrease, I
will tell Jessica (PIC of Marketing) to change the
media or increase the marketing investment in
order to increase the unit sales in Jayapura.

Maintaining the Retail Stock for Jayapura
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Gresylia is responsible to monitoring the retail
stock of Jayapura through the User Interface.
When the stock reach 10,000 units, Gresylia
responsible to procure the product to the vendor.

Reminder the Retail Stock for Jakarta and
Ende
Gresylia responsible to remind Dita and Mutiara
in order to monitor the stock retail remining.

Backup Retail Stock for Jakarta and Ende
Gresylia become a supporter for Mutiara and Dita
in order to maintain their retail stock. Mutiara has
a responsibility in HR and Dita has a
responsibility in marketing and maintenance.
When they still handling others job, I am
responsible to help them in purchasing the
products in order to maintain the stock.

Support B2B Bidding
Gresylia become a supporter for B2B bidding.
When she has a free time, she will support Rianita
to bidding the stock and number of Willing to
Pay.

Monitoring Jayapura Lead-Time
Gresylia monitor the lead time from vendor
VFG1 and VFG2 to the retail. Until we make a
conclusion to buy the Jayapura product from
VFG2.

Manage the Retail Rental Space in Jayapura
Gresylia is responsible to monitoring and manage
The Jayapura retail rental space. When she
increased the purchase amount from the retail,
she responsible to manage the space based on the
products amount in order to increase the
utilization.
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
Jayapura Procurement
Gresylia is responsible to make a procurement
(Immediately delivery and future delivery) for
the Jayapura retail. Gresylia works together with
Dita in order to know the time of the peak
demand to purchase future delivery

Maintain Retail-Jayapura HR
Gresylia responsible to maintain the employee in
retail-Jayapura. When there is an issue or
problem related to the employee. Gresylia is
responsible to counsel the employee. Gresylia
also works with Mutiara in order to hire new
employee for retail-Jayapura when facing a
short-fall.
Jessica Meilina

Handling Marketing Investment
Buying marketing investment and monitoring it
continuously to find the better matrix of Media
and amount of marketing investment through
ROI and unit sold performance and market share
monitored by Gres, Dita and Mutiara.

Purchase and Analyse Marketing Report
Purchase and Analyse Marketing report at day 10
and whenever needed for further analyse. Then
give notification, suggestion and conclusion to
other members to be finalise and taken actions.

Maintain Production
Purchasing and dispose machine/machines at
best time. Notify maintenance to maintain
machines. Maintain production to run well
including purchasing raw material with help
from Rianita for reminder.
Monitoring the
operators needed and notify HR (Mutiara) for
further actions such as hiring.
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Mutiara Mawarsari

Procurement for Jakarta
Mutiara is responsible to procure the finished
good for retail in Jakarta, by making immediate
delivery or future delivery.

Monitoring the Unit Sold
Mutiara is responsible for monitoring the unit
sold in Jakarta and tell Jessica as the PIC of
Martketing for deciding the good solution to
make the unit sold in Jakarta is increasing.

Maintain the Retail Stock for Jakarta
With the help from Gresylia about the stock,
Mutiara monitor the unit remaining in Jakarta to
prevent the less stock or over-stock by
considering the lead time.

Monitoring Forecast Demand
Together with Dita and Gresylia the forecast
demand for knowing the high demand or peak
season at holiday so that we can prepare for the
stock.

Managing all the HR
Do staff counselling, hire new staff (especially
for production since Jessica buys the new
machine and the machine should be operated by
people), do a training for new employee, accept
the complaints from customer and give solution.

Back Up for Retail Jakarta, Retail Ende, and
Retail Jayapura - HR
Since Gresylia and Dita have another tasks to do
then Mutiara helps them if there is a shortfall in
Ende or Jayapura.
Rianita Savira

Conducting B2B
I am responsible in conducting B2B with every
considerations. I am responsible in bidding the
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stock but also considering the shipment required
and Willing To Pay.

Monitoring the Area Size and Stock in
Warehouse
I handled the warehouse by procuring the optimal
stock for warehouse with space utilization
considerations. I am also responsible in analyzing
whether the stock in warehouse from MRP and
production were enough for B2B or not. If it was
not, I would buy “urgent” procurement for B2B
to eliminate the penalty cost. I am also
responsible in maintaining the area size of
warehouse because it would affect the utilization
of warehouse metric score, therefore adjusting
the rental space based on area consumed was
important.

Running MRP at the end of the Batch Bidding
I am responsible in running the MRP at the end
of batch bidding. This action was assisted by
Jessica.

Monitoring the Stock of Raw Materials
I am responsible in helping Jessica for production
maintaining the raw material in warehouse, if the
raw material was empty, I would inform Jessica.
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4. The Reason of Winning or Losing
The simulation was conducted in 90 days running, with 50 seconds for each days.
Based on the results of the simulation, our team which is team AGP is the 1st winner
from three other competitors in our class. The results can be seen on Figure 77.
Figure 77 Final Result of the Game
Based on Figure 77, it can be seen that there are four main indicators to win this
game, the first is Cash on Hand with the percentage of score is 25%, the second is
Net Profit with the percentage of score is 35%, the third is Sales with the percentage
of score is 25%, the forth is Utilization of Warehouse Space with the percentage of
score is 20%.
From Figure 77, it shows that our team is the top 1 cash on hand which is 25%. For
the net profit and sales our team also in the toppest position which are 30% and
25%. But, for the utilization our team is in the second place which is 17.45%. The
total score of our team which is 97.45% which shows the winning of our teams.
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Cash on Hand
Cash on hand meand the total money in the form of cash which a firm or company
has after the company pays all of the cost (FT. Com, 2017). We are in the 1st
position of the cash on hand since we can maintain our stock very well, our sales is
high, and we win the bidding then it makes our cash on hand getting increase also.
Figure 78 Cash on Hand Result
According to figure 78, our cash on hand as much as 12,331,751 SGD.
Net Profit
There are two procedures to maximize the net profit, the first is increasing the price
and the another one is decreasing the cost. Our team chose to decrease the cost,
actually the strategy of decreasing the cost has been explained in the previous subchapter. The main strategies are first reducing the CoGS cost by reducing the
procurement cost, the strategies with increasing the sales, the third reducing the
space cost and transportation cost. According to figure 78, our net profit also high
which is 30% as much as 13,371,967 SGD.
Figure 79 Marketing Investment
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Figure 80 Market Share Result
But, in according to figure 79 and figure 80, we lost in market share compared to
TEAM PITUNK. As explained in subtopic marketing, our market share was lower
because we did not want to risk to invest high marketing costs. While the Team
PITUNK had higher confidence to invest larger cost in marketing. But, it doesn’t
affect too much.
Sales
As it can be seen in figure 77, we have higher sales than others, it causes by we can
maintain the price properly then we can fulfill the customers demand even it is in
peak season by using our own strategies. Then, we also win many biddings to
increase our sales.
Space Utilization
For the space utilization result, our team was in the second place. We lost from
TEAM PITUNK. Figure 81 will explain why we lost from TEAM PITUNK.
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Figure 81 Retail Area of TEAM AGP
According to figure 81, we cannot maintain the space utilization of the retail in
Jakarta since it happens the over stock. Then, we got the penalty since the area we
rent is less than the area we use. Therefore, our space utilization is in the 2nd place.
References:
Benjabutr, B. (2017). Procurement Definition and Meaning. Retrieved from
Supply Chain Opz: https://www.supplychainopz.com/2013/06/what-isprocurement.html
Chopra, S., & Meindl, P. (2004). Supply Chain Management. Pearson.
Erdogmus, H., Favaro, J., & Strigel, W. (2004). Return on Investment. IEEE
Software.
Freedough. (2018, April 25). 4P's of Marketing Mix. Retrieved October 19, 2018,
from Freedough: https://www.feedough.com/marketing-mix-4ps/
Kumar, V., Bhaskaran, V., & Mirchandani. (2013). Creating a Measurable Social
Media Marketing Strategy: Increasing the Value and ROI of Intangibles
and Tangibles for Hokey Pokey. Marketing Science, 194-212.
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Oliverwight. (2017). Capacity Planning for the Supply Chain. Retrieved from
https://www.oliverwight-americas.com/capacity-planning-supply-chaincourse
The Economics Times. (2018). Definition of Market Share. Retrieved from The
Economic Times:
https://economictimes.indiatimes.com/definition/market-share
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