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Operational Management Pt. Manado Teknik Mandiri

INTRODUCTION In every company, whether in small or large scale, must have an operational strategy. This operational strategy regards how the strategies they do in their business activities. were all aimed at ensuring that their businesses can be run well so that it impacted their business can survive even in order to become the leader of a similar business. Thus, their business can get benefit. Many companies can successfully survive and even become the market leader because they have a solid operational strategy.

They are able to compete with their business opponents, and because they have a solid strategy, they can surpass their business opponents. Because of that operational strategy is very important in a business. But the strategy is very dependent operation of the system in the company’s management. Since the determining strategies is the leadership and employees who run it. Therefore, the steady operation strategy was caused by all the parties involved with the company also established.

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For that in this assignment our group will discuss the operational strategy and all elements of a business strategy, such as innovation, resource control, work organization, etc. related to the operational strategy. And in this assignment we used PT. Manado Teknik Mandiri is moving in trade in goods mining and construction services as based for our research. STRATEGY FORMULATION External Audit After reformation era, National Development has started to spread to the regions out of Java, especially to the East of Indonesia. It stimulated the industry growth to develop and to reach the potential region.

So that, the industry growth in Eastern Indonesia reached the starting point and develop step by step. North Sulawesi also experienced the development. At first, the core business of PT Manado Teknik Mandiri is Trading Supply. Then, there are many changes in the business environment. In 2000s, Central Government of Indonesia started to empowerment the region in Eastern Indonesia, one of them is North Sulawesi. Many Industries entered and grew. PT Manado Teknik Mandiri saw this opportunity and made an innovation that is to add constructing service into their core business. They observed that in North

Sulawesi, there was no domestic manufacturing company focusing on constructing service. So, absolutely they took this opportunity to focus on constructing service. The second reason, they made market segmentation as their trading with the clients. They found that they ought to add constructing service to maximize their productivity and chain value. After they added constructing service in their business, they reanalyzed the market segmentation from their trading business to choose a line of business for their constructing service. After they analyzed, they conclude that their constructing service will focus on Mining construction.

It didn’t mean that they didn’t serve for another construction order. They chose to focus Mining Construction because most of their clients in trading supply are in mining business. Internal Audit Strength : •PT Manado Teknik Mandiri applied international standard of management •PT Manado Teknik Mandiri provided the operation with the most cost efficient delivery of products and parts replacement. •PT Manado Teknik Mandiri has kept strong relationships with its clients •The employees of PT Manado Teknik Mandiri has a technical skills •PT Manado Teknik Mandiri made work specialization for each of division.

Jobs tend to be small but they can work efficiently •PT Manado Teknik Mandiri can be connected with an access to all overseas based OEM (Original Equipment Manufactures) •PT Manado Teknik Mandiri provided faster delivery systems, competitive pricing and quality guarantee’s. •PT Manado Teknik Mandiri had responsible resource control in their business. •PT Manado Teknik Mandiri emphasized the Total Quality Management. Weakness : •PT Manado Teknik Mandiri has not entered the commercial building constructing business. The Location of PT Manado Teknik Mandiri were closer to residential area and their industry activities are dangerous enough for the people who live near there (Warembungan Village) •PT Manado Teknik Mandiri has not applied risk management in fabricating. •PT Manado Teknik Mandiri has not had the strategic planning in long-term process. Opportunity : •North Sulawesi is going to be World tourism object in Indonesia. So, the GDP North Sulawesi grew and more. •Many research results showed that many potential mining sites are in North Sulawesi. It stimulated the Mining industry growth. •Free trade area made the trading business developed

Threats : •Many competitors appeared either domestic company or foreign joint-venture company because of free trade area. •The people in Warembungan Village will complain about the waste, air pollution and dangerous risk from fire-risk and explosive. Generating strategy options As we know that PT Manado Teknik Mandiri emphasized the Total Quality Management. So, free trade area made the stronger competition than before. PT Manado Teknik Mandiri didn’t focus on competitive market, they paid attention to manage quality, international standard management and the winning human resources.

They has warehouse in trading supply and their trading business focus on mining supply. In research results, North Sulawesi is a potential mining sites so it stimulated the mining industry growth. Selecting strategic options PT Manado Teknik Mandiri decides to enter The Civil and Steel Structure Contractor, Oilfield, Industrial and Mining Supply. The first reason, PT Manado Teknik Mandiri made an innovation from their observation in their trading business in mining supply. The Second, they have a good connection from abroad in the materials supply process.

The third, they thought that that line of business hasn’t been done of some Constructing and Trading company in North Sulawesi. Implementing Strategy After that, PT Manado Teknik Mandiri starts to implement their plan and goal. The strategies are in each part of company. This strategy also should be controlled. PT Manado Teknik Mandiri has some officers who get a job for controlling such as Field engineer in production strategy, Supervisor in warehouse, Quality controller and Research manager. They made some evaluation from the controlling result to increase and complete their performance. PRODUCTION CONTROL Construction Service •Drawing For example, the sketch of project from client could do by them and gave to company. But by company have to justified and discussed with the client about the justification of the sketch. Or in the other way, if the client doesn’t have their own plan in term of sketch, company can make it for them according to the client needs and wants. In this part, normally PT. Manado Teknik Mandiri has a civil engineering officer and architecture engineering officer to make the sketch of project.

It would be easier for them because normally the sketch of project has been analyzed efficiently and effectively. •Material Purchase If the price given is balance with the budget or than cheaper from quotation price to another supplier, so the client company has to issue purchase note that agree with quotation that give to suppliers. •Shop Drawing The sketch of project from client or from company, overall can do make in the shop drawing. In the case, shop drawing is a three dimensional drawing consisting of three the detail, views, plan, elevation, and section.

Shop drawing is a great insurance of police. Everybody gets to be on the same page paper is still less expensive than wood. I cannot how many times I almost had a job completely drawn only to find that the design had serious problem. When something like that happens with wood, it becomes a huge problem and much more expensive. •Fabricating When the company and client have the deal in the project that can be done, so the next activity that can do company is fabrication. In the case, company can be doing it to fabrication, if the client fulfill to rules.

Fabrication that can to company is a make cutting to piping, welding, sandblasting. •Finishing In the case, finishing is about how the employees check the product. It’s mean that the employees check the product was finished or not, or was complete or not. After the product was finished they packaged the product and ready to delivery. •Delivery After the supplier company, get the purchasing order, the supplier company prepare the product agree with the purchasing order from the client like was agreed in the purchasing order. The delivery always did in 3 ways: oSea freight Air freight oLand transportation In process delivering product, the company has give delivery order for the report reaccept the order in client’s warehouse, that means that the product was their accept. The arrangement of delivery has three options, first is when the service is done. Means, client do the payment after the project has done (the work of installation is finish). Second, client pays the company even the projects still not begin. And the third, client pays in advance, while company do the project than the rest is when the installation is finish. TRADING

Request from client Company gives supply price list called inquiry to vendor (supplier). Inquiry contains name of material ordered, the amount of material and delivery time. Sourcing In this problem, PT. Manado Teknik Mandiri had stocks in warehouse. If the stock in warehouse was empty, PT. Manado Teknik Mandiri will be indent raw material in their supplier. But sometimes, the supplier doesn’t have stock for their list. If the company doesn’t get the raw materials in supplier, PT. Manado Teknik Mandiri will indent raw materials in another place with the same price. Quoting PT.

Manado Teknik Mandiri will give proposal for client, in proposal must had: 1. The name of material 2. The demand of raw material 3. The date for sending raw materials 4. Due of date (by email and by fax for client) Order confirm In this step, the client will check a proposal and PT. Manado Teknik Mandiri will be give time to client. If the client will confirm with proposal, the client and PT. Manado Teknik Mandiri will make appointment and make agreement. Buying In this process, if the client will agree with proposal. The client can pay by cash or credit. if the client choose pay by credit, PT.

Manado Teknik Mandiri had 1 month to pay full the project. Expedition In this trade, PT. Manado Teknik Mandiri will buy raw materials in supplier. Before they are going to supplier, they must make list form and give it for cashier to take money. In this trade, the client can make deal this project by cash or credit. PT. Manado Teknik Mandiri can buy raw materials by cash and credit. Then, they deliver the materials to the clients by expedition company. INNOVATION Businesses have to have some different way to run their business and make them get some power to compete the other business.

If we just walking in the way built by other, it means that we always stay in back. Business must competent to build some new for their output. All the goods that are around you, including the clothes you wear and this book, are the results of a development process. The services that we use are likewise the results of a development process. The process took a ‘good idea’ and converted it into the reality that we experience It is a conversion process, like many others in operations, but the difference here is that there is a degree of novelty to the outcome of the process-hence the term ‘innovation’. Brown,S 2001). This definition means that there is big space for business to make innovation for them. PT Manado Teknik Mandiri initially representing company which active in trading. Goods supply in this company is steel, electrical, fittings and piping, equipment and tools, consumables and safety, and chemical. This company have client majority from company of mining. Initially they only have mining supply to make construction. As the trading and supply company, PT Manado Teknik Mandiri actually needs the innovation.

The innovation can be use for the market in order to get the competition. They have made good innovation with construction service and have good response from the client. This company can see existing opportunity. Innovation which they make is useful for the client and this company. PT Manado Teknik Mandiri gives easy way to client in transacting and more efficiency because from process of design picture, raw material supply, until making of construction can be done by one company and increasing profit for this company.

PT Manado Teknik Mandiri can prove they not just walking in the way that built by other. Company which initially only active in goods supply or trading can make innovation by adding the business in service area that is construction service. Good innovation by this company make this company goes forward and can compete with existing other company. PROCESS CHOICE Process choice is about how the company chooses the best approach in order to produce goods or services that are good.

In this case, the PT Manado Teknik Mandiri also conducts choice process where they develop their business by relying on the quality of their work both in the field of trading and construction services. They stressed that the management process following the international standards and have workers who can understand the process of quality workmanship so that their companies can give satisfaction to their customers. The core of their process choice is to provide high-quality results so that their customers get the maximum satisfaction on the work of their companies.

In each transaction both in the field of construction trades and services, PT Manado Teknik Mandiri always develop the way their services to consumers. They tried to change their process from the less well into a better direction again. Based on the experience of PT. Manado Teknik Mandiri in dealing with particular customers in advance construction services sector, there are two differences from the consumer. Consumers are coming from a company with its own capital and the consumers who come from state-owned companies. Why are considered two different companies?

Because according to their experience, the two companies if the transaction with them, the two companies have an obvious difference regarding the transaction price. Because if it was inspected from the side of private enterprise, they are more interested in the quality of the job compared with the price. The point is that they can pay more if the quality of construction is very good quality. Compared with state-owned companies, state-owned companies are more concerned with price than quality. They just put a cheap price hoping to complete construction without regard to quality.

But although that PT. Manado Teknik Mandiri still trying to give the best for each of their customers. But of course also based on the capital they provide. CUSTOMER SATISFACTION Customer satisfaction relates to how companies manage their workers to work with the best in order to produce good work so that later customers also can get maximum satisfaction. In this case PT Manado Teknik Mandiri also very concerned about their customer satisfaction because essentially they were very concerned about the quality of their work. specially in the majority of construction services is the client’s mines, many of their clients’ demands on quality, and management of their resources to it, from the beginning they did a good selection of their employees to look for human resources who understand the process of quality workmanship. In order that later can work with the maximum in serving customers. In addition, at the time they worked on a project, their work is always controlled by the supervisor, quality control, and their research manager. So their employees an give their best in work and as expected by their customers. In order to achieve maximum results for their work, they do schedule a project in progress. The point is, they divided up the stage in completing the project. For example they are divided as 1 week of work on foundations first, followed 1 week later another workmanship onward until the job was done perfectly so that their customers can feel satisfied. Also doing well with this process, companies can save them a place in the provision of their inventory.

Because of the divide for their work, they can estimate the amount of materials they will need in each stage of their work so they can buy materials in accordance with the stages they have to so they can save their goods storage space and can also minimize damage from their materials. In addition, their companies always consult with their customers about whether they felt satisfied with the work of their companies so they can assess the satisfaction of their customers and as proof that consumers were satisfied with their jobs are, their company always asked to do the next project. RESOURCE CONTROL Receiving PT.

Manado Teknik Mandiri receives all of the materials order from the outside suppliers, such as from Manado, domestic suppliers and abroad suppliers. The officer receives the materials according to Delivery and Purchase Order from the vendor/supplier. If they finish, the materials enter the warehouse or inventory. Then, they issue MRR (Material Receiving Report), to know that the material has been received to match with the order. They do this way for Inventory Control so the warehouse officer can know the total of material they received anytime and they shouldn’t count the material manually in the warehouse.

Delivery Order The warehouse checked the client order list. If the material has been ordered by the client, the material will be ready for packaging and delivery to the client. Commonly depends on required delivery that has been promised, the material is transferred to the shipping of Supplier’s company to be sent to the client. Generally, PT Manado Teknik Mandiri don’t want to keep the inventory in the warehouse as possible as they can, because they want to reduce the risk, except the FBA (Forward Purchase Agreement) means an agreement with the client for the long- term contract.

We can conclude that they use Just-In-Time system. Inventory Material Stock The warehouse officer recount the material stock recorded in business transactions to report it to management department. •Warehouse officer give the updated inventory list to the management department •Warehouse officer give the specification material list to each type of material •Warehouse officer give the control stock to each type of material •Warehouse officer report the MRR (Material Receiving Report) to the marketing and accounting Department.

Every delivery order in warehouse uses material slip. The slip has to be signed by the client or someone who ordered the material and aligned with their total order. The material delivered should be known by management department who responsible on material ordered. It is a part of inventory control. So they can avoid internal theft or corruption. Material removal flow Warehouse has to receive order list used for either merchandise inventory or fixed asset. They used Material Request for internal users and Purchase Order for merchandise inventory.

After the material flow out from warehouse, it will be quarantined and arranged for delivery. Then, expedition arranged the delivery trip and supplied the transportation to send the material. Then, they billed the client according to due date payment between marketing department and the clients.? CONCLUSION PT Manado Teknik Mandiri actually is a medium manufacturing company. Their core business are civil and steel constructor, oilfield, industrial and mining supply. But, they are more focus on Construction service because it maximizes their profit and stimulate their company growth and development.

Their operational management looks good based on their operations strategy. We have seen their strategy formulation and the elements of strategy of PT Manado Teknik Mandiri. Their operations strategy actually focuses on short-term and technical needs. According to their management, PT Manado Teknik Mandiri enhanced quality value and their assumption is if the clients satisfied with their quality of service and goods, they could be called successful with their works.

From the assumption, we know that PT Manado Teknik Mandiri should apply all of the efficient principles and the real international standard management to enhance their strategic role of operations. ? REFERENCES 1. Brown, S. Blackmon, K. Cousins, P. Maylor, H. (2002) Operational Management Policy, Practice and Performance Improvement, 1st Edn, Butterworth Heinemann Publisher, Italy 2. Krajewski, L. Ritzman, L. (2005) Operational Management Process and Value Chains, 7th Edn. Prentice Hall, New Jersey. 3. Schoeder, Roger, G (2000) Operational Management, Mc Grow Hill, New York, USA


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