ISSN .
: 2829-7350 | ISSN.
: 2963-9441 Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
Defrizal2 Bandar Lampung University.
Indonesia E-mail: Rika.
20011404@student.
id1, defrizal@ubl.
Abstract The research carried out aims to determine efficient planning in terms of production area at the CV furniture company.
Victo in Bandar Lampung.
The approach used in this research involves quantitative descriptive analysis, with forecasting techniques using the Linear Trend method and Break Event Point analysis for data accuracy.
The information obtained in this study comes from primary and secondary sources.
Primary sources include direct interviews with company managers, while secondary sources are collected from company history.
This data collection method includes interviews, direct observation, and review of related documents.
The results of the research show that the production area for the coming year will be 533 units of cupboard products in 2023, 566 cupboard product units in 2024 and 600 cupboard product units in 2025, so that the CV.
Victo furniture company in 2023-2025 will experience an increase of 6% of production area every year due to increasing trend demand.
It is recommended that companies design their production area planning by applying the Linear Trend forecasting method and carrying out Break Event Point analysis to optimize their production processes and this research is expected to provide information for consideration for the company's progress.
By knowing the correct production area planning calculations, it is hoped that the company's efficiency will increase so that it can reduce excessive production amounts and obtain even greater sales profits because needs have been well estimated.
Keywords Production Planning.
Production Area.
Forecasting.
Linear Trend Analysis.
Break Event Point.
INTRODUCTION
In a business, business actors need extensive production planning to produce a product.
Producing more goods, both in quantity and type, can increase production area.
To optimize company profits, determining the production area requires precise calculations.
managing inventory carefully, companies can avoid excess or shortage of stock, because excess stock will increase inventory costs and lead to higher risks.
(Naisoko et al.
(Haobenu et al.
, 2.
Manufacturing companies, especially small and medium scale companies, often experience problems with inefficient extensive production planning.
This occurs because their human resources do not have the ability to implement such planning.
(Akande et al.
Companies can experience excess or shortage of inventory due to incorrect production planning.
(Mariani, 2.
CV.
Victo is an individually owned company in the furniture/furniture and interior sector which carries out its activities located on Jl.
Buton Jagabaya i Island.
Way Halim District.
Bandar Lampung City.
The products produced are in the form of household In its sales, this company most commonly produces cupboards which are almost daily produced and some are sold based on customer orders.
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Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
Defrizal2 DOI: https://doi.
org/10.
54443/sj.
One of the problems faced by CV.
Victo is the lack of effective production area planning, because currently the company only relies on estimates of sales results for the previous period without using systematic analysis methods, the result of which is excess inventory from daily production.
This can result in inefficiencies in the use of resources, increased production costs, missed sales opportunities and also affect the company's storage Table 1.
Sales Data for 2018-2022 Year Number of sales / years Excess inventory / year .
Source: CV Company.
Victo Bandar Lampung, processed .
From this, to get a more accurate production area planning, careful calculations are Using sales in the previous period to forecast production can be used to determine the area of production using Trend Linear forecasting and Break Even Point (BEP) analysis to find out whether the production calculation has reached the break-even point.
(Tefa et al.
The aim of this research is to determine an accurate production plan for the CV furniture company.
Victo Bandar Lampung
LITERATURE REVIEW
Production planning The production planning process involves determining production activities, determining the volume of activities that need to be carried out, and scheduling these activities for the future period (Suciyati, 2.
Based on the company's historical experience, demand forecasting is an important basis for developing a company's production strategy.
This forecasting activity has a crucial role in various aspects of company decision making, including managing inventory, developing new products, planning production stages, and managing the flow of goods supply.
(Soeltanong & Sasongko, 2.
Production planning is carried out to adapt to market demand, manage product availability, with the hope of accommodating variations in product sales in stages (Darmayanti, 2.
Proper production planning can help anticipate future sales declines or increases (Reicita, 2.
Production planning is an important need as a managerial decision because good production planning is expected to reduce production costs and additional costs which will ultimately increase profits or reduce losses.
(Alam & Neliedia.
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: 2829-7350 | ISSN.
: 2963-9441 Production area Production capacity refers to determining the quantity and variety of products that a company needs to process during a certain period.
This requires companies to not only decide on the amount of production, but also on the variety of products to be made.
This decision was taken with the aim of optimizing profits by utilizing all available resources.
(Haobenu et al.
, 2.
To minimize waste and losses arising from the use of raw materials and supporting materials, it is very important for companies to determine production volumes that are in line with market needs.
(Umbu Reku Raya, et al: 2.
Errors in determining production quantities can result in excess products that are not sold.
On the other hand, managing production factors efficiently can enable companies to produce goods that can be sold at better profits (Sunarso, 2.
How to Measure Production Area In calculating the production area, there are many factors that influence it.
There are five factors that influence the determination of the production area, namely:
Use of raw materials in the production process.
Variations and types of products produced.
Tools and machines used in the manufacturing process.
Number of employees involved in the production process.
How to Determine Production Area Companies can determine their production area using a variety of methods.
Each method has certain advantages and conditions for its use.
Every company must find the most appropriate method to maximize production at the most efficient cost.
Forecasting Method Forecasting is the science of utilizing data from the past to predict future outcomes (Suciyati, 2.
Forecasting methods are divided into three, namely:
A Long-term forecasting uses data from a long time, usually more than two years.
A Medium-term forecasting using data from three months to two years.
A Short-term forecasting uses data from 0 to 3 months.
From the equation above, you can get the right production capacity for production Several models that can be used to calculate forecast production are the free trend model, semi-average trend model.
Moment model, least squares model, and regression Break Event Point Method An analytical method known as break-even analysis focuses on understanding the correlation between sales numbers and a company's profitability.
Through this analysis, the company can determine the point at which revenue from sales is able to cover the costs incurred, and can show at what point the company will make a profit or loss, depending on whether sales are above or below the break-even figure.
(Maruta, 2.
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Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
Defrizal2 DOI: https://doi.
org/10.
54443/sj.
METHOD
This research is a type of quantitative descriptive research, which collects and processes quantitative data.
The quantitative descriptive method aims to use numbers to describe a situation objectively, starting from data collection, interpretation, to appearance and results.
This research was conducted at the CV furniture company.
Victo Bandar Lampung with the aim of determining an accurate production plan.
In this study, the information used is divided into two types: primary sources and additional sources.
The main sources include information gathered directly from interviews with company managers, which includes details about the production process, raw material consumption, and labor costs.
Meanwhile, additional sources were obtained from analysis of company documents, including records about demand or sales of furniture products from the period 2018 to 2022, which have been collected by researchers directly.
The method chosen to collect data in this research includes three main approaches: indepth interviews, direct observation, and document examination.
In order to estimate production area, this analysis relies on linear trend calculation techniques based on furniture product sales data.
This technique is used to project estimated product sales in the time period between 2023 and 2025.
To make predictions, the model used is linear regression using the following equation:
Y'= a bx, and the values of a and b Ocyeo Ocyeoyeo = b = yea yeoya Furthermore, this research also includes break-even point calculations (Break Even Point - BEP) for the 2023Ae2025 period, to assess when the company can reach production levels that are not loss-making or profitable.
This BEP calculation was carried out using a formula established by Alnasser and his colleagues in 2014.
BEP(X) =
yaI yaaOeyai Information: V= Variable Costs.
F= Fixed costs.
P= Price per unit.
X = Number of product units at BEP.
Framework of Thinking SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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ISSN .
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: 2963-9441 One way to calculate the production area is to use forecasting techniques to calculate projected product sales in the previous year.
Forecasting is a way of thinking about a quantity, such as demand for a particular product in the future (Naisoko et al.
, 2.
From the framework above, it is explained that to determine production area planning, the first thing is to collect production sales data from the previous year, after that calculate the sales forecast where the data to be processed is data from production sales from the previous year using the Linear equation method.
The results of the sales forecast can be used as a basis for planning the area of production in the future.
Apart from using forecasting, production area planning can also be done using Break Event Point analysis, where the break-even point is determined, and the planned production area must be greater than the break-even point.
(Tefa et al.
, 2.
and if the forecast results are higher than the break-even point then the forecast results are used to determine the production area.
RESULTS AND DISCUSSION
Raw materials and supporting materials are materials that companies need to support the production process, both of which are very important components in the production Therefore, raw materials must be considered carefully and accurately.
In a week, the company is able to produce 8-11 units of cupboards which are in accordance with the average production requirements per cupboard item, namely 100y60y200 in size.
To make 1 unit of wardrobe furniture measuring 100y60y200 you need 3 pieces of multimin, 4 pieces of miccawood, 2 pieces of HPL, 168 A gallons of glue, 3 pairs of hinges, 1 pair of rails and 20 screws.
The equipment used to expedite the production process is 4 units of cutting machines .
, 4 units of propyl machines .
, 6 units of drills, 3 units of grinders, 1 unit of spet, 3 units of compressors, 4 units of nail gun machines, 3 units hammer, 2 units saw and 5 units screwdriver.
Sales forecasting The data analysis used to predict sales is by using Linear Trend forecasting to determine the number of sales of furniture products in 2023-2025.
The forecast can be calculated as follows:
Table 2.
Sales Forecasting Calculations Year Sales .
- 432
1,056
2,160
Source: 2023 data processing SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
Defrizal2 DOI: https://doi.
org/10.
54443/sj.
The Linear Trend Equation is Y'= a bx and the values of a and b can be calculated as follows:
= 432 = ycu = Ocycuyc Ocyc b = 33.
6 = ycu2 = 10 The Linear Trend Equation becomes:
Y = 432 33.
So based on the calculations above, the sales forecast for 2023-2025 is calculated as Year 2023 = .
ear x=.
= 432 33.
= 432 100.
= 532.
= 533 units of cupboard products Year 2024 = .
ear x=.
= 432 33.
= 432 134.
= 566.
= 566 units of wardrobe products Year 2025 = .
ear x=.
= 432 33.
= 432 168
= 600 units of wardrobe products The calculation of the sales forecasting results above can be used as a basis for determining the production area for 2023-2025 which is summarized in table 3.
Table 3.
Production area of the CV.
Victo furniture company in 2023-2025 Year Production area / unit Source: Data processing results, 2023 Based on the table above, it can be concluded that in 2023-2025 it is predicted that the CV.
Victo Bandar Lampung company will produce 533 units of cupboards in 2023, 566 units of cupboards in 2024 and 600 units of cupboards in 2025.
The results of this forecast can be used as a basis to determine the company's future production area.
SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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: 2963-9441 Forecasting results are not sufficient to be used as a reference for determining production area, therefore BEP calculations are needed to determine the lower limit of planned production area, because there will be losses if the planned production area obtained from forecasting results is smaller than the break-even (Tefa et al.
, 2.
The initial step is to calculate the variable costs of raw materials by using the results of forecasting the number of units of cupboard products produced to determine the raw material planning for making cupboards.
The calculation method is the result of forecasting the production area in 2023 multiplied by the number of raw materials needed to make 1 unit, such as 533 units of cabinets y 3 multi-sheets = 1,599 pieces.
Year 2023 A Multimin = 533y3 = 1,599 lbr A Miccawood =533y4 = 2,132 lbr A Hpl =533y2 = 1,066 lbr A Glue 168 =533yA = 267 gln A Hinge =533y3 = 1,599 psg A Rail =533y1 = 533 psg A Screw =533y20 = 10,660 = 11 sec Year 2024 A Multimin =566y3 = 1,698 lbr A Miccawood =566y4 = 2,264 lbr A Hpl =566y2 = 1,132 lbr A Glue 168 =566yA = 283 gln A Hinge =566y3 = 1,698 psg A Rail =566y1 = 566 psg A Screw =566y20 = 11,320 = 11 sec Year 2025 A Multimin =600y3 = 1,800 lbr A Miccawood =600y4 = 2,400 lbr A Hpl =600y2 = 1,200 lbr A Glue 168 =600yA = 300 gln A Hinge =600y3 = 1,800 psg A Rail =600y1 = 600 psg A Screw =600y20 =12,000 = 12 sec The raw material planning for 2023-2025 is summarized in Table 4 as follows:
Table 4.
Planning for raw materials for cabinet production in 2023-2025 Raw material Multimin .
1,599 1,698 1,800 Miccawood .
2,132 2,264 2,400 SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
Defrizal2 DOI: https://doi.
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54443/sj.
Hpl .
1,066 1,132 Glue 168.
mall gallo.
Hinges .
1,599 1,698 Rail .
Couplers .
Source: data processing results, 2023
1,200
1,800
Next, to calculate the amount of labor required as part of variable costs, use the following formula:
Production area in 2022 Labor productivity in 2022 = number of workers in 2022 = 6 = 89.
The calculation of the number of workers required for 2023-2025 uses the formula for planned production numbers divided by labor productivity, namely:
Year 2023 = 533:89.
33 = 5.
96 = 6 people Year 2024 = 566:89.
33 = 6.
33 = 6 people In 2025 = 600:89.
33 = 6.
71 = 7 people Based on the calculations above, the number of workers in 2023-2025 will increase to 6-7 workers.
To calculate BEP, variable costs, fixed costs and unit price per product are required.
A Variable costs consist of direct labor costs and raw material costs.
The way to calculate direct labor costs is by multiplying the variable costs per worker times the number of workers.
The weekly labor salary is Rp.
1,500,000,- y 1 month, namely Rp.
6,000,000,- y 6 workers, then the work costs per month are Rp.
36,000,000,- y 12 months, so the annual direct work costs are equal to Rp.
432,000,000,-.
Raw material costs are calculated based on raw material planning calculations for 2023-2025 and can be calculated including raw material use, unit price and quantity.
The calculation of raw material costs is in table 5.
Year Table 5.
Calculation of raw material costs for 2023-2025 Name of Raw Unit Price Amount (R.
Total (R.
(R.
Multimin 1,599 .
140,000 223,860,000 651,230,000 Miccawood 2,132 .
95,000 202,540,000 Hpl 1,066 .
125,000 133,250,000 Glue 168 267 .
180,000 48,060,000 Hinge 1,599 .
15,000 23,985,000 Rail 533 .
35,000 18,655,000 Screw 11 .
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Multimin Miccawood Hpl Glue 168 Hinge Rail Screw 1,698 .
2,264 .
1,132 .
1,698 .
140,000 95,000 125,000 180,000 15,000 35,000 80,000 237,720,000 215,080,000 141,500,000
50,940,000
25,470,000
19,810,000
880,000
691,400,000
Multimin Miccawood Hpl Glue 168 Hinge Rail Screw 1,800 .
140,000 252,000,000 2,400 .
95,000 228,000,000 1,200 .
125,000 150,000,000 300 .
180,000 54,000,000 1,800 .
15,000 27,000,000 600 .
35,000 21,000,000 12 .
80,000 960,000 Source: data processing, 2023
732,960,000
Based on the data above, it is the result of calculating the planning costs for raw materials with the note that the management of raw material purchases is not carried out all at once but rather makes purchases in stages according to the needs that will be used.
A Fixed costs consist of annual factory overhead costs, annual general administration costs and other costs.
The following is a calculation of annual depreciation costs.
Table 6.
Annual Depreciation Costs for CV.
Victo Company Equipment Amount Unit price Initial cost Economical Annual (R.
of product life (N) Depreciation (P) Fee Cutting .
Propyl machine .
Drill
Grinding Spet
Compressor
Nail shooting 1,500,000 6,000,000 6 years 1,000,000 1,200,000 4,800,000 3 years 1,600,000 800,000 450,000 250,000 4000,000 175,000 4,800,000 1,350,000 250,000 12,000,000 700,000 3 years 4 years 2 years 10 years 1 year
1,600,000
337,500
125,000
1,200,000
700,000
TOTAL Rp.
6,562,500,Source: data processing results, 2023 SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
Defrizal2 DOI: https://doi.
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54443/sj.
The following is a calculation of factory overhead costs, administrative and general costs and other costs:
Factory overhead costs.
Electricityy12 = Rp.
18,000,000,Telephone/wifiy12 = Rp.
3,564,000,Transportation/ year = Rp.
6,600,000,Annual Depreciation Feey12 = Rp.
78,750,000,Amount = Rp.
106,914,000,Administration and general fee Tax / year = Rp.
3,500,000,Other costs Initial capital = Rp.
245,000,000,Wagesmanager y12 = Rp.
48,000,000,ATKy12 = Rp.
600,000,Cleaning feesy12 = Rp.
600,000,Amount = Rp.
294,200,000,Furthermore, to find out the BEP in 2023Ae2025, it is necessary to calculate fixed and variable costs.
The calculation is as follows:
A Fixed cost Costs are projected to remain the same in 2023-2025, i.
IDR 106,914,000,- IDR 3,500,000,- IDR 294,200,000,- = IDR 404,614,000,A Variable Costs Variable costs Variable costs per unit of goods = Production quantity The variable costs obtained per unit of goods in 2023 are IDR 2,032,327/product unit.
IDR 1,984,806/product unit in 2024 and IDR 1,941,601/product unit in 2025.
From the results of the calculation data above, the Break Even Point (BEP) can be calculated using the formula (Alnasser et al.
, 2.
yaI BEP(X) = yaaOeyai Information: V= Variable Costs.
F= Fixed costs.
P= Price per unit.
X = Number of product units at BEP.
The selling price for 1 unit of cupboard measuring 100y60y200 is Rp.
3,500,000,- the same as the previous price.
F= Rp.
404,614,000
P= Rp.
3,500,000
V= IDR 2,032,327 .
IDR 1,984,806 .
and IDR 1,941,601 .
So, the results of the BEP calculation for 2023-2025 are as follows:
A BEP 2023, (X) = 276 units of cupboard products A BEP 2024, (X) = 267 units of cupboard products SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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BEP 2025, (X) = 260 units of cupboard products Results of production area planning at the CV furniture company.
Victo is obtained from the results of projecting the number of unit sales of wardrobe products over the last 5 years using sales forecasting which was ultimately obtained due to the increasing demand Therefore, the production area results for the coming year will be 533 units of cupboard products in 2023, 566 cupboard product units in 2024 and 600 cupboard product units in 2025.
It can be seen that by using the Linear Trend forecasting method the straightline trend equation is obtained.
The positive result is 33.
6, this means that the average sales each year will show an increase of 34 units of wardrobe products per year or an increase of around 6% in production area each year.
Calculating production area planning using forecasting alone is not efficient enough, therefore a Break Event Point analysis is needed so that it is known that the production area planning has reached its break-even point because sales will only be considered profitable if they exceed the BEP.
(Tefa et al.
, 2.
However, if the forecast results are below the breakeven point, the company will suffer a loss(Jayanti & Hartanti, 2.
From the results of the unit BEP calculation, the results obtained are smaller than the forecast results, namely 276 units of cupboard products in 2023, 267 units of cupboard products in 2024 and 260 units of cupboard products in 2025, which is the break-even point limit, and the forecast results are rather than the results of the BEP calculation.
Therefore, the results of forecasting calculations using the Linear Trend method can be used as a reference in determining future production areas at the CV.
Victo Bandar Lampung furniture company.
CONCLUSIONS
From the evaluation of existing data, it was revealed that CV.
Victo, a company operating in the furniture manufacturing sector, has not adopted a structured analytical approach to forecast its production needs.
This condition has an impact on creating a product surplus every year.
Therefore, it is recommended that companies design their production area plans by applying the Linear Trend forecasting method and carrying out Break Event Point analysis to optimize their production processes.
The production area planning using linear model forecasting analysis obtained a production area of 533 units of cupboard products in 2023, 566 units of cupboard products in 2024 and 600 units of cupboard products in 2025.
From the results of this planning the company will experience an increase of 6% in the area.
production every year, whereas in calculations using Break event Point planning the production area is 276 units of wardrobe products in 2023, 267 units of wardrobe products in 2024 and 260 units of wardrobe products Therefore, the results of forecasting calculations using the Linear Trend method can be used as a reference in determining future production areas at the CV.
Victo Bandar Lampung furniture company.
It is hoped that this research can provide information as a consideration for the company's progress.
By knowing the correct production area planning calculations, it is SINOMICS JOURNAL | VOLUME 2 ISSUE 6 .
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Analysis of Production Area Planning at the CV.
Victo Bandar Lampung Furniture Company Rika Triana1.
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54443/sj.
hoped that the company's efficiency will increase so that it can reduce excessive production amounts and get even more increased sales profits because needs have been well estimated.
REFERENCES