PT. Frisian Flag is a well-known company in Indonesia which manufactured pasteurized milk in bottle, carton pack, as well as condensed milk.
Due to the competitiveness in the business, PT. Frisian Flag Indonesia must implement cost reduction policy in order to maintain price stability. Moreover, they try to do a variety of sustainable continuous improvements, one of which is by increasing time utility and cost efficiency.
The first method is the activity based costing which is used to determine out the cost of each object. Activity based costing calculates total cleaning cost,
determined cost drivers, and activity cost which includes time consumption and cost driver per time unit until the calculation of the cost of each object.
Furthermore, another method called USE PDSA is applied by the cleaning department to achieve continuous improvement. This method covers
understanding the problem, evaluating the root cause, planning and implementing the solution, result evaluation and standardization.
Applying these method results in three other methods of improvement, which include reducing the use of materials such as oxonia, double disinfectant, and caustic. Reduction of oxonia doses, double disinfectant, and caustic can save
up until Rp. 228.567.600,-/year, Rp.123.982.128,-/year, and Rp.286.998.708,- /year with implementation cost of Rp. 656.036.500, Rp.1.508.000,-, and Rp. 856.500,- respectively. Pareto priority index is used to choose the best one out of these three methods, which is the reduction of caustic on the standard tank object.
Putting this into practice reduces the actual resource cost by Rp.286.998.708,- /year whereas applying activity based costing gives cost reduction of Rp.289.790.172,-/year. Average improvement of time utility for UHT and standard object tank are 8% and 8.19% respectively. |