OPERATION MANAGEMENT

• Denys Alexandro

• Fani Rahmawaty

• Fidelia Zenia

• Puspita Tarawati

• Rhesa Adrian
Company Profile
PT Unilever Indonesia Tbk is an Indonesia-based consumer goods company. The

Company's principal activities are the production, marketing and distribution of

consumer goods, including soaps, detergents, margarine, dairy-based products, ice

cream, cosmetic products, tea-based beverages and fruit juice. It has two segments,

namely Home and Personal Care and Foods and Beverages. The product brands

include Axe, Bango, Blue Band, Citra, Clear, Lifebuoy, Lux, Pepsodent, Pond's,

Rexona, Rinso, Royco, Sariwangi, Sunlight, Sunsilk, Taro and Wall's. The Company's

major shareholder is Mavibel while its ultimate parent company is Unilever N.V. The

Company has two subsidiaries, namely PT Anugrah Lever and PT Technopia Lever.

The Company is supported by two production facilities in Bekasi, West Java and

Surabaya, East Java.

 Ten Decisions Areas of Pepsodent

• Design of Goods and Services

Pepsodent as the most popular toothpaste in Indonesia, have many variances such

as Pepsodent White Now, Pepsodent Herbal, Pepsodent White, Pepsodent

Sensitive, and Pepsodent Complete 12. And from those variances, Pepsodent

really fulfills the wants and needs of the customer. And also Pepsodent serves

three sizes of toothpaste, from the small, medium, and large.

The Pepsodent also makes a good and interesting packaging to attract the

customer, the color that Pepsodent use are blue, red, white, and gold. And the

material packagings are using plastics and cardboard. So by using those materials

it is really save to protect the products in a good condition.

Complete 12

Complete care

Gigi Susu strawberry

Gigi Susu orange

Herbal
Sensitive

Whitening

White Anti Cavity

Pepsodent White Now

• Location Strategy

The central factory of Pepsodent Unilever is in Sidoarjo, Surabaya, East Java.

The reason why Unilever chose this area is because this area is one of the

industries center in Java and also by opening a factory in this area, they can

reduce the cost of the production. And the cost of transportation from the factory

to the intermediaries is cheaper than the other places.

• Managing Quality

There are a few ways that the Pepsodent do in managing their quality, first, they

open call center 0800-155-8000. By using this facility, Pepsodent can know about

each product that the Unilever produced. For example, if there is a Pepsodent

product in a bad condition, the customer can directly complain to the Unilever

about the products. And also Pepsodent is recommended by the PDGI (Persatuan

Dokter Gigi Indonesia). By using the recommendation, it can influence Indonesia

people to use this toothpaste.

And also BP POM already gave certificate to the Pepsodent (POM KD

0605790113), which mean that this toothpaste is feasible to use. So by using the

call center 24 hour, recommendation from PDGI and certificate from BP POM, it

really can help Unilever (Pepsodent) to make sure people certainly sure that this

product is a high quality product and really feasible to use.

• Supply Chain Management

The supply chain of the Pepsodent is starts from the product that produce by the

producer, which means, the product made by manufacturer. And then the

products are distributed to the intermediaries, such as retailers or wholesaler. And

then finally the customer buys the products.

• Inventory

Because these products are products that really needed by the customer, so

usually Pepsodent save or keep many products on their storage. The storage

should be on room’s temperature, so the product will not be damaged. Pepsodent

also gives customer service (free call) in other if there are questions from

customers. Pepsodent also provides high customer service levels and high facility

utilization.
• Process and Capacity Design

Every companies must have one process strategy in producing their products. It

applies also to Pepsodent Unilever. This particular company chooses to use mass

customization focus as their process strategy which means that the company is

producing a rich variety of types of Pepsodent to meet each of the customers’

wants and needs. Mass customization is the rapid, low cost production of goods

and services that fulfill increasingly unique customer desires. It doesn’t only focus

on the variety but they produce products precisely with what the customers want

when the customer wants it economically. As it’s mentioned before in Design of

Goods and Services, Pepsodent has released 9 types of toothpaste with different

flavours and unique benefit for each of them. The following is the explanation for

some of the products:

1. Pepsodent Anticavity: To protect the teeth for about 12 hours to prevent it

from cavity

2. Pepsodent Whitening: To make the teeth look healthy and white in 2 weeks

3. Pepsodent Herbal: A softer formula that is enriched with combination of

natural sources to help the teeth grow stronger, gums stay healthy, and mouth

stays fresh all the time

4. Pepsodent Centre Fresh: To give a fresh sensation to the mouth and prevent it

from cavity

5. Pepsodent Complete + Gum Care: A best and complete treatment for mouth

to lessen bleeding gums

6. Pepsodent Complete 12: Its unique Germicheck formula will be able to fight
 the bacteries for 12 hours right after brushing the teeth

7. Pepsodent Sensitive: To lessen the pain on sensitive teeth and gums because of

the gums’ weak condition

Different variety of toothpaste that is offered by Pepsodent earns tons of

customers. It is proved as Pepsodent becomes the most popular toothpaste brand

in Indonesia. Pepsodent then quickly become a big competitor in its market

compared to other brands such as Ciptadent, Formula, Enzim, Colgate, etc. As it

is said that mass customization focuses on customers’ wants and needs, therefore

it improves customer service and provides competitive advantage (uniqueness of

the products). Besides using mass customization as their process strategy,

pepsodent must also different tools of process analysis and design. One of the is

Flow Diagram which is a drawing of the making process of a product. The

following is an example of a Flow Diagram:

Flow Diagram can help in understanding the process visually. Moreover, it will be

easy for the workers to analyze if there is something wrong with the result.
• Layout Strategy

The following is an example of a process-oriented layout. This is not exactly the

layout that Pepsodent Company uses but it’s a general layout for any

manufacturing company like Pepsodent. This kind of layout clearly provides a

structured detail of what’s going on the process of the making. The advantages of

using this layout are its flexibility in locating the equipments and assigning labor

for various jobs (they can move very quickly because it’s spacious and clear). It’s

said that this kind of layout is suitable for producing products with a wide variety.

• Human Resources and Job Design

Human resources will mainly be focused on the managing the labors and the

workplace. They usually put more concerns on how to motivate the workers

through their workplace. Managers know that they have to provide an

effective and efficient workplace but not all of them know how and where to
start. First of all, there are 2 important things that should be kept in mind when

designing a workplace:

- Location strategy (climate, temperature, noise, light, air quality)

- Layout strategy (process, assembly line, position of machines, product,

work stations)

In Indonesia, the weather is hot all year long. From this fact, managers must

be able to design a workplace with lots of ventilation or even setting up

several air conditionings (if it’s affordable) to make sure that there will be a

good air circulation in the work sites. Meanwhile for the layout strategy,

managers must know where to put the machines, the clean offices, the storage

room, the warehouse, etc. Avoid a complicated design because if it’s

complicated, it will take time for the workers to get used to the area.

After focusing on designing the workplace, then it’s time to focus on choosing

the right employees to be hired. Pepsodent Company has to recruit the best

employees with the appropriate talents and skills needed for the job. By

getting the best employees, the production will hopefully run smoothly. Later

on, managers must also concern on how to maintain these talented employees.

The things that managers can do are providing them with fringe benefits,

comfortable workplace, treating them nicely, etc. A good relationship between

employees and managers needs to be established in order to create a harmony

in workplace. Managers might have to pay attention on the job design that

they want to use. In this case, Pepsodent Company could use job rotation so

workers are allowed to move from one specialized job to another. Workers can

gain experiences on different things and it can be ensured that the works wont

be boring. Pepsodent Company is definitely using lots of heavy equipments

 and it might be dangerous for the employees. Therefore, managers must

produce safety rules in the workplace to make sure that there will be no fatal

accidents. Managers must remind the employees to always follow the rules.

The last thing that managers have to manage is the work schedules for

employees. In Indonesia, most workers work for 8 hours at the maximum. By

following the common work hours, the employees who are working in

Pepsodent Company must also come to work for 8 hours at the maximum.

There will be another different case if some of the workers decide to work for

extra hours.

• Maintenance

Maintenance will probably be the last thing that comes into manager’s mind

yet it is considered important as it can affect the company in many ways.

Maintenance involves making sure that all equipment’s used for productions

are all taken care of so it can work properly for a long period of time. Heavy

equipment’s such as machines, cost lots of money, that’s why company must

be able to really follow the procedures of how to maintain those machines. A

good maintenance requires employee involvement and good procedures.

Managers must share information on how to operate and maintain the

machines properly to the employees. There should be training on how to do

these if needed. Moreover, it’s the manager’s job also to always monitor both

the operation and the maintenance of those equipments to make sure that

nothing can go wrong. Managers will usually perform routine inspections. It’s

best to make some minor repairs rather than wasting money on making a

major repair. There are ways that can be done to create a perfect maintenance
 in the company areas:

- Designing/purchasing machines that are easy to operate, easy to maintain, and

it has to be realiable

- Always try to minimize the service and maintenance costs, it will encourage to

do maintenance more

- Develop a maintenance department that will specifically focus on how to

maintain the area, the equipments

- Train workers to operate and maintain the machines

• Intermediate and short-term scheduling

It is basically what the manager does to maintain the short-term operations.

They will tend to think about do they better off keeping their people on the

payroll during slowdown? And also, the next question that wills pop-up into

their minds is which job do we perform next.

This thoughts they made during the short-term that they eventually will face.

They make schedule first. This is also happen in pepsodent company. Their

manager is responsible for the schedule and planning that they will make

before the action being made.

The manager involves the manipulation of inventory, production rates, labor

level etc.