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Journal : Indonesian Journal of Innovation Studies

Independent Production of Regular Portland Cement Assessed by Simulation and Net Present Value: Produksi Mandiri Semen Portland Biasa dievaluasi melalui simulasi dan Nilai Sekarang Bersih (NPV) Nugroho, Tito Dwi; Iriani, Iriani
Indonesian Journal of Innovation Studies Vol. 26 No. 4 (2025): October
Publisher : Universitas Muhammadiyah Sidoarjo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21070/ijins.v26i4.1603

Abstract

General background: Ensuring supply continuity and efficiency in cement distribution is a critical challenge for manufacturing companies. Specific background: PT. S faces a strategic decision between producing Ordinary Portland Cement (OPC) in-house or purchasing from external suppliers. Knowledge gap: Previous studies often assess make-or-buy decisions in general terms but rarely integrate operational simulations with financial feasibility for cement distribution. Aims: This study evaluates the comparative feasibility of in-house OPC production versus external purchasing by analyzing demand forecasting, production capacity, distribution performance, and economic outcomes. Results: Using Discrete-Event Simulation (DES), the study finds that a two-day pre-production strategy meets demand of 1,803 tons with a trailer cycle time of 89.9 minutes and effective loading duration of 7 hours and 35 minutes. Net Present Value (NPV) analysis reveals that the in-house option yields Rp2.16 billion, outperforming the buy option’s negative Rp3.18 billion. Novelty: The integration of DES with NPV offers a robust framework for linking operational efficiency and financial viability in cement supply chain decisions. Implications: The findings indicate that in-house production is the more feasible option, providing higher financial returns, reducing supplier dependency, and strengthening operational resilience. Highlights: In-house OPC production outperforms external purchasing financially. DES + NPV integration provides a novel decision-making framework. Strategy strengthens supply continuity and operational resilience. Keywords: Make or Buy, OPC Cement, Discrete Event Simulation, Distribution Strategy, NPV Analysis
Applying the House of Risk Method for Operational Risk Management in the Frozen Food Industry: Penerapan Metode Rumah Risiko dalam Pengelolaan Risiko Operasional di Industri Makanan Beku Nagata, Adyatma; Iriani, Iriani; Syaifullah, Hafid
Indonesian Journal of Innovation Studies Vol. 26 No. 4 (2025): October
Publisher : Universitas Muhammadiyah Sidoarjo

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21070/ijins.v26i4.1654

Abstract

General Background: The frozen food industry is expanding rapidly in Indonesia, driven by consumer demand for practical, nutritious, and long-lasting products. Specific Background: However, small and medium-sized enterprises (SMEs) in this sector, such as UD Mitra Abadi in Lamongan, face operational challenges including limited cold storage, fluctuating raw material prices, and inadequate cold chain management. Knowledge Gap: Despite growing awareness of risk management, many SMEs still depend on intuition rather than structured analytical methods, leaving them vulnerable to operational disruptions. Aims: This study applies the House of Risk (HOR) method, integrated with ISO 31000:2018, to systematically identify, analyze, and mitigate operational risks in frozen food production. Results: The analysis identified 15 risk events and 26 risk agents, with key issues such as poor interdepartmental coordination, non-compliance with SOPs, and weak cold chain practices. From 18 proposed preventive actions, six were prioritized based on their Effectiveness-to-Difficulty ratio, including the use of styrofoam packaging, daily briefings, Kanban boards, and 5R principles. Novelty: This study demonstrates a structured, resource-sensitive approach to operational risk management tailored for SMEs in the frozen food sector. Implications: The findings provide practical, scalable mitigation strategies that enhance resilience, efficiency, and competitiveness in similar industries. Highlights: Identified 15 risk events and 26 risk agents in frozen food operations. Prioritized 6 effective preventive actions using House of Risk analysis. Provides practical, resource-sensitive strategies for SMEs’ resilience. Keywords: Frozen Food Industry, Operational Risk, House of Risk, Risk Management, SMEs