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Measurement of Study Productivity and Evaluation Analysis by using the American Productivity Center (APC) Model at a Palm Oil Factory (Pks PT. Syaukath Sejahtera)

Bakhtiar (Industrial Engineering of Department, Malikussaleh University, Lhokseumawe, Indonesia)
Defi Irwansyah (Industrial Engineering of Department, Malikussaleh University, Lhokseumawe, Indonesia)
Zulmiardi (Mechanical Engineering of Department, Malikussaleh University, Lhokseumawe, Indonesia)

Proceedings of MICoMS 2017

eISBN: 978-1-78756-793-1

ISSN: 2516-2853

Publication date: 4 May 2018

pdf (443 KB) ePub (1.5 MB) Article view Figure view Cited (11) cite article

Abstract

Purpose – This study aims to determine the results of productivity index, profitability and improvement of company prices and to understand the relationship between partial input factors and productivity, profitability, and price fixing.

Design/Methodology/Approach – In this work, the productivity at the palm oil factory PT Sayaukath Sejahtera was measured and evaluated by using The American Productivity Center (APC) model approach.

Findings/Results – The results showed that each index that has been analyzed has a 5.143% decrease in the productivity index per year with a profitability equal to 0.286% per year and an increase in the price improvement index of 5.143% per year. Thus, it is concluded that from each index that has been analyzed, there is a decrease in the productivity index and profitability per year and there is an annual increase in the price improvement index.

Research Limitations/Implications (if applicable) –

Practical Implications (if applicable) –

Originality/Value –

Keywords

Citation

Bakhtiar, , Irwansyah, D. and Zulmiardi, (2018), "Measurement of Study Productivity and Evaluation Analysis by using the American Productivity Center (APC) Model at a Palm Oil Factory (Pks PT. Syaukath Sejahtera)", Proceedings of MICoMS 2017 (Emerald Reach Proceedings Series, Vol. 1), Emerald Publishing Limited, Leeds, pp. 81-86. https://doi.org/10.1108/978-1-78756-793-1-00084

Publisher

:

Emerald Publishing Limited

Copyright © 2018, Bakhtiar, Defi Irwansyah, Zulmiardi.

License

Published in the Emerald Reach Proceedings Series. Published by Emerald Publishing Limited. This article is published under the Creative Commons Attribution (CC BY 4.0) licence. Anyone may reproduce, distribute, translate and create derivative works of this article (for both commercial and non-commercial purposes), subject to full attribution to the original publication and authors. The full terms of this licence may be seen at The full terms of this licence may be seen at http://creativecommons.org/licences/by/4.0/legalcode

1. Introduction

Productivity is defined as the relationship between the input and the output of a production system. This relationship is commonly expressed as the ratio of output divided by input. If more output is produced with the same input, then it is termed as an increase in productivity. Likewise, if lower input can produce the same output, then the productivity is likely to increase.

Productivity is also defined as the level of efficiency in producing goods or services. Productivity gives an idea as to how to utilize resources in producing goods. Productivity holds the key in identifying the valuable outputs and inputs, such as the efficiency and effectiveness of available resources, namely personnel, machinery, materials, capital, facilities, energy, and time to reach a very valuable output.

2. Methods

2.1. Place and Object

To gather the data for this study, a direct research was done on objects at the PT. Syaukath Sejahtera that is located in the KeudeLapang village, Ganda Pura district, Bireuen, Nanggro Aceh Darusalam. The data used for the analysis are obtained by collecting the primary data from interviews. Observation and secondary data were used according to the needs of data analysis.

3. Results and discussion

3.1. Calculation of the Productivity Index

This section provides details on the calculation of the input index and partial productivity of labor for the period 3–8 (2009–2014). Table 1 shows the recapitulation of the results of the calculation of the partial input productivity index.

Table 1.

Partial Productivity Index Score
Year Labor Material Energy Capital Maintenance
2010 100 100 100 100 100
2011 72 53 90 101 54
2012 88 77 103 100 60
2013 123 107 124 98 60
2014 103 90 88 98 67
2015 80 70 67 96 74

3.2. Calculation of the Total Factor Productivity

This section shows the calculation of the total factor productivity index for the period 3–8 (2010–2015). Table 2 shows the results of the calculation of the recapitulation of the total factor productivity index.

Table 2.

Recapitulation of the Total Factor Productivity Index Calculation
Year Output (Rp.) Labor (Rp. × 103) Capital (Rp. × 103) Total Factor Productivity Ratio Index
2007 119,304,756.150 136.800 50,000.000 1.02 100
2008 121,765,719.000 192.000 70,000.000 1.02 100
2009 154,894,993,800 201.600 90,000.000 1.02 100
2010 227,153,851,500 211.200 111,000.000 1.02 100
2011 198,957,725.500 220.800 130,000.000 1.02 100
2012 161,822,539.500 230.400 150,000.000 1.02 100

3.3. Total Productivity Calculations by Using American Productivity Center Model

3.3.1. Calculation of the Output Index with Constant Prices

The calculation of the output index for the period 3–8 (2010–2015) is done as discussed earlier. The results of the calculation can be seen in Table 3.

Table 3.

Total Productivity Calculations by Using American Productivity Center Model
Index
No. Item 2010 2011 2012 2013 2014 2015
Output
1 Total output 1.00 1.06 1.08 1.22 1.33 1.42
Input
2 Tenaga Kerja 1.00 1.33 1.33 1.33 1.33 1.33
3 Material 1.00 1.03 1.06 1.12 1.21 1.32
4 Energy 1.00 1.04 1.08 1.09 1.10 1.10
5 Modal 1.00 1.07 1.22 1.27 1.45 1.56
6 Maintenance 1.00 1.00 1.00 1.33 1.00 1.00
7 Input total 1.00 1.08 1.20 1.24 1.38 1.48
Productivity (IP)
8 Tenaga Kerja 100 78 81 91 100 107
9 Material 100 101 102 109 110 108
10 Energi 100 99 100 112 121 129
11 Modal 100 96 89 96 92 91
12 Maintenance 100 104 108 92 133 142
13 Produktivitas total 100 96 90 98 96 96

3.3.2. Calculation of the Input Index with Constant Prices

This section shows the calculation of the input index for the period 3–8 (2010–2015). The results of the calculation can be seen in Table 4.

Table 4.

The Results of the Input Index Calculated by Using Constant Prices during 2010–2015
Index
No. Item 2010 2011 2012 2013 2014 2015
Output
1 Total output 1.00 1.06 1.08 1.22 1.33 1.42
Input
2 Tenaga Kerja 1.00 1.33 1.33 1.33 1.33 1.33
3 Material 1.00 1.03 1.06 1.12 1.21 1.32
4 Energi 1.00 1.04 1.08 1.09 1.10 1.10
5 Modal 1.00 1.07 1.22 1.27 1.45 1.56
6 Maintenance 1.00 1.00 1.00 1.33 1.00 1.00
7 Input total 1.00 1.08 1.20 1.24 1.38 1.48
Productivity (IP)
8 Tenaga Kerja 100 78 81 91 100 107
9 Material 100 101 102 109 110 108
10 Energi 100 99 100 112 121 129
11 Modal 100 96 89 96 92 91
12 Maintenance 100 104 108 92 133 142
13 Produktivitas total 100 96 90 98 96 96

3.3.3. Calculation of the Productivity Index from 2010 to 2015

This section shows the calculation of the labor productivity index for the period 3–8 (2010–2015). The calculation results can be seen in Table 5.

Table 5.

Calculation of the Productivity Index from 2010 to 2015
Index
No. Item 2010 2011 2012 2013 2014 2015
Output
1 Total output 1.00 1.06 1.08 1.22 1.33 1.42
Input
2 Tenaga Kerja 1.00 1.33 1.33 1.33 1.33 1.33
3 Material 1.00 1.03 1.06 1.12 1.21 1.32
4 Energi 1.00 1.04 1.08 1.09 1.10 1.10
5 Modal 1.00 1.07 1.22 1.27 1.45 1.56
6 Maintenance 1.00 1.00 1.00 1.33 1.00 1.00
7 Input total 1.00 1.08 1.20 1.24 1.38 1.48
Productivity (IP)
8 Tenaga Kerja 100 78 81 91 100 107
9 Material 100 101 102 109 110 108
10 Energi 100 99 100 112 121 129
11 Modal 100 96 89 96 92 91
12 Maintenance 100 104 108 92 133 142
13 Produktivitas total 100 96 90 98 96 96

3.3.4. Profitability Index Calculation

This section shows the calculation of the output and input index for the period 3–8 (2010–2015). Recapitulation of these calculations can be seen in Tables 6–9.

Table 6.

The Results of the Output Index with the Prevailing Price
Index
No. Item 2010 2011 2012 2013 2014 2015
Output
1 Total output 1.00 1.15 1.32 1.61 1.89 2.18
Input
2 Tenaga Kerja 1.00 1.40 1.47 1.54 1.61 1.68
3 Material 1.00 1.13 1.28 1.46 1.72 2.01
4 Energi 1.00 1.13 1.25 1.52 1.88 2.02
5 Modal 1.00 1.14 1.32 1.65 1.94 2.26
6 Maintenance 1.00 2.12 2.18 2.68 2.83 2.93
7 Input total 1.00 1.15 1.32 1.61 1.90 2.19
Productivity (IP)
8 Tenaga Kerja 100 1.23 90 105 117 130
9 Material 100 102 103 110 110 108
10 Energi 100 102 106 106 101 108
11 Modal 100 101 100 98 97 96
12 Maintenance 100 54 61 60 67 74
13 Produktivitas total 100 100 100 100 99 100
Table 7.

The Results of the Input Index with the Prevailing Price
Index
No Item 2010 2011 2012 2013 2014 2015
Output
1 Total output 1.00 1.15 1.32 1.61 1.89 2.18
Input
2 Tenaga Kerja 1.00 1.40 1.47 1.54 1.61 1.68
3 Material 1.00 1.13 1.28 1.46 1.72 2.01
4 Energi 1.00 1.13 1.25 1.52 1.88 2.02
5 Modal 1.00 1.14 1.32 1.65 1.94 2.26
6 Maintenance 1.00 2.12 2.18 2.68 2.83 2.93
7 Input total 1.00 1.15 1.32 1.61 1.90 2.19
Productivity (IP)
8 Tenaga Kerja 100 1.23 90 105 117 130
9 Material 100 102 103 110 110 108
10 Energi 100 102 106 106 101 108
11 Modal 100 101 100 98 97 96
12 Maintenance 100 54 61 60 67 74
13 Produktivitas total 100 100 100 100 99 100
Table 8.

Results of the Price Enhancement Index 2010–2015
Price Enhancement Index Rate
No. Item 2010 2011 2012 2013 2014 2015
Input
1 Tenaga Kerja 1.00 1.40 1.47 1.54 1.61 1.68
2 Material 1.00 1.13 1.28 1.46 1.72 2.01
3 Energi 1.00 1.13 1.25 1.52 1.88 2.02
4 Modal 1.00 1.14 1.32 1.65 1.94 2.26
5 Maintenance 1.00 2.12 2.18 2.68 2.83 2.93
6 Input Total 1.00 1.15 1.32 1.61 1.90 2.19
Table 9.

Recapitulation of the Productivity, Profitability, and Price Enhancement Index
Year Profitability Index Productivity Index Price Enhancement Index
2007 100 100 100
2008 100 96 104
2009 100 90 111
2010 100 98 102
2011 99 96 103
2012 100 96 104
2013 100 97 103
2014 99 91 109

3.3.5. Multiple Linear Regression Analysis

Based on Table 10, it can be noted that without an enhancement in partial productivity the productivity index will decrease by 6.660. Any increase in the capital input productivity index used in conducting production activities by 1% will increase the total productivity index by 0.882%. The capital input productivity has a large and significant coefficient value that occupies the most dominant position in its role of increasing total productivity.

Table 10.

Results of the Multiple Linear Regression Analysis.
Model Unstandardized Coefficients Standardized Coefficients T Sig.
B Std. Error Beta
1 (Constant) –301.246 19.508 –15.443 0.004
Tenaga Kerja 0.277 0.014 11.891 19.843 0.003
Material 0.328 0.019 3.591 17.336 0.003
Energi 0.197 0.005 2.235 36.415 0.001
Modal 3.226 0.159 13.302 20.345 0.002
Maintenance –0.015 0.001 –1.680 –14.028 0.005

By increasing the partial profitability, the total profitability index will decrease by 301.246. Any increase in the profitability index of capital inputs used in conducting production activities by 1% will increase the total profitability index by 3.226%. The profitability of the capital input has a large and significant coefficient value that occupies the most dominant position in its role of increasing total profitability.

Increased partial price enhancement means the index of the total price enhancement will decrease by 6.586. Any increase in the capital input price enhancement index, which in this case is defined as a product price of 1%, will increase the index of the total price enhancement by 0.805%. Enhancement in the capital input price has a large and significant coefficient value that occupies the most dominant position in its role of improving the total price enhancement.

4. Conclusion

Following the above discussion on partial productivity measurement analysis, total factor, and total productivity by using the American Productivity Center (APC) method, and by understanding the influence partial productivity has on the productivity, profitability, and price improvement by using multiple linear regression analysis, it can be concluded that from each index that has been analyzed, there is a decrease in the productivity index of 5.143% per year and profitability of 0.286% per year; there was an increase in the price improvement index of 5.143% per year. The most significant partial productivity factor in the total productivity is the partial productivity of capital inputs. It can be concluded that the partial capital input has a large coefficient value and is significant for the total productivity. The most influential factor for the input price improvement, i.e., the increase of the total price is the improvement of capital input prices. This can be interpreted in such a way that the partial capital input has a large and significant coefficient value to the total price increase.

References

Nasution, A.H. (2005). Industrial Management. Andi Offset, Yogyakarta.

Sinungan, M. (2008). Productivity-What And How. Earth Script, Jakarta.

Timpe, A.D. (1984). Productivity Analysis. Gramedia Pustaka Umum, Jakarta.

All papers within this proceedings volume have been peer reviewed by the scientific committee of the Malikussaleh International Conference on Multidisciplinary Studies (MICoMS 2017).

Corresponding author

Bahktiar can be contacted at
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Introduction
Acknowledgement I
Acknowledgement II
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