ANALYSYS ON INTERNAL OPERATION

IN OVERSEAS PROCUREMENT

AT

PT. INDONESIA EPSON INDUSTRY

FINAL PROJECT

by:

IVAN SURYA

NIM: 29107203

Magister Program of Business Administration

School of Business and Management

Bandung Institute of Technology

2010

ii

ANALYSYS ON INTERNAL OPERATION

IN OVERSEAS PROCUREMENT

AT

PT. INDONESIA EPSON INDUSTRY

by:

IVAN SURYA

NIM: 29107203

Magister Program of Business Administration

School of Business and Management

Bandung Institute of Technology

Counselor’s Approval

-----------------------------

Ir. Adirizal Nizar, MBA

iii

FOREWORD

Words of gratitude I send to Allah SWT that already giving me the great opportunity to

study at the School of Business Management, Bandung Institute of Technology. With big

support from my counselor can complete this final thesis.

By this opportunity, I would like to thanks all of the parties that already support during

the process of my study and the completion of this thesis.

I am very pleased to express my sincere gratitude to:

1. Dr. Ir. Adirizal Nizar, MBA, the counselor who has been encouraging and

supporting me to completing this final thesis. His strong support and guidance can

give me motivation to complete this thesis.

2. All of Lecturers in SBM-ITB during my study that already share their valuable

knowledge so could give me inspirational experiences that would be useful in my

workplace.

3. IEI Management and my colleagues at EPSON that have support during my study

and completion of this thesis.

4. My family who always support and full understanding and giving me the chance

to complete this final thesis and study at SBM ITB.

5. All of the parties who have supported this thesis.

I hope this thesis can give contribution in improving procurement process to prepare

future challenges in the company.

Jakarta, September 24th

2010

Ivan Surya

iv

ANALISA TERHADAP INTERNAL OPERASI

PENGADAAN LUAR NEGERI

DI PT. INDONESIA EPSON INDUSTRY

IVAN SURYA

NIM: 29107203

Tanggal Kelulusan: 27 September 2010

Tanggal Wisuda: 23 Oktober 2010

Program Pasca Sarjana, Institut Teknologi Bandung, 2010

Pembimbing: Ir. Adirizal Nizar, MBA

ABSTRAK

Dengan kondisi ekonomi global yang masih belum stabil sebagai akibat resesi

ekonomi tahun 2008, banyak perusahaan besar yang melakukan langkah

strategis untuk tetap dapat bertahan dalam dunia industry. Seiko Epson

Corporation (SEC) sebagai perusahaan yang berbasiskan teknology juga

termasuk yang mengalami masa-masa sulit karena efek dari krisis ekonomi

global.

v

PT. Indonesia Epson Industry (IEI) yang merupakan salah satu anak perusahaan

SEC juga harus melakukan perubahan untuk dapat membantu kelangsungan

usaha Epson secara global.

Langkah perbaikan sudah mulai dilaksanakan di akhir tahun 2008, Salah satunya

adalah merubah strategi pengadaaan part dari luar negri dari menggunakan

perusahaan outsourcing menjadi pengadaan langsung ke pemasok oleh IEI.

Perubahan ini tentunya memberikan efek terhadai rantai pasok yang ada di

dalam departemen pengadaan luar negeri.

Dalam thesis ini dilakukan penelitian untuk menganalisa dampak dari

perubahan operasi pengadaan terhadap proses operasi di dalam procurement

overseas, apakah sudah efektif metode pembelian yang di gunakan dan

bagaimana motivasi dari setiap buyer untuk memersiapkan diri menghadapi

target 2012. Untuk mendapatkan data dan menganalisa temuan dalam

peneilitan ini digunakan metode campuran quantitative dan qualitatif yang

kemudian digunakan untuk memberikan rekomendasi langkah perbaikan sesuai

dengan tujuan penelitian ini.

Berdasarkan analisa data, penelitian ini menghasilkan empat rekomendasi untuk

di implementasikan untuk memperbaiki kinerja department. Standard prosedur

kerja harus di buat, program pelatihan untuk meningkatkan kemampuan buyer,

sistimasi cara perhitungan pembelian, dan menyeimbangkan kerja pada masing

masing orang di dalam organisasi untuk lebih efisien.

Kata kunci: proses procurement, pembeli.

vi

DEFINISI OPERASIONAL

Manajemen rantai pasok adalah serangkaian tindakan yang dimanfaat

kan secara efisien untuk menyatukan pemasok, pembuat, gudang dan

bagian penjualan, sehingga barang yang di produksi dan di distribusikan

dengan jumlah yang tepat ke lokasi yang tepat dalam waktu yang tepat

dengan biaya yang minim dan mencapai tingkat pelayanan yang

memuaskan. (Levy et al, 2008: p 1)

Pembeli adalah (1) pihak yang memperoleh, atau setuju untuk

mengakuisisi, kepemilikan (dalam hal barang), atau manfaat atau

pengunaan (dalam hal layanan), dengan imbalan uang atau pertimbangan

lainnya berdasarkan kontrak penjualan. (2) Atau pembeli profesional

yang mengkhususkan diri dalam kelompok tertentu bahan, atau jasa, dan

berpengalamanan dalam analisi pasar, negosiasi pembelian, membeli

masal, dan koordinasi pengiriman.

(businessdictionary.com, 2010)

vii

ANALYSYS ON INTERNAL OPERATION

IN OVERSEAS PROCUREMENT

AT

PT. INDONESIA EPSON INDUSTRY

IVAN SURYA

NIM: 29107203

Date of Passing of Final Test: September 27th, 2010

Date of Graduation Ceremony: October 23rd, 2010

Magister Program, Bandung Institute of Technology, 2010

Counselor: Ir. Adirizal Nizar, MBA

ABSTRACT

As global economy that still unstable due to global economic crisis at 2008, many

companies take some strategic movement to keep survive in world of industry.

Seiko Epson Corporation (SEC) as company that based on technology

development and information technology products also one of the companies

that face severe condition in the global market.

viii

PT. Indonesia Epson Industry (IEI) is one of Epson affiliates also need to makes

some changes in order to support business continuity of Epson global. One of

step improvement that already started by the end 2008 is changing overseas

procurement strategy from outsourcing company become direct procurement to

suppliers handled by IEI. This changing is effect to supply chain process at

overseas procurement department.

In this thesis research has been done to analyze effect from the change of

procurement strategy at overseas procurement department, whether current

purchasing method already effective and how is buyer’s motivation for

preparing themselves for 2012 target.

For collecting the data and analyze finding in this research, this thesis using mix

method approach between quantitative and qualitative method. Then give

recommendation for improvement as research objective.

Based on data analysis, this research recommends four recommendations to be

implemented in order to improve the performance of department. Standard

Operation Procedure need to create, Training program for skill up the buyer,

systemization of order calculation, and Job balancing in the organization to be

more efficient.

Key words: procurement process, buyer

ix

OPERATIONAL DEFINITION

DEFINISI OPERASIONAL

Supply Chain management is a set of approaches utilized to efficiently

integrate suppliers, manufacturers, warehouses, and stores, so that

merchandise is produced and distributed at the right quantities, to the

right locations, and the right time, in order to minimize systemwide costs

while satisfying service requirements. (Levy et al, 2008: p 1)

Buyer is (1) Party which acquires, or agrees to acquire, ownership (in case

of goods), or benefit or usage (in case of services), in exchange for money

or other consideration under a contract of sale. Also called purchaser. (2)

Professional purchaser specializing in a specific group of materials, goods,

or services, and experienced in market analysis, purchase negotiations,

bulk buying, and delivery coordination.

x

TABLE OF CONTENT

COVER …………………………………………………………………........... i

LEGALIZATION PAGE ……………………………………………………… ii

FOREWORD ………………………………………………………………….. iii

ABSTRAK (in Indonesia) …………………………………………………….. iv

ABSTRACT (in English) ……………………………………………………… vii

TABLE OF CONTENT ……………………………………………………….. x

LIST OF FIGURES ……………………………………………………………. xii

LIST OF TABLES …………………………………………………………….. xiii

LIST OF APPENDIXES ………………………………………………………. xiv

Chapter 1 Introduction

1.1 Company Profile and Industry Analysis

1.1.1 Seiko Epson Corporation …………………..……1

1.1.2 PT. Indonesia Epson Industry …………………...3

1.1.3 Industry Profile ……………………………………4

1.2 Problems’ Background ………………………………….6

Chapter 2 Business Issue Exploration

2.1 Problem Statement ………………………………………10

2.2 Research Question ……………………………………….10

2.3 Research Objective ……………………………………….11

2.4 Significance of the Research …………………………….11

2.5 Limitation of the Research …………………………….. .11

2.6 Roadmap of the Thesis …………………………………..11

xi

TABLE OF CONTENT

Chapter 3 Business Solution

3.1 Literature Review

3.1.1 Supply Chain Management….....................................13

3.1.2 Procurement ...........................................……………..15

3.1.3 MARS Model of Individual Behavior and Result …18

3.2 Research Methodology ……………………………………..19

3.3 Data Collection

3.3.1 Data Collection Method ……………………………19

3.4.2 Respondent Profile …………………………………20

3.4 Data Analysis

3.4.1 Interview Questions List ………………………......21

3.4.2 Data Interpretation

3.4.2.1 Buyer..............………………………………...25

3.4.2.2 Import Staff.......................................................27

3.4.2.3 Manager ...........................................................27

3.5 Conclusion and Recommendation

3.5.1 Conclusion ………………………………………….28

3.5.2 Recommendation …………………………………..28

Chapter 4 Implementation and Time Line ………………………..30

BIBLIOGRAPHY ………………………………………………………………...33

APPENDIX ……………………………………………………………………... 35

xii

LIST OF FIGURES

Figure 1.1 IEI Organization Structure………..………………………….. 4

Figure 1.2 Michael Porters Five Forces Model ……………………........ 5

Figure 2.1 Overseas Procurement Process Flow ………………………. 9

Figure 3.1 Supplier Chain …………………………………………… ….. 13

Figure 3.2 Kraljic’s supply matrix ……………………………………… 16

Figure 3.3 MARS Model and Individual Behavior………………………. 18

xiii

LIST OF TABLES

Table 3.1 Questions for Buyer…………..…………………………………….21

Table 3.2 Questions for Managers ………………………………………….24

Table 3.3 Questions for Import Staff………...…………………………….....57

xiv

LIST OF APPENDIXES

Appendix A Chronology of Seiko Epson Corporation

Appendix B Manufacturing Subsidiaries and Affiliates Epson at Overseas

Appendix C SEC Consolidated Financial Highlight

Appendix D Questioners Result for Buyer

Appendix E Questioners Result for Impor

Appendix F Questioners Result for Managers