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)

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

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 bakti66@yahoo.com

Book Chapters

Prelims

Introduction

Acknowledgement I

Acknowledgement II

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The Development of an Independent Entrepreneurship Model Through Creative Economy for Women in Lhokseumawe City

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