System Modeling

Group Assignment
Final Project

Crist Adityo Ikhsan

(1210931020)

Husnurrifki

(1110932025)

Nur Putri Hidayati

(1210932013)

Zaid Zamanda

(1210932067)

Lecturer:
Jonrinaldi, PhD

DEPARTMENT OF INDUSTRIAL ENGINEERING

FACULTY OF ENGINEERING
ANDALAS UNIVERSITY
PADANG
2015

INTRODUCTION
Description of company:
Name

: Usaha Tahu Saiyo

Product

: Tofu (Tahu)

Owner

: Mr. Son

Estabilishe Year

: 1 Januari 2014

Address

: Jalan Kampung Kalawi, Kampung Baru

Usaha Tahu Saiyo has been run in last 11 years with the number of rate of
production about 1800 pieces of tofu per day. Production is made with traditional
method with 2 days long production. The market for the product is a sellers in
Pasar Raya Padang. Raw material for the product is about 2-3 sacks a day
supplied from the agent. Each sack consists of 100 kg of soybeans. From this raw
material, the production of tofu may up to 10 buckets or 1800 pieces of tofu.
Tofu production process consist of : Soybean tempering (it takes 3 hours)
milling boiling filtering. After filtering process, the mixture will be stirred
and added with vinegar. Then the mixture will be moulded and it pressed to make
it more solid. After that, the unfinised product is cut and packaged before the
finished product is distributed.
The management itself, it consists of 1 owner and 4 workers. The wage
system for the workers is paid every month. The marketing itself is taken by its
owner. Every day, workers distribute the product to the market in every morning.
The production starts from 5:00 am 11:00 am.

Figure 1. Organization Structure

System description
System description of Tahu Saiyo are as follows :
System Views
Purpose of viewing

Industrial Engineer Views

Production process study, facilities layout

entity as a system
System components

Soybean, used oil, worker, building, facilities,

Activities of system

customers/market, supplier
Tempering with water, grinding, boiling, mixing with

Relationship

vinegar, molding, pressing, cutting, packing, distribution

Raw material supplies from supplier, production process

between components

of raw material into finished product, used oil using for

Inputs of

boiling, distributing product to market

Raw materials, suppliers, resellers in the market

environment
Outputs to

Finished product

environtment
Transformation of

Soybean processed into tofu

Process of System

2.1

Problem Situation

Enterprises Tahu Saiyo is one production plant out in Padang. Factories are still
running their business conventionally capable of producing 1800 to know the
process of 2 days. Business owners as the decision maker to realize that the need
for increased production to meet market demand, due to demand to know the
market are always increasing. Business owners are also oriented to increase
revenue. Constraints faced is the lack of production capacity. The time-consuming
process is considered too long so that the resulting production is low, besides the
determination of working hours is fairly low at only 5 hours per day. The use of a
conventional engine and the number of employees who are not in accordance with
the amount of work stations are available as well be one of the factors that lead to
low productivity.

2.2

Rich Picture of Problem Situation

Long processing time

Manager

Lack of Personnel

Low
Production
Capacity
Profit

Solution?

3.1

Identifying the Problems

Usaha Tahu Saiyo is one of tofu production company in Padang. Company

is still running their business conventionally, producing 1800 tofus with the
processing time is 2 days. Business owners as the decision maker to realize that
the need for increased production to meet market demand, due to demand to know
the market are always increasing. Business owners are also oriented to increase
revenue. Constraints faced is the lack of production capacity. The time-consuming
process is considered too long so that the resulting production is low, besides the
determination of working hours is fairly low at only 5 hours per day. The use of a
conventional method and the number of employees who are not in accordance
with the amount of work stations are available as well be one of the factors that
lead to low productivity.
Conventional method in producing tofu lead to the length of production
time. The owner of enterperise need to invest if the owner wants to increase the
productivity. So, the owner needs another way to increase the productivity with
new additional equipment or by modern method. But, new method of producing
tofu is will consume big investment. It would be the last option to do for the
owner to take this decision. Big production cost to do a production like price of
soybeans and oil also influence the system.
The length of processing time with conventional method takes about 2
days. It cannot be reduced by adding new equipment or something. But, it can
bereduced by the investment of new machines, that may cost big expense. New
equipment or additional staffs may increase the capacity of production. The bigger
capacity of production would lead to the increasing of the profit. Besides that,
narrow market of tofu also lead to the limitation of the enterprise. As a decision
maker, the owner should take an action if he wants maximize the profit.

3.2

Elements of the Problems

In defining problem situation happen in one system, we need to define

what elements that may affect problem concern. There are several aspects that
may affect the problem situation. There are people, relationships, resources,
processes, structures, conflicts, uncertainties, actions and reaction, controls, goals
and aims, world views. All aspects of the problem results in consequences.

Figure 1. Issue context the problem situation (Daellenbach and McNickle,

2005)
The six elements of a problem are the decision maker, the decision
makers objectives and the associated criterion, the performance measure, the
control inputs, or alternatives courses of action, the context in which problem
occurs (Daellenbach and McNickle, 2005).
6 elements of problem in Usaha Tahu Saiyo are:
1.
2.
3.
4.
5.

Decision maker
The objective
Performance measure
Decision criterion
Alternative courses in action

: The owner
: Achieving maximum profit
: Total profit
: Maximizing total profit
: Quantities of soybean, number of workers,

number of machines, working hours, profit percentage, labor cost

6. Wider system of interest
: market location, supplier location.

The decision maker of Usaha Tahu Saiyo is the owner itself. He decide any
decisions in order to achieve companys goal. The owner take any responsibilties
for the growth of the enterprise. His goal is to gain the profit as high as possible
every day. It means the decision criterion used for judging whether or not owners
objective has been obtained is the total profit from the sales.
The performance measure of the system could be net profit over the
owners investment/day. Any alternative course of action, such as any
combination of the quantities of soybeans to purchase, quantities of tofu to
produce, best method for producing soybeans into finished products, schedule of
soybean purchase, and so on, that exceeds old revenue satisfies the criterion and is
a solution. Wider system of interest could be the market location, potential sources
of soybeans, and etc.
3.3

Stakeholders
Stakeholders involved in this case are as follows:
-

3.4

3.5

Problem Owner
Problem Customer
Problem User
Problem Analysts

: The owner of Usaha Tahu Saiyo

: The customer of Usaha Tahu Saiyo
: Workers of Usaha Tahu Saiyo
: The owner itself

Hierarchical System
Wider System

: Whole system as general

Narrow System

: Production system in Usaha Tahu Saiyo

System Aspects
The following four rules help in identifying the components, the inputs

(both uncontrollable and controllable), and the outputs of the system (Daellenbach
and McNickle, 2005):

1. Any aspect, controllable or uncontrollable, that affects the system, but in

turn is not affected by it, is a system input.
2. Any aspect that is directly or indirectly affected by the transformation
process, but in turn does not affect any other aspect of the system, is a
system output.
3. Any aspect that is part of the systems structure or is affected by an
input (uncontrollable or controllable) or by other aspects of the system
and in turn affects other aspects of the system, including outputs, is a
component or a relationship.
4. Any aspect that does not affect the system, or is not affected by it, or is
not part of its structure is irrelevant and can be ignored.
The input, component, output, and irrelevant aspects in Usaha Tahu Saiyo
problem are as follows:
No
1
2
3
4
5
6
7
8
9
10
11
12
13

Aspect of Entity
Operator per machine
Working Hour
Labor Cost
Profit Percentage
Customer Demand
Soybean Price
Maintenance Cost
Factory Efficiency
Machine Capacity
Number of available machine
Total Profit
Quantities of soybean (input)
Quantities of Tofu Produced

Rule used
1
1
1
1
1
1
1
1
1
1
2
3
3

Identification
Control input
Control input
Control input
Control input
Data input
Data input
Data input
Data input
Data input
Constraint
Output
Component
Component

14
15
16
17
18
19
20
21
22

(output)
Machine Capacity per Day
Number of worker
Total Production Costs
Total Labor Cost
Total Maintenance Cost
Total Operation Cost
Product Cost/Unit
Product Price
Revenue

3
3
3
3
3
3
3
3
3

Component
Component
Component
Component
Component
Component
Component
Component
Component

3.6

Influence Diagram of System Characteristics

This picture shows the influence diagram in Usaha Tahu Saiyo system.

Figure 2. Influence Diagram

Cloud symbol means uncontrollable input. Rectangle means controllable input.
Circle means components of system. Ellipse one means the output of system.

4.1.

Assumption and Notation

Assumption :
Circle (2) Quantity of Tofu Produced denoted by O is affected by total
demand, but the demand will not include to the matemathical process. We
set it as the comparing to the output that can be produced.
Notation :

Number of Worker
- L (person)
Operator per Machine
- Lm (person)
Working Hour
- Wh (hour/day)
Labor Cost
- Lc (rupiah)
Profit Percentage
- %p (percent)
Customer Demand
- D (unit)
Soybean Price
/ kg
- Ps (rupiah)
Maintenance Cost
- Mc (rupiah)
Factory Efficiency
- E (percent)
Machine Capacity
- C (unit/hour)
Total Profit
- TP (rupiah)
Quantities of soybean
- I (unit/day)
Quantities of Tofu Produced - O (unit/day)
Machine Capacity per Day - Cpd (unit/day)
Number of Machine available- M (unit)
Total Production Costs
- Tpc (rupiah)
Total Labor Cost
- Tlc (rupiah)
Total Maintenance Cost
- Tmc (rupiah)
Total Operation Cost
- Toc (rupiah)
Product Cost/Unit
- Pc (rupiah)
Product Price
- P (rupiah)
Revenue
- R (rupiah)
4.2.

Formulation of Mathematical Model

From the influence diagram, each system variable or outcome is expressed
as a function of all inputs and/or other system variables which have arrows
terminating at that variable or outcome. Proceeding stepwise down, we can
assemble an expression for the Total Profit noted by TP (oval).
We start arbitrarily with Machine Capacity per Day (Circle 1) denoted by
Cpd, we can get the formula from the machine capacity noted by C and the
available working hour (Wh).
Machine Capacity per Day (Cpd) = C * Wh

...(1)

The for the circle (2) Quantity of Tofu Produced denoted by O. is a

function of the number of machine available denoted by M, effiency of
factory denoted by E and machine capacity per day (circle 1). The higher
machine capacity per day so that the more tofu can be produced.
Formulation :
Quantity of Tofu Produced (O) = M * E * Cpd

...(2)

Circle (3) Quantity of Soybeans denoted by I. is a function of the output

we should produce (circle 2) and the effiency of factory denoted by E. The
larger the value of E, the lower amount of soybean that should be
purchased so that can reduce the order cost. A little bit of thought (or trial
and error) shows that
Quantities of Soybeans (I) = O / E

...(3)

For the Number of Worker (circle 4), affected by number of machine

available noted by M and the number of operator for each machine
denoted by Lm. We can find by this formula
Number of Worker (L) = M / Lm

... (4)

Then we should identify the costs that involve in this system. There are
Total Operation Cost (Circle 8) denoted by Toc are affected by Total
Production Cost (Circle 7) denoted by Tpc, Total Maintanance Cost
(Cicrle 5) denoted by Tmc and Total Labor Cost (Circle 6) denoted by Tlc.
We can describe each cost as follows:
Total Production Cost (Tpc) = Price of Soybean (Ps) * I
Total Maintance Cost (Tmc) = M * Maintanance Cost (Mc)
Total Labor Cost (Tlc) = Labor Cost (Lc) * Number of worker (L)
Then, we get
Total Operation Cost (Toc) = Tpc +Tmc + Tlc

...(5)
...(6)
...(7)
...(8)

After get the total cost we should know how much the capital of the
company by finding the Product Cost per Unit (Circle 9) denoted by Pc.
Product Cost/unit (Pc) = Toc / O

...(9)

Before we sales the the product to the market we should add the profit
percentage to our company, then we can get the Product Price (Circle 10)
noted by P that is the function of product cost per unit and the profit
percentage noted by %p. We can make the formulation
Product Price (P) = Pc + (%p*Pc)
.

...(10)

Then after we get the product price we can delivered the product to the
market based on the demand. From that act we can get the Total Revenue
(Circle 11) denoted by R :
Revenue (R) = P * O

...(11)

Finally for the Total Profit as the objective for this model we can formulate
:
Total Profit (TP) = R Toc

...(12)

TP = R (Tpc + Tmc +Tlc)

...(13)

TP = (P * O) ((Ps * I) + (M * Mc) + (L * Lc))

TP = ((Pc + (%p * Pc) * M * E * Cpd) (Ps * O / E + (M * Mc) + ((M /
Lm) * Lc)

...(14)

TP = ((Pc + (%p * Pc) * M * E * C * Wh) (Ps * M * E * C * Wh / E +

(M * Mc) + ((M / Lm) * Lc)

...(15)

Constraint :
Wh 8 hour
% p 10 %
1 Lm 2
Lc Rp. 1.500.000,- per month (UMR), per day Rp 55.000,Number of Machine = 9
Price of each tofu that can be sell in market shouldnt be more expensive
than Rp. 500,4.3.

Derivation of the Solution

From those mathematical modelling above we get the final formulation
about the total profit of the company as denoted by Equation (15).

5.1

Numerical Example
Here is the numerical example of the formula
Assumption:

Demand

: 5500

Soybean Price : 300 Rupiah / kg

Operator/Machine

: 1 operator/machine

Maintenance Cost

: 1000 Rupiah

Capacity

: 100 unit/hours

Efficiency

: 90%

Total Profit
300000
269100

250000

220400

200000
185400
150000

256900
192900

168840

148860

127980

100000
50000
0

From the example case above with demand 5500 we can use the highlight values of the table with the output 5670 and total profit Rp.
220400,- ; 7 hours of work, 5 operators, 10 % of profit percentage, and labor cost 68000 per day (Rp. 1768000 per month)

5.2

Analysis of Sensitivity of the Model

Sensitivity analysis is used to know the sensitivity of the model that we made, the
we try to do this point with change of %p, Wh, Lc, and Lm

As u can see in the table above, the total profit impacted by the changing of the
constraint. Based on the result, we can conclude that this model is sensitive and it
can be used on that company.

6.

Conclusion

From the model that already made we can see that the model can be applied to the
company in term to increase their profit, the variable that can be change is profit
percentage (%p), working hour (Wh), labor cost (Lc), and operator per machine
(Lm). Those variable also has several constraint that should be consider. And also
there is a constraint of market price that we should consider, and the number of
demand as the reference about how many product should be produced.