TECHNICAL ASPECTS / OPERATIONS

A.        TECHNICAL ASPECTS OF DEFINITIONS AND OPERATIONS

Aspects of technique or surgery, also known as the aspect of production. Feasibility assessment of this aspect is very important to do before the company is run. The determination of technical feasibility or the operation of the company concerning matters relating to the technical / operations, so if it does not analyzed well, then it would be fatal for the company on its way in the future.

Things that need to be considered in this aspect is a matter of determining the location, area of production, layout (layout), preparation of plant equipment and production processes, including technology selection. Completeness of study operation depends on the type of business to be run, because every type of business has its own priorities. So the analysis of aspects of the operation is to assess the readiness of the company in business to assess the accuracy of the location, size and layout as well as the readiness of production machinery to be used.

Determination of locations for example needs to be done with careful consideration. Site selection consists of the location for the headquarters, branches, warehouses, and factories. In relation to the business feasibility study of the most complex and complicated is the determination of the location of the plant, considering the number of considerations that must be taken into account before a plant location decision. The consideration is whether close to raw materials or close to the market or close to the consumer. Later, in doing consideration is the cost factor that must be issued to a location. Plant site assessments will be done with the results of the assessment value, comparison cost, or economic analysis., Depending on the party who wishes to do so.

Then the determination of the production area that is how much the amount of production generated within a certain time in the most cost efficient, so as to obtain a higher profit margin.
Similarly determine layout for the plant to be established also considering many factors such as the production process to be run. Then that is no less important is the preparation of machine tools in the building. The options are whether the layout or product layout. This assessment is certainly not done in a haphazard, but taking into account such factors as the resulting product or product range.

A.                TECHNICAL ASPECTS OF PURPOSE / OPERATION

As previously explained that each aspect has a particular purpose. Similarly, the technical aspects / operation also have some goals achieved

In general there are several things to be achieved in the assessment of technical aspects / operations, namely:

1. So the company can determine the exact location, both for the location of factories, warehouses. Branch, as well as headquarters.
2. Performance Management in order to determine layout corresponding to the selected production process, so that it can, providing efficiency.
3. That the company can determine the most appropriate technology in the production run.
4. That the company can determine the best inventory method to be executed in accordance with its business.
5. In order to determine the quality of workers is needed now and in the future.

B.                 DETERMINATION OF BUSINESS LOCATION

As already explained earlier that the main priority aspects of the technical / operations is to analyze the problem Research location. Site selection is very important because if one analyzes will result in increased costs to be incurred later.

In selecting the location depends on the type of  effort or investment being undertaken. There are at least four locations considered appropriate corporate purposes, among others:
1. Location for the headquarters
2. The location for the plant
3. Location for warehouse
4. branch office
In general consideration in determine the location of a site is as follows:

1. Type of business carried on
2. Is it close to the consumer market

3. Is it close to raw materials
4. Is the available workforce
5. Available facilities and infrastructure (transport electricity, and water)
6. Is it close to the center government
7. Is close with financial institutions
8. Is located in industrial areas
9. Ease for expansion / extension
10. Conditions customs / culture / attitude of the local community
11. Law applicable in the local area.
Especially for the location of the factory there are at least two factors that be considering, namely:

C.                1. FACTORS MAIN (PRIMARY)

The main consideration in determining factory location is:

a. Close to the market.

b. Close to raw materials

c. Available workforce, both in quantity and quality desired.

d. There are transportation facilities such as roads, railways, seaports or airports.

e. Available facilities and infrastructure such as electricity.

f. The attitude of society.

2. secondary factors

Secondary consideration in determining the location of the plant are:

a. Fees for investment in locations such as the cost of purchasing land or buildings with establishment
b. The prospect of price developments or progress in these locations in the future.

c. The possibility to expansion of  location.

d. There are other supporting facilities such as shopping centers housing or

e. Climate and soil

f. The issue of tax and labor regulations in the area.

Then the considerations for determining the location of a common central office are as follows:
1. Close to government

2. Close to financial institutions

3. Close to market

4. Available facilities and infrastructure

While consideration for the common warehouse locations are as follows:

1. In the area of ​​industry

2. Close to market

3. Close to raw materials

4. Availability of facilities and infrastructure

Assessment of the exact location will give  various profit for companies, both in terms of financial and non-financially. Gains will get  with the exact location include:

1. The services provided to consumers can be more satisfying

2. Ease in obtaining desired employment both in number and qualifications.

3. Ease in obtaining raw materials or auxiliary materials in the desired amount of continuously
4. Easy to expand the business location, because it usually has been calculated for the expansion of the business location at any time

5. Has a value or a higher economic price in the future.

6. Minimize the occurrence of conflict, especially with communities and government.

D.        THE METHOD OF LOCATION DETERMINATION

There are three methods that can be used to determine location as follow:

1.      Value result method

2.      Cost comparison method

3.      Economic analysis method

Factors that can be used to determine in value result method are:

1.      Market

2.      Materials

3.      Transportation

4.      Labor

5.      Others determination

Factors that can be used to determine in cost comparison method:

1.      Materials

2.      Fuels and electricity

3.      Operation cost

4.      General cost

5.      Other cost

Factors that can be used to determine in economic analysis method:

1.      Rent cost

2.      Labor cost

3.      Transportation cost

4.      Fuel and electricity cost

5.      Taxes

6.      Estate

7.      Society behavior

8.      Others

Value Result Method

PT Sinar Layang would like to build textile factory. The location that wanted is on Serang, Cirebon, and Bandung.

Table 5.1 Location Determination with Value Result Method

No	Needs	Ideal Location Score	Cirebon	Bandung	Serang
1	Market	40	25	35	20
2	Materials	30	20	25	15
3	Transportation	15	7	13	8
4	Labor	10	10	8	11
5	Other	5	4	5	4
	Total	100	66	87	58