Arfan Bakhtiar

The benefits assessment of standards: A cross case analysis in manufacturing Industries-Indonesia

Several researches using macroeconomic and microeconomic approaches have shown that standards implementation, in many aspects, gives contribution to economic growth, productivity, value creation process, and culture transformations. This research tries to assess the benefit of standard implementation in three manufacturing industries as a multiple case study. ISO Methodology for the benefits assessment of standards was used and then lessons learned from the findings were drawn through cross case analysis. This study has three aims: to assess the economic benefits of applying standards, to make cross case analysis from the findings in the case study objects, and to evaluate the ISO methodology. Several findings were found out: (1) The estimation of economic benefit of the standards implementation is 0.4%-0.6% of EBIT; (2) The department in the companies that has dominant and important role is the quality department, which through a quality management system (ISO 9001) control, monitor and evaluate the standards implementation; (3) The indicators are influenced by several factors, not only the standards, but also technology, and human resources in organizations. Finally, there is no guidance to estimate the weight of standards contribution to value the benefits from indicators in EBASM-ISO.

The empirical model of trust, loyalty, and business performance of the dairy milk supply chain: A comparative study

Purpose The purpose of this paper is to measure and evaluate the relationship between collaborative communication, power dependence, price satisfaction, trust, supplier loyalty, and business performance. Design/methodology/approach Data used in this study were primary data which were collected through personal interviews and closed questionnaires using a five-point Likert scale ranging from 1 to 5. The sample consisted of 170 individual dairy farmer and several dairy cooperatives, which were located in Central Java Province (Boyolali and Semarang Districts) and West Java Province (West Bandung District). The study used partial least squares with the aid of the SmartPLS software program to analyze the hypothesis. Findings The results of hypothesis testing indicate that collaborative communication and price satisfaction had a significant positive effect on trust for Central Java and West Java Province. Meanwhile, power dependence had a significant negative effect on trust only for West Java Province. Trust had a significant positive effect on supplier loyalty for both of the two provinces. Significant positive effect of supplier loyalty on business performance was supported in Central Java Province, whereas in West Java Province, supplier loyalty had a positive but not significant effect on business performance. Research limitations/implications The limitation of this study is related to the number of samples, the type of scale used to measure a business performance, and the focus that is only on the relationship between the fargmers and cooperative to improve the performance of cooperative without considering the role of management. So, the future research may replicate this study in another region or in the other contexts of agribusiness sector that usually depends on farmer as a producer of the raw material. It may also enhance the measurement of business performance of dairy cooperative by using a direct measure of financial performance and non-financial performance and broaden the scope of research into the role of management of dairy cooperative. Practical implications It is recommended that managers of dairy cooperatives always involve the farmers when making marketing decisions especially concerning prices, products, market, and promotion. As organizational stakeholders, their involvement is vital in determining the ability of the dairy to achieve its goals. The other recommendation is the managers of cooperatives must have a clear policy on the price of milk, and this policy should indicate the transparency and accountability. Then, regarding the long-term benefit of dairy cooperative, it is recommended for dairy cooperatives to add the value of the milk so they can access wider markets, which, in turn, will maximize returns to the members. Based on this recommendation, it is better if the dairy cooperative in Indonesia not only serves as a marketing cooperative, but also serves as a farm supply cooperative which may process or formulate the milk into a more valuable product. Social implications The research confirms that individual dairy farmer’s loyalty can benefit the business of dairy cooperative. It may encourage more dairy cooperative to tap the good relationship with the individual dairy farmer at the initial stage of the economic growth of their business. Intensifying competition between dairy cooperatives would potentially bring even better quality and quantity of milk from the loyal dairy farmer. Originality/value Although this research used the conceptual model from the previous study, this research will make some improvement. First, it used more indicators to measure each dimension of the construct, and the investigation was slightly more complex and broader since the object of the research was represented by two regions, namely, Central Java Province and West Java Province.

Analysis of frontal protection system on a car

Pedestrian accidents caused by car in Indonesia is quite high. Pedestrian injuries during a collision between a car and a pedestrian can be fatal. In Indonesia, the old cars is still used because there are no regulations which restrict the using of a car based on the production year of vehicles. The old cars do not have some features to protect the pedestrians in the condition of a collision between a car and the pedestrian. The objectives of this study is to determine the effect which occur in the conditions of a collision between a car and a pedestrian by creating a direct collision simulation using a dummy as a form of artificial pedestrians and MPV car as a case study. Direct collision simulation process resulted in injury points on dummy. The injury rate was obtained by the area damaged from direct collision simulation process by calculating the surface area of injury on dummy. The design of the proposed pedestrian protection was to minimize of pedestrian injury suffered by using FAST. The outlining descriptions of the functions on the front part of the car were obtained by brainstorming. The additional function for pedestrian protection that previously did not exist at the front of the car was proposed in the form of Additional Frontal Protection System, e.g. with a height below the average human knee (496 cm) and a material which could absorb the impact was recommended. By applying the Frontal Protection System, the function of the front part of the car will increase so that the value of the car itself will increase consequently.

The evaluation of National Quality Infrastructure System in Indonesia

This paper describes the results of an evaluation of the National Quality Infrastructure (NQI) regulations in Indonesia, where the government has currently proposed draft legislations (laws) of metrology and of standardization and conformity assessment. This evaluation, based on qualitative methods, was conducted to ensure that the draft legislations being proposed are able to address important and latest issues, and to contribute in enhancing the efficiency and effectiveness of business activities and daily life at the national level. There are five main issues to evaluate the NQI system in Indonesia, i.e. Roles and Relathionships among Organizations, Authorities and Resposibilities of Organizations, substantive changes in the draft laws and the background and purpose of the changes, Human Resources, and Equipment and Information Technology. There are 15 respondents from all stakeholders who were used to address the questions of what, why and how related to the key issues. It is concluded that Indonesias government needs to reengineer NMI, BSN and KAN as representatives of the three pillars of NQI due to the existing problems and challenges for the future as well as problem with law enforcement for products that do not fulfill the standards.

The relationship between information sharing, informal contracts and trust on performance of supply chain management in the SMEs of batik

The purpose of this study is twofold: to examine the effect of information sharing and contract on increasing the trust level in the relationship between the batik small- and medium-size enterprises (SMEs) and supplier and to examine the trust on performance of a supply chain related to the procurement of raw cotton fabric (mori).,This research used primary data collected through interviews and closed questionnaires using a five-point Likert scale. The sample included 65 people, including batik SME-owners in Pekalongan, a Central Java city. This research was conducted using partial least square (PLS) through SmartPLS 3.0 software to analyze the hypothesis.,The results of hypothesis testing indicate that trust between owners of SME and their suppliers has a significant positive effect on the performance of supply chain management (SCM). Strong trust between batik SME- owners with their suppliers will be beneficial for both parties. Among other things, trust can reduce unnecessary cost and activity, reduce the waiting time for the arrival of raw material, reduce the number of inventories and increase profit and customer satisfaction. This result has also show that information sharing and informal contract have a significant positive effect on trust between batik SME-owners and their mori suppliers. In this case, information sharing has a higher effect on trust compared to informal contract. Broader information was distributed to the batik SME-owners and their suppliers, resulting in stronger trust between them.,The limitations of this study include the relatively small sample size and data collection method used to determine the effect of trust, the number of the antecedent variables of trust and the type of scale used to measure the performance of the supply chain. Suggestions for future research may include expanding the scope of the data collection to other regions in Indonesia; adopting a dyadic approach and longitudinal research in providing evidence on the effect of trust as a component of an interactive activity along the supply chain; adding other variables that contribute towards increasing the trust between SMEs and their suppliers (such as commitment); and enhancing the performance measurement of SCM by using a direct measure of financial and non-financial performance instead of recording the perception of the batik SME-owners.,As the scale of their business increases, it is better if the batik SMEs can enhance information sharing and informal contract with suppliers to promote the development of trust. In this case, to ensure that batik SMEs will have better information sharing from their supplier, it is better if the batik SME-owners using the criteria of supplier willingness to share detailed information when they select the new supplier. Then, to increase the role of contract on trust, it is better if owner of batik SME learn to understand the written contract processes and procedures as their business scale increases.,The research confirms that information sharing, informal contract and trust between batik SMEs and their suppliers can have a positive effect on the performance of the supply chain. It may encourage more SMEs and suppliers in the batik industry to build better information sharing, informal contract and trust as a bottom line for the economic and non-economic growth of their business.,The conceptual model used in this study is original, built from past research about the relationship between information sharing, informal contract and trust on the performance of the supply chain. Besides, the selection of the sample is also original, which in this case is on the batik SMEs which have informal contracts. This case has still been rarely studied, and the research is therefore highly valuable.

Employee perceptions to standards capability: A cross second order confirmatory factors analysis in manufacturing firms-Indonesia

This study examined the variables and indicators in the approach of ISO Methodology to measure benefits of standards. The main focus of testing the approach is the Standards Capability which has three manifest variables such as Level of Competence (LoC), Ability in Implementing Standards (AiIS) and Companys Attitude toward Standards. There are three hypotheses which were tested in relation to the model of Standards Capability. The hypotheses were tested with Second Order Confirmatory Factors Analysis in three manufacturing companies separately and in combination, i.e. Dodo, Soso, Toto and Gogo. The test results have shown that the hypotheses are acceptable for all the analysis units although there are four indicators on Toto that should be removed and two indicators are not confirmed as a manifestation of LoC construct. The ability to predict the first order construct in all of the analysis units can also be said as strong and very strong although there is one construct (LoC) in Toto that is moderate. In general, the Model can predict that the first order constructs in all of the analysis units are as the manifestation of Standards Capability. To develop this research, a survey research approach will be able to provide a more extensive analysis of various characteristics of business organizations.

The relationships between standards implementation and organizations performance

This research analyzes the relationship between standards implementation, which is believed to be able to give contributions in value creation process, and organization performance. Mixed method approach was used to deeply investigate field fact through two ways. The first is the quantitative approach using appropriateness testing of EQA Model and organization performance measurement in three case unit analyses. The second is the qualitative approach to explore top management perception about standards implementation and organizations performance. Based on the findings, the conclusions are threefold. First, all of the case study objects believe that standards implementation can maintain and improve organization performance. Second, standards implementation will improve organizational performance through improvement in employee capability, effectiveness and efficiency in the resource use and production process, employee satisfaction, customer trust, good relationships with the community, and multiplayer effect. Finally, improvement of organization performance will indirectly change the mindset of top management with regard to standards.

The relationship of standards and innovation: A case study in electronic industry-Indonesia

Along with the development of innovation and technology, standards are necessary to ensure the performance, conformity, and safety of production processes. Standards can be a source of information and may also determine how to conduct innovation. This paper is based on a case study research in an electronic company of Indonesia. This study describes four essential aspects: what the strategy of the company is in developing its product innovation; how the companys strategy is on the use of specific product standards; how the companys role is in the formulation of product standards that are used; and the relationships between standards and the success of product innovations in the context of the firm as a national company.