9th Annual International Conference on Industrial Engineering and Operations Management

Analysis of the Efficiency of Company's Strategy by Dismissing Employees and Replacing Them with the Home Industry

Agus Sukoco, Elok Damayanti, Abdul Talib Bon, Rony Wardhana & Arasy Alimudin
Publisher: IEOM Society International
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Track: Business Management
Abstract

Abstract

The phenomenon of regional minimum wage increases in 2013 - 2017 was quite significant, bringing positive and negative impacts for the company and its employees themselves, some companies took policies including laying off employees according to the percentage of company needs, some maintaining but increasing high targets / production results, that too affect the quality of production produced. The policy adopted by the company is one of the company's strategies in anticipating this.PT. Mitra Strategis Jaya is a company engaged in the manufacture of shoes and sandals, the company with domestic and export market share, the company has approximately 1500 employees, consisting of 20% office employees and 80% production employees, labor-intensive Industrial Companies this is always trying to survive in intense competition in the same industry. The results of the strategy taken is right for now, but this strategy cannot be evaluated continuously in relation to quality control over workmanship outside the factory or home industries. The alternative strategy that can be taken by the company is to move the location of the plant to an area with a lower minimum wage value than Current location and improve the calculation of the selling price of the product and perform a wholesale system for the wage system.

Keywords

Strategy, home industries, manufacture, quality of production and competition.

Published in: 9th Annual International Conference on Industrial Engineering and Operations Management, Bangkok, Thailand

Publisher: IEOM Society International
Date of Conference: March 5-7, 2019

ISBN: 978-1-5323-5948-4
ISSN/E-ISSN: 2169-8767