Supply Chain Management in PT. Manito World

PT Manito World, a manufacturing organization, relies heavily on labor-intensive technology to create blueprints manually and manufacture products in small lots to ensure exclusiveness. The organization uses enterprise resource planning (ERP) for scheduling control and offers warehouse facilities to manage inventory. However, with the advancement of technology, it is recommended that PT Manito World adopt capital-intensive technology to improve operations and quality while reducing waste.

operations management
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Abstract
The report is made in order to understand the management of the operations in the organizations.
The manufacturing company is being taken for this research which is facing issues in controlling
the wastage of resources. Further, the secondary research is being done in order to gather all the
information about the organization and the various theories are being read to understand the
advanced techniques of operations management. The information is also gathered from the
journal articles in order to understand the techniques which are mainly used by the
manufacturing organizations in order to be competitive enough to attain the sustainable
competitive edge. Further, the objective of the research is to gain the knowledge about operations
management or the supply chain management in depth and the advanced tools of operations
management which are being used by most of the organizations.
Introduction
The organization which has been chosen in order to study the supply chain management is the
PT. Manito World. This organization is the manufacturer of knitting. Further, the organization
has a line of business in manufacturing and exporting the accessories and the clothing according
to the changing trends. The factory of garments was founded 2005 in Cicurug. Moreover, the
organization has various modern equipment like cleaning the spot, for testing, etc. The
organization also have an area for secure packaging and the loading along with the modernized
systems of security which offer great satisfaction to the customers. The employees of the
organization are well trained and experienced in order to handle the machines effectively and

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efficiently. The organization believes in implementing high-quality products relied on ISO 9001;
2000 along with the standards of buyers.
The mission of the organization is to offer high-quality products to the customers according to
their changing needs and the demands and offer them complete satisfaction along with the
loyalty. Further, the organization uses in order to response quickly to the demands of the
customers. Also, the organization uses the strategy of value added in order to eliminate the
unnecessary activities which are reducing the value of the fashionable products.
Topic Statement
It has been observed that the PT. Manito World is facing some issues in offering high-quality
products in a short period of time to the customers. So, the objective of this research is to
understand the supply chain process of PT. Manito World and then propose some improvements
by using the advanced techniques of operations management. According to the researchers, the
management of supply chain is a function which encompasses the operational and the business
processes included in the manufacturing, procurement, transportation, distributions, warehousing
and the management of inventory. Further, the supply chain management helps in improving the
efficiency of the operations. The process of the management of supply chain includes five steps.
Firstly, the planning is done in order to develop the most suitable blueprint to achieve the
requirement, and the various essential components are being identified. Secondly, the
organization ascertains of the suppliers in order to get the raw materials which will further help
in the process of production. Thirdly, the designed process is being executed in order to develop
the high-quality products. Fourthly, the products are delivered in the correct quantity and at the
right time and the place by employing carriers along with the usage of various information

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technology tools. Lastly, managing the products which are being returned for the purpose of
quality.
Methodology
The research method which will be used in order to make this research effective will be
qualitative. Further, the information will be gathered from the reports of the PT. Manito World
along with the various researches conducted by the researchers on the significance of the
effective supply chain management process and why the organizations should use the advanced
tools of the operations management in order to improve the effectiveness and the efficiency of
the operations and the activities of production. Moreover, all the information will be gathered
from the secondary sources, and the discussion will be done accordingly. The theoretical
research will be done (Flynn et al., 2000). Furthermore, this type of research will help in
identifying and analyzing the significance of operations management and how the manufacturing
organizations change their traditional methods of managing the supply chain effectively so that
they can respond quickly in order to satisfy the customers according to their needs.
Results
In this section, the supply chain management process of PT. Manito World will be discussed
which is very essential for a manufacturing company in order to effectively manage the
operations (Pt. manito world—2014).
 Utilizing the organization’s work cell

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The PT. Manito World have a team of various planners of the production along with the planners
of the procurement and the designers. This helps the PT. Manito World to create a blueprint
before implementing the decision. Further, the organization believes in creating the blueprints
manually because the organization does not want to rely on the capital-intensive technology to a
great extent. Therefore, it means that the organization focuses highly on the labor intensive
technology. The blueprint is created by the team of designers.
 Generate or produce in small lot
The PT. Manito World manufacture products in small lots, and it is being defined as the unique
aspect of the manufacturing. The organization believes that doing this will help in creating the
great sense of exclusiveness and the demands of the customers will be identified without much
wastage of the resources. The organization uses the system of labor management at this
particular step. Further, the blueprint is being developed by the project manager, and the process
is being completed by the employees of the front line.
 Centralizing design and the development of the product
The PT. Manito World gets the raw materials from the suppliers in order to produce the products
further according to the needs of the customers. The organization uses the portals of suppliers in
order to keep track of all the raw materials. Moreover, the engineer of the organization keeps
track of all such details and also ensure that the payment is made accordingly on time and the
process of production doesn't get affected at any point in time.
 Controlling the scheduling

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The PT. Manito World uses the system of enterprise resource planning in order to control the
scheduling and ensure that the resources do not get wasted at any step. The organization sell the
products to the customers through online as well and through distributors as well. Further, the
system is being handled by the team of engineers in order to ensure that the work is done
effectively and efficiently by utilizing the resources to a great extent.
 Facilities of warehouse
The PT. Manito World believes that it is important to be competitive enough in order to achieve
a sustainable competitive edge for a longer period of time. Further, the organization offers the
facilities of the warehouse in order to keep the products when they are not required. The front
line managers are required in order to take care of the products at the warehouses. The PT.
Manito World uses the wireless system in the warehouse. But, the company mainly believes in
labor intensive technology.
The below given flow chart is the supply chain management process of PT. Manito World which
helps in understanding that how the activities are being performed at every step and the flow
chart gives the clarity of all the operations from the first step till the last one.

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Figure 1: operations management of PT. Manito World
Discussions
According to the researchers (Kim, R. Y., & Mohanty, S. 2010), it has been observed that the
operations management helps in redesigning the operations or the activities of the business
without affecting the overall productivity of the organization. Further, the managers of the
operations should be efficient enough in order to maximize the productivity and help the
organization in maximizing productivity by achieving the sustainable competitive edge.
According to the theories of operations management, some of the researchers stated that the
manufacturing organizations should change the way of managing supply chain according to the
change in time. Further, the manufacturing organizations should use the technique of six sigma
in order to improvise the quality and eradicate the errors timely. This technique will also help in
reducing the variability in the business of manufacturing to a great extent. Also, the

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organizations should use the technique of lean manufacturing as it mainly focuses on identifying
the reasons behind the wastage of resources and eradicating them so that the quality of the
product do not get affected and even the resources will be used and not wasted. Further, the lean
is being defined as the theory of production which considers the resource’s expenditures in order
to achieve the desired goal.
Some of the researchers (Stadtler, H. 2005) suggested that the organizations should switch to
capital intensive technology as the technology is becoming more advanced and the organizations
have adequate opportunities in order to explore. The organizations should change the way of
working according to the time because the customers get attracted towards the organizations who
use innovative and the unique ways of production.
Recommendation
We have researched a lot about the supply chain management of PT. Manito World and we
would like to recommend that the organization should make changes at the controlling of
scheduling step. We have observed that the organization relies on the labor intensive technology
and it is important for the PT. Manito World to change their traditional way of working. Further,
according to the various theories of operations management, we think that the PT. Manito World
should use the technique of six sigma in order to identify and analyze that were the resources are
getting wasted and how the organization can increase the value of the operations by improving
the quality of the products (Stevenson, W. J., & Sum, C. C. 2002). Moreover, the organization
should use the system of ERP more effectively in order to keep a check on all the activities and
the operations taking place in the PT. Manito World.

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The information is being gathered from the various articles, and it is being observed that they
have mainly focused on the two techniques of advanced operations management i.e. six sigma
and the lean. The researchers have mainly focused on these two techniques because they are
majorly accepted by the manufacturing companies, and these two techniques highly rely on the
theories of operations management. Further, it is being observed that the various organizations
switch to different techniques of operations management according to the change in time in order
to remain competitive.
The below is the diagram of supply chain management of PT. Manito World which includes the
proposed changes. Figure 2 and 3 helps in understanding the supply chain management process
of the PT. Manito World after using advanced tools of operations management.
Figure 2 changed operations management process

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Figure 3 implementation of EDI
Conclusion
It has been observed that the organizations should change their traditional way of working in
order to be more productive and competitive to achieve a sustainable competitive advantage
along with the maximization of profitability. Further, the findings show that the PT. Manito
World relies on the labor intensive technology despite the advancement in the technology. The
PT. Manito World should use advanced tools of operations management in order to improve the
operations and the activities of the organization which will further help in attracting more
customers. It is being observed that the PT. Manito World was established in 2005, it is very
important for the organization in order to be competitive enough to gain a market share and

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create a great brand image. Therefore, the PT. Manito World should change the techniques of the
operations management timely in order to be more effective.

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REFERENCES
Flynn, B. B., Sakakibara, S., Schroeder, R. G., Bates, K. A., & Flynn, E. J. (2000). Empirical
research methods in operations management. Journal of operations management, 9(2), 250-284.
Kim, R. Y., & Mohanty, S. (2010). Advanced power management techniques in next-generation
wireless networks [Topics in Wireless Communications]. IEEE Communications
Magazine, 48(5).
Pt. manito world—. (2014). ptmanitoworld.com. Retrieved 9 February 2017, from https://
ptmanitoworld.com
Stadtler, H. (2005). Supply chain management and advanced planning––basics, overview, and
challenges. European journal of operational research, 163(3), 575-588.
Stevenson, W. J., & Sum, C. C. (2002). Operations management (Vol. 8). New York, NY:
McGraw-Hill/Irwin.