1S78*774X

ISSN : 1978-77 4X"r"$.,* *

ProceedingThe 6th International Seminar

on Industrial Engineering and Management [6h ISIEM)

Harris Hotel Batam Center, Batam, lndonesiaFebruary 12h - 14'h,2A13

Industrial

ffiffi

FOREWORD. .!.irr .

ln this 6th lnternational Seminar on lndustrial Engineering and Management (lSlEM)Seminar issues is Sustainable on Enhancing lndustrial Management, Technology,and Information, and wide area of lndustrial Engineering including Quality Engineering,supply chain Management, Production system, operation Research, Decision SupportSystem, Ergonomics.Artificial lntelligent, lndustrial Management, and Entrepreneurship.

All of papers received were review by a peer of reviewers and published for 55 papersfrom various lndonesian University and abroad, and be presented by 52 presenters,

Historical, the ISIEM is an annual seminar event organized by 6 universities that runlndustrial Engineering Department, which are Triskati University Jakarta, AtmajayaCatholic University Jakarta, Tarumanagara University Jakarta, Esa Unggul UniveisityJakarta, Al-Azhar lndonesia University Jakarta, and Pasundan University Bandung. Theseminar took different places annually in all over lndonesia.

I would like to thank you to all committees for the efforts, all Reviewers, Mr. Predeep Nairfrom Schneider Manufacture Batam, Prof. Dr. Rosnah Mohd. Yusuff from Department ofMechanical and Manufacturing Engineering Universiti Putra Malaysia, Prof. Frits Blessingfrom Rotterdam University/Rotterdam Business School, for the Keynote Speeches, allParticipants to join the Seminar, and everybody who helped us to make this seminarhappen.

At last, enjoy your stay in Batam and have a good Seminar.

lr. Wahyukaton, MT,(Pasundan University Bandung)

Chairman of Committee

The 6'h lnternational Seminar on lnclustriat Engineering and Management 1O'h tStfmlHarris Hotel, Batam, lndonesia, February 12th-14th,201 3

. .s." "* ",. .

Steering Gommittee1. lphov Kumala Sriwana, ST, MSi2. Dr. Dadarib Surjasa, SSi, MT3. Vivi Triyanti, ST, MSc4. Dr. lr. Syarif Hidayat, MEng.Sc, MM

5. lr. Toto Ramadhan, MT6. Dr. Lamto Widodo ST, MT

Organizing CommitteeGhair lr. Wahyukaton, MTCo-Chair Nunung Nurhasanah, ST, MSiSecretary Dr. Lamto Widodo ST, MT

Treasury lphov Kumala Sriwana, ST, M.Si

CO MMITTEE

(Esa Unggul University, lndonesia)(Trisakti University, lndonesia )(Atm a Jaya Jakarta Catholic University, lndonesia)(Al Azhar lndonesia University, lndonesia)(Pasundan University, lndonesia)(Tarumanagara University, lndonesia )

(Pasundan U niversitY, lndonesia )

(Al Azhar lndonesia University, Indonesia)(Tarumanagara University, Indonesia)(Esa Unggul University, lndonesia)

Proceeding EditorRahmi Maulidya, ST, MTEndro Wahyono

LeafletDr. Lamto Widodo ST, MTDr. Adianto, MScRahmi Maulidya, ST, MT

Sponsorsh ipRina Fitriana, ST., MM.

Conference Organizerlr. Syarif HieJayat, MEng, MMLina Gozali, ST, MMRiya Widayanti, SKom, MKom

AccomodationVivi Triyanti, ST, MScFeliks Prasepta, ST, MTMarsellinus Bachtiar, ST, MMYoseph Ole

Websitelr. Yogi Yogaswara, MT.Galih Ferdi Firmansyah

(Trisakti U niversity, lndonesia )

(Tarumanagara University, lndonesia)

(Tarumanagara Unlversity, Indonesia )

(Tarumanagara University, lndonesia )

(Trisakti U niversity, lndonesia)

(Trisakti U niversity, lndonesia )

(Al Azhar lndonesia University, lndonesia)( Tarumanagara University, lndonesia )

(Esa UngEul Unlversity, lndonesia)

(Atma Jaya Jakarta Catholic University, lndonesia)(Atma Jaya Jakarta Catholic University, lndonesia)(Atm a Jaya Jakarta Catholic University, lndonesia)(Atma Jaya Jakarta Catholic University, lndonesia)

(Pasundan University, lndonesia)(Pasundan University, lndonesia)

The d' lnternational Seminar on lndustriat Engineering and Management 6th tSeUS

Harris Hotel, Batam, lndonesia, February 12th-14th, 2013

REVI EWE R.r$",* .

1. Prof. lr. I Nyoman Pujawan, MEng, PhD(Sepuluh Nopember Institute of Technology, INDONES/A)

2. Prof. Ahmad Syamil, Ph.D.(Arkansas LJniversity, USA)

3. Prof. Erry YT Adesta, Ph.D.(lnternational lslamic University of Malaysia, MALAYSIA)

4. Assoc.Prof. Dr. Chuvej Chansa-Ngavej(S h inawatra U niversity, THA I LAN D)

5. Dr. lr. Sri Gunani Pertiwi, MT.(Sepuluh Nopember Institute of Technology, /NDONESIA)

6. Dr. Dadang Surjasa, SSi, MT(Trisa kti U n iversity, /NDON ES lA)

7. Dr. lr. Triwulandari SD, MM(Trisakti U n iversity, I N DON ESIA)

8. Dr. lr. Lily Amelia, M.Agr., M.M.(Esa U nggul University, /NDON ESIA)

9. Dr. lr'. Nofi Erni, M.M.(Esa Unggul University, /NDON ESIA)

10" Prof. Dr, Hadi Sutanto(Atma Jaya Jakarta Catholic University, TNDONES/AJ

11. Prof. Dr. Weggie Ruslan(Atma Jaya Jakarta Catholic lJniversity, INDONES/AJ

12, Prof. Dr. lr. S. Sardy, M.Eng.Sc(AI Azhar Indonesia University, INDONES/A/

13. Dr. lr. Hj. Tjutju Tarliah Dimyati, MSIE(Pasundan University, /NDON ESIA)

14. Dr. lr. Hj. Arums ari, MSc(Pasundan University, /NDON ESIA)

15, Dr. Lamto Widodo ST. MT(Taru m anag ara U niversity, INDON ES I A)

The 6'' lnternational seminar on lndustrial EngineeringHarris Hotel, Batam, lndonesia, February

and Management 1dh rcrcmS12th-14th, 2013

AGENDA. .&J.,..

Day 1 (February 121h,20131Openirig ceremonyGala Dinner

Keynote #1

Mr. Pradeep Nair

Plant General Manager PT Schneider Electric Manufacturing Batam

Day 2 (February 13th, 2013)Keynote #2

Prof Rosnah Mohd YusuffDepartment of Mechanical and Manufacturing Engineering, Faculty ofEngineering, Universiti Putra Malaysia"lnnovations ln Manufacturing For Sustainabte Growth"

Coffee Break

Parallel Session #1

Lunch

Keynote #3

Prof, Frits BlessingDINALOG & Rotterdam University of Applied Sciences"l Have To Change To Stay The Same"

Coffee Break

Parallel Session #2

Day 3 (February 14th,20131Tour to Singapore

The dn lnterr,ational Seminar on lndustriat Engineering and Management 1dh rctfUSHarris Hotel, Batam, lndonesia, February 12th-14th, 2013

TABTE OF CONTENT. {*$",r .

ForewordCommittee i,,

ReviewerAgendaTable Of Content \

QM - Quality Engineering & Management

QM-6

Vanessa

to ffi;ess inteiiciion Anno;s TA;eisiudt F;arois

Widyadana, Tanti octavia, Herry Christian palit, Dick Fetix :

SCM - Supply Chain Management

Title and Author __--l - pagi;--Knowledse MadsemenlSvsiejm Mo<iiii-in Diil;ia'raRia;supiifldfiin " -"'.' --i 'SCM:-1

Dadang SurJasa, Dedy Sugiarto, Binti Solihah, Nirdukita Ratniwati i

Sizing PerformanceArum Sari, Ulista Feriana

s Jr;riit effi il M il;iFm ;ni-perfo im;il;; ME;ildm effi -l;

o, I Cbmd;nt-^*--_- : S cM : r'sTiena Gustina Amran

The d' lnternational Seminar an lndustriat Engineering and Management ydh tSrcUSHarris Hotel, Batam, lndonesia, February 12th-14th,2013

SCM - Supply Chain Management

Page :

Appitins N;tioso Simuiation MoAei To-B;Effie-The uFtieam paim oli Suppit-ChainSyarif Hidayat, Mas'ud Ridwan

: s i Htbiid Modei Foi"SuppiierSeieCiion,-ililurement;Ana"procilldticin! i Catur Kurniawan, Nur Hildawati

i ! LearninS ii i Armand Omar Moeis, Rama Raditya, Akhmad Hidayatno ,:!

P erfo im 5nce"A n;iy;G of c 6en 5 u pilv eliJln ffiiis ;m eni "i n pt-TilU "inv&t;m ;

S ubangAgus Purnomo

i I i The Influence of Supply Chain Management to Product Quality at PT XYZ in I SCM - 62i i L"t "rtu i .-'

i i enai Wijaya, Richard Andrew i

: i Nunung Nurhasanah, Riyana Susanfi :i i

Nunung Nurnasanan, Kryana susant

lr1 l-ffia;uiemill-Suppit-cHiri-rurfoimrafi;e-U6fi6*Metid-i;f -SCOR"[,k;a;t-(ci$]

sCM - 7b| | Study : Automotive Component Manufacturingl

I

| | Nofi Erni I

iz]-oa;slins Gieen suppit-c#ln-M;ilitem#f"i;i-edo;-Asioindii;iry -i- piooiem : scH/ - srj : ldentification And Profiling

i 13 i Spare Parts Distribution Route Planning with Saving Matrix Method at PT.XYZ SCM _ 90

scM-zi I

I

: i lphov Kumala Sriwana, Sylvia Madusari, Nurutita Aulia Sari

OR - Operation Research

Title and Author ' Page

crashins Piojeci5ciiedilE-ffiid;k wit6tiiAffio;.SaEilbn *-**-- | on - r

ER - Ergonomics

I

Luminous to Accuracy Score on Reading and Colors MatchingWahyukaton

i.i

i g.;ii;um D;;isn of T:DOF -Anthroilmdphlc -Triumu-

eon;ioeiins-Giilplrs ;

! lvtotion for lndonesian Low-Cost Prosthetic Hand i

The Cutting Ampoule Design lnovation to Develop Safety and Helath PatientYuwono B Pratiknyo, Anita Purnamayanti

The dn lnternational Seminar on lndustrial Engineering and Management 1dh tStrulHarris Hotel, Batam, lndonesia, February 1 2th-14th, 201 3

Page

rn-r

rn-z

En - rs

-_ -

ER - Ergonomics

to Reduce

Lipin

DSS - Decision Support System and Artificial lntelligence

B. Kombaitan, ldwan Sanfoso

PS - Production System

The dn lnternational seminar an lndustriat Engineering and Management 1dh steulHarris Hotel, Batam, lndonesia, February 12th-14th,2013

PS - Production System

Title and Author

Manufacturing Systems

i 8 j Optimization Of MlDl Synthesizer On The lllustration Of Movie Music i pS:46 ii i Pandan Pareanom Purwacandra, Ferry Wahyu Wibowo i iri

; 9 i lmplementation Theory of Constraint on CFM56-3 Aircraft Engine Maintenance i PS - 5t j

i i lJntung Mahargo B. P., Hardianto tridiastadi, E. Nina S. Y., Zuffa f. t : iii

I to I rrI lUrI lr(ttittil

i Untung Mahargo 8.P., Hardianto lridiastadi, E, Nina S. Y., Zutfa F. I i

I

l-Th; im"piement;iion -of """L#n""Sii-Sid;5-vleirroA-in--p;oAfiion*pio;A$

oi lThe lmplementation Of Lean Six Sigma Method in Production Process ofUnderwear Rider R3338 at PT. XYZJohnson Saragih, Rahmi Maulidya, Diana Jane l-latim

i The Effect Of Demand Behavior Of Automotive Glass Manufacturer On Coai ofi-- PSf-66--]j Good Sold And Logistics Performance Through System Dynamics Approach i i

i iMNurmanHetmi i i

-Zl-f.*-piopo$A-i;F;l-De;is;*usins-F;iory-St;Griitii;---Utill-praffifis : - pS: 72-*:

i Method at PT. Jasa Laksa Utamai Lina Gozali, Silvi Ariyanti, Leowendo Putrajaya

ii;riod;iiils'Ti6"lvlffi6;ile-pefbrndft;Mar;GffinTSt;6;**-----***f-Fs r"7?*-lRivan Syamsurijal Biya, Triwulandari S. Dewayana, Nora Azmi I I-ffi;it-d6-* oi-6ijter- Ti;ffi-G;iffis -Fidafi{-

Reiecf"Usind-6md;ter-Aidird "i-"pS :-6?"*

iEngineering i i

Ahmad Ju)ng Pratama i iil.tti is. Sotvins-AisemtiiVl-rne *6n;ins Pionrem-uilng-ceneiiCAigl;iillim r-ilcnniiiue'i'--pS-el--ii i with Partitioned Chromosome ; ii i with Partitioned Chromosome :

i i Nora Azmi, lman Yahya Azzubaidi, Sumiharni Batuhara iiti16 :Production Scheduting optimisation Using ceneiic Aigoiiriim-fi-pT:""itoift#--*pS:05

DiecastLily Amelia, Aprianto

The d' tnternational Seminar on lndustrial Engineering and Management ydn tStruSHarris Hotel, Batam, lndonesia, February 12th-14th,2013

a&.$.

lM - lndustrial Management

Title and Author

Muhammad Ridwan Andi Purnomo, Luthfina Ariyani

- iM-r1 I

IrM-7 ii Effectiveness and Efficiency Of lnformation (A sharing from The Private

i University in Bandung)i Elizabeth Tiur M. ,

::;i

i 3 i Description and Review Existing Knowldege Management Framework, system, i lM - 13 i

! i Technology and Architecture ; ;

, ; Riya Widayanti i i

lmplementation of Evaluation Model and Supplier Performance ScorecardSelecting SupplierJohan Oscar Ong, Merry Erliani

IM-28

lM-39

rive VtJ in cuitome;t peGpe;iiG - /Richard Andrew, Andi Wijaya {

i lM -47a

i:

i

: lVt -56:

:

:

:

Services lmprovement with Triz and TOPSIS MethodFeliks Prasepfa S. Surbakti, Lenardta-c',.a a.autud^tt, LeItdIu I t

Diiriniris*Tlil;-'eoiiauijiiiiV;--Ket- aefioi#il€t--rnoffiidl.J-fi*p"rrom;;ai-"rnr:ei-_- i

ManagementMarsellinus Bachtiar

Designins M;p Stiategv p erro;m ; nce- -M

ea6uiem eni -*

F u n ctio n ;i*-u nition The Balanced Scorecard (Case Study XYZOrganization Method Based

U niversity)Ahmad Chinun, Mohamad Sulkhan

The dn lnternational Seminar on lndustriat Engineering and Management ydh tSrcUSHarris Hotel, Batam, lndonesia, February 12th-1 4th, 201 3

lrI

Proceeding,1978-774X

6'h lnternational Seminar on lndustrial Engineering and ManagementHarris Hotel, Batam, lndonesla, februZry 12th-14ih,201 3

: 1978-774X

ances, 1 57 ,

'oduction to)d, McGrawr York.4,(2001 ), An.ocation and

Design,anspo rtationI

l.

A.R (200e),Optimizationvk Designournal for776-285.

(1996),lanagement,

).M, (2001 ),nent, 4thed,tion.t of Fasilityrcell Dekker

nd Qiang, C)n Networkt)ne Cloneournal ofneering and103-108

lartment ofof lndustrial

lndonesia,Master of

n ln stitutler researchnization andof the DataLaboratory.

rii.ac.id>

urnomo islndustria I

lndustria I

lndonesia,lre more onrtion, imageaphics. H isrc. id.

THE INFLUENCE OF SUPPLY CHAIN MANAGEMENT TOpRoDUcr euALrw AT pr xyz lN .rmnirn-AndiWijayal , Richard Andrew2

1 Economic Faculty of Tarumanagara University, Jakarta2 Ebonomic Fu"rty J ruiu;;;;;"r" University, JakartaE-mail : andiwijayasemh@Vahoo.com,-richthemaesffi ;;;;,

rhis research o ,n" *,":^":::::,,A"r'trX::;, research about suppry chain anddifferentiation product. The research aims'to fini out whether suppty chain managementinfluences product Quatity at pr. xyz ii lu[ui, This research uses a/i staff fromwarehouse (30 staffd so . thg! tnis reseaii"lriirg popuruii*- oiiu"'*)s co,ect bydistributing questionniires

,to .30_.staffsi. iiir,'tn""aa" anarysed using simpte regressionanalysis, combined with t-t7s! rlri lgtrti "i'tie'"n)potnesis testing supporied the current3,f"illi""i7iPii;'!#:,1: " "igiiiiiit' "ir""i "i',wtv "nun iuiu1;liZnt on product

Key words: Supply Chain Management, product euality

1, INTRODUCTION

Globalization made many countries foughttightly to win the market. This condition isalso happening in rndonesia. However form'st of the company that exist out there, thebusiness strategies had arways beenessential to survive. A good businessstrategy will charye frequentiy to adapt withthe market. The change ifserf, read thecompany to have a new competitiveadvantage for the upcoming marketcompetition.

Changes, in positive ways, are the rnainfactors for fix the quarity. A bad quarityproduct will direct the company to a rosscondition. There are many way to sorve thequality problems and one of them is SupplyChain l[anagement. By practicing a goodSupply Chain Management in the Jompany,a product can be right on time and at theright place to create an optimum level ofinventory.

A smart change can direct a product to havea good quality. stu ndza (2009) said that if acompany did not try to reduce their qualitycosts in the supply chain management, itcould reduce the revenue as weil. when thisall happens, then the company will shrinkinto deep and after that, the company will

face a tougher trouble in the upcomingperiod.

Linear with the previous statement, Batsonand McGough (2006) stated that quarityplanning in suppry chain is importaniespecia ily to provide the customer needs.Moreover, the key in this area is theproduction department. At the end of theirresearch, they agree that supply chainmanagement had significant effect toproduct quality.

The research above strengthen by AgusQA1, who discover the influenced ofSupply Chain to product quality andbusiness performance. Furthermore, theresult in her research indicates thatmanufacturing companies should emphasizegreater attention to the waste eliminationprogram through rean production as well asthe technologicar aspects of s uppry chainManagement and a greater Oegree ofmanagement support for Supply ChainManagement enha ncement initiatives

This research itserf has a goar to find theempirical proofs that bupply ChainManagement is affecting the product euarityat a manufacturing company in rndonesia.Based on ail of thoie things, ,*r*urchers set"The lnfluence of suppry crrain Management

SCM.61 SCM-62 The lrflru,Andi Wijaya

Proceeding, dh lnternational Seminar on tndustriat Engineering and ManagementISSN : 1978-774X

ProceeISSN : 1978-774X

t6 Product Quality at PT XYZ in Jakarta" asthe title for this resea::t

2. THEORETICAL BACKGROUND

There are two variables in this research,S upply Chain Management and productquality. The first variable in this research is

Supply Chain Managementr According toHeizer and Render (2006), Supply ChainManagement is the integration of theactivities that procure materials, transformthem into intermediate goods and finalproducts, and deliver them to customers.Similar with the previous definition, David,Kaminsky and Edith (2003) said that SupplyChain Management is a set of approachesutilized to efficiently integrate suppliers,man ufacturers, w?rehouses and stores, soth at merchand ise is p roduced a nddistributed at the right quantities, to the rightlocations and at the right time. These allutilized in order to minimize system widecosts while satisfying service levelrequirements.

The second and the last variable of thisresearch is product quality. Feigenbaum(1980) stated a product with quality is theproduct that delivered a full customersatisfaction. Hunt (1993) told that productquality is the fitness for use to fulfillcustomers need and satisfaction. Therefore,researchers conclu.je that product quality isthe fitness for use that delivered tocustomers for their needs and satisfaction.

To determine those variables, researcherneeds to prepare the indicators for eachvariable. According to lndrajit andDjokopra nata (2003), Su pply ChainManagement based on the good relationshipwlth the suppliers, the optimal work inoperation facility, the wise selection of themarketing channels and the perfect deliveryto improve the customer satisfaction.

There are plenty different indicator forquality. One of them is the B indicators todetect the product quality that stated byGa rvin in Gasperz (1 997 ) as productperformances, product features, productreliability, product level of conformance,product durability, service ability of the

product, product aesthetics and perceivedquality about the product.

As explained above by Stun dza (2009) and

also Batson and McGough (2006), SupplyChain Management is the independentvariable while product quality is the

d epen de nt va riab le in th is re sea rch.

Therefore, by using both variablesresearchers develop hypothesizes as:Ha: Supply Chain Management has a

significant influenced to product quality,

3. RESEARCH METHOD

Aritonang (2002) stated that population is all

of the elements in research subject. This

research is using the population data

because resea rchers sPread thequestionnaire to collect all of the data by

collecting it to all employees at PT XYZ in

Jakarta that responsible in company supplychains.

Researches, as usual, have the analyzemethod or technique to interpret and make a

conclusion from the variables. The analysisitself is using simple regression method tofind the equation: Y = CI + PX + e. ln the

model, Y refers to dependent variable,0refers to intercept coefficient, B refers to

reg ression coefficient, X refe rs to

independent variable and e refers to errors.

Santoso (2000) stated that before the modelused, there are several tests, which includevalidity test, reliability test, heteroscedasticitytest, normality test and autocorrelation test.The last three test above, are part of classicassumption that taken from a simpleregression equation. After all of these testspassed, the equation will be tested with testof significance (using both t and f test) to

detect the correlation and influences.Finally, researchers also look in to the

determinant coefficients to figure how thisequation explains the product quality.

4. RESULT AND DISCUSSION

The first test is validity and reliability testusing the number of Corrected ltem TotalCorrelation (The question will become valid

when the coefficientalpha (The questionnereliable when the coefficieS PSS computer prograquestions in the questionrrelia ble.

Scatterplot

Dependent Variable: l

" -..1"l

zlI

l,-l o

i o ^8l-00li_n

-2 -1

Regression Standardizr

Figure 1. SPSS Output

According to Andren (zimportant to invheteroscedasticity becarinva lidate the test resultsestimators. However, after 1

proved that there are no I

on the eq uation becauseFigure t had no significant

I

Normal p_p plot of Regression Stan

Dependent Variable: KUI

Observed Cum pr

Figu re 2. SPSS Output of I

Based on Fig ure 2, therethe linear line. When it hathat been used in this mo(distributed,

Table 1 SPSS Out fML uto

Model R R Sgua

1 .385(a) .148

The lnfluence Of Supply Chain ManagementAndi Wijaya SCM-63 SCM-64

Proceeding, dh lnternational Seminar on lndustriat Engineering and ManagementISSN:197B-774X

g_78-774X

perceived

1009) a ndi), Supplylependent

is theresea rch.variables

as.

thas act quality.

rtion is allject. Th is:ion d atard theI data by,T XYZ iN

ny supply

) analyzerd make a3 analysisnethod toe. ln theariable, 0refers to;fers to0 errors.

the model:h include;edasticityation test.of classica simplerese testsJ with testf test) to

nflue n ces.n to thehow this

ty

rbility testtem Totalome valid

_8

when the coefficientalpha (The questionnaire will becomereliable when.the coeffhie.nt > 0.5) using theSPSS computer programs. All of thequestions in the questionnaire are valid andreliable"

Scatterplot

-3-2_1012Regression Standardized predicted Va lue

Figure 1. SPSS Output of Scatterplot

According to Andren QA}T),, it is veryimportant to investigate theheteroscedasticity because it mightinvalidate the test results by the inefficientestimators. However, after the test, the resultproved that there are no heteroscedasticity0n the eq uation because the scatterp lot inFigure t had no significant pattern.

Normal P-P Plot of Regression Standardized Residual

Dependent Variable: KUALITAS

Observed Cum prob

Figure 2. SPSS Output of No.frat p-p ptot

Based on Figure 2,Ihere are ddts aroundthe linear line. When it happens, the datathat been used in this model are normallydistributed.

Gujarati Q0A4) stated that autocorrelationmade the t-test, F-test and Chi-Square testmay not be valid. On the Table 1, it showsthat the Durbin-Watson coefficient is close to2 where a model stated with perfecfly noautocorrelation (1.628). These mean, as aresu lt, there a re no autocorrelation in th ismodel at 95% confidence level. The tablealso shows that Supply Chain Managementcan explain 14.8% of the product quality andthe rest 85.2% explain by the otherva ria b les.

bl 2. SPSS O

All of those fulfillments above lead to theusage of the equation that gathered fromTable 2. The equation itself noted asQUALITY = 51 .312 + 0.393 SCM. tn thatequation, QUALITY refers to product qualitywhile SCM refers to Supply ChainManagement. The table also found out thatthe intercept coefflcient (Sig = 0.000) andregression coefficient (Sig = 0.036) in theequation is significant at gS% confidencelevel.

Table 3. SPSS Out Co

Pratisto (2003) said that Pearson correlationis the relation test in parametric statistic.Table 3 figured that the relation betweenSupply Chain Management and productquality is positive but relatively weak.However, the test of significance shows thatthere are relationships between Supply

1

0

lloL

O-q

€foj0o(,oo-,.XUul

c)

Iable 1 SPSS Output of Model S

Dependent Variable: KUALITAS

-i 0l^JojolAo1nU:"00lp-l oB ooollooI-lo

abte 2. SPSS Output of Coefficients

Model UnstandardizedCoefficients

StandardizedCoefficients

T sigB

std.Error Beta

(Constant)

Manajemenrantai

pasokan

51.312

.393

7.907

.178 .385

6.490

2.204

.000

.036

u U oT uorrelatton

Manajemenrantai pasokan Kualitas

Manajemen Pearsonrantai pasokan Correlation

Sig. (2-tailed)N

Kualitas Pearson'CorrelationSig. (2-tailed)N

1

30

385(-)

036

30

.385(.)

.036

30

1

30

umma

Model R R Square Du rbin-Watson

1 385(a) 148 1.628

SCM-63 SCM-64The lnfluence Of Supply Chain Management

Andi Wijaya

Proceeding, dh lnternational Seminar on tndustrial Engineering and ManagementISSN : 1978-774X

Proceec/SSN : 1978-774X

Chain Management and product quality at95Yo confidence level.

r"."$..n -

Finally, the model empirical proves tostrengthen the previous research fromStun dza (2009) and also Batson andMcGough (2006). However, low coefficientdeterminant in this research mean there areplenty variables out there that alsoinfluences the product quality.'

5. CONCLUSION

This research concludes that empiricallySupply Chain Management as independentvariables are influencing product quality at95Yo confidence level. This result shows thecompany that they must be careful with badsupply chains and must keep the perfectflow in supply chains. As written before,researchers suggest to add anothervariables for strengthen the results toincrease the low determinant coefficient.

6. REFERENCES

(a ) Agus, Arawati. (2011). Supply ChainManagement, Producf Qu alitY andBusiness Performance. lnternationalConference on Sociality and EconomicsDevelopment, IPEDR volume 1 0,

Singapore, 98 - 102.

(b) Andren, Thomas. (2007). Econometrics.Frederiksberg, Ventus Publishing.

(c) Aritonang, Lerbin R. (2002). PeramalanBisnis' Edisi Pertama. Bogor, Ghalialn d o nesia.

(d) Batson, Robert G. and Karen D.

McGough. (2006). Quality Planning forthe Manufacturing Supply Chain. TheQuality Management Journal , January,13th edition, 33 - 42.

(e) Feigenbauffi, Armand V. (1980). TotalQuality Control: Second Edition. NewYork, McGraw-Hill.

(f) Gasperz, Vincent. (1997), ManaiemenKualitas: Penerapan Konsep tentangKualitas dalam Manaiemen Bisnis.Jakarta, Grasindo.

(g) Gujarati, Damodar. (2004). Basic

Econometrics: Fourth Edition. New York,

McGraw-Hill.

(h) Heizer, Jay and Barry Render. (2006),

Operations Management: Eight Edition.New Jersey, Prentice Hall.

(i) Hunt, Daniel V. (1 993). QualitY '

Management for Government: SecondEdition. New York, American Society of

Quality Control (ASQC) Quality Press.

(j) lndrajit, Richardus E. and RichardusDjokopranoto (2003). KonseP

Manajemen Supply Chain. Jakarta,G rasindo.

(k) Pratisto, Arif. (2004). Cara Mudah

Mengafasi Masalah Sfafisfik dan

Rancangan Percobaan dengan SPSS

12. Jakarta, Grasindo.

(l) Santoso, Singgih. (2000). Buku LatihanSPSS Sfafisfik Parametrik. Jakarta,G rasindo.

(m) S himchi-Levi, David, Philip Kaminskyand Edith Shimchi-Levi. (2003).Designing and Managing the SUPPIY

Chain: Second Edition. New York,

McGraw-Hill.

(n) Stun dza, Tom. (2009). Supply Chain

Risk Management: Beware These Sform

Warning Flags. Purchasing Magazine 1't

edition.

AUTHOR BIOGRAPHIES

Andi Wijaya is a lecturer in Department of

Management, Facu lty of Economic,Tarumanagara University, Jakarta. He

received his Master of Management from

Tarumanagara University. He is well known

as the author of Operations Research that

been used in Department of Management,Facu lty of Eco nom ic, Ta ru ma nagara

University, Jakarta. His research interests

are in. the area of Operation Management,Fina nce Management a nd Ma rketing

Management. He is a member of the FMl,

For more details, his email address is

<a nd iwijaya se m m@ yahoo. com >

Richard Andrew is a lecturer in Departmentof Management, FacultY of Economic,Tarumanagara University, Jakarta, He

received his Master of Management from

Tarumanagara UniversityCum Laude grade. Hisare in the area of OperalFina nce Ma nagementManagement. He is a m(For more details, his (

< richth e maestro@ya h oo. cr

The lnfluence Of Supply Chain ManagementAndi Wijaya SCM-65 SCM_66

1g7B_774x Proceeding, dh tnternationar seminar on tndustriar Engineering and Management'1978-774X

0 BasicNew York,

er. (2006).ght Edition.

Qualitynt: Secondt Society of;y Press.

Richa rd usKonsepJa ka rta ,

Mudahdan

SPSS

fuu LatihanJa ka rta ,

Kaminsky(2003).

he Supply{ew York,

oply Chainlese Stormagazine 1tt

,artment ofEconomic,arta. Henent fromvell knownearch thatnage rne nt,rmanaga rat interestsnagement,Marketingf the FMl,ddress is

epartmentEconomic,arta, H enent from

Taruman agara University with a summacum Laude grade. His research interestsare in the area of*operation Management,Finance Management and MlrketingManagement. He is a member of the FMIFor more details, h is email address is<richthe mae stro@ya h oo . co m >

7ra

isfikgan

SCM.65 SCfiI-66The lnfluence Of S

Andi Wijaya

Proceeding, dn tnternailSr"l S"*inar on lndustrial Engirrcering and ManagementISS/V : 1978-774X Harris Hotel, Batam, lndonesia, February 12th-14th, 2013

FIVE V'S IN CUSTOMER'S PERSPECTIVE. r.t"; .

Richard Andrew, Andi Wijaya

Economic Faculty of Tarumanagara University, Jakarta, lndonesiaE-mail : richthemaesko@yahoo.com, andiwiiayasemm@Jahoo.com

" ABSTRACTRight now, most of the companies know that customers are the essential element for them.Somehow, their behaviour tends to unchanged. They still focus on their sellers, even whenall of the sellers can just pertorm in a short periods. One of the key to pertorm in a longperiods is to gef closer to the customers. llVhen customers choose to buy something, thereare many aspects looked anci one of those aspecfs known as Five V's concept that consistof value, viability, volume, variety and virtue. Those differences make the writers describe itin this paper.

Key words: Value, Viability, Volume, Variety, Virtue

1. INTRODUGTION

ln global look, people and organizationshave wants and needs. It is the duty of themarket to fulfil the products and services.However, consumers in all over the worldhave varying diversity. Some of them justonly foliow the early birds, while the othermeasuring them first before bought aproduct. These conditions are alsohappening in lndonesia.

lndonesia is one of the big countries all overthe world. lt had a big population too.According to Biro Pusat Statistik (BPS), ama.lor governmental statistical institution, thenumber of lndonesia's population in 2010 is237,641 ,326 people. ln this number, there isa potential market, which might not developyet, or in the other side, there are so manypotential buyers in this country.

Hamidah stated about three factors thataffect the buyer: Consumer preferential,environmental impact and marketingstrategies. All of these factors identical withthe Five V's paradigm. This paradigmconsists of value, viability, vclume, varietyand virtue. Here are sevei'al explanationsfurthermore:

2. VALUE

Value is not a must thing that related withrnoney. Not every expensive item, especially

in lndonesia, valuable enough to be theconsideration. Here are several elementsthat measured the value in lndonesia:

2.1. Quality:According tc Heizer and Render, quality isthe ability of a product or service to meetcustomer needs. ln lndonesia nowadays,there are many standardization have beenused such as SNl, lSO, Halal and so on.

When quality below the requirements, it willburden the cycle of that products. Forexample, McDonald's and the other fast foodrestaurants are franchise from foreigncountries. To gather more customers,McDonald's must get the Halal certificationbecause more than 50% of its potentialbuyers in lndonesla are Moslem.

2.2. Uniqueness:Everyone tend to be unique and differentwith the others. That's why limited editionitems will be sold out fast in all around theworld. Unique can be categorized asdifferent and have a strong character aroundit. For example, McDonald's in lndonesiahave PaNas (An acronym of Paket Nasi) asrice special packages. Rice, as we know, isthe main element in lndonesian food. This isthe McDonald's uniqueness in lndonesiabecause they know they cannot survivewithout rice menus set.

tM-66Five V's in Customerb Persp ective

Richard Andrew

Proceeding, d' lnternational Seminar on lnclustrial Engineering and Management

2.3. Technical specification:This is the main va"lue.When we want to buyan electronic product in lndonesia. Forexample, in Water Treatment plantlndustries we know that several companieswould like to use national piping set such asWavin pipes, while the other tend to useimport product. However, we must noticethat some of these products have miilimetersas the measurement units while the othershave inches as their measurement units.

2.4. Performance:Some of the products especially servicesproduct need performance as thelr mainvalue. For example, boy bands and girlbands are boorning in lndonesia wh-enKorean drama series explodes aror.rnd Asiancountries especially in lndonesian cinemamovies problematic around the early 2011.Boy bands and girl bands give themattraction which some of them canies inforelgn style of dancing such as Rhythm andBlues and so on.

2.s. Price / fee:Price or fee is the most used value inlndonesia. Usually, every person will try toget the cheapest price / fee. For example,people tend to go to lnternational Tradecenter than to supermall in Jakarta becausethey think that in ITC the price / fee will becheaper than the Supermall for the sameitems.

2.6. lntermediaries:lntermediaries or some known as the thirdparties are the great value especially whenwe want to open in a new market or reachingthe prospective market in the rural areas oreven protecting from the bigger businessrisks. For example, retailer such asindomaret needed to increase the probabilityof beverages sold at the market vice versa.

2.7. Single source:ln lndonesia, not rnany companies using thesingle sourcing. They often think aboui theinefficiency of the cost and the lead times.On the other hand, few multinationalcompanies think that single source is still avalue for them. For example, several fivestar hotels across lndonesia still buy fromPT. DR lndonesia to get an advantages of

purchasing Dilmah Tea in a varicuscustomized package.

2.8. Supplierreputation:Reputation is not a value that can easily getbut it always been gone easily. you will diopout from the competition if you ruined up withyour reputation. Many companies think that itwill be wiser to choose a good supplier thana bad reputation supplier. For example, agas station at North Jakarta drops their salesgrowth drastically after they cheated theircustomers while some of them notice aboutthat.

2.9. Difficulty in sourcing:Sometimes to find a new source in a newplace is so difficult. We must know severalfactors such as language, communicationsystem and other important factors. Forexample, there are many seafoodrestaurants in Muara Angke and MuaraKarang because their locations near thefishing spot in Jakarta so they can buy easllytheir fishes from the anglers.

2.10. Prestige:Respects and admiration is a valuable gift.That !s why prestige is commonly useC to awell-known product in lndonesia. Forexample, the prosper society usually buy anoriginal product that sold in boutique likeLouis ,Vitton, Aigner and Gucci while thecommoll community usually buy the cheaperone at Factory Outlet.

3. VIABILIry

According to The Free Dictionary by Fartex,Viability is capability of success or continuingeffectiveness. Here are several erementsthat measured the variability in lndonesia :

3.1. Branding:People like brands. They feel comfortablebuying a brand named product in lndonesiaespecially when they are in the middle-upclasses. For example, in lndonesla, Milo is afood and beverages brand that related to achocolate-based product such as chocolatemilk and chocolate bar.

/SSN : 1978-774X /SSN : 1978-774X

3.2. Ghoice:Each person had diffrwill reflect in their cl"

when there are sc

lndonesia which h

cornmunity, options it

lndomie after succesras chicken cuffy, solthey extent their flavnoodle and satay frier

3.3. Repetition:lf we like something,thing again repeatedlis a major element I

lndonesia, repetitiorgoodness of its goodrare many customerHakata lkkousha asdeliciousness of its m

s.4. Reliability:Reliability is a mea{consistency of a

symptoms in anotherreliable system willmarket positioning. FMessenger is a reliproduct. That is theis a very fast movinlindones!a especiallyplaces and theyupgrading their Operprotect their loyal cusl

3.5. Functionality:Multifunction productrcompany especially i

It is also happen in lr

Mobile phone lndustregularly maintainingdevelopment team toits product to survivtphone's market.

3.6. Client access:Client have a right tr

they confused by thtaccess is surely heltheir products. Forrnobile phone provide2417 customer sercustomers handlinrproblems.

Five V's in Customer's PerspectiveRichard Andrew tM-67 IM-68

Proceeding, dh International Seminar on tndustrial Engineering and ManagementISSN : 11978-774X

3.2. Ghoice:Each person had. different'tastes. That tastewill reflect in their choices. Choice appearswhen there are so many options. lnlndonesia which have wide diversifiedcornmunity, options is crucial. For example,lndomie after success in a major flavor suchas chicken curry, sotomie and fried noodle,they extent their flavor such as spicy friednoodle and satay fried noodle.

3.3. Repetition:lf we like something, we will go back to thatthing again repeatedly.That is why repetitionis a major element to measure viability. lnlndonesia, repetition also reflects thegoodness of its goodwill. For example, thereare many customer come back to eat atHakata lkkousha as they know about thedeliciousness of its menu.

3.4. Reliability:Reliability is a measurement to show theconsistency of a tool to analyze thesymptorns in another event. ln lndonesia, areliable system will always get the goodmarket positioning. For exantple, BlackberryMessenger is a reliable and user-friendlyproduct. That is the reason why Blackberryis a very fast moving consumer product inlndones!a especially at Jakarta's marketplaces and they are still running byupgrading their Operating System (OS) toprotect their loyal customers too.

3.5. Functionality:Multifunction products are dream for everycompany especially in electronic industries.It is also happen in lndonesia. For example,Mobile phone lndustries such as Nokia isregularly maintaining their research anddevelopment team to build a new feature onits product to survive in lndonesian mobilephone's market.

3.6. Client access:Client have a right to get an access whenthey confused by the products. An easieraccess is surely helping them to maintaintheir products. For example: Axis, as amobile phone provider in lndonesia, builds a2417 customer services to help theircustomers handling their Axls-linkedproblems.

3.7. Service:Somehow, a gcod product, not yet a goodproduct if do not followed by a good service.ln lndonesia, services are not a major factorfor a product but it still affects the result ofthe consumer behavior. For example,Carrefour outlets are always coordinate withtheir supplier so that they can manage theirsales representative such as SPG and SPBto fulfill their standards and recover itspotentialities.

3.8. Shelf life:For producers and retail buyers of perishableproducts, one of the biggest challenges isthe timely identification of spoilage, and itscauses. There are many points in theshipping and stcrage process wheredamage can occur, and it is often difficult toidentify in whose custody specific damageoccurred. For example, Coffesso, as one ofthe major prime brand for coffee in

lndonesia, r.rsualiy been checked periodicallyby their merchandiser so that they Gan

manage the shelf life of its product in retailmarket.

3.9. Result/output:Some people said that no matter what is theprocess, the most important think is theresult. lt's quite true somehow because forsome products, process is not too necessaryin lndonesia. For example, Tarumanagara'saccounting degree is still the hotiestprospect in big four auditing connpanybecause of their skills and competency in

auditing and accounting especially the top10 of the graduates students per year.

3.10. Affordable:The way to get the high margin in a smartway is by setting affordable prices.Affordability can detect the viability. lnlndonesia, many companies work out v.rith

this affordable stuff to increase their profitand to raise their viability. For example,Kentucky Fried Chicken set an Attack menulist at 15.00 - 17.00 to eliminate their excessstock of wings and to gather the lowercustomer sector. However, by using a smartway to promote, this menu also provides anaffordable product in common communitymind.

IM-68Five V's in Customers Perspective

Richard Andrew

Proceeding, dn lnternational Seminar on lndustrial Engineerirrg and ManagementI |SSN:1978_774X

Pr/SSN : 1978-774X

3.11. Distance I location:Some prodrrcts just.sreve their viability bysetting their market at the right lccation andposition. ln lndonesia, wrong location meanswrong positioning and less viability. Forexample, Chinese food restaurants arenever a good option in South East region ofJakarta because that region had less pork,seater than the people in North West regionof Jakarta even if that Chinese foodrestaurant do not sell any pork related menu.

4. VOLUME

Never assuming this volume is just the sameas the quantity. ln S V's, quantity is just anelement for measuring the volume. Here areseveral other elements for measuring thevolume (include the quantity):

4.1. Quantity:This is the most common and weil-knownelement for measuring the volume. lnlndonesia, many prcducts especially fastmoving consumer goods need a highnumber of items. For example, Simpati asone of the large mobile phone provider's inlndonesia distributes a large number ofSimpati's card and transmitter aroundlndonesia to survive in mobile phoneprovider's industry while the other providerscrushing their margin and increasing theirpromoting sectors.

4.2. Replication:ln lndonesia, almost everything is replicabte.Sometimes, the replication makes theoriginal products get brand awareness too.For example, there are so many replicationsof a Disney character product in lndonesiaand that is why Disney's character is sofamous here even when the movie post-response ended here. Sometimes, thisreplication is not such an original products.This is not a big deal for them because somepeople still enjoying with the other originatDisney products.

4.3. Divisibility:A divisible product can be used any time andplace we want to use it. ln tndonesia, aproduct with a large divisibility provides abetter volume. For example, a digital camerais been used recently by people, especially

young people who are very dynamic,because it has more divisibility than the oneshot camera which is popular in 90's. Adigital camera can upload and delete thephotos easily.

4.4. Gonsistency:It is natural to choose a consistent productespecially when the consistency in theproduct itself is more important than theother factors. The wrong move of a decisionmaker could trash the market. For example,in lndonesia, most of the fcod andbeverages has been chosen because of itsdeliciousness consistency. That is why thejunk food restaurants still crowcled evenwhen people know that it is unhealthy.

4.5. Spanes support:When your products have multiple spareparts then a spare support cannot beavoidable. ln lndonesia, the number ofvolunre is also can be measured by thespares support. For example, Toyota hasmany spares support and this is the reasonbehind the buyer when also considering thespares support before they buy a car.

4.6. Pack size:Somehow, pack size is one of the options ofmaking a psychological effect for proclucts.ln lndonesia, there are so many big packproducts with a small amount of content.For example: Snack for kids such as 'faroprovide a big pack for its product so the kidscan see it and buy it even when the contentis not as big as its pack.

4.7. Availability:The other crucial factor for measuringvolume is availability. An available productcan shortened the buyer waiting time whichas we know that there are many potentialbuyer hate the waiting time. For exarnple,canned food and canned beverages long runalso affected by the availability of its productin the common retail place such ashypermarkets, mini markets, and traditionalmarketplaces.

4.8. Buy in advance:People always love to be the first. Severalof that people is also busy with their life foreven to buy or use a product. Buy inadvance is a good term to increase the

volume of the producnowadays, we do nc

line to buy our ticlstarted. Now, they I

that we can buy ouroffice without worryinnot get the ticket aftr

buy it.

4.9. Bespoke:According to Merriarcustorn made. Ctmostly wanted inpeople to provideFor example, customa football's jersey, \,!

fans, sometimes wan

4.10. Split parts:Split part is divemeasurement. A prosplit is been looked texample, automotiveprovide a split part tc

g?."*,erior and/or int

5. VARIETY

Variety gives optirprospective custonclroices. This varieelements:

5.1. Seasonality:Some products haveThis high point givchanges for facing tlFor example, Grantthe biggest book stor

a seasonal discosometirnes, evenpnoduct, such as unifof the year before tl

school.

5.2. Range:Range in variety isvertical extension orwide range providesthe product and itsexample, Burgerconsistently wideninbrands by varying a

Five V's in Customer's PerspectiveRichard Andrew tM-70tM-69

Proceeding, dh lnternational Seminar on lndustria! Engineering and ManagementISSN : 1978-774X

volume of the products. For example, in XXInowadays, we do not have {d.,queue in theline to buy our tickets before the moviestarted. Now, they have M-Tix program sothat we can buy our ticket from our home oroffice without worrying the sunk cost if we donot get the ticket after we go to the mall tobuy it.

4.9. Bespoke:According to Merriam-Webster, bespoke iscustorn made. Custom made productsmostly wanted in lndonesia by severalpeople to provide their self-actualization.For example, customers of a football team ofa football's jersey, which most of them arefan1, sometimes want to put their name on it.

4.10. Split parts:Split part is diversification in volumemeasurement. A product which part can besplit is been looked by some customer. Forexample, automotive store in Jakarta mostlyprovide a split part to increasing the style ofthe exterior and/or interior of their custonrer'scar.

5. VARIETY

Variety gives options to customer orprospective customer to extend theirchoices. This variety measured by theseelements:

5.1. Seasonality:Some products have a seasonal high point.This high point gives them a variety ofchanges for facing this seasonal high point.For example, Gramedia, known as one ofthe biggest book store in lndonesia, providea seasonal discount for books andsometi!'nes, even provide some otherpnoduct, such as uniforms around the middleof the year before these kid back again toschool.

5.2. Range:Range in variety is so wide, lt can be avertical extension or horizontal extension. Awide range provides a competitive variety forthe product and its sustainability too. Forexample, Burger Kings in lndonesiaconsistently widening their range of itsbrands by varying a new variation such as

new combination packages, new fast foodmenus and stores.

5.3. Abnormality:Abnormality is not always a bad thing. Oneof the elements for measuring variety is thisindicator. ln lndonesia, especially in bigcities, abnormality is a part of a dynamicliving style. For example, entertainment suchas live music and dances are provides inprime time around 18.00-21.00 based on theEastern culture, However, in big cities, likeJakarta, this kind of entertainment mostlyprovides after that time to gather thecustomers and prospective customers"

5.4. Order status:Variety can also be looked by the orderstatus. ln lndonesia, which several popularproducts are rare in the market, order statusis very important. The order statussometimes protects the customer's privacyor self-actualizatlon. Fcr example, BCA, asone of the most oopular banks in lndonesia,provides BCA Priority for their maincustomers. This BCA Priority line gives itscustomers a special tellers and customerservice representatives.

5.5. Literature support:ln the modern day, most of the people inlndonesia especially in big cities can writeand read sornething. From that statement,we know that a literature support for aproduct is important. By this support,consumer will learn and know the productfaster. For example, Motorola, as one of thebig player in mobile phone industry, alwaysprovide a guidelines book for Motorola'smobile phone user in several languages.

5.6. Packaging:Once upon a tlrne, an expeft will say "Don'tjudge the book by its cover." For a long time,It's works. ln lndonesia, as well as in severalother countries, people just only have a littletime to spare, so packaging can be a goodto be the eye catcher. For example, Clear,as one of the popular shampoo in lndonesia,changing the package of its item periodicallyto increasing their market shares.

5.7. Replacement:Replacement is about the process ofreplacing something or someone. ln some

IM-70Five V's in Customers Perspective

Richard Andrew

Froceeding, dn lnternational Seminar on lndustriat Engineering and Management

industries at lndonesia, replacement is acrucial elepent. A*W[o[rg replacement cansignificantly cause a major problem for theproduct or the company. For example, aHuman Resources outsourcing companyalways prepare for the replacement of aitemployees to prevent the allowances inHuman Resources sectors.

i

5.8. Access to range:Access to range is an important stuff intransportation's related business. By adynamic access to range, a cornpanyprovides varying advantage. For example,PHD sets up their location in strategist areaand helps their self with a fast vehicle andskilled driver so they can handle theprospective customers in range.

5.9. lnspection by customer:Customers are kings and kings usually knowwhat are best for themselves. ln lndonesia,inspection, formally or informally, be used asa tool to improve the var.iety. For example,Coca Cola, one of the best beveragescompany, is organizing the factory openhouses. lt held tc attract their prospectivecustomer to use their products by inspectingit directly.

5.10. Demonstration:The last element for measuring the variety isby using demonstration. ln lndonesia, manycompanies use this demonstration to showsome advantages of its product. Forexample, Ford Fiesta, arranging the FordFiesta goes to campus event, so they candemonstrate their advantages in front theother car's drivers in university.

6. VIRTUE

According to Dyck and Kleysen, virtue, as atraditional view consist of practicar wisdom,justice, courage and self-control. lnconsumer behaviour, virtue is very close withthat statement by using these severalelements:

6.1. Service:service is all about completing the customersatisfaction. A good service wiil indicate thelevel of the products and on the others; abad service will close the door to a repetitive

buying action" For example, Starbucks, oneof the famous coffee shops in lndonesia, areprotecting their customer by a high standardof service from its surrounding andemployees. All of that is protecting theircustomer's comfort zones.

6.2, Support:Everybody likes to get support from theother. The supportive company will get moreprospect able customer than the one who isunsupportive. For example, Waterboom, asone of the largest water recreation places inJakarta, support their customer by providingmaps, officers, equipments and oilrer usefulobjects. All expected to finish by minimizingthe prcbability of a clueless customer in theareas.

6.3. Staff proficiency:A good staff can manage all the cornptaints,give a full package of information ancJ carry itall with a friendly attitude. That all are theproficiency that worldwide accepted. Forexample, Aqua Danone, the number onepackaged water in lndonesia, provide ahotline number for customer that called AquaMenyapa. lt consists of skilled and well-trained operators to answer their custonnercomplaints.

6.4. Courtesy:The courtesy is a basic way for improvingthe quality of the company or procluct. This iialso an important element for measuringvirtue. For example, Daihatsu Astra, updatetheir customer, by calling them periodicallyto maintaining the quality of its product. Theysent this notification both in the customer'semail and on calls to their customer's privatephone.

6.5. Product knowledge:Every company's provide their first line with,at least, simple product knowledge. Thegood product knowledge sometimes reflectsto the capability of the training anddevelopment program at the restaurants. Forexample, a waiter in Raja Konro, a well-known Makassar's food restaurant, mustknow all the menus and its style to anunfamiliar new customer. Same as that, atutor for a private teaching session mustunderctand various way to answer the

/SS/V : 1978-774X /SSN : 1978-774X

question that giventeacher in school or ut

6.6. Technical infortSeveral products i

understand widely,products are very u

even the simplesttechnical informationin middle-low consunexample, Grundfos,brand, aided their ftechnical informaticGrundfos also sent tl"

customer needed it.

6.7. Operational su;Operational is crL

organization. The s

facilities in this ser

consideration of theFor example, Bun C

porridge restaurants i

hours and 7 day incustorner need.

6.8- Friendliness:Friendly is an easysomething thatunderstandable. Lev

trait is so high. For egives their customefriendliness from theirCEO.

6.9. Handling comlThe hardest partcomplaints. Sometimvery unreasonable.complaint, companyrnanage it. lt will n

session with simuexperimental case. I

one of the mobilrlndonesia, is hanr

complaint by phoneofficers are well-traint

6.10. Restitution:According to Scfconsumer has stageThis process starpreference, judgemera regular customerrejection, the compar

Five V's in Customer's perspec{UiRichard Andrew lM-71 tM-72

Proceeding,/SSN : 7978-774X

d' lnternationa! Seminar on lndustrial Engineering and Management

question that given from the customer'steacher in school or universitY..

6.6. Technical information:Several products are too difficult tounderstand widely, but some of thoseproducts are very user friendly. Althougheven the simplest one, in lndonesia,technical information still needed especiallyin middle-low consumers segmentation. Forexample, Grundfos, a well-known pumpbrand, aided their product with a full oftechnical information and guidelines.Grundfos also sent their officers in case thecustomer needed it.

6.7. Operational suPPort:Operational is crucial factor for an

organization. The supporting officer andfacilities in this sector will be a hugeconsideration of the organization life cycle.For example, Bun Ong, one of the largeporridge restaurants in Jakarta, operates 24hours and 7 day in a week to fulfill theircustomer need.

6.8- Friendliness:Friendly is an easy trait to say but it'ssomething that so hard to beunderstandable. Level of tolerance for thistrait is so high. For example, Bank Ekonomigives their customer a full service withfriendliness from their security officer to theirCEO.

6.9. HandlingcomPlaints:The hardest part in virtue is handlingcomplaints. Sometimes, the complaints arevery unreasonable. For this kind ofcomplaint, company must be smart tornanage it. lt will need a perfect trainingsession with simulation and a directexperimental case. For exarnple, Esia, asone of the mobile Phone Provider in

lndonesia, is handling their customercomplaint by phone and walk-in. All of theofficers are well-trained person.

6.10. Restitution:According to Schiffman and Kanuk,consumer has stages of adoption process.This process starts from awareness,preference, judgement, trial and ended witha regular customer/rejection. For everyr"ejection, the company must do a favor that

been liked by the customer. For example, foreach imperfect food or beverages, A&Wrestaurant, by the manager's approval,provide an exchange as restitution.

7. CONCLUSION

This Five V's give many useful considerationto the sourcing process undertaken by thebuyer as a personal. There are plenty of theFive V's applications in the business worldthat might be explored furthermore by usingsome forecasting techniques and models'Occasionally, however market segmentationin this forecasting techniques or models will

attempt to prevent generalization of theparadigm.

8. REFERENCES

(a) Biro Pusat Statistlk (2010), "SensusKependudukan 2010", @.

(b) Bennet, Anthony R (1997), "The Five Vsa buyer's perpective of the marketing

mix", MCB UniversitY Press.(c) Hamidah (2004), "Perilaku Konsumen

dan Tindakan Pemasaran", JurnalManajemen USU.

(d) Heizer, Jay and Barry Render (2C06),"Operations Management: 8'n Edition".Prentice Hall.

(e) The free dictionary by Fartex website,h-tt p. /A,rut$y. thef re e d&J i o n a ry*p gm/v i a b i I IIy

(0 Merriam-Websterunnnru.meirieun:

webslte,

webster.com/dictionary/besp-oke, Anencyclopedia Britannica company.

(g) Dyck, Bruno and Rob Kleysen (2001),"Aristotle's Virtue and ManagementThought: an Empirical Exploration of anlntegrative PedagogY", Business EthicsQuarterly.

(h) Schiffman, L.eon G. and Leslie LazarKanuk (2008), "Perilaku Konsumen: Edisike 7", Prentice Hall.

AUTHOR BIOGRAPhIIES

Richard Andrew is a lecturer in Departmentof Management, FacultY of Economic,Tarumanagara University, Jakarta, Hereceived his Master of Management from

tM-72

Five V's in Customer's PersP ectiveRichard Andrew

-Proceeding, dn lnternational Seminar on lndustrial Ertgineering and Management

,

Prc

/SSN : 1978-774X/SSru : 1978-774X

Tanlmanagara University. His researchinterests are in the.'" area of OperationManagement, Finance Management andMarketing Management. He is a member ofthe FMl. For more details, his email addressis <richthemaestro@ya hoo.com>

Andi Wijaya is a lecturer in Department ofManagement, Faculty of Economic,Tarumanagara University, Jakarta. Hereceived his Master of Management fromTarumanagara University. He is well knownas the author of Operations Research thatbeen used in Department of Management,Faculty of Economic, TarumanagaraUniversity, Jakarta. His research interestsare in the area of Cperation Management,Finance Management and MarketingManagement. He is a member of the FMl.For more details, his email address is<and iwijayasern m @ya h oo. com>

SERVICES

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