ABSTRACT
Indonesian steel manufacturing sector has proven able to survive and even thrive during the COVID-19 pandemic. Its post-pandemic potential is also very large, considering that Indonesia's steel consumption per capita is the lowest in ASEAN. However, the highly volatile business situation and competition mean that it needs to reduce process costs, reduce processing time, and increase productivity;all of which could potentially be achieved by digital transformation. However, there is very limited research on digital transformation in Indonesian steel manufacturing. This research aims to map the readiness, potential benefit, and barriers to digital transformation in Indonesian steel manufacturing using MICMAC matrix method, with validation and verification carried out directly by experts involved in decision-making process on several steel manufacturing entities in Indonesia. Result of this study shown that to prepare digital transformation readiness, Indonesian steel manufacturing should emphasize its effort on preparing strategy and leadership, investment for industry 4.0, innovation policy, competency development, connectivity, and cyber security. The main benefits that should be pursued first are the capability of monitoring in real time and assisting in communication and data flow;whereas the main barrier that should be taken care of first is preparing its organizational change. © 2022 ACM.
ABSTRACT
The vehicle manufacturing industry is one of the automotive industries in Indonesia that produces four-wheeled vehicles with the main product being cars. The vehicle manufacturing industry has several sub-companies including Vehicle Manufacturers (VM) and Vehicle Sales (VS). The VM industry is experiencing problems with rising transportation operating costs. The same thing is also experienced by the corporate company such as VS. In 2020, transportation operational costs incurred by the company exceed the target, which can cause losses for the company. The purpose of this study is to find the cause of the problem and improve the transportation operational costs that continue to increase so that the company gets a reduction in transportation costs. The implementation of the improvement concept is carried out using the Dynamo++ stages starting from pre-study until the implementation of improvements. Through improvements to the milk-run system, it was found that vehicle manufacturers and vehicle sales benefited from a reduction in transportation costs of 77,861 USD or a decrease of 79.3%. © 2022 by the authors.