Abstract :

In early 2021 PTPN VIII began producing a new product based on consumer demand, namely oolong tea, within an estimated contract worth IDR 6.000.000.000 of 150 tons. Thus, the firm should be prepared related to the garden and the factory to produce the oolong tea. This research uses a quantitative descriptive method by analyzing the capacity of the garden to provide the raw material for oolong tea; in the process of oolong tea production, the garden can provide 2.5 tons per day, exceeding the calculation of 1.9 tons. However, the machine used for the production process is inadequate. The machine’s capacity is only available to produce 106.78 tons per year, which is below consumer demand. It requires the firm to add three rotary dryer machines. Adding three machines meant oolong tea production reached 150 tons only in 13 hours and 25 minutes. Adding these machines also requires the firm to invest as much as IDR 540,000,000; by this investment value of the machine, the payback period will return in 4,4 years with the machine durability more than 25 years.

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Keywords :

Bottleneck, Capacity, Capacity Planning, Payback Period., Production

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