The Implementation of Analytical Hierarchy Process to Choose the Best Solution to Increase Mould Maker Profit

: Mould Maker is a company that buy and sell machine for their main business activity. Mould maker have long time machine waiting time to be sold and have low profit margin. The longer the time taken by a machine to be sold, the higher the maintenance cost for the machine. Besides, Mould Maker always purchase machines for their stock in every offer that comes to Mould Maker, so they have overstocked machine in their workshop. With many and vary type of machines that they have, Mould Maker can utilize the machines to increase their profit margin. Mould Maker have good business environment from the external factor analysis. As for internal analysis, Mould Maker still have room for improvement, some of them are the number of their stock and the number for decision maker. Caused by their low profit margin, Mould Maker cannot hire high value employee to be one of the decision makers. The problem that Mould Maker face is how to improve their profit by utilizing the machines that they have. Further analysis needed to solve this problem. The SWOT analysis used to find some strategies and need to be fit with the problem faced by Mould maker. The strategies that able to be implemented are rent their machine, accepting manufacture order, improving stock policy, boost marketing strategy, and purchasing car to help Mould Maker to sell their product. From the strategy alternatives, AHP method is used to choose the best strategy. With AHP method, the best solution can be chosen by considering the value from each consideration criteria. For this research, the best solution proposed by AHP method is to accept manufacture order.


INTRODUCTION
Manufacture industry is an industry that produce semi-finished good to be sell to other industry.In Indonesia, manufacturing Industry is the biggest GDP contributor in Indonesia with IDR 805.62 trillion, or 19.29% from total national GDP at the second quarter in 2021 (Proceedings-Student Conference, 2022).According to Asian Development Bank, manufacturing industry growth in Indonesia is still left behind from other country such as Singapore.This caused by there are still many manufactures industry that not implement technology in their production.In manufacturing Industry, machine is one of the most important investment to the industry to maintain their business.Machine is the main component to process raw material into product that company sell and give them profit.The problem for investing in machine is the price for a machine is not cheap.It becomes problem when a company needs to improve their production or replacing old and broken machine.It will need an amount of cost when they need to procure new machine to fulfill their production gap between the demand and their supply.With this problem, Mould Maker comes as a solution for one-stop second-hand manufacturing Industry.Mould Maker is one of the players in second-hand manufacture industry.Founded in 2000 and established in 2006 made Mould Maker is one of the oldest players in Bandung in the industry.Mould Maker had focused on five main business activities; buy, sell, trade, repair, and rent.In 2021, Mould Maker revenue is considerably big.Mould Maker revenue is IDR.1,368,350,000.00.when the revenue reduced by its capital and operating cost, the profit is only IDR. 200,051,142.86.Another problem faced by Mould Maker is that Mould Maker have no profit it several months, which means their revenue is lower than the operating cost.The detail for Mould Maker revenue and operating cost can be seen in Figure 1.In this research, the root cause analysis will be using why-tree analysis.From the why tree analysis, there will be alternative solutions from the why tree analysis.AHP will be used to select the best solution from the alternative solution given from the root cause analysis.
From the analysis result, the chosen alternative solution is develop new market for manufacture service with value 36%.The others alternatives can be implemented after developing new market for manufacture service.

LITERATURE REVIEW
The AHP method allows complex problems to be decomposed into sets of straightforward judgements and provides a documented rational for choosing a particular options.The use of pairwise comparison means that the decision maker can focus, in turn, on each small part of the problem.The AHP requires more comparison to be made by the decision-maker than are needed to establish a set of weights.Saaty in the "Decision Making with the Analytic Hierarchy Process" (Int.J. Services Sciences, Vol.1, No.1, 2008) says that to decide in an organized way to generate priorities, the decision shall be structured into the following steps: 1.
Define the problem and determine the kind of knowledge sought 2.
Structure the decision hierarchy from the top with goal of the decision, then the objectives from a board perspective, through intermediate levels 3.
Use the priorities obtained from the comparisons to weigh the priorities in the level immediately below.Do this for every criteria and sub-criteria, then add its weighted values and obtain the global priority.Continue the process until weighting and adding until the absolute priorities of the alternatives in the bottom-most level are obtained.5.
Check the consistency.AHP calculates a consistency ratio (CR) comparing the consistency index (CI) of the matrix in the question divided by the consistency index of a random-like matrix (RI).The value of RI shown in the Table 1. the n is the number of items compared and the RI is the value.The value for CR gained by dividing CI and RI.

RESULTS AND DISCUSSION
The problem that faced by Mould Maker will be analysed in the why-tree diagram.The diagram will analyse the two main factor that causing Mould Maker gain low profit.The why tree analysis for Mould Maker root cause analysis will be shown in the Figure 2.

Figure 2. Mould Maker Root Cause Analysis
From the diagram, seen that Mould Maker root problem is overstocking machine and owner cannot affort high value employee.Mould Maker needs to increase their revenue to afford high value employee by utilizing the machines that Mould Maker have.
From the analysis, the root cause for Mould Maker prroblem is machine overstocks and owner cannot hire high value employee.Mould Maker needs to increase their profit by utilizing their machine in the workshop.While the root cause determined, the external and internal analysis will be conducted.The external analysis will use PESTLE analysis while the internal analysis will use resources and capabilities analysis.The PESTLE analysis will be shown in Table 2. From Table 2., seen that Manufacture Industry have a good business environtment.Mould Maker can use this opportunities to sell their machine more and increase their profit, while the profit will be use for Mould Maker needs to expand their business.

Source: Author
The next analysis will be internal analysis.The internal analysisi will e conducted by resources analysis and capabilities analysis.The resources analysis will be shown in Table 3.The resources analysis will analyse Mould Maker strength and weakness.With this analysis, Mould Maker can strengthen their strength and improve their weakness.The other factors analysed for internal analysis is the capabilities analysis.The capabilities analysis for Mould Maker will be shown in Table 4. below.

Source: Author
After analysing the external factors and internal factors, Mould Maker can determine their next strategy using SWOT Analysis.With this analysis, by combining Mould Maker strength, weakness, opportuinites, and threats, several strategies will be shown that Mould Maker can use to expand their business.The SWOT Matrix for Mould Maker will be shown in Table 5.From the combination of the root cause analysis and SWOT analysis, there will be five alternative solutions.The alternative solutions are improving stock policy, develop new market for manufacturing services, rent the machine that Mould Maker have, boost marketing plan, and purchasing car to help operational avtivities.The alternative solution needs to connect with each criteria that help Mould Maker gain more profit for them to expand their business.The connection between alternative solution and criteria will be shown in the hierarchy tree for proposed solution in Figure 3.   From the result, seen that the best solution to improve Mould Maker profit is to search manufacture order.With this solution, Mould Maker will not need to add other investment in machine.Mould Maker also can maintain their machine periodically and they not need to improve the employee ability in using machine because the employee and the owner both can operate the machine.

Figure 1 .
Figure 1.Mould Maker Revenue vs Operating Cost

Figure 3 .
Figure 3. Hierarchy Tree for Alternative Solutions

Table 3 .
Mould Maker Resources Analysis ISSN: