EXECUTIVE SUMMARY

2.2 Operational Cost

Operational cost is a cost that needed for a plant to be operated in every year. Operational
cost include, raw material cost, packaging cost, utilities cost, salary cost, maintenance cost, and
patent cost. Raw material cost depends on quantity of raw material we ordered and supplier
location. Every time we ordered raw materials there will be distribution cost of it. So, consider to
choose supplier thar located near our plant if possible. Packaging cost consider amount of
package needed every cycle of production, and also amount of secondary packaging (box)
needed for distribution purpose. Utilities is everything that supported production process like,
electricity, water, etc. Because we are UKM Industry our utilities was supplied by government
like PLN and PDAM that cost based on their rules. Salary cost must be consider the regional
minimum wage, in depok. Every single postion has different wage that depends on their job
desk. Maintenance cost needed to maintain our production process. Every cycle of production we
used same equipments, so those equipments need a maintenance to keep its performance. Patent
cost is needed to protect our product from plagiarism. Every new product must pay for patent
and must be renewed every year.

Conclusion

Operational cost consist of material cost, packaging cost, utilities cost, salary cost,
maintenance cost, and patent cost.
Supplier location and amount ordered determine distribution cost.
Utilites cost include electricity cost, water cost, and telecommunication cost.
Regional minimum wage and jobdesk determine the salary cost.
Maintenance cost allocated for building, and equipments.
Every new product need patent as a protection from plagiarism.
Patent cost must be renewed every year.