System Concept

winda.nurcahyo@uii.ac.id

Writing circa 500 B.C., Mensius Declared:

" Whoever persues a business in this world must have a

system. A business which has attained success without a
system does not exist. From ministers and generals
down to the hundreds of craftsmen, everyone of them
has a system. The craftsmen employ the rule to make a
square and the compass to make a circle. All of them,
both skilled and unskilled, use this system. The skilled
may at times accomplish a circle and a square by their
own dexterity. But with a system, even the unskilled may
achieve the same result, though dexterity they have
none. Hence, every craftsmen possesses a system as
model. Now, if we govern the empire, or a large state,
without a system as a model, are we not even less
intelligent than a common craftsmen?"

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 The Role of Industrial Engineering?

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Industrial Engineering(2)
Knowledge & Ability Object
skill
Design Integrated systems:
Develop -people
-Mathematics
Implement -material
-Physics
Improve -Information
-Soc. science Install -Equipment
-Principles &
-Energy
methods of
eng. analysis/ -Specify
design -Predict Output (the results):
-Evaluation Efficient & effective
(productive) systems
 System and Productivity
INPUT PROCESS OUTPUT

FEEDBACK

Produc vity ↑ jika :

• Output ↑ dan input tetap
• Output tetap dan input ↓
• What else?

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Productivity of an Integrated System

INPUT : PROCESS Increased
• Man • Transformation
• Equipment process
• Material (Physically/Non)
• Information • Value Added OUTPUT
• Energy process (Economic • Finished
• Finance & Function) Goods
• Productive >< • Services
Non productive
Activity

Reduced
WASTE

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 Industrial Engineering (6)
• Alasan pemilihan Sistem Manufaktur
– sistem manufaktur merupakan sistem
yang lengkap
– sistem manufaktur merupakan sistem
yang konkrit (kasat mata)
– sistem manufaktur mudah ditemukan
dalam kehidupan praktis sehari-hari
– sistem manufaktur memberikan
kontribusi yang nyata bagi
perekonomian nasional

• Sistem manufaktur hanya dijadikan learning model. Lulusan Teknik

Industri dapat bekerja dan berkiprah dalam bidang pilihannya secara
maksimal:
– dengan memanfaatkan pendekatan sistem
– dengan melakukan analogi terhadap sistem manufaktur yang telah
dipelajarinya secara mendalam

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What is System
• A System is set of elements that interact to
achieve its purpose(s).

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 The Keywords
1. Elements : elements of the system
2. Interactions : interaction between elements
3. Purposes : The reason why the elements interact
4. System Boundary : boundary of the system
5. Environment : anything else outside the system

THE WHOLE IS GREATER THAN THE SUM OF ITS PARTS

the interaction of elements that when combined produce
a total effect that is greater than the sum of the individual
elements, contributions, etc.; synergism.
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Inside the system

Sub System
E

Sub System of a E
sub system

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Example of a System

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System is Different

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Production System

System Approach in Problem Solving

• As IE, a problem should be seen as the
problem of the system, not the problem of a
particular element or sub system.
• To solve the problem, the root of the problem
should be found by analysing the system (the
elements and its interaction).
• Do not solve the symptom.
• The solution is the best solution for the
system (global optimum) not for the particular
subsystem or elements (local optimum).

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Model
• is a formal representation of the system
• is Discrete VS Continue
• is Static VS Dynamics
• is Deterministic VS Stochastic

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Types of Model

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 How Much? When? To Order

Berapa banyak dan kapan melakukan pemesanan tergantung dari

beberapa faktor antara lain : biaya pesan, biaya kirim, lead time, variasi
deman, variasi di bidang produksi dan sebagainya.

Economic Order Quantity (EOQ) merupakan metode untuk

menentukan berapa jumlah barang yang harus dipesan sehingga biaya
inventorinya minimal.

Reorder Point (ROP) adalah batas jumlah inventori di mana akan

dilakukan pemesanan kembali.

Inventory Cycle – Instantaneous Delivery

Inventory instantaneously increases by the quantity (Q) received.
Q
Usage/demand
rate

Quantity
on hand

Reorder
point

Time
Receive Place Receive Place Receive
order order order order order

Lead time
 Basic EOQ – Instantaneous Delivery Model

Basic Economic Order – instantaneous delivery model mempunyai

asumsi sebagai berikut :
. Hanya untuk satu jenis produk
. Kebutuhan deman diketahui
. Deman relatif konstant
. Lead time tidak bervaiasi
. Masing-masing order diterima di dalam satu kali pengiriman (“instantaneously”)
. Tidak ada diskon

Basic EOQ – Carrying Cost

Q
Carrying Cost = H where
2
Q = Order quantity
H = Holding (carrying) cost per unit
Carrying Cost

Annual Carrying Cost is linearly

related to the Order Quantity

Order Quantity (Q)

 Basic EOQ – Ordering Cost
D
Ordering Cost = S where
Q
Q = Order quantity
D = Demand, usually in unit per year
Ordering Cost

S = Ordering Cost

Ordering Cost decreases as

Order Quantity increases;
however not linearly

Order Quantity (Q)

Basic EOQ – Total Cost

Total Cost (TC) = CarryingCost + OrderingCost
Q D
TC = H + S
2 Q
Total Cost

Order Quantity (Q)

 Basic EOQ – Instantaneous Delivery

Basic Economic Order – instantaneous delivery model EOQ menentukan

jumlah pemesanan untuk meminimasi Total Cost = Carrying Cost + Ordering
Cost. Di mana Carrying Cost = Order Cost dan dihitung :

2DS
Basic EOQ = Q 0 =
Total Cost

Q0
Length of Order Cycle =
D
Basic EOQ

Mathematical Model
Q D
TC = H + S
2 Q
∂ ( TC )
− DSQ − 2
H
=
∂ (Q ) 2
∂ ( TC )
TC min → if = 0
∂ (Q )
− DSQ − 2
H
0 =
2
DS H
=
Q 2 2
2 DS
Q 2
=
H

2 DS
Q =
H

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 Basic EOQ – Example

Example 2a: A local distributor for a national tire company expects to

sell 9,600 steel belted radial tires of a certain size and tread design next
year. Annual Carrying Cost is $16 per tire, and Ordering Cost is $75.
The distributor operates 288 days per year. What is the EOQ?

2DS
Econmic Order Quantity = Q 0 =
H
2(9,600)(75)
= = 300
16

Basic EOQ – Example

Example 2b: How many times per year does the tire distributor reorder
tires? D 9,600
Number of Orders Per Year = = = 32
Q0 300
Example 2c: What is the length of the order cycle (Cycle Time)?

Q0 300
Length of Order Cycle = = =.03125
D 9,600
therefore
since there are 288 days in the year the
Order Cycle = .03125* 288 = 9 days
 Basic EOQ – Example

Example 2d: What is the Total Annual Cost if the EOQ is ordered?

Q D 300 9,600
TC = H+ S= (16) + (75)
2 Q 2 300
= $2,400 + $2,400 = $4,800

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