PT.

Paragon Technology and

Innovation
Anindya Dwi A.
 Framework Operational Management
RANDOM FLUCTUATIONS
• Changes in Consumer Taste
• Increase in Cosmetic Raw Materials
• Late Delivery of Raw Materials
• Economic Recession
• Government regulations

INPUT PROCESS TRANSFORMATION OUTPUT

• Land • Cosmetics
• Building • Skin Care
• Equipment / Machinery (Wardah, Make Over, Emina
• Labor FEEDBACK etc.)
• Cosmetic Raw Materials • Customer Satisfaction
• Quality control
• Machine maintenance
• Sales volume
• Product innovation / packaging design

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 Operational Strategy

Focus & Rapid Respones

Differentiation
• Choose suppliers who have
• The Wardah brand uses a halal and Cost Leadership guaranteed quality cosmetic raw
alcohol-free label which provides more materials and meet the skin needs of
value than other cosmetic brands Asian women
• Using good quality and not too
prominent on the packaging to
reduce costs

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SWOT Analisis
STRENGTH
• The halal label makes
WEAKNESS
Wardah's market share wide • Wardah product packaging
• Has a soft fragrance and is
is less attractive

S W
safe to use • Wardah's product sales
• The price is affordable but growth is slow so that it can
still has premium quality easily be knocked out by
new competitors
• Products that vary according
to the needs of women today

OPPORTUNITY
THREAT
• Many cosmetics are
affordable and have pretty
T O • Wardah is very familiar with
young people, especially
Muslim women
good quality from Wardah • Wardah's halal label has its
own value

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5 Porter’s Force & Conclusion
Bargaining power of Suppliers

01 Strong Suppliers cause it’s a little bit difficult to

find suppliers who have quality cosmetic raw
materials

Bargaining power of Buyers

02 Weak Buyers cause many consumers are
attracted by their halal label and prices

Threat Of New Entrants

03 High Entry Barriers cause there are many other

cosmetic brands with low prices and sufficient
quality

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 Threat Of Substitutes

04 Few Possible Subtitutes cause there are

not too many cosmetics that carry products
that do not use alcohol which becomes a
separate role for consumers

Competitive Rivalry

05 Intense Rivalry cause the emergence

of other cosmetic brands that produce
similar goods

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Strategy Process : Process Focus
•Labor
• Product
In the production of PT Paragon Technology
In the production process, PT Innovation, each process has workers
Pragon Technology Innovation according to their respective abilities
itself has several departments
such as compounding, testing,
sales etc.

•Equipment •Work instruction

They provide a high degree of There are many work instructions
product flexibility as products at PT Paragon Technology
move momentarily between Innovation because it follows the
processes. Each process is innovation and cosmetic needs of
designed to carry out a variety of consumers
activities and deal with changes
that often arise. Therefore, this
process is also called a
momentary process.

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• Stock
The supply of raw materials
at PT Paragon Technology
Innovation is high due to the
slow pace of getting raw
materials from suppliers
• Troughput
Receiving cosmetic raw materials
from suppliers has several
obstacles, so it is called slow
throughput
• Schedulling
The scheduling of the production process at PT
Paragon Technology Innovation is classified as a
complex group, because of the many processes
that go through so it is not easy to determine the
production schedule.
• Cost
The fixed costs at PT Paragon
Technology Innovation are lower
than the variable costs in the
production process
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Maintenance Management

PT Paragon Technology Innovation should use a

type of preventive maintenance on production
equipment to reduce defects in its maintenance
management and can reduce their variable costs.

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 Conclusion
A company must have a strong innovation and strategy to get its own position in the
eyes of customers. With the existence of a halal mindset that Wardah instills in its
consumers, it makes consumers trust Wardah more as the cosmetics they use because
it is definitely safe. This is difficult for other competitors who want to grab Wardah's
market share.