Production planning of crude palm oil: A study case at X Co.

Abstract

Increasing productivity of palm oil company could be done by solving problems in the company such as non-optimal production quantity, over range of production cost, stagnation of production activity, and unplanned of production condition. Those problems can be solved by managing production planning. The purpose of this research is to focus on production planning by determining the optimal production planning, determining the best production condition, and determining criticality of crude palm oil components process. Determination of optimal production planning using goal programming shows five goals formulation: minimize the production cost of crude palm oil (CPO) and fresh fruit bunch (FFB), minimize the deficiency of FFB, maximize production to fulfil demand capacity and maximize the number of FFB processed into CPO. The result of scenario simulation shows that by increasing the productivity of palm oil plantation (11-12%), increasing the yield of CPO (0.21-0.23%), decreasing the effect of maturity rate of FFB (2.5%), and fulfill the requirement of number of truck could decrease free fatty acids by 2.43% and increase number of production by 8408247 in January 2020. The result of the analysis of the assessment of critical components of the palm oil production process results in four classifications. The four classifications of equipment criticality rating (ECR) respectively, ECR 1 at station of boiler, thrasher, and digester, ECR 2 at station of sterilizer, ECR 3 at station of clarification and engine room, and ECR 4 at receiving station, fat pit, and water treatment.