Model Development in Performance Assesment of Stearic cid Industry from Palm Oil

Abstract

Oleochemical supply to China, especially from Indonesia and Malaysia is very big, about 500 000 ton a year, 90% of the supply is stearic acid (Cham & Purwoko). The other stearic acid importir country are Europe Union and United States of America. This sector is a big opportunity for agroindustry company, especially export oriented industry. The hard competition in this sector pushes every industry do some continuous improvement, so that the output of product has competitive quality. Continuous improvement can be realized when the companies evaluate their performances. The evaluation process needs enormous resource which is the main problem for industry in Indonesia, esspecially oleochemical industry. The performance assesment system is developed by designing an assesment model, using system approach. The object of observation in this performance assesment, i.e. man, market, money, machine, material, method, market, management & environment. The assesment interval is based on expert justification, technical standard and literature study. The model will give assesment from each criterias and conclude the assesment through simple weighting from some criterias quantitatively and qualitatively. The result of research is performance assesment model of stearic acid industry which implemented into application program called SPIAS 1.0. The program has verified base on company annual report and the result has shown that PT. X has ‘average’ performance. Hopefully this program can help company to do self rapid assesment more efficient, so the company could do some continuous improvement.