INCREASING PRODUCTION CAPACITY WITH THE CUT AND TRY METHOD IN ANDESITE MINING

Abstract

The andesite mining industry in Cilegon needs help in meeting the increasing market demand, especially in the Split 1-2 product, which has an annual production capacity of 349,418 tons compared to the demand of 454,238 tons. This research aims to increase production capacity through the application of the cut-and-try method. This method identifies the optimal solution through repeated experiments on various operational strategies. The analysis uses the Simple Moving Average, Exponential Moving Average, and Mean Absolute Percentage Error (MAPE) approaches for demand forecasting, as well as aggregate planning evaluation, to align capacity with market demand. The results show that the cut-and-try method provides flexibility in adjusting production strategies in real-time, allowing for increased productivity, reduced downtime, and more efficient inventory management. Two production planning scenarios were tested, namely Production Plan 1, with variations in inventory and stock depletion, and Production Plan 2, which uses constant labour and overtime. Of these two scenarios, Production Plan 2 proved to be more cost-effective, with a total expenditure of IDR 1,413,258,340 compared to IDR 2,357,596,694 in Production Plan 1.