PT.
Ollop
Logistics
Design Case
Case Description PT. Ollop
Spices product are Indonesia export in large quantity. Maluku is province which
contribute the largest quantity of nutmeg product. There are many farmers of nutmeg
in Maluku. Then nutmeg and clove from farmers will be processed in PT.Ollop.
PT Ollop faces problems to fulfill customer requirement.
These are the production of PT. Ollop from 2003 - 2013
No
Commodity
Volume (ton)
1
Nutmeg
694
2
Mace
196
3
Clove
11
Remarks
Export start on 2008
The customer of these product is Verstegen & Sauces BV in Netherland.
Production process of PT. Ollop
Receiving Raw Material
1. Receiving nutmeg and and nutmeg flower fom farmers and collectors
PT Ollop receiving raw material (nutmeg and nutmeg flower) from Hila,
Ambon and Banda. Organic Nutmeg and nutmeg flower are checked the
origin place and the volume. Farmers and collector who have BPI certificate
can supply the nutmeg to PT. Ollop
2. Quality control of raw material
The standard quality of the raw material are: dry, clean, not moldy,
3. Weighing
The weighing of nutmeg from farmers and collector is differentiated base on
the origin place of the supplier
Sorting nutmeg fruit
1. Grading
There are 4 grade of quality : AB, SS, CC, damage. AB is the best grade
and damage is the worst grade
2. Temporary storage
Nutmegs are temporary store in the box that indicate the origin of the nutmeg
3. Final sorting
Nutmegs are sorted in production plant. The sorting process is to sort
nutmegs from defect and good nutmeg. Then the good ones are packaged in
bag which capacity is 25 kg.
Sorting nutmeg flower
1. Sorting
Sort the flower to be two group : all mace flower and cut flower
2. Temporary storage
All mace flowers are store in basket with capacity 5 kg and sort base on the
origin of the nutmeg
3. Sieving
Flowers are sieved based on the group
4. Grinding
All mace nutmeg flower and cut nutmeg flower are grinded then packaged in
plastic bag
5. Final sorting
Final checking if there are other object with manual inspection and metal
detector.
Packaging and Labeling
1. Nutmeg and nutmeg flower packaging
Nutmegs are packaged with gunny sack (capacity: 25 kg), All mace flowers
are packaged with Plastic bag and it wrap it by gunny sack then it pack to a
carton box. Cut flowers are packaged into gunny sack (capacity: 25 kg)
2. Labeling
Label are included in plastic bag, the wrapped with gunny sack
The nutmeg production data and the supplier of nutmeg last year can be seen on
table below::
Table 1 Nutmeg production each district
No.
District
Area
(ha)
Production
(ton)
1
2
3
4
5
6
7
8
9
10
11
12
13
Banda
Tehoru
Amahal
Teluk Elpaputih
Teon Nila Serus
Saparus
Nusalaut
Pulau Haruku
Salahutu
Leihitu
Leihitu Barat
Seram Utara
Seram Utara Barat
42
177
41
205
7
201
146
249
112
339
538
31
66
270
22
7
87
1
6
17
20
58
119
165
10
21
The Clove production data and the supplier each origin last year can be seen on
table below:
No
1
2
4
5
6
7
8
9
10
11
12
13
14
15
District
Banda
Tehoru
Amahai
Kota Masohi
Teluk Elputih
Teon Nila Serus
Saparua
Nusalaut
Pulau Haruku
Salahutu
Leihitu
Leihitu Barat
Seram Utara
Seram Utara Barat
Area
(ha)
Production
(ton)
6
225
1637
5
310
12
1494
685
721
2097
1683
841
172
371
2
103
713
1
88
2
42
61
172
15
402
294
60
112
Then all the suppliers sent their product to PT. Ollop in Hila Ambon.
The process from the production in PT. Ollop, the products need to be delivered to
Rotterdam. Before the It is received by the Verstegen & Sauces BV in Netherland,
The product need to be checked in laboratory of the toxic contain in the product.
The problems are:
1. The product quality that is received in Verstagen Rotterdam, Netherland
decrease significantly, so that cannot meet the Verstagen standard
2. Inside the packaging found gravel
3. There are fungi on the product
Because PT. Ollop already make sure that the product that they deliver are meet the
export standard,
So it indicates that the problem is the distribution of the product from PT. Ollop to
Verstagen.
1.1. The assignment
The students are working at a consultant that will help PT. Ollop to solve their
problems. This consultant designs customer-specific logistics solutions for PT. Ollop..
The logistics solution will be talk about:
Inbound transport
Sea transport
Storage
Outbound transport
Inventory costs
The consultant not only gives the solution of the problem but also design the logistics
chain most efficiently.
Reporting
The reporting of this case are:
1. Preliminary report
This report contains introduction (understanding of the problem), literature
review, approach methodology to solve the problems, the timeline to do the
project and human resources management
2. Interim report
This report contains of existing data, findings and initial analysis of the case
3. Draft Final Report
This report contains the results of the projects but it still possible to improve
the model and the result
4. Final Report
Final report contains the final version of the report
All the report must be present to the class and lecturer give the feedback and
suggestion
Project Activities
The table below shows when which project activity will take place.
WEEK DATE
1
Kick off Project, student present the action plan and
st
1 week
2
PROJECT ACTIVITY
2nd week
methodology to finish the project
Submit Preliminary report and presentation
3rd week
Brainstorming, Develop model and Gathering data
4th week
Brainstorming and Discussion finding analysis
5th week
Submit interim report and presentation
6th week
Validation and verification model and discussion
th
with lecturer
7 week
Apply model and discussion with lecturer
8th week
Submit Draft Final Report and presentation
9th week
Submit Final Report and Presentation
10
10th week
Submit draft final report and presentation
Attendance is required at all stated lectures!
The above schedule also includes consultation with the supervisors. Time and place
of the various consultations can be agreed upon in person with the relevant lecturer.
The project will involve collaboration by project groups always consisting of 5
students.
Literature and sources
Recommended books:
Ballou, R.H.,(2010), Business Logistics/Supply Chain Management, Pearson
Prentice Hall.
Choppra S., Meindi P. (2010) Supply Chain Management Strategy, Planning and
Operation, Pearson Prentice Hall
Song Dong-Wook. (2010) Maritime Logistics A complete guide to effective shipping
and port management. Pearson Prentice Hall
And other relevant journal and article
Assessment
Group products
The assessment of these group products is described below.
Preliminary report and presentation
The project action plan is assessed in terms of the presence, concreteness and
substantiation of:
Project organisation
Objective
Project activities
Human Resource management
The overall percentage of Preliminary report is 20% of 100% group mark
Interim report
This report assessed presence, concreteness and substantiation of:
how investigate the problem,
draft model
gathering data, and
findings analysis.
The overall percentage of interim report is 30% of 100% group mark
Draft Final report
This report assessed presence, concreteness and substantiation of:
solution of the problem
what if scenario
The overall percentage of interim report is 40% of 100% group mark
Final Report
This report assessed presence, concreteness and substantiation of Improvement
from the evaluation in Draft Final Report
The overall percentage of interim report is 10% of 100% group mark
1.2. Individual assessment
In the project the supervisor makes his assessment in terms of two aspects, with
advice from his fellow lecturer, specifically:
1. Final presentation handout and defence
2. Effort and motivation during the project.
The proportion of Group Assessment and Individual Assessment is 60:40.
