I.

Ringkasan Kasus

Sims Metal Management is the worlds largest metal recycler and has
operations over the five continents with more than 90 years of experience in
the business, which started in Australia. The company recovers end-of-life and
abandoned cars, old machinery, nonhazardous consumer goods, even trains.
They have become the largest world recycler with their competitive prices on
nonferrous metal.

The companys strategy, to stay number one metals recycler in the UK,
relies on one fundamental principle : low operating cost with hgh recycling
rates to offer the best quotes when bidding to recycle metals, when
decommissioning a plant for example. Theres 3 steps recycling process. First,
shredding the component. Second, taking light materials apart by using wind
turbine. Lastly, removing the remained any nonferrous by employing powerful
magnets. From these processes, Sims Metal Management can get nonferrous
metals. The separated material can now be resold to smelters.

II. Kajian Teori

Decision Patterns for Manufacturing Processes

Just as a service process can be repositioned in the customer-contact

matrix, a manufacturing process can also be moved in the product-process
matrix. Changes can be made either in the horizontal direction of Figure 3.3
by changing the degree of customization and volume, or they can be moved
in the vertical direction by changing process divergence. The production and
inventory strategy can also be changed. Competitive priorities must be
considered when translating strategy into specific manufacturing processes.
Figure 3.9 shows some usual tendencies found in practice. Job and small
batch processes are usual choices if top quality, on-time delivery, and
flexibility (customization, variety, and volume flexibility) are given primary
emphasis. Large batch, line, and continuous-flow processes match up with an
emphasis on low-cost operations, consistent quality, and delivery speed.

For production and inventory strategies, the make-to-order strategy

matches up with flexibility (particularly customization) and top quality.
Because delivery speed is more difficult, meeting duedates and on-time
delivery get the emphasis on the time dimension. The assemble-to-order
strategy allows delivery speed and flexibility (particularly variety) to be
achieved, whereas the make-to-stock strategy is the usual choice if delivery
speed and low-cost operations are emphasized. Keeping an item in stock
assures quick delivery because it is generally available when needed,
without delays in producing it. High volumes open up opportunities to reduce
costs.
Flowchart

A flowchart traces the flow of information, customers, equipment, or

materials through the various steps of a process. Flowcharts are also known
as flow diagrams, process maps, relationship maps, or blueprints. Flowcharts
have no precise format and typically are drawn with boxes (with a brief
description of the step inside), and with lines and arrows to show
sequencing. The rectangle shape is the usual choice for a box, although
other shapes can differentiate between different types of steps (e.g.,
operation, delay, storage, inspection, and so on). Colors and shading can
also call attention to different types of steps, such as those particularly high
on process divergence. Divergence is also communicated when an outgoing
arrow from a step splits into two or more arrows that lead to different boxes.
Although many representations are acceptable, there must be agreement on
the conventions used. They can be given as a key somewhere in the
flowchart, and/or described in accompanying text. It is also important to
communicate what (e.g., information, customer order, customer, materials,
and so on) is being tracked.

You can create flowcharts with several programs. Microsoft PowerPoint

offers many different formatting choices for flowcharts (see the Flowchart
submenu under AutoShapes). The tutorials Flowcharting in Excel and
Flowcharting in PowerPoint in MyOMLab offer other options, and its live
demonstrations of flowcharting in Figures 4.2 and 4.3 are instructive. Other
powerful software packages for flowcharting and drawing diagrams (such as
organization charts and decision trees) are SmartDraw
(www.smartdraw.com), Microsoft Visio (www
.microsoft.com/office/visio), and Micrografx (www.micrografx.com).
Often, free downloads are available at such sites on a trial basis.
 Flowcharts can be created for several levels in the organization. For
example, at the strategic level, they could show the core processes and their
linkages, as in Figure 1.4. At this level, the flowcharts would not have much
detail; however, they would give a birds eye view of the overall business.
Just identifying a core process is often helpful. Let us now turn to the process
level, where we get into the details of the process being analyzed. Figure 4.2
shows such a process, which consists of many steps that have subprocesses
nested within them. Rather than representing everything in one flowchart,
Figure 4.2 presents an overview of the whole process. It describes the sales
process for a consulting firm that specializes in organizational development
and corporate education programs. Four different departments (accounting,
consulting, marketing, and sales) interact with the external customer (client).
The process goes through three main phases: (1) generating business leads,
(2) client agreement and service delivery, and (3) billing and collection.

Figure 4.2 illustrates one other feature. The diamond shape represents a
yes/no decision or outcome, such as the results of an inspection or a
recognition of different kinds of customer requirements. In Figure 4.2, the
diamond represents three yes/no decision points:

1) whether the proposal is complete,

2) whether consulting approves the invoice, and

3) whether payment is received. These yes/no decision points are more

likely to appear when a process is high in divergence.
 Sometimes, it is impossible to get the whole flowchart on one page.
Figures 4.2 and 4.3 show how to create nested processes for steps that can
be more aggregated. For example, Figure 4.3 flowcharts a nested process
within the client agreement and service delivery step in Figure 4.2. Figure 4.3
brings out more details, such as invoicing the customer for 50 percent of the
total estimated cost of the service before the service is delivered, and then
putting together a final invoice after the service is finished. This nesting
approach often becomes a practical necessity because only so much detail
can be shown in any single flowchart.

Swim Lane Flowcharts

The swim lane flowchart is a visual representation that groups

functional areas responsible for different sub-processes into lanes. It is most
appropriate when the business process spans several department
boundaries, and where each department or a functional area is separated by
parallel lines similar to lanes in a swimming pool. Swim lanes are labeled
according to the functional groups they represent, and can be arranged
either horizontally or vertically. The swim lane flowchart in Figure 4.4
illustrates the order placement and acceptance process at a manufacturing
company. The process starts when an order is generated by a customer and
ends when the order is actually rejected, modified, or approved by the
company in consultation with the customer. All functions contributing to this
process are included in the flowchart. The columns represent different
departments or functional areas, and the steps appear in the department
column where they are performed. The customer is also shown as one of the
column headings. This approach shows the handoffs from one department to
another when the outgoing arrow from a step goes to another column.
Special dotted-line arrows are one way to show handoffs. Handoffs are points
where cross-functional coordination is at particular risk due to the silo
mentality. Misunderstandings, backlogs, and errors are more likely at these
points.
 Flowcharts allow the process analyst and managers to look at the
horizontal organization, rather than the vertical organization and
departmental boundaries implied by a typical organizational chart.
Flowcharts show how organizations produce their outputs through cross-
functional work processes, and allow the design team to see all the critical
interfaces between functions and departments.

III. Jawaban Pertanyaan Kasus

1. Why does Sims Metal Management operations impact on their ability to

offer competitive prices for nonferrous metals?

Sims Metal Management choose low cost operation, delivery speed,

and consistent quality as their competitive priorites, so they choose mass
production with continuous flow process as their process choice. Because
 of this choice, everything they do are efficient, cost incurred to produce
their product are lower, so they can sell it with competitive price.

It also supported by integrated supply chain. Their main supply, cars,

are collected thanks to their transportation network linking the company
36 metals and shredding recycling locations across England and Wales to
a network of 35 scrap metal dealers.

2. Select a recycling cycle from SIMS Metal and draw its flow chart diagram.

Supplier

Cars Depolluted Drains

Removing wheels, battery, bumpers, fuel,
seats, andwaste oil, brake
exhaust pipe fluid, and coolant from

Bad Quality? Good

hredded in hundreds of parts containing ferrous, nonferrous, and plastic materials.

Resold as Secondhand Goods

chamber
Theequipped with
remaining a powerful
heavy wind
materials turbine
pass to remove
inOperatives
front ligh
of powerful
now materials
magnets
remove anyto separate ferrous
nonferrous productand
thatnonferrous componen
might not have been

3. Illustrate the evolution of the global supply chain of ferrous metals in the
past decade.

As 90 years old company and have an operation all over the world,
Sims Metal Management developed their own transportation network
linking the company and 35 scrap metal dealers across England and
Wales. After collecting scrap metal they go through value-added process
to come up to environmental regulation. These days, more and more
electronic device wastes are increasing due to short average life of cell
phones. Sims Metal Management has developed the process to recycle
those as a metal sources. From UK, theyre supplied 50 million cell phones.
Sims Metal Management not only recycling electronic device, but also
white goods (such as refrigerator and washing machine).

4. Discuss the future challenges for Sims Metal Management.

The future challenge for Sims Metal Management are new competitor
that started to realize automachine is more efficient than manual labor. It
could decreased their revenue. Furthermore, Sims Metal Management
should open a new factory to specialized recycling, with countries giving
 advantage to certain types of recycling, as it has happened in
manufacturing during the last 30 years. Another challenge is there might
be new rules that force Sims Metal Management to process only one type
of waste.

IV. Aplisasi di Indonesia

The application in Indonesia is Astra company. This company is also a

manufacture company that use low cost, constant quality, and delivery speed
as their order winner.

V. Kesimpulan dan Daftar Pustaka

V.1 Kesimpulan

Sims Metal Management is the worlds largest metal recycler and has
operations over the five continents with more than 90 years of experience
in the business. They choose low cost operation, delivery speed, and
consistent quality and continuous flow process as their process choice.
Because of this choice, everything they do are efficient, cost incurred to
produce their product are lower, so they can sell it with competitive price.

Theres 3 steps recycling process. First, shredding the component.

Second, taking light materials apart by using wind turbine. Lastly,
removing the remained any nonferrous by employing powerful magnets.
From these processes, Sims Metal Management can get nonferrous metals.
The separated material can now be resold to smelters.

These days, more and more electronic device wastes are increasing
due to short average life of cell phones. Sims Metal Management has
developed the process to recycle those as a metal sources. From UK,
theyre supplied 50 million cell phones. Sims Metal Management not only
recycling electronic device, but also for white goods (such as refrigerator
and washing machine).

Eventhough theyre the largest metal recycler, they cant escape from
future challenge as new competitor and rules that can change anytime.

V.2 Daftar Pustaka

Krajewski, L.A. and Ritzman, L.P. Operations Management: Processes and

Supply Chains (11 th ed.) New Jersey: Prentice-Hall. (2016).