Establishment of Purchasing Department to Optimize Lead-Time and Cost Efficiency in PT German Centre Indonesia - A case Study
Purchasing Department in PT German Centre Indonesia previously does not have any attention too much from the Management level, because the company still in the growing stage. Since the activities of the company going increases from time to time, consequently cost structure in the operational of the building maintenance increase and higher. nThe research purposes of this thesis is to review the case and to give the guidance especially in PT German Centre Indonesia, to compare cost of material's purchase before and after establishment of Purchasing Department. Therefore, Purchasing Department was generated to optimize cost efficiency on the other hand to optimize lead-time. This case was also can applied to the other company for purchasing activity and helps another company for cost efficiency too.nManagement by Objectives (MBO) is a tool, which is increasingly used by many organizations. In materials management several areas may be identified as follows; inventory levels, inventory ratio, rejection percentage per suppliers and per items, scrap and unit cost it self. Several costs, especially maintenance costs for the German Centre building was increase significantly. Purchasing Department in PT German Centre Indonesia was doing several activities which is resulted in cost efficiency for the company and helping company to reduce their cost by doing bidding procedure, looking for the best price for the materials needed in company and also reduce lead-time from the materials order until the goods ready for use by the users.nSo, the existing of Purchasing Department in PT German Centre Indonesia is very useful both for the company and for the employees within PT German Centre Indonesia particularly.n
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