OPERATIONAL COST CONTROL STRATEGY IN MANUFACTURING COMPANIES (FOOTWEAR INDUSTRY)

Abstract

In an effort to achieve the success of a manufacturing company, an operational cost strategy is needed. The importance of controlling operational costs can help companies prevent and reduce manipulation or fraud on operational costs that will be disbursed. A case study at PT A shows that the company's operational costs can be said to be quite good. However, the problem that often occurs in companies is the amount of costs incurred to meet its operational activities. Therefore, researchers want to know how the operational cost management strategy at PT A is in order to get maximum profit. This study aims to analyze operational cost management at PT A. This study uses qualitative methods, using observation techniques, interviews and literature studies. The results of the study show that the large operational costs incurred are caused by the large amount of materials that are wasted and cannot be reprocessed, then returned orders by clients so that the company has to lose money on this incident. This study also found that the strategies implemented are working together with suppliers and clients, effective supply chain management, and the use of information technology and automation. By implementing this strategy, the company can control its operational costs, increase efficiency, and be stable in competitive market competition.