Archive for category Lean and Green Operations

2nd Asia-Pacific Region System Dynamics Conference

APSDC 2017 The 2nd Asia-Pacific Region System Dynamics Conference of the System Dynamics Society were held at UTown, National University of Singapore. The theme for this conference is Charting a Path to a Humane and Sustainable Future: Asia’s Leadership Role. The conference brought together various disciplines that have been using Systems Thinking, System Dynamics and Systems Engineering approach in understanding and solving problems. The conference seeks to popularize and extend systems thinking and System Dynamics modelling in the Asia-Pacific Region by facilitating interactions between practitioners from the region and around the world, introducing newcomers to the field, and keeping practitioners aware of current developments.

It brought together so many practitioners in the regions, including group of Indonesian SD practitioners. We hope that in the future, we could establish an Indonesia Chapter of System Dynamics, since currently Indonesia falls into the Australasian Chapters and newly established ASEAN Chapter.

SEMS Lab presented 2 papers in this event that falls in the strategy group of papers.

These are the excerpt of the papers presented by SEMS Lab

1. System Dynamics Approach in Managing Turnover Problem in Profesional Service Firms

Authors: Arry Destyanto, Armand Moeis, Akhmad Hidayatno, Mohammad Rizky Nur Iman

Talented human resources is one of the key factors in a firm’s success to maintain its competitive advantage in the global era. The rising trend of turnover is causing firms to rethink their strategy in maintaining their talented human resource. This issue challenges firms especially that rely on talented human resource such as professional service firms. Turnover has direct and indirect negative impact for firms. Previous researches had been conducted research to understand the underlying problem that causes turnover, and the strategy to overcome it. This research calls for a modeling structure of the turnover phenomena using a system dynamics approach, which can also be used to simulate various strategy. The output of the model is a recommendation of strategy that is most effective and has the best return on investment for organization. The results of simulation study will be discussed at the end of the paper.

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2. Scenario Planning using System Dynamics for Reducing Uncertainty on Managing Employee Turnover

Authors: Akhmad Hidayatno, Arry Destyanto, Armand Moeis, Mohammad Rizky Nur Iman

In order to maintain the competitiveness of an organization in the global competition era, the presence of qualified human resources has become one of the key factors. Unlike product quality, qualified human resources have the capacity and talents that are not easy to replicate. Therefore, researchers and practitioners have been looking for the best strategy to manage turnover in an organization. However, the problem with turnover is that it has become more dynamic and changes along time, causing for uncertainties in the impact of the strategy implemented. This research will show how ‘scenario planning’ is used in a system dynamics model to minimize the level of uncertainties. The scenarios generated are not limited to the changes in assumptions, but also includes alternatives of trends that may happen in the future (plausible scenario). This paper focuses on discussing the process of generating and testing the plausible scenarios to the model. The implication of the scenarios is also compared to the initial output of the model.

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Can University Hospital in Indonesia survived in achieving balanced of quality public health service and medical education?

University of Indonesia plays an important role in developing the national health care system by contributing qualified health professionals nationally and internationally. In order to prepare future professional doctors, educators, researchers, and other human resources in medicine and health fields, University of Indonesia is constructing a new education hospital to compliment the overcrowded Cipto Mangunkusumo National Hospital.


What actually they should realize is that the hospital is the healthcare facility which operated 24 hours a day, high operational and maintenance cost has become the serious concern to the organization, and this organization should operate independently without the subsidy over the several years. Stakeholders will find a gap between operational cost and the government fundings, and the question is how wide are the gaps and who will cover those gaps?

SEMS, using business and financial modeling, help to obtain a clearer picture of the challenges ahead in managing and operating the new hospital. Using the combination of Activity Based Costing (ABC) and using Process Modeling, we map out the cost drivers structures and put this into simulated balance sheet, income statement, and cash flow. These financial calculations helps us to explain the possible outcomes that could jeoperdize the operations of the new hospital.

This research is conducted by Monica Priscilla, Gamma Rizkina Akbar, Aziiz Sutrisno and Akhmad Hidayatno

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Cracking The Truck Dispatch Problem in Open-Pit Mining to Enhance Competitiveness for the Coal Market

Indonesia is a country which has high diversity in energy and mineral resources. As an archipelago with an area of 1,910,931 km2, Indonesia has some of the pre-eminent resources such as petroleum, natural gas, nickel, coal and others. In coal, Indonesia is listed as one of the largest coal producer in the world in 2014. As one of the highest coal producing countries, Indonesia has a reliance on the use of coal for generating electricity or power plant. This is in line with the Indonesian government program in the long-term energy mix of coal has increased the portion of the year 2013 by 24% to 2025 by 33%. But in fact it actually happened inversely where increased production of domestic coal is not followed by a competitive price.

The existence of weakening coal prices, which decreased from year to year, causing the mining sector, especially companies engaged in coal experienced significant negative impacts. One of the most essential where companies are not experiencing growth on corporate profits, but declined.


Based on these phenomena is the only way for the company to continue running the business activities through efficiency measures on many things to be able to cover operational costs. One of the efficiencies that can be done such efficiency on the operational side.  As mentioned by Alarie & Gamache (2002) and Ercelebi & Bascetin (2009) the material transportation represents 50 per cent of the operating costs for an open pit mine. Therefore, one of the efficiencies that can be done and has a substantial impact through efficient on truck dispatching problem in the mine area

SEMS was proposing to overcome this problem using simulation and optimization approach to analyze the complexity of truck dispatch problem in open pit mining. This approach uses the look-ahead algorithm and  multi-stage algorithm. Solving the issue focuses on the development of look-ahead methods that will be applied to the truck dispatch problem. Simulation and optimization approach on this issue is run simultaneously with the help of software ProModel as the media to solve the problem. Look-ahead algorithm is an approach to solve the problems of the assignment of the fleet to look ahead what will happen near future with based on previous information system gathered as a reference to decide the scheduling for entities that exist in back of the queue. This research basically to answer the question about where this truck should go now and when it leave this place in order to maximaze amount of coal production. The output of the research is to obtain the best assignment rules for truck dispatch problem with four indicators are, amount of coal production, productivity of loader, productivity truck with block and without block.

Using the model, a significant improvement on amount of production has been achieved to enhance competitiveness coal market.

This research is conducted by Achmad Yusaq Faiz Fadin, Komarudin, and Armand Omar Moeis.

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Transfering the Complex Knowledge of Supply Chain Management through Serious Simulation Games

“A game could makes you forget that you are actually learning. Packaging a very complicated and
complex reality in to a simple learning tool is what Serious Simulation Game designed for.”

Have you ever thought about how your soft drinks, or your lotion, could arrive in the shelf even before you need it? That effort to make sure you get what you want when you step into the store is called Supply Chain Management (SCM). SCM is indeed important not only for customers, but also for the company. Every company tries to manage its supply chain efficiently and effectively, as SCM alone costs 30% – 70% of the total of production cost. However, managing a supply chain is not an easy job to do.

SCM GAME - Intro
Andersson and Wemner, through their article in 2008, even stated that many SCM practitioners have difficulties in making the right decision. This fact triggers other urgency: to find talents who understand SCM and able to make the right decision. To gain better knowledge about making decision in SCM, some researches have proven that traditional classroom teaching method might not be the best. Experiential learning, just like its name, provides you a learning method by experiencing the reality, which is an effective way to learn how to make a decision. One of its most effective media is Serious Simulation Game (SSG). To simply put, SSG is an entertaining game with non-entertaining purpose. However, there are still a very limited number of researches on the SSG about the whole supply chain.

H2Game SCM 1

In order to enhance the knowledge of SCM, especially for students, SEMS researchers have created a SSG named H2! Supply Chain Management Game. This game helps players to improve their ability in decision making, and also their skills in analyzing report and teamwork. H2! Supply Chain Management Game is played by 4 players per team, where there will be 4 teams competing against each other. The SSG was designed using a Spreadsheet Applications as its basis. It was then tested two times, Prototype 1 and Prototype 2. To deliver the learning points of the game well, this SSG was played in 4 phases. It consists of Briefing, Playing, Debriefing, and Evaluation.

The result of the evaluation phase shows that H2! Supply Chain Management Game can be used to deepen the knowledge of the players. It also helps players to understand supply chain’s important elements which improve their ability in analyzing data and making right decisions.

This research is conducted by Rachel Giovanni Hasibuab, Maya Hashilah, Arry Rahmawan and Akhmad Hidayatno

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Beer Game Simulation at Astra Honda Motor AHM

In order to introduce the basic concept of Supply Chain Management for all its Dealers, PT Astra Honda Motor AHM asked SEMS Lab to conduct Beer Game Simulation. The Beer Game Serious Simulation Gaming (SSG) is perfect interactive way to have a common understanding of supply chain challenges (With of course No Beer drinking involved). Approximately 67 dealers were trained on September 10, 2014 at PT AHM Tipar Cakung. The facilitators team was lead by Mr. Hariyanto Salim MSIE, CSCP that consist of 1 Game Master, and 10 Game Companion for each Game Board.
Even though it is a classic game, the beer game was still an eye opener for all the participants, who are all practitioner and very expert in the field.


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