Report AssignmentFinal 13

UNIVERSITAS INDONESIA

ENERGY CANDY

Final Report

GROUP 13

GROUP PERSONEEL:

MARISKA MAGHFIROH (110602284)

M FAIZ FILANDA (1106015951)

RAHMALIA PUSPITA (1106007566)

WISI WILANDA (1106016342)

YULIANTO (1106002110)

CHEMICAL ENGINEERING DEPARTMENT

ENGINEERING FACULTY

UNIVERSITAS INDONESIA

DEPOK

MAY 2014

CONTENT

ontentsCCHAPTER 1 INTRODUCTION.........................................................................1

1.1 Background........................................................................................................1

1.2 Problems Definition...........................................................................................2

1.3 Problems Identification......................................................................................2

1.4 Writing Purposes................................................................................................2

1.5 Problems Boundaries.........................................................................................3

CHAPTER II LITERATURE REVIEW............................................................4

2.1 Definition Of Supplement..................................................................................4

2.2 Variation Of Supplement...................................................................................4

2.3 Benefit For Consuming Supplement..................................................................5

2.5 Main Ingredient for Candy.................................................................................7

2.6 Nutrition as Supplement...................................................................................11

CHAPTER III NEEDS AND IDEAS................................................................19

3.1 Find Needs.......................................................................................................19

3.1.1 Interpreted Needs......................................................................................20

3.1.2 Consumer Needs Identification.................................................................30

CHAPTER IV PRODUCT SPECIFICATION................................................33

4.1 List of Metric...................................................................................................34

4.2 Benchmarking..................................................................................................37

4.3 List of Specification.........................................................................................44

SUMMARY...........................................................................................................46

REFERENCE.........................................................................................................47

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PICTURE LIST

Figure 2. 1. How supplement works scheme...........................................................6Figure 3. 1. The amount of respondent who need supplement..............................20Figure 3. 2. The amount of respondent who ever consume supplement................21Figure 3. 3. Benefit after consuming supplement..................................................21Figure 3. 4. Supplement’s weakness......................................................................22Figure 3. 5. People interest in Energy Candy........................................................22Figure 3. 6. The amount of respondent who likes candy.......................................23Figure 3. 7. Reason for consuming candy..............................................................23Figure 3. 8. Desired Energy Candy Texture..........................................................24Figure 3. 9. Desired Energy Candy’s Shape..........................................................25Figure 3. 10. Desired Energy Candy’s Flavor.......................................................25Figure 3. 11. Candy colors.....................................................................................26Figure 3. 12. Desired Energy Candy’s Packaging.................................................27Figure 3. 13. Frequency in Consuming Candy......................................................27Figure 3. 14. Place to buy Candy...........................................................................28Figure 3. 15. Desired Energy Candy’s Price..........................................................29Figure 4. 1. Grouping Needs..................................................................................33

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TABLE LIST

Table 3. 1. (Cont’d) List of Needs.........................................................................31Table 4. 1. List of Metrics......................................................................................34Table 4. 2. Unit of needs........................................................................................35Table 4. 3. Benchmarking of existing product.......................................................39Table 4. 4. List of Specification.............................................................................44

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CHAPTER 1

INTRODUCTION

1.1 BackgroundSupplement is a product include vitamins, minerals, herbs,

sport nutritions, natural food and other related products used to boost the nutritional content. Supplements are used for many purposes. They can be added to the diet to boost overall health and energy, provide immune system support, reduce the risks of illness and age-related conditions, improve performance and support the healing process during illness and disease. (Medical Dictionary, 2001)

In this modern era, people activities such in college students, field workers, office workers and housewives increasingly dense and fast paced, so that they require more energy intake to be able to perform their daily activities. Wahlqvist (2002) mentions that the increased use of supplements may be caused by changes in diet and lifestyle. In May 2013, The New York Times reported that as many as 70% of Americans take supplements. In 2000 the Pharmaceutical Research and Development Center has surveyed the consumption of supplements. The results showed that 78,1% of women taking supplements (Ito Leiliana, 2008). Various studies suggest that in large cities, more food supplement consumed by the level of the middle class and above because high price of supplements.Beside that, some of supplement products today are less practical used and taken.

Indonesian population in 2010 reach 237,6 million people consisting of 119,6 million males and 118,0 million women (BPS, 2013). The big population of Indonesia is becoming a potential market for various types of food. One type of food that is experiencing rapid growth is candy. Consumers consume candy

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with a variety of purposes such as fill time, release stress, quench thirst and sleepiness, relieving bad breath and others. Consumers of candy also have variation from children to adults as well as reach out to all circle of life both among the bottom to the top.

Sweet taste of candy and it shapesthat attractive and practical to put into bag making candy a favourite food across ages.This sugar-based foods are not infrequently consumed by adults to accompany their day or to keep the mouth feeling fresh. However, adults tend to be more cautious in consuming these

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products because of their attention to the health aspects and usefulness of the candy. The content of sugar in the sweets that are in the market generally may cause caries or cavities.

On the basis of affection of candy and to meet the energy needs of the body, we intend to produce candy that can meet the needs of adults without forgetting the health aspects and usefulness of the candy. With this product we expect energy candy adults who have a high activity to enjoy sweets without worrying about disturbing their health. Adults will not only obtain the desired fresh taste but also can increase the stamina of their work.Mild forms like candy will make it very easy to consume and taken anywhere.1.2 Problems Definition

The very busy work hour in this modern era, the communities such

as college students, field workers, office workers, or even housewives

needan energy boost products which are practically easy to use, easy to find,

quite cheap, safe and effective.

1.3 Problems Identification Energy boost products in form of supplement are generally way too

expensive.

Other existing energy boost products are not practically easy to use

and unsafe. For example, they are needed to be dissolved in order to

become drinkable.

Most of all existing energy candy products are still too expensive, hard

to find, and commonly contain quite dangerous substances such as

caffeine and aspartame

1.4 Writing PurposesThe purposes of this report are:1. Identifying people needs and interest against energy

candy in Indonesia.2. Determine the specification of energy candy product

based on needs and comparison with another products.

Universitas Indonesia

3. Becoming a reference to making energy candy product design concept.

1.5 Problems Boundaries Our new energy candy product is simply similar to the energy drinks.

They just have a different form. So, energy candy is an energy boost or

energy burst product which capable to raise the consumer energy for

particular time right after consuming energy candy.

The energy candy which are going to offer surely have to safety aspect.

Our energy candy product will consist substance which can avoid caries

and diabetes

The key business goal of our energy candy product is to become the

new primary alternative for people as energy boost/burst product rather

than any energy product type especially in the form of supplements and

drinks.

Our primary prospect consumers are they who have very busy work

hour. In other words, our energy candy product is highly recommended

just for adults such as the college students, field workers, office

workers, entrepreneurs, and even a housewife.

The stake holders of our product are consumer with high activity, the

distributor, the shop and retailer, and the health institutions.


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CHAPTER II LITERATURE REVIEW

2.1 Definition Of SupplementA supplement is known as something that is to be either

taken with something else or aid in something else in order to complete a thing, supply a deficiency, or reinforce an extend or a whole. For example, a vitamin is a supplement, however just taking a vitamin alone will not make you healthy. This must be accompanied by a healthy diet and exercise.2.2 Variation Of Supplement

A. Dietary SupplementA dietary supplement is intended to provide nutrients that

may otherwise not be consumed in sufficient quantities. Supplements as generally understood include vitamins, minerals, fiber, fatty acids, or amino acids, among other substances. U.S. authorities define dietary supplements as foods, while elsewhere they may be classified as drugs or other products.

There are more than 50,000 dietary supplements available. More than half of the U.S. adult population (53% - 55%) consume dietary supplements with most common ones being multivitamins.

These products are not intended to prevent or treat any disease and in some circumstances are dangerous, according to the U.S. National Institutes of Health. For those who fail to consume a balanced diet, the agency says that certain supplements "may have value." Effects of most of these products have not been determined in randomized clinical trials and manufacturing is lightly regulated; randomized clinical trials of certain vitamins and antioxidants have found increased mortality rates.


http://en.wikipedia.org/wiki/Randomized_clinical_trials

http://en.wikipedia.org/wiki/National_Institutes_of_Health

http://en.wikipedia.org/wiki/Amino_acid

http://en.wikipedia.org/wiki/Fatty_acid

http://en.wikipedia.org/wiki/Dietary_fiber

http://en.wikipedia.org/wiki/Dietary_mineral

http://en.wikipedia.org/wiki/Vitamin

http://en.wikipedia.org/wiki/Nutrient

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According to scientific evidence, supplements of beta-carotein and Vitamin E, possibly also Vitamin A, increase mortality. Also supplements of other antioxidants, B vitamins, folic acid or minerals and multivitamin supplements fail to decrease mortality, as well as morbidity to major chronic diseases. However, vitamin D supplements may be useful, but the evidence this far is not conclusive.

Most supplements should be avoided, and usually people should not eat micronutrients except people with clearly shown deficiency. Those people should first consult a doctor. An exception is vitamin D, which is recommended in Nordic countries due to weak sunlight.

B. Bodybuilding SupplementBodybuilding supplements are dietary

supplements commonly used by those involved in bodybuilding and athletics. Bodybuilding supplements may be used to replace meals, enhance weight gain, promote weight loss or improve athletic performance. Among the most widely used are vitamin supplements, protein, branched-chain amino acids (BCAA), glutamine, essential fatty acids, meal replacement products, creatine, weight loss products and testosterone boosters. Supplements are sold either as single ingredient preparations or in the form of "stacks" - proprietary blends of various supplements marketed as offering synergistic advantages. While many bodybuilding supplements are also consumed by the general public their salience and frequency of use may differ when used specifically by bodybuilders.2.3 Benefit For Consuming Supplement

Supplement has a function as a thing that complete a food not for substitute a food. Supplement contains several vitamin and mineral that can not produces by our body. There are


http://en.wikipedia.org/wiki/Testosterone

http://en.wikipedia.org/wiki/Creatine

http://en.wikipedia.org/wiki/Essential_fatty_acids

http://en.wikipedia.org/wiki/Glutamine

http://en.wikipedia.org/wiki/Branched-chain_amino_acids

http://en.wikipedia.org/wiki/Branched-chain_amino_acids

http://en.wikipedia.org/wiki/Protein_(nutrient)

http://en.wikipedia.org/wiki/Weight_loss

http://en.wikipedia.org/wiki/Weight_loss

http://en.wikipedia.org/wiki/Athletics_(U.S.)

http://en.wikipedia.org/wiki/Bodybuilding

http://en.wikipedia.org/wiki/Dietary_supplement

http://en.wikipedia.org/wiki/Dietary_supplement

http://en.wikipedia.org/wiki/Nordic_countries

http://en.wikipedia.org/wiki/Nordic_countries

http://en.wikipedia.org/wiki/Vitamin_D

http://en.wikipedia.org/wiki/B_vitamin

http://en.wikipedia.org/wiki/Antioxidant

http://en.wikipedia.org/wiki/Vitamin_A

http://en.wikipedia.org/wiki/Vitamin_E

http://en.wikipedia.org/w/index.php?title=Beta-carotein&action=edit&redlink=1

http://en.wikipedia.org/w/index.php?title=Beta-carotein&action=edit&redlink=1

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several benefits for consuming supplement, like the following below :

1. Increasing A Metabolism

Having a problem in metabolism and digestion can affect nutrition’s absorption in our body, that lessen our nutrition intake. Consuming supplements in a right amount can help to increase a metabolism and give an enough nutrition for our body.

2. Helping Vegetarian In Diet

Vegetarian does not consume a food from animal, however a lot nutrition that vegetable does not contain, like protein, vitamin, and mineral. As the solution vegetarian can consume supplement that contain protein, vitamin and any other mineral which is needed.

3. Increasing Stamina

Body can not produce vitamin, therefore our body needs a vitamin from outside. For example vitamin C is used for increasing stamina and prevent body from a disease. Furthemore as an antioxidants that can help muscle when exercising.

4. Increasing Health

Supplement can provide a mineral, vitamin and so on that body need to maintain a health. For example, women who in a pre menopause condition loss a lot of Fe every month. In order to fulfill Fe, women can consumen a supplement that contain Fe for helping eritrosit production and effective for preventing anemia. The other, supplement contains vitamin D and calsium for helping people who in a risk for osteoporosis.

2.4 How Supplement Works


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Firstly, we need to intake the supplement into our body. When it reach the gastic the supplement will be disosiate into a small particle so it will be easy to absorb for our body. Next the supplement will be transfer into illeum and the absorbtion process is occured. After absorbtion happens the supplement will be transporting through out our vein together with our blood. At the end, the supplement will reach the cell for helping the cell based on the supplemet function. 2.5 Main Ingredient for Candy

2.5.1 Sugar

The white stuff we know as sugar is sucrose, a molecule composed

of 12 atoms of carbon, 22 atoms of hydrogen, and 11 atoms of oxygen

(C12H22O11). Like all compounds made from these three elements, sugar is

a carbohydrate. It’s found naturally in most plants, but especially in

sugarcane and sugar beets - hence their names.

Sucrose is actually two simpler sugars stuck together: fructose and

glucose. In recipes, a little bit of acid (for example, some lemon juice or

cream of tartar) will cause sucrose to break down into these two

components. If you look closely at dry sugar, you’ll notice it comes in little

cubelike shapes. These are sugar crystals, orderly arrangements of sucrose

molecules.

The fact that sugar solidifies into crystals is extremely important in

candy making. There are basically two categories of candies -

crystalline (candies which contain crystals in their finished form, such as

fudge and fondant), and noncrystalline, or amorphous(candies which do

not contain crystals, such as lollipops, taffy, and caramels). Recipe

ingredients and procedures for noncrystalline candies are specifically

designed to prevent the formation of sugar crystals, because they give the

resulting candy a grainy texture.

Commercially, candies are often divided into three groups,

according to the amount of sugar they contain:

100% sugar (or nearly so), such as hard candies or creams


http://en.wikipedia.org/wiki/Hard_candies

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95% sugar or more, with up to 5% other ingredients, such

as marshmallows or nougats, and

75 to 95% sugar, with 5 to 25% other ingredients, such as fudge or

caramels.

Each of these three groups contains both crystalline and amorphous

candies. In Januari 2014, sugar price is in the range of Rp 8,550 to Rp

8,650 each kg Suwandi Adig, 2014)

One way to prevent the crystallization of sucrose in candy is to

make sure that there are other types of sugar—usually, fructose and

glucose—to get in the way. Large crystals of sucrose have a harder time

forming when molecules of fructose and glucose are around. Crystals form

something like Legos locking together, except that instead of Lego pieces,

there are molecules. If some of the molecules are a different size and

shape, they won’t fit together, and a crystal doesn’t form.

A simple way to get other types of sugar into the mix is to "invert"

the sucrose (the basic white sugar you know well) by adding an acid to the

recipe. Acids such as lemon juice or cream of tartar cause sucrose to break

up (or invert) into its two simpler components, fructose and glucose.

Another way is to add a nonsucrose sugar, such as corn syrup, which is

mainly glucose. Some lollipop recipes use as much as 50% corn syrup;

this is to prevent sugar crystals from ruining the texture.

Fats in candy serve a similar purpose. Fatty ingredients such as

butter help interfere with crystallization—again, by getting in the way of

the sucrose molecules that are trying to lock togeter into crystals. Toffee

owes its smooth texture and easy breakability to an absence of sugar

crystals, thanks to a large amount of butter in the mix.

2.5.2 Stevia Sugar

Stevia is perhaps unique among food ingredients because it's most

valued for what it doesn't do. It doesn't add calories. Unlike other sugar

substitutes, stevia is derived from a plant. The stevia plant is part of the

Asteraceae family, related to the daisy and ragweed. Several stevia species

called "candyleaf" are native to New Mexico, Arizona and Texas. But the


http://en.wikipedia.org/wiki/Nougat

http://en.wikipedia.org/wiki/Marshmallow

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prized species, Stevia rebaudiana (Bertoni), grows in Paraguay and Brazil,

where people have used leaves from the stevia bush to sweeten food for

hundreds of years. In traditional medicine in these regions, stevia also

served as a treatment for burns, colic, stomach problems and sometimes as

a contraceptive.

The U.S. Department of Agriculture estimates Americans added

more sugar to their diet every year since the 1970s until 2000. When

Americans dropped the added sugar, they turned to sugarlike extracts. The

sugar substitute market was estimated to be worth $10.5 billion in 2012,

according an analysis by Markets and Markets research firm. In November

2013, the price of stevia sugar in Indonesia reach Rp 240,000 each kg.

And the market may be growing. Just 18 percent of U.S. adults

used low- or no-calorie sweeteners in 2000. Now, 24 percent of adults and

12 percent of children use the sugar substitutes, according to a 2012

review in the American Journal of Clinical Nutrition.

The question of whether stevia is safe to consume largely depends

on what someone means by "stevia." The U.S. Food and Drug

Administration has not approved stevia leaves or "crude stevia extracts"

for use as food additives. Studies on stevia in those forms raise concerns

about the control of blood sugar and effects on the reproductive,

cardiovascular, and renal systems, the FDA warns.

There are some health concerns surrounding the stevia plant. Stevia

may cause low blood pressure, which would be of concern to some taking

blood pressure medications. Stevia may also interact with anti-fungals,

anti-inflammatories, anti-microbials, anti-cancer drugs, anti-virals,

appetite suppressants, calcium channel blockers, cholesterol-lowering

drugs, drugs that increase urination, fertility agents and other medications,

Ulbricht said. People should talk with their doctor before deciding to take

stevia in large amounts.

Stevia’s sweet taste and all-natural origins make it a popular sugar

substitute. With little long-term outcomes data available on the plant

extract, it is possible that stevia in large quantities could have harmful


http://www.livescience.com/11671-quest-painless-check-blood-sugar.html

http://www.livescience.com/36816-limit-added-sugar.html

http://www.livescience.com/36816-limit-added-sugar.html

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effects. However, it seems safe to say that when consumed in reasonable

amounts, stevia may be an exceptional natural plant-based sugar

substitute.

2.5.3. Honey

For thousands of years, honey has been recognized as one of the

most natural home remedies to treat a wide range of ailments and

complaints including yeast infection, athlete foot, and arthritis pain. Its

antiseptic properties inhibits the growth of certain bacteria and helps keep

external wounds clean and free from infection. Honey has been used as a

natural cure in first aid treatment for wounds, burns and cuts as it is able to

absorb moisture from the air and promote healing. Its antibacterial

properties prevent infection and functions as an anti-inflammatory agent,

reducing both swelling and pain, and even scarring.

Scientists have revealed that honey has powerful anti-bacterial

properties on at least sixty species of bacteria, and unlike antibiotics,

which are often useless against certain types of bacteria, honey is non-

toxic and has strong effects.

The composition of honey includes sugars such

as glucose and fructose and also minerals such as magnesium, potassium,

calcium, sodium chloride, sulphur, iron and phosphate. Depending on the

quality of the nectar and pollen, the vitamins contained in honey are B1,

B2, C, B6, B5 and B3.

The pH of honey is commonly between 3.2 and 4.5. This relatively

acidic pH level prevents the growth of many bacteria. The non-peroxide

antibiotic activity is due to methylglyoxal (MGO) and an unidentified

synergistic component. Most honeys contain very low levels of MGO, but

manuka honey contains very high levels. The presence of the synergist

in manuka honey more than doubles MGO antibacterial activity. Honey is

primarily a saturated mixture of two monosaccharides. This mixture has a

low water activity. Most of the water molecules are associated with the

sugars and few remain available for microorganisms, so it is a poor

environment for their growth. If water is mixed with honey, it loses its low


http://en.wikipedia.org/wiki/Water_activity

http://en.wikipedia.org/wiki/Monosaccharides

http://en.wikipedia.org/wiki/Manuka_honey

http://en.wikipedia.org/wiki/Methylglyoxal

http://en.wikipedia.org/wiki/PH

http://en.wikipedia.org/wiki/Phosphate

http://en.wikipedia.org/wiki/Fructose

http://en.wikipedia.org/wiki/Glucose

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water activity, and therefore, no longer possesses this antimicrobial

property. Hydrogen peroxide is formed in a slow-release manner by the

enzyme glucose oxidase present in honey. It becomes active only when

honey is diluted, requires oxygen to be available for the reaction, thus it

may not work under wound dressings, in wound cavities or in the gut. It is

active only when the acidity of honey is neutralised by body fluids, it can

be destroyed by the protein-digesting enzymes present in wound fluids,

and is destroyed when honey is exposed to heat and light.

Honey chelates and deactivates free iron, which would otherwise catalyse

the formation of oxygen free radicals from hydrogen peroxide, leading to

inflammation. Also, the antioxidant constituents in honey help clean up

oxygen free radicals.

C6H12O6 + H2O + O2 → C6H12O7 + H2O2 (glucose oxidase reaction)

When honey is used topically, as, for example, a wound dressing,

hydrogen peroxide is produced by dilution of the honey with body fluids.

As a result, hydrogen peroxide is released slowly and acts as an antiseptic.

In 2013, honey prices ranging from Rp 65,000 to Rp 105,000 each kg (CV

Seribu Bunga., 2013).

2.6 Nutrition as Supplement2.6.1 Vitamin C

Vitamin C is a vitamin. Some animals can make their own vitamin C, but people must get this vitamin from food and other sources. Good sources of vitamin C are fresh fruits and vegetables, especially citrus fruits. Vitamin C can also be made in a laboratory.

Most experts recommend getting vitamin C from a diet high in fruits and vegetables rather than taking supplements. Fresh-squeezed orange juice or fresh-frozen concentrate is a better pick than ready-to-drink orange juice. The fresh juice contains more active vitamin C. Drink fresh-frozen orange juice within one week after reconstituting it for the most benefit. It you prefer ready-to-drink orange


http://en.wikipedia.org/wiki/Hydrogen_peroxide

http://en.wikipedia.org/wiki/Gluconic_acid

http://en.wikipedia.org/wiki/Glucose

http://en.wikipedia.org/wiki/Free_radicals

http://en.wikipedia.org/wiki/Chelation

http://en.wikipedia.org/wiki/Glucose_oxidase

http://en.wikipedia.org/wiki/Hydrogen_peroxide

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juice, buy it 3 to 4 weeks before the expiration date, and drink it within one week of opening.

Historically, vitamin C was used for preventing and treating scurvy. Scurvy is now relatively rare, but it was once common among sailors, pirates, and others who spent long periods of time onboard ships. When the voyages lasted longer than the supply of fruits and vegetables, the sailors began to suffer from vitamin C deficiency, which led to scurvy.

These days, vitamin C is used most often for preventing and treating the common cold. Some people use it for other infections including gum disease, acne and other skin infections, bronchitis, human immunodeficiency virus (HIV) disease, stomach ulcers caused by bacteria called Helicobacter pylori, tuberculosis, dysentery (an infection of the lower intestine), and skin infections that produce boils (furunculosis). It is also used for infections of the bladder and prostate.

As an antioxidant, vitamin C helps to prevent cataracts the clouding of the lens of the eye that can lead to blindness in older adults. The lens needs a lot of vitamin C to counteract all the free radicals that form as a result of sunlight on the eye. Vitamin C is concentrated in the lens. When there's plenty of this vitamin floating through your system, it's easy

for the body to pull it out of your blood and put it into the lens, protecting it

from damage. It's possible that 1,000 mg per day of vitamin C might stop

cataracts in their tracks and possibly improve vision.

Some people use vitamin C for depression, thinking problems,

dementia, Alzheimer's disease, physical and mental stress, fatigue, and

attention deficit-hyperactivity disorder (ADHD). Other uses include

increasing the absorption of iron from foods and correcting a protein

imbalance in certain newborns (tyrosinemia).


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There is some thought that vitamin C might help the heart and

blood vessels. It is used for hardening of the arteries, preventing clots in

veins and arteries, heart attack, stroke, high blood pressure, and high

cholesterol.

Vitamin C is also used for glaucoma, preventing cataracts,

preventing gallbladder disease, dental cavities (caries), constipation, Lyme

disease, boosting the immune system, heat stroke, hay fever, asthma,

bronchitis, cystic fibrosis, infertility, diabetes, chronic fatigue syndrome

(CFS), autism, collagen disorders, arthritis and bursitis, back pain and disc

swelling, cancer, and osteoporosis. Additional uses include improving

physical endurance and slowing aging, as well as counteracting the side

effects of cortisone and related drugs, and aiding drug withdrawal in

addiction.

2.6.2 Vitamin B Complex

The vitamin B-complex refers to all of the known essential water-

soluble vitamins except for vitamin C. These include thiamine (vitamin B1),

riboflavin (vitamin B2), niacin (vitamin B3), pantothenic acid (vitamin B5),

pyridoxine (vitamin B6), biotin, folic acid and the cobalamins (vitamin

B12).

"Vitamin B" was once thought to be a single nutrient . Researchers

later discovered these extracts contained a few vitamins, which were given

distinguishing numbers, leading many people to the erroneous conclusion

that these vitamins have a special relationship to each other. Further adding

to confusion has been the "unofficial" designation of other, non-essential

vitamins, as members of the B-complex, such as choline, inositol, and para-

aminobenzoic acid (PABA).

Each member of the B-complex has a unique structure and

performs unique functions in the human body. Thiamine plays a central role

in the generation of energy from carbohydrates. Riboflavin is involved in the

energy production for the electron transport chain, the citric acid cycle, as

well as the catabolism of fatty acids (beta oxidation). Niacin plays an

important role in energy transfer reactions in the metabolism of glucose, fat


http://en.wikipedia.org/wiki/Beta_oxidation

http://en.wikipedia.org/wiki/Citric_acid_cycle

http://en.wikipedia.org/wiki/Electron_transport_chain

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and alcohol. Pantothenic acid is involved in the oxidation of fatty acids and

carbohydrates. Pyridoxine plays an important role in gluconeogenesis.

Biotin plays a key role in the metabolism of lipids, proteins and

carbohydrates. Folic Acid involved in the transfer of single-carbon units in

the metabolism of nucleic acids and amino acids. Vitamin B12 is involved in

the cellular metabolism of carbohydrates, proteins and lipids. It is essential

in the production of blood cells in bone marrow, nerve sheaths and proteins.

So, vitamins B1, B2, B3, and biotin participate in different aspects of energy

production, vitamin B6 is essential for amino acid metabolism, and vitamin

B12 and folic acid facilitate steps required for cell division.

Each of these vitamins has many additional functions, though none

that require all B-complex vitamins simultaneously. Human requirements

for each B vitamin vary considerably from 3 mg per day for vitamin B12 to

18 mg per day for vitamin B3 in adult males, for example. So, taking equal

amounts of each one as provided in many B-complex supplements makes

little sense. Megadoses of B-complex vitamins sometimes taken to combat

everyday stress, boost energy, or control food cravings, do not appear to

offer benefit unless a person is deficient in one or more of them.

Most multivitamin-mineral products contain the B-complex along

with the rest of the essential vitamins and minerals. Since they are more

complete than B-complex vitamins alone, multiple vitamin-mineral

supplements are recommended to improve overall micronutrient intake and

prevent deficiencies.

2.6.3 Caffeine

There are a variety of ways you can consume caffeine in your diet.

Many conventional foods contain various amounts of caffeine, like coffee,

tea, and even chocolate. Many manufacturers of carbonated sodas, sports

beverages and energy drinks include added caffeine in their products. You

can also add caffeine to your diet through supplements, such as capsules,

tablets, powders, energy shots and energy drinks.

Caffeine is one of the most studied food ingredients on the market

and an enormous amount of scientific research has demonstrated that


http://en.wikipedia.org/wiki/Proteins

http://en.wikipedia.org/wiki/Carbohydrates

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caffeine is a safe ingredient, whether in a conventional food or a dietary supplement. As with most products, moderation is the key. You should be aware of how much caffeine you are consuming throughout the day, and whether you have a medical condition or have any special sensitivities to caffeine.

FDA has stated that for healthy adults, caffeine intake of up to 400 mg per day is not associated with negative health impacts.1 Some people can tolerate a good deal more than that. When determining how much caffeine makes sense for you, consider your metabolism, your general health, any medications you may be using, and whether you’re getting your daily caffeine in one sitting or at different times throughout the day. Be aware that too much caffeine can lead to increased heart rate, jitters, and trouble sleeping. Children as well as women who may be pregnant or nursing are encouraged to be especially mindful of their caffeine consumption.

Caffeine, a central nervous stimulant, is arguably the most ingested pharmacologically active substance in the world. As it occurs naturally in more than 60 plants, caffeine has been part of many cultures for centuries. But the caffeine-in-food landscape is quickly changing. Along with energy drinks and supplements, the array of new caffeine-containing products, including food products, is rapidly expanding. Historically, scientific research has shown that moderate consumption of naturally-occurring caffeine, such as in coffee and tea, by healthy adults is not associated with adverse health effects. However, the inclusion of caffeine in products such as soft drinks and other beverages, foods, and supplements raises concerns about safety, and about whether new products target populations not normally


17

associated with high caffeine consumption – like children and adolescents – and whether caffeine poses a greater health risk to those populations.2.6.4 Saponine

Saponins are a class of chemical compounds, one of many secondary metabolites found in natural sources, with saponins found in particular abundance in various plant species. Any of numerous glycosides that occur in many plants (soapbark, soapwort, or sarsaparilla) that are characterized by their properties of foaming in water solution and producing hemolysis when solutions are injected into the bloodstream and that on hydrolysis yield a triterpenoid or steroid sapogenin and one or more sugars (glucose, galactose, xylose). Saponins-group of chemicals with detergent-like properties that plants produce to help them resist microbial pathogen such as fungi and certain bacteria and viruses.2.6.5 Taurine

Taurine, or 2-aminoethanesulfonic acid, is an organic acid. It is a

major constituent of bile and can be found in the lower intestine and, in

small amounts, in the tissues of many animals, including humans. Taurine is

a derivative of the sulfur-containing (sulfhydryl) amino acid cysteine.

Taurine is one of the few known naturally occurring sulfonic acids. Taurine

is named after the Latin ''Taurus'' (a cognate of the Greek ''ταύρος'') which

means bull or ox, as it was first isolated from ox bile in 1827 by German

scientists Friedrich Tiedemann and Leopold Gmelin.

Taurine is an amino acid that supports neurological development and

helps regulate the level of water and mineral salts in the blood. It is essential

for cardiovascular function, and development and function of skeletal

muscle, the retina and the central nervous system. Taurine is also thought to

have antioxidant properties. Taurine is found naturally in meat, fish and

breast milk, and it's commonly available as a dietary supplement. Some


http://en.wikipedia.org/wiki/Central_nervous_system

http://en.wikipedia.org/wiki/Retina

http://en.wikipedia.org/wiki/Skeletal_muscle

http://en.wikipedia.org/wiki/Skeletal_muscle

http://en.wikipedia.org/wiki/Circulatory_system

18

studies suggest that taurine supplementation may improve athletic

performance, which may explain why taurine is used in many energy drinks.

Other studies suggest that taurine combined with caffeine improves mental

performance, although this finding remains controversial. And in one study,

people with congestive heart failure who took taurine supplements three

times a day for two weeks showed improvement in their exercise capacity.

Up to 3,000 milligrams a day of supplemental taurine is considered

safe. Any excess taurine is simply excreted by the kidneys. The mean daily

intake from omnivore diets was determined to be around 58 mg (range from

9 to 372 mg) and to be low or negligible from a strict vegan diet. In another

study, taurine intake was estimated to be generally less than 200 mg/day,

even in individuals eating a high-meat diet. According to another study,

taurine consumption was estimated to vary between 40 to

400 mg/day.Moderation is important, however. Little is known about the

effects of heavy or long-term taurine use.

2.6.6 MannitolMannitol (also referred to as mannite or manna sugar) is a white,

crystalline solid with the chemical formula C6H8(OH)6. It was originally

isolated from the secretions of the flowering ash and called manna after its

resemblance to the Biblical food. In plants, it is used to induce osmotic

stress. It has several industrial uses, but is mainly used to produce tablets of

medicine. Its fetal safety is "C" in Briggs' Reference Guide to Fetal and

Neonatal Risk. Mannitol is classified as a sugar alcohol; that is, it is derived

from a sugar (mannose) by reduction. Other sugar alcohols include xylitol

and sorbitol. Mannitol and sorbitol are isomers, the only difference being the

orientation of the hydroxyl group on carbon 2.

Mannitol increases blood glucose to a lesser extent than sucrose

(thus having a relatively low glycemic index) and is therefore used as a

sweetener for people with diabetes, and in chewing gums. Although

mannitol has a higher heat of solution than most sugar alcohols, its

comparatively low solubility reduces the cooling effect usually found in

mint candies and gums. However, when mannitol is completely dissolved in


http://en.wikipedia.org/wiki/Heat_of_solution

http://en.wikipedia.org/wiki/Chewing_gum

http://en.wikipedia.org/wiki/Diabetes

http://en.wikipedia.org/wiki/Sugar_substitute

http://en.wikipedia.org/wiki/Glycemic_index

http://en.wikipedia.org/wiki/Sucrose

http://en.wikipedia.org/wiki/Sorbitol

http://en.wikipedia.org/wiki/Xylitol

http://en.wikipedia.org/wiki/Mannose

http://en.wikipedia.org/wiki/Sugar_alcohol

http://en.wikipedia.org/wiki/Osmotic_stress

http://en.wikipedia.org/wiki/Osmotic_stress

http://en.wikipedia.org/wiki/Manna

http://en.wikipedia.org/wiki/Flowering_ash

19

a product, it induces a strong cooling effect. Also, it has a very low

hygroscopicity- it does not pick up water from the air until the humidity

level is 98%. This makes mannitol very useful as a coating for hard candies,

dried fruits, and chewing gums, and it is often included as an ingredient in

candies and chewing gum. The pleasant taste and mouthfeel of mannitol also

makes it a popular excipient for chewable tablets.

Mannitol is found in abundance in nature, particularly in exudates

from trees, and in marine algae and fresh mushrooms. It is an isomer of

sorbitol and is typically produced today by the hydrogenation of specialty

glucose syrups. Mannitol is commercially available in variety of powder and

granular forms. In the United States, mannitol is provided by a number of

manufacturers, including Roquette America, and SPI Polyols.


http://en.wikipedia.org/wiki/Excipient

http://en.wikipedia.org/wiki/Hygroscopicity

20

CHAPTER III

NEEDS AND IDEAS

3.1 Find NeedsAs we have already known, candies are very well known

product in Indonesia. There are many kinds of candy’s brand which spread easily in the society. But this far, there are not any candy products which has an added value as energy boost. The candy which has the added value as energy boost or simply called “energy candy” is very rare even in the worldwide known. In Indonesia, this kind of product is not exist because energy boost need is still fulfilled by energy drinks product. Based on the condition, we convince ourselves to take the opportunity of creating the energy candy product.

In order to succeed the energy candy product, we have to identify what the consumer thinks and what consumer’s expectation. There are few method which we use to evaluate it. Those are:

Indirect Market AnalysisThe indirect market analysis is done by exploring any

information outside the market itself. The word indirect means that in this method, we do not have direct contact with the perspective consumers. Some example of informations which need to be explored in this kind of analysis are production of candy, candy consumed each year, supplement consumed each year, and many others.

The obtaining data in the indirect market analysis is from literature study, throughout the internet, books, etc. The principal of this analysis is to find out the condition of larger scale market which cannot be done in direct market analysis.

Direct Market Analysis


21

The main aim of this analysis is to know what the prospective consumer need, whether it is about supplement need or candy need. There will be fifty (50) respondents which we have interviewed. The interview contains questions which combine the candy aspect and supplement aspect so that the result will head for the energy candy product specifications. The fifty respondents are consisting of five different occupation and all are interviewed one by one. The differentiation of respondents are needed in order to acquire a divergent data. 3.1.1 Interpreted NeedsThe concept to create energy candy is to fulfill consumer

need of energy boost except for consuming supplements. The using of supplements still have a lot of disadvantages like expensive and lack of influence. Creating new product named energy candy is the innovation we would like to offer. Hopefully the innovation will completing consumer need which is not provided by usual candy or supplements.

In order to know what consumer truly need, we have done the direct market analysis via interview. The fifty respondent consist of five different occupation which are university students, housewives, entrepreneur, office woreker, and field worker.

3.1.1.1 The amount of respondent who need supplementFirst question which we give to the respondent is “Do

you need supplement in your life?”. The result shows that 80% percent respondent need the supplement in their life, and 20% respondent seems not to want for supplement as their daily life need. It can be seen in the Appendix I. 3.3.1.1.2 The amount of respondent who ever consume

supplementBased on the interview which we have done, most of

respondents (88%) have ever consumed supplements, and


22

the rest respondents (12%) are people who never tried to consume supplement in their life so far, as shown in the Appendix I. 4.3.1.1.3 Benefit after consuming supplement

Different kind of supplement will give you different effect to your body. In general, consumer tend to desiring a specific effect. Based on our analysis, there are five impacts which consumer want to undergo. There are 44% want to increase their stamina, 19% for refreshing their body, 16% to enhance the concentration, 12% for health, and 9% to avoid sleepiness, as shown in the Appendix I. 5.


23

3.1.1.4 Supplement’s weaknessFrom the statistic above, we have already known that

there are many people who have ever consumed supplements. In the other hand, another aspect of supplement is need to be explored, and that is its weakness.

Based on the Appendix I. 6, there are two main weakness of supplement. They are expensive and lack of influence. This result will become an important evaluation to create the energy candy with minimum weakness.3.1.1.5 People interest in Energy Candy

Before we make sure to create a new product, we should try to offer the idea of energy candy directly to the prospective consumer. As ever state before, the idea is to create a supplement in the form of candy. It is a great chance due to the result we get, 82% people concede that they are interested in energy candy, as seen in the Appendix I. 7.3.1.1.6 The amount of respondent who likes candy

Because we are planning to create new product in the form of candy, we have to make sure or at least prove that candies are likeable one. The result that we get is 76% people like candies. This showing that energy candy is widely open to enter the market. This result also become our consideration. The detail can be seen in the Appendix I. 8.3.1.1.7 Reason for consuming candy

Candies have many kind of brands and types. This analysis is implemented in order to know the reason or background why consumer like candies. The outcome indicate that most respondents love candy are likely due to the flavor, as shown in the Appendix I. 9.


24

3.1.1.8 Desired Energy Candy TextureTexture is one of essential factor for people in

choosing and consuming candies. Based on our respondents who have interviewed about their interest of candy, 41% respondents say they like hard candy, 28% like soft candy, 20% like candy with contents, 7% like chocolate candy, 2 like bubble-gum and 2% others like lollipop, as seen in the Appendix I. 9.


25

3.1.1.9 Desired Energy Candy’s ShapeWe found many various shape of candies in the

market, such as oval, ball, cube and tablet. About 36% respondents answer that they like oval shape, 25% like cube shape, 22% like ball shape, and 10% like tablet candy. Beside that, 7% respondents giving another answer. 5% among them like animal’s shape and 2% like fruit’s shape. From Appendix I. 11, we can decide which kind of candy form that consider to our products. 3.1.1.10 Desired Energy Candy’s Flavor

From the previous data, we know that flavor is favorable reason for most people of consuming candies. To decide what the most desirable flavor for our product, we asked our respondents and get the information that 30% of them like mint flavor, 25% like orange flavor, 19% like chocolate, 10% like ginger flavor, 6% like fruits flavor, 3% like coffee flavor, 3% like tamarind, 2% like strawberry flavor and 2% like sweet flavor. From Appendix I. 12, we will decide the kind of seasoning by consumers needs.3.1.1.11 Desired Energy Candy’s Colour

Candy’s colors are variegated in the markets. 56% from our total respondent answer that the colors have affect for consuming candies. Some of them doesn’t like eyecatching colors because they worry if the products using harmful dyes. They expect candy’s colors represents the taste of products. But 44% respondents answer the colors not affect them for consuming candies, as shown in the Appendix I. 13.3.1.1.12 Desired Energy Candy’s Packaging

By asking the consumers, we get data that 60% respondents choose plastic as the package, 18% choose paper, 15% choose glass, 5% choose metal and 2% of our


26

respondent choose wood. Due to Appendix 1. 14, we can decide which material will be used for our products.3.1.1.13 Frequency In Consuming Candy

Based on our respondents who like to consume candies, we asked their consuming frequency per day and get the data that 65% respondents consume 1-3 candies per day, 27% consume 4-6 candies, 4% 7-9 candies and 4% others consume >12 candies per day, as seen in the Appenddix I.15.3.1.1.14 Place To Buy Candy

From the previous data, we know that respondents like candies and have frequency in consuming them per day. 34% from total respondents buy candy in the minimarket, 26% in small shop, 15% in the shop, 14% in supermarket, 8% in canteen and 3% get candies from his/her friends. From Appendix I. 16, we can analyze the markets to distributes our energy candy’s products. 3.1.1.15 Desired Energy Candy’s Price

To decide our product’s price, we asked the respondents about price range they want if there are energy candy products. 82% respondents want range of energy candy’s price lower than Rp2.500,00, 15% Rp2.500,00 until Rp5.000,00 and 2% still can tolerant with price between Rp5.000,00 until Rp7.500,00 per piece, as shown in the Appendix I. 17.

3.1.2 Consumer Needs IdentificationFrom the result of interview of 50 respondents who come

from many groups including college students, field workers, office workers, and housewives, and also based on our discussion. We find innovation of the current product that can be concluded consumer needs in a more systematic form. This is the


27

result of tidying up the needs from consumerexpected from energy candy. It can be seen in the Appendix I.1

Based on The Appendix I.1, we made list of needs of energy candy. Appendix I.2 below show the results of interpreted needs what the respondents required about energy candy.

Table 3. 1. List of needsNumber Needs

1 Supplements to eliminate sleepiness

2 Supplements to increase mind focus

3 Supplements to increase stamina

4 Supplements to refreshing body

5 Supplements to increase endurance

6 Supplements that are cheap

7 Supplements that are practically

Number Needs

8 Supplements that easy to get

9 Supplements that does not contain chemical hazard

10 Supplements that does not addictive

11 Energy Candy that has delicious flavor

12 Energy Candy that has interesting color

13 Energy Candy that has good effect

14 Energy Candy has good packaging

15 Energy Candy which pack contain of 1-3 piece

16 Energy Candy that easy to get

17 Energy Candy with price range < Rp 5000 per piece

18 Product contain supplement of vitamins

19 Energy candy that can be consume by adults

20 Energy Candy’s color represent taste

21 Energy Candy has solid texture

22 Energy Candy has oval shape

23 Energy Candy has smooth surface(Source: 13th group’s data)

3.1.3 Grouping and Ranking Needs


Appendix 3. 1. (Cont’d) Needs of energy candy product

28

After analyze consumens needs, the data should be categorized into groups accordance with the requirements. The groups will be ranked based on its importance. The rank compiled based on this scale of importance:

1 = undesirable2 = unimportant3 = nice to have4 = highly desirable5 = essential

This step aims to make easier and systematic analysis to identify which needs should be priorities or not. The table below provide the result of needs grouping and ranking for energy candy based on the data which have been collected.

Table 3. 2. Grouping and Ranking NeedsNo. Need

NumberNeed Description Rank

Product Perception1. 11 Energy candy has a delicious

taste5

2. 12 Energy candy has an interesting color

4

Product Properties5. 23 Smooth surface while being

eaten4

6. 22 Has an oval shape 37. 21 Has a hard texture 4

Product Performances8. 1,4 Supplement to refreshing body 59. 3 Supplement to increase stamina 510. 2 Supplement to increase the

mind focus5

11. 5 Supplement to increase endurance

5

Retailing12. 6, 17 Price range for low until

medium economic rate(< Rp2.500,00) per piece

4

13. 14 Plastic based packaging 314. 14 Packaging easy to carry 3

Regulations


29

16. 13 Does not cause caries and diabetes

5

17. 13 Composition of taurine 40-400 mg

5

(Source: 13th group’s data)


CHAPTER IV

PRODUCT SPECIFICATION

Figure 4. 1. Grouping Needs(Source: 13th group’s data)


Energy Candy

Products Perspective

Products Propertie

s

Products Performanc

e Retailing

Regulations

Does not cause caries and diabetes (5)

Composition of taurine 40 – 400mg (5)

Price range for low until medium economic rate (< Rp2.500,00) per piece (5)

Plastic based packaging (5) Packaging easy to carry (4)

Supplement to refreshing body (5) Supplement to increase stamina

Packaging easy to carry (5) Supplement to increase the mind

focus (5) Supplement to increase endurance

(5)

Smooth surface while being eaten (4)

Has oval shape (4) Has a hard texture (4)

Energy candy has a delicious taste (5) Energy candy has an interesting color (4)

31

4.1 List of MetricSpecification is a form of quantitativeof the needs of the consumer. After

obtained a list of needs that have been grouped and ranked each of those needs,

given the specification along with the unit to facilitate the achievement of those

needs. Giving specifications and unit (matrix unit).

Table 4. 1. List of MetricsMetrics

NumberNeed Description Specification

Unit

MetricsRank

Products Perception

1 Energy candy has a delicious taste Taste Subjective 5

2Energy candy has an interesting

colorColor Subjective 4

Products Properties

3 Smooth surface while being eatenRa ( Surface

Roughness)

Dimensionle

ss4

4 Has an oval shape Roundness Subjective 4

5 Has a hard texture Hardness Subjective 4

Products Performance

6 Supplement to refreshing body Taurine g 5

7 Supplement to increase stamina Glucose g5

8Supplement to increase the mind

focusVitamin B complex g 5

9 Supplement to increase endurance Vitamin C g 5


32

Metrics

NumberNeed Description Specification

Unit

MetricsRank

Products Retailing

10

Price range for low until medium

economic rate (< Rp2.500,00) per

piece

Price Rp 5

11 Plastic based packaging PackagingType Of

Plastic5

12 Packaging easy to carry Effectiveness Subjective 4

Products Regulating

13 Does not cause caries and diabetes Sugar Concentration g/g 5

14Composition of taurine 40 –

400mg

Taurine

Concentrationg/g 5

Table 4. 2. Unit of needs

Need

NumberNeed(s)

Metrics

Subjective g dimensionlessType of

plasticg/g Rp

Product Perception

11

Energy candy

has a delicious

taste

12

Energy candy

has an

interesting color


Table 4.1. (Cont’d) List of metrics

33

Need

Number

Need(s) Metrics


plasticg/g Rp

Product Properties

23

Smooth surface

while being

eaten

22Has an oval

shape

21Has a hard

texture

Product Performance

1, 4Supplement to

refreshing body

3Supplement to

increase stamina

2

Supplement to

increase the

mind focus

5

Supplement to

increase

endurance


Table 4.2. (Cont’d) Unit of needs

34

Need

NumberNeed(s)

Metrics


plasticg/g Rp

Product Retailing

6, 17

Price range for

low until

medium

economic rate (<

Rp2.500,00) per

piece

14Plastic based

packaging

14Packaging easy

to carry

Product Regulation

13

Does not cause

caries and

diabetes

13

Composition of

taurine 40–

400mg

(Source: 13th group’s data)4.2 Benchmarking

The next step is benchmarking. Benchmarking is looking out, and analyze

precisely to existing product energy candy. An analysis of existing product will help

to determine market and the specifications of products on which to base in has made

design a product. Products made good comparison such products are already known

by society. Hence, we took a few products energy candy that already exist in the

market precisely had been in circulation in a foreign country for comparing the

specification to the product that we created. The competitor product that we take for

bencahmarking list there are Kabang Energy candy, Halls Cool Red Energy Candy,

X3 Energy Candy, Proman Enegy Drink, and Fatigon Spirit. Proman Energy Drink


Table 4.2. (Cont’d) Unit of needs

35

that we use is kind of drinking so in list of benchmark this product doesn’t have shape

and texture.


36

Table 4. 3. Benchmarking of existing product

Need

No.

Need

DescriptionRank Unit

Scores

Own KabangHalls

CoolX3 Proman* Fatigon

Products Perception

11

has a

delicious

taste

5 Subjective

12

has an

interesting

color

4 Subjective


37

Need

No.

Need

Description

Rank

Unit

Scores

Own KabangHalls


Products Properties

23

Smooth

surface

while being

eaten

4 dimensionless liquid

22Has an oval

shape3 Subjective liquid

21Has a hard

texture4 Subjective liquid


Table 4.3. (Cont’d) Benchmarking of existing product

38

Need

No.

Need


Scores

Own KabangHalls


Products Performance

1, 4

Supplement

to refreshing

body

5 g 0.075 0 0 0.025 0 0

3

Supplement

to increase

stamina

5 g 3 3 4 1.316 26 0

2

Supplement

to increase

the mind

focus

5 g 0.01 0.0036 0.0001 0 0.02 0.02

5

Supplement

to increase

endurance

5 g 0.1 0 0 0 0 0



39

Need

No.

Need


Scores

Own KabangHalls


Products Retailing

6, 17

Price range

for low until

medium

economic

rate (< Rp

2500,00) per

piece

4 Rp 2000 6713.3 3449.25 1846.7 7500* 1300

14Plastic based

packaging3 Plastic Yes Yes Yes Yes No No

14Packaging

easy to carry3 Subjective



40

Need

No.

Need


Scores

Own KabangHalls


Products Regulating

13

Does not

cause

cariesand

diabetes

5 g/g 3 3 4 1.316 26 0


Nb* :

= Exellent

= Very good

= Good

= Adequate



41

4.3 List of SpecificationTable 4. 4. List of Specification

Metrics

Numbe

r

Spesification Rank Unit MetricsMarginal

ValueIdeal Value Own

1 taste 5 Subjective - 2 color 4 Subjective -

3Ra ( Surface

Roughness)4 dimensionless -

4 Roundness 3 Subjective -

5 Hardness 4 Subjective -

6 taurine 5 g 0.025 - 0.4 0,3 0.075[1]

7 sugar 5 g 0 - 26 3 3[2]

8Vitamin B

complex5 g 0 - 0.0036 0 - 0.01 0.01[3]

9 vitamin C 5 g 0 - 10,0075 -

0,2250.1[4]

10 Price 4 Rp 1300 - 7500 2000 2000

11 Packaging 3type of

PlasticYes and No Yes Yes

12 Effectiveness 3 Subjective -

13Sugar

Concentration5 g/g 0 - 26 3 3[2]

14Taurine

Concentration5 g/g 0.025 - 0.4 0,3 0,075[1]

Nb* :

= Exellent

= Very good

= Good

= Adequate



42

Marginal value in list of specification is taken based on the existing product. We

take the value for new peoduct based on patent on superscript. There are ID the

patent :

[1] : CN 10266937 A

[2] : US 8545925 B2

[3] : WO 2002026055 A2

[4] : CA 2015738


CHAPTER V CREATING CONCEPT

5.1 IntroductionFrom the working in the chapter I until chapter IV, we have obtained

desired energy candy product specification. The specification are consisted of

cady’s shape, texture, energy source, performace, taste, surface texture,

packaging, and candy’s price. The shape specification is determined as oval

shape, the performance is consisting body endurance, increasing mind focus, and

of course increasing energy. The candy’s taste, colour, packaging, and candy’s

price are determined as sweet mint taste, white color, plastic packaging, and two

thousand rupiahs (Rp. 2000), respectively. Those specifications are aqcuired by

team member’s deep discussion, searching in the literature and by doing direct

interview. The detailed specification can be seen in the Table 4.3 Lisf of

specification of Chaper VI.

The team realized that the specifications above are just the foundation of

chemical product design. The foundation is needed to be more developed. It need

a pillar in order to create one complete energy candy product. The pillar itself is

concepts. Start in this Chapter 5 and later on, the team are going to discuss all

about concept such as creating concept, concept generation, concept sceering,

concept scoring, until selecting one best concept then finally comparing the final

concept and the specifications.

5.2 Existing ConceptsOne of the early steps in creating concept is conceptualizing and analyzing

existing concepts. Existing concepts are concepts that already exist and are used

as the basis of existing products. Writing, grouping, and analyzing the existing

concepts are very important steps because at this stage we can see and point out

the advantages and disadvantages from each concept for the consideration in later

stages, whether to use the concept again, using a new concept, or even combine

the concepts.

The concept existed evaluated from energy candy existing product which

specifications have been described in previous chapter. The products are Kabang,

43

44

Halls Cool, proman, fatigon and X3. The contents of these energy candy

are drawn in figure 1. The concepts are sectioned in four group, those are phasa,

energy resouces, the surface and working principle.

A. Phase and Surface

Existing products have solid, semi solid or liquid form. Solid phase has hard

texture of candy which shapes are oval, spherical and tablet. With solid phase and

hard texture, it can stay long time in the mouth and make it durable. With oval and

spherical shape, it make energy candy soft and does not cause injured while

eating. Existing product also has semi solid phase that is candy with content. The

product has hard outer and soft inner.

B. Principal

There are two main types of the existing products. They are energy booster in

candy (solid and semi solid) form and liquid (energy drinks) form. For using

principal, the existing product can be consumed by lozenged, drunk and

swallowed. Lozenged and swallowed for solid forms and drunk for liquid forms.

In work principle aspects, candy in solid or semi solid forms are better, because it

is far more easy to consume, to carry, or to save than the liquid one.

In general, energy candy works based on our mouth condition. The

temperature is 370C and pH is 7.0. The sugar which contains sucrose in the mouth

will release slowly and will be change into glucose by enzymatic process because

of our mouth have ptialyn enzyme. Sucrose have a solubility at 250C, therefore in

370C the sucrose will be dilute and release slowly in the mouth, from solid phasa

into liquid phasa.

C. Energy Resources

Energy resource from existing energy candy there are extract caffein and

taurine. As explained before, the existing candy products working by many kinds

of ways, some of them are ate lozenged, some others chewed, due to its shape

such as solid and semi solid. Most of the two main types are use caffein as their

energy booster source, for example is X3 energy candy.

Mechanism of existing product is using absorption. First of all, the caffeine in

the candy will release in our mouth and then the caffeine will be absorbed in our

tounge then go through the vein in our tongue. The caffeine in the vein will be


45

transported through our blood into neuron cells. In the neuron cells, the caffeine

will trigger our brain for refreshing our body and increasing heart beat. However,

using caffeine as energy source has a lot of side effects which do not good for our

health. For that reason, there are existing product that using taurine extract as

energy boost resource. The other product generally have a same mechanism in this

case absorption process as long as the product is in candy form. Kabang energy

candy does not using caffeine as their energy booster just using sugar and

carbohidrat as the function for giving an energy in the form of calories, well

known as the energy source for people activities.The mind map can be seen in the

Appendix II. 5.

Mechanism of existing product is using absorption. The differences are in

the energy between each existring product.For example Kabang energy candy

does not using caffeine as their energy booster just using sugar and carbohidrat as

the function for giving an energy in the form of calories, well known as the energy

source for our activities. However, Kabang energy candy has additional value,

such as having an vitamin as their selling point for body endurance and

increasing mind focus.

The other product is X3 which contains caffeine as their energy source.

First of all, the caffeine in the candy will release in our mouth and then the

caffeine will be absorbed in our tounge then go through the vein in our tongue.

The caffeine in the vein will be transported through our blood into neuron cells. In

the neuron cells, the caffeine will trigger our brain for refreshing our body and

increasing heart beat. However, using caffeine as energy source has a lot of side

effects which do not good for our health. The other product generally have a same

mechanism in this case absorption process as long as the product is candy.

In general, energy candy works based on our mouth condition. The

temperature is 370C and pH is 7.0. The sugar which contains sucrose in the mouth

will release slowly and will be change into glucose by enzymatic process because

of our mouth have ptialyn enzyme. Sucrose have a solubility at 250C, therefore in

370C the sucrose will be dilute and release slowly in the mouth, from solid phasa

into liquid phasa.


46

In conclusion, each existing concept of energy candy has its own advantages

and disadvantages. There is still much that can be done to improve the

performance of energy candy products to get a good result and fulfill consumers

needs. From the existing concepts, our team initiate to combine those specification

with our brand new concept right after this stage which will be explained in the

next stage.

5.3 New Concepts

After knowing about existing concept, we have brainstorming to create

new concepts. From the existing product, we arrange the new concepts of energy

candy. The concept was divided based on the phasa, energy resouces, the surface

and working principle. Our new concept diagram was shown in the figure 2

below.

A. Phase

We have known about phase of candy, there are solid and semi solid. Solid

candy it means that candy has solid texture that little hard to soluble with water.

So to consume, it needs more time to melting in mouth. For semi solid candy it is

a little easier to eat than solid phase because of its texture. Semi solid phase has

smooth and chewy texture not as hard solid phase.

B. Form

In solid phase’s new concept we give granule and hard concept of solid

phase. People always expected with new concept prouct that they think cool, so

we give it. With granule shape, consumen can eat it like powder candy. It will be

more faster to melting in mouth but maybe cause thirsty. For semi solid phase

there are three category, candy with content, chewy and jelly. Candy with content

is candy has solid phase outside and melting liquid outside and the liquid phase

has sour favor that will give booster sensation. Chewy candy is candy that easy to

chew and maybe little sticky in mouth and teeth. Chewy energy candy has three

subconcept there are cube, oval and spherical shapes. Jelly phase has five

subconcept there are animal, cube, fruit, oval and sprerical shapes. Jelly candy has

one different ingridients such as beef gelatin that make it more chewy.

C. Shape


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Based on the phase and form of candy, we can improve the shape for each

form. The shape will provide a more aesthetic value, because by giving an

attractive shape is likely to attract the attention of consumers. people will be

curious about the new concept of form and of course the shape adapted to the taste

offered to consumers in order to increase the public's attention.

Various forms of candy that has been circulating in the market are usually

oval shape, cube, round and others. for this new concept, we present a variety of

forms such as animal shapes, sugar cane shapes, pencil with candy on the end, so

that the rod of candy can be used to write, fruit shape where the shape will be

adjusted to taste the fruit.

D. How to Consume

For how to consume energy booster, we provide the concept of chewing

and brewed. we take this brewed concept because our concept is a general

concept, it means we still race concept with various types of energy booster such

as energy drinks. we think it is still not there forms of energy which do you eat

candy with chewing, usually this kind of regular sweet candy that is often

consumed all people including children. for this new concept, although our target

consumer is an adult, we still provide the concept of candy that chewed.

E. Mechanism

Basically, taurine as energy sources work to regulate heart beat, muscle

contraction, water balance, energy level, and levels of neutransmitters in the brain.

Energy sources do not work like an enzyme as a catalyst but to trigger the neuron

in our body which means making our heart beat increase. The process base on

absorption, energy source will be absorbed through our vein. In the vein energy

source will transfer through the blood into the cells especially neuron as the main

regulator in body as well as our product is energy booster.

Energy candy works based on our mouth condition. The temperature is

370C and pH is 7.0. The sugar which contains sucrose in the mouth will release

slowly and will be change into glucose by enzymatic process because of our

mouth have ptialyn enzyme. Sucrose have a solubility at 250C, therefore in 370C

the sucrose will be dilute and release slowly in the mouth, from solid phasa into

liquid phasa.


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F. Energy Resources

In new concept we give new energy source from plant like saponine where

it come from binahong leaves extract. Most of candy has smooth surface, in this

concept we give rough surface. It is possibility to consume for people that like

candy rough surface. If we look at principal in new concept we using method

brewed, chewed and swallow to eat. Recent studies have found benefits of

saponine are control blood cholesterol levels, bone health, cancer, and building up

the immune system.

There is tremendous, commercially driven promotion of saponins as

dietary supplements and nutriceuticals. There is evidence of the presence of

saponins in traditional medicine preparations, where oral administrations might be

expected to lead to hydrolysis of glycoside from terpenoid (and obviation of any

toxicity associated with the intact molecule). But as is often the case with wide-

ranging commercial therapeutic claims for natural products.

The claims for organismal/human benefit are often based on very

preliminary biochemical or cell biological studies; and mention is generally

omitted of the possibilities of individual chemical sensitivity, or to the general

toxicity of specific agents,) and high toxicity of selected cases. The mind map is

shown in the Appendix II. 6.

5.4 Combining Concepts

From the existing concepts and new concepts, we arrange the combining

concepts of energy candy. The concept was divided based on the phasa, energy

resouces, the surface and working principle. Our combining concept diagram was

shown in the Appendix II. 7.


CHAPTER VI CONCEPT GENERATION AND SELECTION

6.1 Concept GenerationFrom diagram concept of combining existing and new product we have

128 concepts that has not eliminating yet. After that, we reduce that concept based

of realistic manufacture and shape. Manufacturing is one of important part for

base concept, energy candy that we expected has smooth surface area so if the

consumer consume our product, they feel comfort in mouth and tasty.

Energy sources is the most important concept because our main product is

for boosting energy. The ingredients for energy source can be taken from coffee

seeds, caffeine extract, saponine extract and taurine extract. The differences

between seeds and extract are the mineral from the sources, for example energy

sources from seeds will not have an caffeine as much as the caffeine from

extraction process.

Basically, energy sources work to regulate heart beat, muscle contraction,

water balance, energy level, and levels of neutransmitters in the brain. Energy

sources do not work like an enzyme as a catalyst but to trigger the neuron in our

body which means making our heart beat increase. The process base on

absorption, energy source will be absorbed through our vein. In the vein energy

source will transfer through the blood into the cells especially neuron as the main

regulator in body as well as our product is energy booster. The 62 concept can be

seen in the appendix II. 1.

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6.1.1 Concept ElimatingIn the previous stage, the team has already brainstorming about the

energy candy concept. The brainstorming produces many concept

alternatives including concept fusion and concept merging at once. The

concept process making is assisted by the mind map containing the

existing product and new product concept which has been showed before.

The significant amount of concept alternatives shows that energy candy

product is very feasible with so many possibilities. Before entering the

concept screening, the list of concepts which have been generated need to

be eliminated very quickly due to our particular considerations. The

parameters using for concept eliminating is booster substance. So the

concept alternatives which do not have taurine as the booster substance are

going to be eliminated.

There is a reason why we make the Taurine as a parameter in this

eliminating concept stage. Taurine is an amino acid which may provide

several health benefits. In various ways, taurine has been used for Type 1

diabetes, hepatitis, some brain disorders, heart problems as in ischemic

heart disease, and more. Taurine is known to play an important role in the

brain. Taurine has antioxidant properties, It can improve athletic

performance, can contribute to heart health, can be beneficial to

diabetics, etc. Moe importantly, taurine has better performance as energy

booster than caffeine.

Caffeine is not be chosen because caffeine can make people get

addictive. The most common side effect after consuming caffeine are

diarrhean, dizziness, fast heartbeat, hyperglycemia, hypoglycomeia,

irritability, nervous, nausea, tremors, trouble in sleeping and vomitting.

Consumming caffeine too much can lead us into caffeinism which make

us anxiety, restlessness, and sleep disorder.

Saponine also is not be chosen because basicly saponine is used for

making a soap even saponine also can use as an energy booster. The other

reason is saponine can not be strong as taurine as an energy booster. So as

the results, taurine is chosen as the main ingredient for energy booster.


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The total 62 concepts above will be reduced strictly into only 16

concepts. The result of this concept eliminating stage will be shown in the

Appendix II. 8.

6.2 Concept Screening After we generate the concepts, we will select the most feasible object and

eliminate the impossible. This step is called a concept screening. This method

introduced by Stuart Pugh on 1980. This method is called Pugh Concept Selection

or Decision Making Matrix. This method have purposed to narrow down the

concepts that existed. This kind of screening consists of a few steps:

6.2.1 Prepare the Selection Matrix

Before we can narrow down ideas, first the ideas shall be

constructed in form of matrix which the row represents the ideas and every

column describes the selection criteria. Idea concepts will be compared to

benchmark brand as reference concept. The reference concept is choosen

to determine the concept ideas. This reference constructed from the most

familiar ideas and found easily on commercial product. In this type of

product we used the “Kabang Energy Candy“ brand as the reference for

the product. That brand is one of the most commercially available energy

candy brand in the market now.

The selection criteria must clear enough to differentiate and

compare every ideas. The criteria used to fill up this matrix will be

considered from age of usage, easiness to use, taste, and manufacturing

cosr. Besides, we will add several criterias from needs list and

specifications which are essensial (have rating 3-5) from previous section.

The description of the selection criteria that used as comparison for

concepts proposed for energy candy product will be given below. The

criteria will fulfil several specifications that are quite essential as described

below.

6.2.1.1 Easiness to Manufacture

Good product should be resulting from efficient manufacturing

process. This aspects are divided into two subparameter such as

sustainability of raw material and process manufacture. Subparameter that

we have choosen is expected to improve the work efficiency of the


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manufacturing energy candy. Availability ofraw materialsfocusedofthe

ease ofobtainingtherawmaterials. In this case we choose taurine extract as

energy resources because there are many advantages for health and

stamina that derived from taurine. The processs is one of the key of

succesfull to produce the product. We have to take into account how long

this process will be done. If the process has high level of difficult, it is not

appropriate to produce optimally.

6.2.1.2 Principles

People will be interested in a product which has good and easy

work principle. The work priciple for energy candy is based on the

easiness of use and the digestion mechanism in mouth.The first

subparameter of the energt candy’s work principle focus on how to

consume the candy while the subparameter of in mouth digestion are about

the candy’s stickyness and surface texture.

6.2.1.3 Age of Usage

The age of usage explained how long candy can be stored in the

room temperature before the candy is taken out from the packaging. This

parameter is important because the longer candy can be stored means the

we can gain more money by selling it in more long period.

6.2.1.4 Performance

The performance describes about the main function from our

energy’s source. In this case, the energy’s source is from taurine extract.

Taurine can be produced from animal or synthesis chemically. The amount

of taurine determines how much the product will booster our body and

refreshing our body. Some additional benefit also give some impact in the

screening process, but doesn’t as a main factor and main concern, only

giving more consideration as a plus value.

6.2.1.5 Safety

Safety is the main concern in this screening process. The product

must not give a bad effect for our body and harm our body. Energy candy

as the product must not having an ingredient as the energy’s source with

the amount that can’t be tolerate by our body, means bigger than RDA.


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Furthemore, energy candy also does not giving a bad effect for our oral’s

health such as causes a carries, harm email, plak and odor.

6.2.1.6 Taste

According to survey results, most of our respondent answer that

their reason for consuming candy is the taste. Because of that, we put this

aspect to be scoring parameter in this product. In general, candies have

sweet taste which can be amount from sugar concentration contained in

energy candy. People usually put the taste above any criteria from candy

such as shape, colour and texture.

6.2.1.7 Production Cost

Production cost included candy’s raw materials, unit process

manufacture and unit packaging. In unit process manufacture, we

expecting the units needed to produce energy candy and the feasibility

cost. If the process production complex, unit process needed will be

higher. It makes product costs will be increased. This aspect is important

to be analyzed to decide our product development and distribution.

6.2.2 Rate the Concepts

In the table of concept screening which will be presented later, there will

be parameter values as the elector for better concepts. The choosen concept

will be more evaluated next in concept scoring stage.The parameter values

which are going to be used are:

+ : This idea is better than the reference concept

– : This idea is worse than reference concept

0 : This idea is the same as reerence concept

The making of these paremeters are quite simple, based on team’s

decision, so the process of screening concept stage will be easy and faster.

Each value, based on the respective parameter in the table will be totalized.

The summed value of “+”, “-“, and “0” values is yielding net value which will

show which one is eliminated or which one is developed into next stage. In

this assignment, there will be no joining or combining stage, so that the small

values one are fully eliminated.


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6.2.4 Combine and Improve the ConceptsAs already been stated shortly before, combining or joining concept is

skipped by the team. There are few consideration why we are not carrying out

the combine and improve concept. First, the concept generating are well done

so that the produced concepts have goog quality. Due to that occasion, the

eliminating concept stage is generating concepts which is representing each

candy’s shape. If there is combine and improve concept stage, the result of it

stage will be nearly same.



Table 6. 1. Concept screening

Concepts

Criteria Total Score

Easiness to manufacture Principle Age of

usage Performance Safety Taste Production Cost

Plus Same Minus Net Score

Reference 0 0 0 0 0 0 0 0 0 0 0

1 0 0 + + - 0 - 2 3 2 02 0 0 + + - 0 - 2 3 2 03 0 0 + + - 0 - 2 3 2 04 0 0 + + - 0 - 2 3 2 05 - + - + - 0 - 2 1 4 -26 0 + - + - 0 - 2 2 3 -17 - - - + - 0 - 1 1 5 -48 0 + - + 0 0 - 2 3 2 09 0 0 0 0 0 0 0 0 0 0 010 0 - 0 + 0 0 0 1 4 1 011 0 - 0 + - 0 0 1 3 2 -112 0 0 + + 0 0 0 2 5 1 113 - + + + - + 0 4 1 2 214 - + + + - + 0 4 1 2 215 - - + + - + 0 3 1 3 0

(Source: Group 13’s Private Data)

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Table 6. 2. Explanation of concept’s number in screening concept table


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1 = Hard candy with oval shape, consumed by lozenged, have a soft surface and contain taurine extract 2 = Hard candy with cube shape, consumed by lozenged, have a soft surface and contain taurine extract3 = Hard candy with tablet shape, consumed by lozenged, have a soft surface and contain taurine extract4 = Hard candy with spherical shape, consumed by lozenged, have a soft surface and contain taurine extract5 = Hard candy with pencil shape, consumed by lozenged, have a soft surface and contain taurine extract6 = Hard candy with sugar cane shape, consumed by lozenged, have a soft surface and contain taurine extract7 = Hard candy with thin layer shape, consumed by lozenged, have a soft surface and contain taurine extract8 = Hard candy with lollipop shape, consumed by lozenged, have a soft surface and contain taurine extract9 = Granule candy with powder form, consumed by lozenged, have a soft surface and contain taurine extract10 = Jelly candy with fruit shape, consumed by chewed, have a soft surface and contain taurine extract11 = Jelly candy with oval shape, consumed by chewed, have a soft surface and contain taurine extract12 = Chewy candy with spherical form, consumed by lozenged, have a soft surface and contain taurine extract13 = Candy with content with spherical shape, consumed by lozenged, have a soft surface and contain taurine extract14 = Candy with content with oval shape, consumed by lozenged, have a soft surface and contain taurine extract15= Candy with content with cube shape, consumed by chewed, have a soft surface and contain taurine extractReference: Jelly candy with animal shape, consumed by chewed, have a soft surface and contain taurine extract

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6.3 Concept SelectionAfter screening concepts, the next step is concept selection. This step will

narrow down concepts selected to find one best concept. The ideas obtained from

concept screening will be scored further in concpt selection step to decide then

find one best concept which will be developed and created as our group’s product.

For energy candy product, the concepts which will be scored in this step are

easiness to manufacture, principle, age of usage, safety, taste and performance.

In this step, each selection criterias will be given a certain weight value

according to the degree of importance of each criterias. The selection of concept

ideas from concept selection step is the idea concept with the highest value

obtained by multiplication of the weight value of each criterias with the rating

given to each ideas. Steps in the concept selection are:

6.3.1 Prepare the Selection Matrix Concept IdeaConcept selection matrix consists of column of selection criteria,

concept ideas, weight factor, and rating. Selection criteria we used in

concept selection is same with the criterias used in concept screening. The

selected concepts specifications will be compared further more by a more

quantitative value to find best concept.

After the selection criteria and concept ideas are inserted into the

matrix, each of the criterias will be given weighting factor which is derived

from our team’s subjectivity based on the ranking which is given in the

needs specification (Table 3.1 in assignment 1), information from the

literature, and information from informants (obtained from interviewing).

To create the concept scoring matrix for energy candy product, the

weighting factor is applied in percentage value. The details of the wieghting

factors are given in below descripted priorities.

6.3.1.1 Easiness to ManufactureEasiness to manufacture explains about the possiblity for this

product to be produced. Therefore, weight for this parameter is 25% because

this parameter will be the concern, is it possible for this product to be

manufacture and this product will have a sustainable production. We define

this thing into two subparameter such as sustainability of raw materials and

process efectiveness. Sustainability of raw material gets 10% because


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without the raw material the product can not be produced. Next, the process

efectiveness gets 15% because this parameter will determine the cost

production. Price will be the concern for people to buy the product,

furthemore the lower cost production will make our product affordable by

the consumers. Moreover, the concept that more efficient will be chosen.

6.3.1.2 PrinciplePrinciple explains how this product works as energy candy and

product’s performance. This parameter is the main concern in this concept

selection, it has weighting 30%. First energy’s absorbtion weighting has

25%. This parameter has the biggest portion because our main purpose for

creating this product is to supply energy for the consumers. As the main

function from this product category performance from this product will be

the main consideration from people to buy this product. Product that give

more advantages and more boost the energy for people will be chosen in the

market and became a leading product in the market. The higher absorbtion

process will make the product more effective and has a better performance

rather than the other products.

The other principle is easy to digest, for this parameter we only give

5%. This portion only five percent becauce this parametet will not be to

spesific for people to buy energy candy. This parameter just as the additional

function for people as the consideration to buy energy candy, because as

long as energy candy can give a good performance for boosting their energy

up they tend to do not care about the digestion process for energy candy.

6.3.1.3 Age of UsageAge of usage explains about the longevity for energy candy, how

long energy can be kept in the room temperature before the product is taken

out from the packaging. This parameter weighting has 5% because people

do not care too much about the expiry date. Meanwhile, in some point if the

expiry date is too long people will mind to buy the product because they

think there are too much preservative in the product which is harmful for

their body. As the result, this parameter become less important.


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6.3.1.4 SafetySafety explains about the effect for our body after consuming energy

candy. This parameter weighting is 20%. This parameter is important due to

the concern to our health. People care about the effect after consuming

product into their body, like is there any bad effect for their health after

consuming some product. Futhemore, the safety aspect get a high priority

because energy candy will be consume into the body and can be categorized

as food. As the result this product must be safe for our body and if there is

any concept that have an ingredient that hamrful must not be selected.

6.3.1.5 TasteTaste explains the flavour from this product. Actually this product is

an important aspect as a candy, but as well as the main concern is not the

candy but the energy booster, this paramater weighting is only 10%. This

aspects will be additional value for energy candy because people will give

more consideration to buy the product if they can get two function in our

product, the taste as candy and the function as supplement.

6.3.1.6 Production CostThe production cost explains how much the price for energy candy.

This product weighting has 10%. Price is one other consideration of people

to buy our product based on needs identification step in previous

assignment. Our market target is Indonesia. For Indonesian people, price is

so important, sometimes Indonesian people do not care what substances

contained in a product as long as the product is sold with a cheap price. This

is why price is also an important criterion.

6.3.2 Rating the ConceptThese are the meaning of 1, 2, 3, 4, 5 symbol that we will use in concepts-

selection matrix for scoring.

1 : concept is much worse than reference concept

2 : concept is worse than reference concept

3 : concept is as good as the reference concept.

4 : concept is better than reference concept

5 : concept is much better than reference concept


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Based on those meaning, the reference concept (Kabang Energy Candy)

will have rating 3 for all criteria. These rating value represent how each

concepts is compared to a reference based on particular criteria. The way we

give rating for each concepts is based on literature study, benchmarking and

based on intuition.

6.3.3 Scoring ParameterScoring Parameter can be seen in the Appendix II. 9.6.3.4 Rank the ConceptsAfter giving rating to every concept for every criterion, we calculate the

rating into total score. After calculating, we can rank the concepts in order

based on the total score of each concepts. Concepts with the highest total score

will be the first rank and so on.

6.3.5 Selecting the Best ConceptsThe next step is we choose the best concept to be developed. The best

concept in this case is the concept that gained the highest total score and is the

first rank, effervescent with fruit-menthol flavor. This concept will be

developed and we will make prototype of this concept and do the concept

testing to the market.

6.3.6 Looking Back at the ConceptsEach member of group has to agree to the result of concept selection.

Therefore, the result and process of concept selection needs to be reviewed

together.



Table 6. 3. Product Scoring

Selection Criteria Weight

Concept Variant

Concept 12 Concept 13 Concept 14

Rating Weighted score Rating Weighted

score Rating Weighted score

Easiness to manufacture

Sustainability of raw materials 10% 3 0,3 3 0,3 3 0,3

Process effectiveness 15% 4 0,6 2 0,3 2 0,3

PrincipleEasiness to digested 5% 3 0,15 3 0,15 5 0,25Energy absorption 25% 3 0,75 5 1,25 5 1,25

Age of usage Have long term usage 5% 3 0,15 3 0,15 3 0,15

Safety Side effect to body 20% 4 0,8 4 0,8 4 0,8Taste Sweetness 10% 4 0,4 4 0,4 4 0,4

Production Cost Low price 10% 4 0,4 3 0,3 3 0,3

Total score 28 3,55 27 3,65 29 3,75Rank 3 2 1


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6.2.7 Scoring Description6.3.7.1 Selected Concept Description

From screening result, we have three best concepts of energy candy

selected from 15 concepts. In this section, the selected concepts which are 12 th,

13th and 14th product concept will be described in details.

12th Concept

This concept has chewy candy’s type with spherical shape. The texture

is soft candy surface and containing taurine extract. Soft texture in this candy

concept have advantage that is easier digested in mouth, especially for adult.

Taurine extract is used for energy resource and it has minimal side effect to

body.

13th Concept

The 13th concept has candy with content form with spherical shape. It

consumed by lozenged, have a soft surface and containing taurine extract. The

difference from 12th concept is taurine extract in this product concept made in

liquid form then it will coated with hard candy. This concept can be variated by

flavors, so when the hard candy surface was melted in mouth people can tasted

different flavor of liquid contained. But the weakness of this concept is the

process which more difficult than chewy or hard candy. It makes product cost

will be more expensive.

14th Concept

This product concept has candy with content form and oval shape. Same

with the 13th concept, it consumed by lozenged, have a soft surface and

containing taurine extract. Oval candy shape in this concept has added value

than the second concept above that is easier to digested in mouth with a slightly

flattened shape. But as explained before, this concept also has higher production

cost because the difficult process.

6.3.7.2 Scoring Criteria Description

In scoring method, we use 8 criterias to choose the best concept from

screening result by giving the scores. The selection criterias include


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sustainability of raw materials, process effectiveness, easiness to digested,

energy absorption, age of usage, side effect to body, sweetness and product cost.

Sustainability of Raw Materials

Raw materials availability are the most important thing in manufacturing

product because without materials we can not produce energy candies. 12 th, 13th

and 14th concept are need same raw material which is sugars. According to bbc

news 2013, we found that sugar production in Indonesia today can not be

sufficient industry’s needs. For that reason, we give rate 3 for the third product

concepts in sustainability of raw materials.

Process Effectiveness

Chewy candies in 12th concept have easier process production than

candy with content. Candy with content production need two process which are

hard candy’s manufacture process and candy’s content filling process. Whereas

chewy candy production just need one process to manufacture candies. Because

of that we give rate 4 for chewy candy concept and rate 2 for candy with content

concept for process production effectiveness.

Easiness to Digested

As explained before, 12th and 13th candy concepts have spherical shape.

This form will makes people harder to digested in mouth than candies with oval

shape which is slightly and flattened. For that reason, the concepts with

spherical shape are rated 3 and concept with oval shape is rated 5 for easiness to

digested criteria.

Energy Absorption

In this product, we are focus on increasing energy absorption to body.

Candy with content has fast energy absorption because taurine extract and

vitamins are in liquid form inside the candy. Because of that we rate 5 for candy

with content concept and 3 for chewy candy concept.

Age of Usage

One aspect that considered in selecting product criteria is have long term

usage. We give score 3 for each concept because the primer materials included


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in product are almost same which is sugars, so the products will have similar

long term usage.

Side Effect to Body

Beside energy absorption, we also consider about the side effect to body.

Side effects in this criteria include causing caries, harm teeth email or causing

organ disruption. Because each concept use same energy resource that is taurine

extract, we give score 4 for all the concepts.

Sweetness

Candies have the same resource and almost similar dosage. We rate 4 in

sweetness criteria for each concept because most of our consumers are adults

and they do not want to consume too much sugars or very sweet taste.

Product Cost

All of consumers want low price for the products, but candy with

content have higher price than chewy candy because the process production is

more complex. 12th concept is given by rate 4 which means has relative low

product cost. Meanwhile 13th and 14th concepts are given by rate 3 because the

process is less effective and need higher cost than chewy candy’s production

process.

The rate scores are multipled with weight scores of each criteria and

totaled for each concept. As the result of concept scoring and from the total

score, we fine the one best concept which is candy with content with oval shape,

consumed by chewed, have a soft surface and contain taurine extract.

6.4 Product DescriptionEnergy candy is a developed candy’s product which used to boosting people

energy. Our energy candy product containing taurine extract 75mg as energy

resource. The review present show that taurine has a potential beneficial actions in

congestive heart failure, hypertension, ischemic heart disease, atherosclerosis and

diabetic cardiomyopathy. As an additional value we add vitamin C 100mg and

vitamin B 10mg for increasing our product performance. Our product can increase


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body endurance and increasing mind focus, beside the main function as energy

booster.

Our energy candy is candy with contain which means have two different taste.

Mint and sweet sensation in the outer layer of candy and when it reach at the center it

will blast and give a sour sensation and fresh sensation. The taste of sweet is from

sugar which have 3g concentration and the mint taste is from menthol 2,5mg. The

surface of our new energy candy is soft. Therefore it does not hurt our mouth when

we eat our new energy candy and does not sticky in our mouth. Our energy candy’s

shape is oval and consumed by lozenged. Having an oval shape giving a convenient

feeling when we lozenge it in mouth because an appropriate size in our mouth. Oval

texture supports our concept which candy with contain.

The taste for our energy candy is sweet but still have a mint taste. Our energy

candy product also have an interesting color which is represent the taste in this case

have white as the base and another color to support as the pattern. Our product use

plastic as the packaging. Using plastic as the packaging make energy candy is more

convenient to bring to anywhere and this simplicity is loved by people.

Overall the winning concept have a match spesification due to our list of

spesification from assignment 1. This means our list of spesification can be applied

for our concept. Meanwhile, there is one exception for the texture, the chosen concept

have candy with contain but our list of spesification having a hard candy. We still

choose candy with contain because the reason that have been explained before. The

detail for our final product is listed in the following table.


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Table 6. 4. Final Product DescriptionNo Specification Detail Value Description

1 Shape Oval

(1,5 x 1 x 1) cm

1.5

1

The dimension value is set

appropriately so it will not

too big or too small when

eating. Oval shape has blunt

sides so it is considered as

comfortable form when it is

entering mouth, especially at

the tip of tounge to taste

sweetness. Oval shape is used

due to our interview result

which has been shown in

chapter III.

2 Texture Hard -

Figure above is shown as the

side and up side view. The

outer form is oval shape but

the inside containing taurine

extract. This candy with

contain concept actually the

best one due to Chapter III

survey, it is become our

priority concept choice now

due to screening and scoring

stage. Thickness of hard

capsule is 0,4 cm and inside

pasta volume is 1260 mg.


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No Specification Detail Value Description

3 Phase Solid -

The phase is solid in the

outside, but the candy has pasta

inside. Outer shape has hard

texture and unchewable, while

inner one is containing extracts

suchas taurine, so it is liquid

phase.

4 Energy Source Taurine Extract 150mg[1]

Even if taurine has already

been used in energy drinks,

here, taurine is still our main

energy source substance.

Based on our work in the

chapters before, taurine is

way better than any existing

energy candy products.It also

have advantage such as

antioxidant agent and many

more.

Density: 1.734 g/cm3 (at

−173.15 °C)

Melting point: 305,11 0C


Table 6. 4. (Cont’d) Final Product

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5 Body

Endurance

Vitamin C

Vitamin C are gonna be our

added value performance.

Here, vitamin C has the role as

body endurance of the

consumer. Another

consideration is because of the

availability of vitamin C. It is

very common so it is very

feasible to add it inside our

energy product.

Density: 1.65 g/cm3

Melting point: 190 to 192 °C

(374 to 378 °F; 463 to 465 K)

6 Mind Focus Vitamin B

Complex10mg[3]

Vitamin B Complex is

consisted of various kind of

substances such as vitamin

B1, B2, B6, orB12. It is

mainly used as the role of

increasing consumer’s

mind focus. But, each kind

of vitamin B complex has

their own function and

capability. It will be very

useful for the consumer

who consume our energy

candy product



100 mg [2]

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7 Mint Taste Menthol 2,5mg[4]

Mint taste is used as our final

Product specification due to

the survey as shown in

Chapter III. Mint taste can

give fresh sensation and

refreshing the throat. So it is

considerate as favorable taste

for the consumers

8 Sweet Taste Sugar 2g[5]

Of course, as a candy, our

energy candy product has the

sweet taste. There are many

various substance which can

used as sweet taste source, but,

we keep using ordinary sugar

as our priority sweet source

taste. We might use honey or

stevia sugar, but it is so

expensive so it will not so

feasible compared to ordinary

sugar.



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9 Paste Chocolate 1 g

Our product use chocolate as

candy contain. Chocolate

used to make coating process

easier. Beside that, chocolate

also give more delicious and

unique taste in candy

products. Chocolate paste

melting in around 320C,

lower than body temperature.

10 Surface Softness 0.08 µm[6]

The surface roughness are

become one of our

specification due to

consumer’s comfort when

the candy is inside the

mouth. Rough surface will

tend to interfere the

consumer’s lozenge.

Besides, too rough surface

have a risk to irritate

consumer’s tongue. So, Soft

surface roughness is

choosen in order to fulfill

consumer’s satisfaction and

safety.



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11 Color White -

The color selection is quite

important because it will

influence consumer choice and

consumer’s interest. The color

of the candy will have the role

as taste representation. So, the

white color choice will have

the role as the mint taste

representation.

12 Packaging Plastic

Plastic type7 (Other). Our

choice is firstly taken due to

Chapter III survey. Consumer

tend to like simple packaging

such as plastic. The plastic

which will be used are

recycable, easy to carry, and

very secure.



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13 Price 2000IDR -

In Indonesia, candy’s prices

are very commonly cheap.

Commonly they are have the

range begin with Rp.250till

Rp.1000 per piece. So our

energy candy product’s price

have to compete with them.

So, we determine that our

product’s price\ is Rp.2000 per

piece. It is very careful

consideration because we

aware that our product still

have very much added value

for the consumers.

(Source: Group 13 private data)

NB:

[1] : CN 10266937 A

[2] : CA 2015738

[3] : WO 2002026055 A2

[4] : WO 1996017524 A1

[5] : US 8545925 B2

[6] : US5444795Table 6. 5. Product Composition (% weight)

Composition Percentage

Taurine 2,38%

Vitamin C 1,59%

Vitamin B complex 0,16%



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Composition Percentage

Menthol 0,04%

Sugar 47,7%

Magnesium stearate 4%

Dietary fiber 20%

Water 24,13%

Total 100%

(Sources : Grup 13th Private Data)

6.5 Concept TestingOn the previous step, we have selected candy with content with oval shape,

consumed by lozenges, have a soft surface and contain taurine extractto be

developed. The concept that has been chosen, should be tested first to potential

customers in order to develop it properly and produce the best products. Concept

testing stages are as follows:

6.5.1 Determine the purpose of concept testingThe purpose of concept testing conducted was to determine

consumers' response to the idea of the product concept to suit what consumers'

wants and needs. To know more clearly about consumers' responses, concept

testing should contain questions about how consumers' acceptance of the idea

of the concept chosen by the team, both in terms of content in the product, as

well as effectivity.

6.5.2 Determining population surveySurvey conducted on 20 respondents from a variety of professions,

with age between 20-40 years. Population surveys were randomly selected in

order to know the needs of society in general, and is considered to be a

potential consumer of the product candy with content with oval shape,


Table 6. 6. (Cont’d) Product Composition

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consumed by lozenges, have a soft surface and contain taurine extractthat will

be made.

6.5.3 Determining the survey formatThe format of the survey conducted for concept testing was done in

the form of indirect interview.Questions submitted for testing concept can be

seen in the picture below.

6.5.4 Communicating product conceptFor candy with content with oval shape, consumed by lozenges, have a

soft surface and contain taurine extractthat is made, the concept of products

that is offered had been communicated in the form of writing descriptions,

which is a short paragraph describing the product concept. By reading this

writing description, consumers can find the concept of candy with content

with oval shape, consumed by lozenges, have a soft surface and contain

taurine extract.

6.5.5 Counting / measuring consumer responseThe number of respondents we interviewed were20 people, ranging in

age from 20-40 years. Based on the interviews we did with 20 people, it is

known that 20 people (respondents) have not been consumed candy

containing taurine.

Next, we asked respondents about their interest in new products for

candy with content with oval shape, consumed by lozenges, have a soft

surface and contain taurine extract. Based on the results of the 20 people we

have, here are the results:

a. Definitely buy : 3 people

b.Possible buy : 10 people

c. Hesitant to buy : 5 person

d. Probably not buy : 1 people

e. Will not buy : 1 person

When we asked them why they want to buy this product, the majority

of consumers said that they like candy especially candy with content. Also


75

they have not been found candy containing taurine so they want to by the

product. Respondents who might buy have excuse that they want to try a new

product energy candy containing taurine to have know about its taste and

effect. As for the respondents who hesitant to buy and will not buy have the

excuse that they have enough energy without energy candy.

6.5.6 Interpretation of ResultsBased on the calculation of the consumer response to the product


surface and contain taurine extract offered, showing that the idea of the

concept obtain good response from consumers. For more details can be seen

in the Appendix III. 1:

There is evidence that from 20 correspondents, 15% or as many as 3

people would buy candy with content with oval shape, consumed by lozenges,

have a soft surface and contain taurine extract. In addition, 50% (11 people)

stated intention of buying this product, and 25% (5 people) expressed a desire

to buy, although still in doubt. These results indicate that the market for the


surface and contain taurine extract is very promising and can compete with

other energy candy already on the market. So, the concept is feasible selected

for product development candy with content with oval shape, consumed by

lozenges, have a soft surface and contain taurine extract as we do.

6.6 Product PositioningAnswering to consumer’s need and competitor’s product analysis regarding

energy candy, we develop a new concept of energy candy that targets middle to upper

class market. While most of the product in the markets use caffeine in their

ingredients, we try to make an ingredient from taurine. By using taurine we aim to

maximize the good effect of taurine and reduce negative effect of exist product.The

added values offered by our product are as follows in the appendix III. 2.

To find out our new product’s position and chance in the market, perceptual

mapping is done to depict our product’s exixtence relative to the other exixting


76

brands of products. Parameters that are used as comparison are performance, price,

packaging, taste, texture.

Performance

Price

PackagingTaste

Texture

0

5

10

KabangHalls CoolX3Own Product

Figure 6. 1. Product Positioning (Sources : Grup 13th Private Data)

From the figure above, we can see our product position compare to the other

products. The new energy candy product excels in the most parameters and it answers

consumer’s needs for energy candy which contain taurine extract as ingredients, has

good performance to body. To increase product added value, we adding vitamin C

and vitamin B complex to our candy product.It makes the price more expensive than

the two competitor product, but our product price is still cheaper than X3 candy.

Texture and packaging are almost same with other products. We also adding menthol

in our candy to give refreshing taste and effect in mouth.


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CHAPTER VII RAW MATERIAL

7.1 Raw Material1. Sugar

The white stuff we know as sugar is sucrose, a molecule composed of

12 atoms of carbon, 22 atoms of hydrogen, and 11 atoms of oxygen

(C12H22O11). Like all compounds made from these three elements, sugar is a

carbohydrate. It’s found naturally in most plants, but especially in sugarcane

and sugar beets - hence their names.

The addition of sucrose in the manufacture of food products serve to

provide a sweet taste, and may also act as a preservative, which in high

concentrations inhibits the growth of microorganisms by lowering the water

activity of foodstuffs. Sucrose is a disaccharide that is widely available in the

market. Sucrose is abundant in sugar cane, beet, and palm. The solubility of

sucrose in water is very high and if heated high solubility growing. If sucrose

is heated will form a clear liquid that will soon change to brown color and

form a caramel. Indonesia has more than 60 sugar factories. According to

republika.co.id (2013), supplies of sugar in Indonesia is safe while based on

Antaranews (2014), the national sugar production from sugar cane milling

results in 2014 is predicted to increase over last year. Compilation of the

results assessed in March 2014 in all sugar mills, shows the areas of sugar

cane cultivation reached 472,792 hectares, the amount of 26,182,325 tons and

milled cane sugar produced approximately 2,927,486 tons. This is a good

news that we can use from domestic sugar without import.


78

2. Cocoa Powder

Cocoa powder, or unsweetened cocoa is made by milling cocoa cake

into powder form. Cocoa cake is the remains of chocolate liquor after most of

the cocoa butter is removed. Since most of the fat has been extracted, cocoa

powder is considered the least fatty form of chocolate. The powder possesses

a strong to mild chocolate flavor without the texture characteristic of cocoa

butter. Natural powder color ranges from light tan to brown. Some of the

powders uses are evident in reduced fat and calorie recipes, chocolate milk,

ice cream, chocolate flavored coatings, biscuits, syrups, and tobacco products.

In our product, we choose candy with contain concept. This concept has hard

form in the outside of candy and chocolate paste inside which containing

taurine extract, vitamin C and vitamin B complex. Pasta form will make easier

in candy coating process because it has high viscosity. There are some ways

to produce chocolate pasta. First is by melting chocolate bars. And the

alternative is making chocolate pasta by mixing water with cocoa powder,

where water concentration is lower than cocoa concentration. But from

economic side, its better if we use cocoa powder and water mixing process

because the materials has lower cost.

There are two types of cocoa powder: natural and Dutched or Dutch

processed. The Dutching process requires the cocoa nibs to be soaked in a

slightly alkali solution before being ground into chocolate liquor. This reduces

the natural acidity of the chocolate, bringing its pH close to neutral. The

Dutching process actually produces a better chocolate flavor because it removes

the strong acidic notes in the cocoa, allowing the more subtle flavors to shine.

Indonesia itself has some cacao plantation. Not all of cacao are

processed into cacao powder, some are bar chocolate, and some are beverage

chocolate. In 2012, production of cacao is up to 700-800 thousand ton. It’s a

good news because we can stay using cacao because it is in high production.


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3. Menthol

Menthol is an organic compound with the chemical formula C10H20O

that occurs naturally in mint and some other plants. It can be extracted from

the leaves by distillation, but is more commonly made synthetically. Pure

menthol is a crystalline solid, but it is often used in the form of peppermint

oil. In our product, menthol used to give a sensation of coolness in the mouth

or when applied to the skin and can act as a mild anesthetic. Menthol flavor

has freshness effect and it will braces mouth when the candy is consumed.

The compound is widely used in cough and cold remedies because of its

soothing effects and as a flavoring in candy, chewing gum, medical products

and cigarettes.

Although it is a solid at room temperature, menthol can be melted with

warm water and readily produces a strong-smelling vapor. It is only slightly

soluble in water, but dissolves easily in many organic solvents, including

alcohol. Because Indonesia has not had a menthol plant, we would import it

from China.

4. Taurine

Taurine is a chemical substance that is present in both animals and

humans. It is an organic acid obtained from and amino acid called cysteine.

Natural sources of taurine include eggs, milk, fish, meat and sea foods. Here

are some of the key benefits of taurine in relation to health. Taurine is

important in the visual pathways, the brain and nervous system, cardiac

function and prevention of irregular heart beats. A conjugator of bile acids -

helps increase cholesterol elimination in the bile, helps with fat absorption and

elimination of toxins. Important for its role in renal development and

protection of the kidneys from free radical damage. A facilitator for the

passage of sodium, potassium and possibly calcium and magnesium ions into

and out of cells. Protection for the heart from irregular rhythms and damage

during shock. An antioxidant. Involved in the balance and control of white


80

blood cell production of free radicals to fight microbial infections. A calming

or stabilizing effect on the brain and has been shown to be useful in treating

seizure disorders. An enhancer of performance for athletes.

Taurine commonly available as a dietary supplement. Some studies

suggest that taurine supplementation may improve athletic performance,

which may explain why taurine is used in many energy drinks. Other studies

suggest that taurine combined with caffeine improves mental performance,

although this finding remains controversial. And in one study, people with

congestive heart failure who took taurine supplements three times a day for

two weeks showed improvement in their exercise capacity.

In energy candy product, taurine used as main energy resource to

increase stamina when it consumed. Up to 3,000 milligrams a day of

supplemental taurine is considered safe. Any excess taurine is simply excreted

by the kidneys. The mean daily intake from omnivore diets was determined to

be around 58 mg (range from 9 to 372 mg) and to be low or negligible from a

strict vegan diet. In another study, taurine intake was estimated to be generally

less than 200 mg/day, even in individuals eating a high-meat diet. According

to another study, taurine consumption was estimated to vary between 40 to

400 mg/day.

5. Vitamin C (Ascorbic Acid)

Vitamin C is a nutrient and water-soluble vitamins and essential for

life and for maintaining health. This vitamin is also known by the chemical

name of which is the main form of ascorbic acid. Class of antioxidants

including vitamin C because it is very easily oxidized by heat, light, and

metal, therefore the use of vitamin C as an antioxidant more and more

frequently encountered. Oxidation is inhibited when vitamin C is left in acidic

conditions or at low temperatures. Excess vitamin C excreted through the

urine.

Vitamin C is an antioxidant, along with vitamin E, beta-carotene, and

many other plant-based nutrients. Antioxidants block some of the damage


81

caused by free radicals, substances that damage DNA. The build-up of free

radicals over time may contribute to the aging process and the development of

health conditions such as cancer, heart disease, and arthritis.

Vitamin C in our product is using to give plus value of energy candy

which it can increase body endurance. Vitamin C comes in doses ranging

from 25 - 1,000 mg. The best way to take vitamin C supplements is 2 - 3

times per day, with meals, depending on the dosage. Some studies suggest

that adults should take 250 - 500 mg twice a day for any benefit.

6. Vitamin B Complex

Vitamin B complex typically consists of the water-soluble vitamins

biotin, folic acid, thiamin, riboflavin, niacin, pantothenic acid, pyridoxine, and

the cobalamins (vitamin B12). Choline, para-aminobenzoic acid, and inositol

are also found in some B complex supplement products. Thiamin, riboflavin,

niacin, vitamin B6, pantothenic acid, and biotin are necessary for energy

metabolism at rest and during physical activity; folate and vitamin B12 are

essential for red blood cell production, tissue repair, and protein synthesis.

Vitamin B complex purportedly has enhancing effects on energy metabolism,

cell regeneration, and cognitive function. An adequate intake of B vitamins is

essential to maintain health and optimum exercise performance. Low levels of

B vitamins may result in decreased physical ability, particularly during high-

intensity situations.

Each member of the B-complex has a unique structure and performs

unique functions in the human body. Thiamine plays a central role in the

generation of energy from carbohydrates. Riboflavin is involved in the energy

production for the electron transport chain, the citric acid cycle, as well as the

catabolism of fatty acids (beta oxidant). Niacin plays an important role in

energy transfer reactions in the metabolism of glucose, fat and alcohol.

Pantothenic acid is involved in the oxidation of fatty acids and carbohydrates.

Pyridoxine plays an important role in gluconeogenesis. Biotin plays a key role

in the metabolism of lipids, proteins and carbohydrates. Folic Acid involved


82

in the transfer of single-carbon units in the metabolism of nucleic acids and

amino acids. Vitamin B12 is involved in the cellular metabolism of

carbohydrate, proteins and lipids. It is essential in the production of blood

cells in bone marrow, nerve sheaths and proteins. So, vitamins B1, B2, B3,

and biotin participate in different aspects of energy production, vitamin B6 is

essential for amino acid metabolism, and vitamin B12 and folic acid facilitate

steps required for cell division. Like vitamin C, vitamin B complex also give

plus value of our product, vitamin B added in the candy formula to give mind

focus effect to the consumers.

Over all the winning concept have a match specification due to our

list of specification from assignment 1.This means our list of specification

can be applied for our concept. Meanwhile, there is one exception for the

texture, the chosen concept have candy with contain but our list of

specification having a hard candy. We still choose candy with contain

because the reason that have been explained before. The detail for our final

product is listed in the following table.

7. Magnesium Stearat

Magnesium stearat, also called octadecanoic acid, magnesium salt, is

a white substance which is solid at room temperature. It has the chemical

formula Mg(C18H35O2)2. It is a salt containing two equivalents of stearate (the

anion of stearic acid) and one magnesium cation (Mg2+). Magnesium stearate

melts at about 88°C, is not soluble in water, and is generally considered safe

for human consumption at levels below 2500 mg/kg per day.

Magnesium stearate is used to bind sugar in hard candies. It is also a

common ingredient in baby formulas. Magnesium stearate is manufactured

from both animal and vegetable oils. Some nutritional supplements specify

that the magnesium stearate used is sourced from vegetables.


CHAPTER VIII

PROTOTYPE

8.1 Product’s name and LogoFor the name of the product, we provide brands BUZZ. Philosophy of the

name because our products are energy candy where it is needed as a stamina enhancer

and as a booster. BUZZ mean when someone takes our products, flavors and

surprising effects will arise. Flashes of light symbolizes the candy very effective

giving energy like an electric shock is very exciting.

Buzz as the well-known animated character that symbolizes a powerful

superhuman. It is also the main attraction for our products. Color packaging on our

product, dominated by orange color since it represents that our products are very

festive and the colors make the color category increased appetite.

Figure 8. 1. Logo Product (Source: Group 13 private data)

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84

8.2 PrototypeFor design our candy, we present our prototype energy candy. Our products

are oval with a hard surface and inside there are energy syrup containing a variety of

vitamins that are good for health. The dimension value is set appropriately so it will

not too big or too small when eating. Oval shape has blunt sides so it is considered as

comfortable form when it is entering mouth.

The outer form is oval shape but the inside containing various substance

especially taurine extract as energy source. This candy with contain concept actually

the best one due to Chapter III survey, it is become our priority concept choice now

due to screening and scoring stage. The phase is semi solid because of its outer and

inner form. As shown before, outer shape is a solid phase which is hard and

unchewable, while inner one is containing extracts such as taurine, so it is liquid

phase. Due to its inner and outer form, we can conclude that it is a semi-solid phase.

Even if taurine has already been used in energy drinks, here, taurine s still our main

energy source substance. Based on our work in the chapters before, taurine is way

better than any existing energy candy products. It also have side advantage such as

antioxidant agent and many more.

The surface roughness are become one of our specification due to consumer’s

comfort when the candy is inside the mouth. Rough surface will tend to interfere the

consumer’s lozenge. Besides, too rough surface have a risk to irritate consumer’s

tongue. So, Soft surface roughness is choosen in order to fulfill consumer’s

satisfaction and safety

The color selection is quite important because it will influence consumer

choice and consumer’s interest. The color of the candy will have the role as taste

representation. So, the white color choice will have the role as the mint taste

representation

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85

Figure 8. 2. Prototype of energy candy(Source: Group 13 Private data)

8.3 PackagingOuter package seems important. Consumer interested in good outer packaging

moreover our product is a new one. Our product must have added value so consumer

would like to buy our product. Consumer tend to like simple packaging such as

plastic. The plastic which will be used are recyclable, easy to carry, and very secure.

This second wrapper serves as a wrapping ready for sale to consumers. in this pack

there are 5 pieces of candy. Both inner and outer packaging based on plastic.

Type of plastic that we use is Metalized films. Metalized film (or metallized

films) are polymer films coated with a thin layer of metal, usually aluminum. They

offer the glossy metallic appearance of an aluminum foil at a reduced weight and

cost. Metalized films are widely used for decorative purposes and food packaging,

and also for specialty applications including insulation and electronics. Metallization

is performed using a physical vapor deposition process. Aluminum is the most

common metal used for deposition, but other metals such as nickel or chromium are

also used. The metal is heated and evaporated under vacuum. This condenses on the

cold polymer film, which is unwound near the metal vapor source. This coating is

much thinner than a metal foil could be made, in the range of 0.5 micrometers.

Metalized films have a reflective silvery surface similar to aluminum foil. The

coating also reduces the permeability of the film to light, water and oxygen. The

properties of the film remain, such as higher toughness, the ability to be heat sealed,

85

86

and a lower density at a lower cost than an aluminum foil. This gives metallized films

some advantages over aluminum foil and aluminum foil laminates.

To send the products are ready for sale, packing using cardboard. Purpose the

use of cardboard is to facilitate and goods loading inspection if the goods arrive at the

distributor, in each cardboard, it is assumed there are 20 carton box of candy and each

carton box contain 24 pack of candies.

Figure 8. 3. Packaging in bag plastic(Source: Group 13 private data)

Figure 8. 4. Front side of plastic packaging for 5 pieces


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5cm

7cm

87

Figure 8. 5. Back side of plastic packaging for 5 pieces


L x W x H

(14 x 18 x 5) cmFigure 8. 6. Packaging in carton box for 24 pack


87

88

L x W x H

(70 x 36 x 10) cmFigure 8. 7. Packaging in cardboard for 20 carton box


88

CHAPTER IX

MANUFACTURE

9.1 Capacity Production9.1.1 Market SegmentationBuzz energy candy is a food brand product. As a food product, it has

very promising market distribution. Moreover, a candy product is a very well-

known and favorable among people. However, our primary buzz energy

candy consumers are not from all ages, but for people who the ages are more

than fifteen (15) years old. It is due to the main function of our product as

energy booster, so it will be more needed by adults one. Buzz energy candy

will try to reach all of the people economy class, from lower middle class until

upper-middle class economy.

The buzz energy candy’s market area distribution will be limited to

Java, Sumatera, and Bali Island. Since another place outside the area seems

not to be promising, we intended to make the limitation in order to make more

effective distribution and selling. We will not take the risk to distribute the

product for example to Maluku or Irian Jaya Island. It is much too far,

unpredictable demand condition, and surely will take very high distribution

cost.

9.1.2 Demand ApproximationBefore we can estimate the total market perspective of Buzz energy

candy product, we need to know the population of people in Indonesia,

especially the people population based on the age, ranged from 15 to 54 years

old. According to the census conducted by Indonesia Statistic Center (Badan

Pusat Statistik, BPS), in 2010, the population of the focused age and area are

in the Appendix VI. 1:

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90

The table in the Appendix VI. 1 shown that more than 237 million

people all over Indonesia country are become our perspective consumers. But

the amount of 237 million people are too high to be our target. So, we do

more evaluation based on the range of age of our primary perspective

consumers. It is not only the amount the prospective consumers but also the

distribution area that obstruct our energy candy product market allocation. In

that case, we use the range of age start from 15 years old to 39 years old, due

to the their busy work hours, and use the Java island as our main market.

Based on the National Agency of Population and Family Planning’s

(BKKBN) data, Indonesia’s population in the 2013 reach to two hundred and

forty million people (240 million), with average growth rate 1.49 (%) percent.

If it is converted into numbers, Indonesia will have increase its amount of

people for about 4 to 5 million people each year. The classification of total

population of Java Island in age of 15 to 39 years old in 2010 is shown in the

Appendix VI. 2.

Those total one hundred and two million (102 million) people are our

perspective consumers. But those data are taken in 2014, so we need to know

and predict the total population of people in the next ten years, especially in

the years which we will be starting to distribute Buzz energy candy. The

prediction of the population in those years is intended to estimate the capacity

production, so it will be suitable and sufficient according to the current market

condition. The assumption we need to make is that our Buzz energy candy

industry will be built in the beginning of 2014 and the candy’s factory will

operate for 10 years later. So, the consumer population predictions which is

going to be used in the market analysis are start from 2014 until 2024.

The table above is showing the total Indonesian population in range

age of 15-39 years old, based on the respective year’s projection. We need to

find the specific population only in the java island. Based on the data from

Badan Pusat Statistik (BPS) Indonesia, Java Island have the highest


91

population density, it is nearly 56% of total Indonesian population. So it is

really concentrate in the Java Island.

On the other hand, we cannot use the whole Indonesia growth rate as

our reference because it is not relevant to the population growth rate in the

Sumatera, Java, and Bali islands, so we have to know the specific growth rate

in just those area. From the population growth rate data of Badan Pusat

Statistik (BPS) in each provinces, we could determine the average population

growth rate in Sumatera, Java, and Bali area. The average population growth

rate is 2.011 % (Badan Pusat Statistik, 2010). Due to the growth rate pattern

each year, we can predict the total of our perspective consumer in 2014 until

2024.Table 9. 1. The projection population in Java Island

Year Age Population (person)

2014

15-39

57,433,1522015 58,581,8152016 59,753,4512017 60,948,5202018 62,167,4912019 63,410,8412020 64,679,0572021 65,972,6392022 67,292,0912023 68,637,9332024 70,010,692


Based on the data above, we could predict the target demand of our

energy candy product. Since in Indonesia there are very rare of availability of

the energy candy product, our market concern is made due to the

multivitamins products. This comparison is taken because our energy candy

product have very similar role and functions as the multivitamin products do.

The demand calculation will depend on the literature data for each person in

Indonesia. According to Hadiyanyo (2007), the average demand of

multivitamins in Java Island shows a person will consume approximately 1


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pieces of multivitamins each day. In other terms, it means that every person in

Java want to consume multivitamins for about 365 pieces each year. On the

other hand, based on the literature review, the average weight of common

multivitamins are about 1 grams. The further calculation is that one person

consume (365 pieces or multivitamins, multiplied by its weight 1 grams) 365

grams candies each year, And if it is paired with the perspective consumer

population, as shown in table above, we can approximately calculate the

candy demands in Java Island.Table 9. 2. Demand of multivitamins each year in Java Island

Year Age Population (person)

Total Multivitamin consumed (kg/year)

2014

15 - 39

57,433,152 20,963,100

2015 58,581,815 21,382,362

2016 59,753,451 21,810,010

2017 60,948,520 22,246,210

2018 62,167,491 22,691,134

2019 63,410,841 23,144,957

2020 64,679,057 23,607,856

2021 65,972,639 24,080,013

2022 67,292,091 24,561,613

2023 68,637,933 25,052,846

2024 70,010,692 25,553,903



93

2012 2014 2016 2018 2020 2022 2024 20260

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

30,000,000

Total Multivitamin Demand (kg/year)

Year

Dem

and

(kg)

Figure 9. 1. Projected multivitamin demand


9.1.3 Market OpportunityThe next step of market analysis is determining market opportunity.

The definition of market opportunity is difference value of demand and

supply. The demand value have already been estimated in the previous stage.

So, first of all, we are going to calculate the multivitamin supply. The supply

definition is the total production of all competitor’s multivitamin products.

Here are the list of multivitamin brands in Indonesia:

So, supply is the total production of each brands in the table above. It

can be estimated by a particular ways, such as sum up each multivitamin

brands industry production each year and calculating the export and import

current of multivitamin products. The formula of its calculation is:

supply=Total production−ekspor+impor

The total production means that whole multivitamins product which is

produced and distributed into the market by all competitor industries per year.

As shown on the table before, there are 8 competitor brands in Indonesia.

From the literature (Universitas Pendidikan Indonesia and Dana Reksa

Institute research 2010, we got the market size (total production) and from


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Euromonitor International, the multivitamin production has average

production growth of 2.75% each year. Meanwhile, the export and import data

flow of multivitamins are obtained from Badan Pusat Statistik (BPS). The

export has average growth of 4% and import has average growth of 14%.

Now that all of the aspects are known, so we can calculate the supply values

of multivitamins products. The calculation summary of the formulation above

is shown in Appendix VI. 4.

As already been stated before, the market opportunity is the difference

value between demand and supply. The difference value is shown in the table

and figure below.Table 9. 3. Market opportunity (difference value)

Year Total Multivitamin Demand (kg/year) Total Supply (kg/year) Difference

(kg/year)2014 20,963,100 2,788,355 18,174,7462015 21,382,362 2,860,918 18,521,4442016 21,810,010 2,935,795 18,874,2152017 22,246,210 3,013,119 19,233,0912018 22,691,134 3,093,038 19,598,0962019 23,144,957 3,175,716 19,969,2412020 23,607,856 3,261,336 20,346,5202021 24,080,013 3,350,102 20,729,9112022 24,561,613 3,442,242 21,119,3712023 25,052,846 3,538,012 21,514,8342024 25,553,903 3,637,697 21,916,205



95

2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.50

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

Market opportunity

Total Multivitamin Demand (kg/year) Total Supply (kg/year)

Year

kg/y

ear

Figure 9. 2. Market Opportunity


9.1.4 Production capacity estimationFrom the difference values which have been showed before, we can

decide the market share value of our energy candy product. Because of the

difference value is very great, and our target area is only in Java Island, so our

perspective market share is only about 2.71 %.

The value of 2.71% of total demand value is based on our own

consideration. As we can see that the difference value are very huge. So all of

us are agreed to do not take too much from market opportunity. The 2.71%

are equal to 493050 kg/year as shown in the table below. Table 9. 4. Production capacity of energy candy product

Year Difference (kg/year) Production Capacity (kg/year)

2014 18,174,746 493,050

2015 18,521,444 500,079

2016 18,874,215 509,604

2017 19,233,091 519,293

Year Difference (kg/year) Production Capacity


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(kg/year)

2018 19,598,096 529,149

2019 19,969,241 539,170

2020 20,346,520 549,356

2021 20,729,911 559,708

2022 21,119,371 570,223

2023 21,514,834 580,901

2024 21,916,205 591,738


9.1.5 Energy candy market shareAfter estimating the production capacity of our energy products, we need to

know our market share if it is compared with competitor products. As shown before,

the supply values in previous table are still assumed as the total supply of whole

multivitamin brands in Indonesia. In order to estimate our energy candy market share,

we need to the market share condition of multivitamins in Indonesia. Each of

competitor product has their own market share. If it is evaluated along with the total

production of whole multivitamins product in Indonesia, we can obtain the market

share calculation. The market share value is obtained from Indonesia Top Brand

multivitamin category 2014. For the next ten years, we assume that market share

value of each brand are going to be the same. It can be seen in the Appendix VI. 5

and Appendix VI. 6.


Table 9. 4. (Cont’d) Production capacity of energy candy

product

97

Based on the data, we can conclude that Buzz Energy Candy will have particular

market share value. It is very competing with other multivitamins because our focus

distribution is only in the Java Island. Our prospect market value will be 14.68% of

total market. From the value 14.68%, we also can judge that our target and

consideration of capacity production is not trumped up. It shows that our product is

very feasible due to the current market condition. The value 14.68% is quite high

indeed, even higher than some of the existing products. We are courageous to do it

because our Buzz Energy candy Product is different than others. It has energy booster

capability in candy form, so it will more attractive and favorable.

Because our product is in candy form, we also need to compare it production

capacity with other candy products in Indonesia. The total candy product capacity

production data is very hard to find, so we compare it with one existing candy

product which is “Tamarine”. The capacity production of it can be seen in the

Appendix VI. 7.

From the Appendix VI.7, we can see that our energy candy production

capacity is still far below which less than 1.5 ton per day. This condition also show

that we are still aware of our capability in competing with other candy products. We

have the strengths if it compare with multivitamin market, but it is quite rough if it is

compared with candy product competitors.

If we are going to predict the future market share in the next ten years, we can

calculate it based on the growth total production data in the table above. So we can

get prospect market share as shown in the Appendix VI.8.


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9.2. Main Process ProductionA. Mixing With Boiler

In this process we want to make a chocolate paste as the candy’s

filling. The ingredients are water, magnesium stearat, sugar and chocolate

powder, the chocolate powder, sugar and magnesium stearat are delivered

by conveyer and will be mixed with water. For making chocolate paste the

temperature is 1000C as the results we need a heating agent in the mixer

tank. Heating make mixing process easier and the ingredients will be

mixed well. The operation time is 30 minutes.

B. Cooling

Cooling process is needed as the result from the previous process

which is the temperature is 1000C. As the result in the cooling process the

temperature will be decreased into half, 500C. This process is needed

because in the next process chocolate paste will be mixed with vitamin and

the vitamin is sensitive with temperature. In high temperature vitamin will

be denaturation therefore the vitamin will be useless. Vitamin C denaturate

at 700C and vitamin B Complex at 60 – 900C, therefore this process is

needed for 30 minutes.

C. Mixing

In this process we need to mix chocolate paste and vitamin C,

Vitamin B Complex, and taurine. This dough is final filling for energy

candy. This dough will be insert into an outer layer from energy candy in

the molding process. In order to mix this process wthe temperature base on

the temperature from the previous process, 500C and to make sure the

dough is homogen or mixed well the time is 25 minutes.

D. Boiling

Sugar and menthol are delivered using conveyer into the boiler for

boiling process. Water dissolves the sugar and menthol in the boiler in

1000C. Making sugar solution need a high temperature for making an

effective process because a higher temperature will make the sugar and

menthol dissolves faster. The sugar will be boiled for 55 minutes until the

sugar dissolves completely.

E. Cooking


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Cooking process makes the sugar solution turn into sugar syrup.

Cooking controls water level as we desired because the water level in the

syrup determines the quality from energy candy. As the result, 10kg water

out as a waste in term of vapour. In this process the equipment is vacuum

pressure tank. This process is happened in a low pressure and low

temperature to maintain the syrup quality strictly. This process is occured

in 55 minutes and at 300C.

F. Molding

Firstly in the molding process the dough of outer energy candy

layer is made into a half, likes a half of football’s ball. After the dough is

ready, the chocolate paste from the previous process fills in the middle of

the candy. When the chocolate paste fill the candy, the next step is put the

other half of outer energy candy layer. When this process is done, energy

candy is ready to the next step, cooling process. Cooling process is need to

make energy candy into desire texture, hard candy with contain. In this

process, we don’t need a specific pressure and temperature, just using a

room condition which the temperature is 250C and the pressure is 1atm. In

order to fullfill the capacity 285kg/day and due to the equipment

performance 200kg/hour the process time is 90 minutes.

G. Wrapping

After cooling process energy candy ready to wrap use a plastic.

Energy candy is wrapped one by one using a wrapper, using PP and

metalized film. In this process we use automatic plastic film wrapping

machine for candy with the capacity 150bags/minutes. As the result we

use 3 machines so the time process is 100 minutes, and this will make

wrapping process effectively due to the previous process, molding which

is need 90 minutes. After wrapping process is done the candy ready to

distribute into the market.

H. Sorting

Sorting is needed for checking energy candy’s quality. Defect

energy candy will be sort out and do not continue in the next process,


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packaging. The energy candy will be check from the mass and which a

packaging that do not contain any candy.

I. Packaging

Packaging process put the energy candy into a group of five and

the make it into the box. After this process is done, it means energy candy

is ready to sell and spread into the market. We use candy packing

machinery and this process need 40 minutes with the equipment capacity

is 1200bags/minute.

9.3. Profile of Main Process EquipmentThere are 8 main process equipment which are used in this energy candy

production. It all can be seen in the Appendix VII.

9.4 Mass and Energy Balance9.4.1 Mass BalanceThe mass balance section will discuss about input mass and output mass of

making energy candy product. The input mass is referred as raw materials and

output mass consist of semi-finished product such as chocolate paste and the

candy product itself. The mass balance equation is conducted in order to discover

production capability when it associated to raw material supply and product

distribution. So the supply chain flow can be evaluated carefully and accurately.

There are some assumptions in this mass balance calculation. They are:

a. Target per year:

b. 1 year = 346 days

Therefore, the production capacity is 493,050 tons per year and 1425

kg/day

c. Work time 24 hours and 333 minutes each batch

d. Each energy candy is 6280 mg

e. Total batch per day is 5 cycle

The mass balance detail can be seen in the Appendix X. 1 and Appendix X. 2.

9.4.2 Energy BalanceTo determine the energy balance of the production process, the power

usage in “Buzz” Energy Candy is obtained by summing each equipment power

requirement. The energy is supplied by PLN. The power usage is based on

equipment’s energy specification and duration of equipment operation. However,


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the power used is not fully efficient, there are energy losses in each equipment due

to heat loss of heater to the environment, setting up energy consumption, and

mechanical energy inefficiency. Based on literature, the power loss due to food

and beverage plant energy requirement is 14% of the total power usage for overall

process. Therefore, the power which PLN supplied is 114% of total power

requirements each day. The details is described below. The energy balance detail

can be seen in the Appendix X. 3 and Appendix X. 4.


102

Table 9. 5. Equipment’s capabilities in making energy candy

No EquipmentElectric Power (kW)

Number of Equipment

Equipment CapacityProduction Target of

EquipmentTotal

Operation Time

( Minutes)Value Unit Value Unit

1Candy Boiling Mixing Pot 5,75 1 200 kg/h 184,0145 kg 55

2Electric Candy Cooking Pot 1,5 1 200 kg/h 184,0145 kg 55

3 Candy Mixing Machine 4 1 200 kg/h 111,0438 kg 304 Cooling Tank 0,75 1 200 kg/h 111,0438 kg 305 Mixing Tank 7,5 1 250 kg/h 123,7838 kg 306 Wrapping Machine 3,4 3 150 bags/minute 45000 bags 1007 Molding Machine 55 1 280 kg/h 285 kg 658 Packing Machine 4 1 1200 bags/minute 9000 bags 38(Source: Group 13 private data)


103

9.5 Critical Path Method (CPM)This CPM is used to make scheduling. In order to make a good scheduling

we need to know the critical point. Some process is occurred pararelly so we need

to know which one is the main process and affecting the others process. The red

one in the picture is critical point from the process to make an energy candy. For

making energy candy, firstly the ingredients are delivered from the storage at need

20 minutes. After the ingredients enter the tank, the process happens. Mixing

chocolate paste needs 30 minutes and then the going through the next process

cooling for next 30 minutes. At the same time, taurine, vitamin C, vitamin B

Complex is delivered into the mixing tank for making a final energy candy’s

filling for 30 minutes.

Making sugar solution needs 55 minutes and then the sugar solution pass

through the cooking process for the next 55 minutes. After the sugar syrup is

formed, sugar syrup enters molding process with the chocolate paste as the filling.

The chocolate paste will be present earlier and then fill the candy for 65 minutes.

After this process has ended, the next process is wrapping the energy candy for

100 minutes. The final process is packing energy candy into five in one bags for

38 minutes. As the results, the total time for this production is 333 minutes from

critical point process. The CPM can be seen in the Appendix X. 5.


104

Table 9. 6. Scheduling for 5 cycle in a day

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24Cleaning Equipment 600

Delivering Sugar 100

Delivering Cocoa Powder 100

Delivering Water 100

Delivering Magnesium Stearate 100

Mixing With Boiler 150

Cooling 150

Delivering Vit.C 100

Delivering Vit.B Complex 100

Delivering Taurine 100

Mixing 150

Delivering Sugar 100

Delivering Menthol 100

Delivering Water 100

Boiling 165

Cooking 165

Molding 195

Wrapping 300Packing 114

ProcessTime (hours) Total

Work



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9.7 Plant LocationThe location choice of energy candy plant must be taken very carefully

and scrupulously. It is very essential because plant location can determine the

whole factory efficiency start from the acceptance of raw material until the

distribution of our product into the market. So, some basic consideration in

determining our plant location can be referred from our supplier location plants

and our energy candy affordability into the market. The table below is the supplier

plants location which is in Indonesia.

Based on our supplier plant location which have shown above, we need to

evaluate which location is the best proper. From our primary consideration, we

prefer the plant location which is closer to the affordable product by consumers to

plan location which is closer to the suppliers. The main reason from taking this

decision is because the distribution flow to consumer will be much more often

than the flow from the suppliers to our plant, so it will be much more efficient and

more economical.

Due to this occasion, we realize that we need the plant location which is

near with our supplier and also close to the harbor. Due to that condition, we

decide to plot our plant location in the area around Karawang, West Java. It can

be seen in the Appendix XI. 1.

The area which is cover with red line is the land for plant location. It has

2000 m2 or about 2 hectare. It is quite strategic and efficient because it is near to

the main road and if we zoom out the map, few kilometer to south, there is a

highway road which can directly lead to Jakarta or other cities in West Java and

also not far from harbor in Jakarta and Cirebon city. Other description about this

plant site that it has legal SHM certificate, quite far from settlement, and there is

also sewer system which can be used for industry necessity.

The plant location which has been decided which is in Cikampek,

Karawang, has another advantage which are very feasible and has high

affordability due to our market target, Java Island, especially to the nearest mega

big city like Jakarta, Bandung, and Semarang. So not only the supply

transportation, but also distribution flow is going to be very flexible, fast, and

responsive.


106

9.7.1 Alternative Plant LocationIn determining plant location, we could not rely on just one choosen

location. There must be another perspective location so that we can avoid

unwanted events such as to expensive land price, too complicated in bureaucracy,

and many others. Besides, the alternative plant location can be made as a booked

location for future days if we are going to expand our industry.

The alternative plant location parameter and characteristic are about the

same as the first plant location candidate that is in Sidoarjo, East Java. So the

main point is the effectiveness of the plant location.

The land can be seen in the Appendix XI. 2. It is in Jalan Kletek, Sidoarjo,

East Java. The area which is covered in red line has about 2000 m2 or 2 hectare. It

is quite strategic because it is in the urban area. The area is right on the side of the

main road of Sidoarjo regency, and if we zoom out the map, few kilometers in the

east, there is a highway road which can directly head to the harbor and other big

city in east java. The highway also can head to railway station. The railway station

are very important component, especially in distributing our Buzz Energy Candy

throughout Java Island.

Another consideration is that our supplier plant locations are near to this

area. About the sugar, menthol, and cocoa powder raw material, there are five

industries in Surabaya, Sidorajo, and Kediri. All of them are very near and just

need less than a day to transport to this area. Based on the condition and

advantages, this location is noted as our alternative plant location candidate

From those two plant location options, we decide to choose the first option

which is in Karawang, West Java. The main reason of its decision is because of

the distribution feasibility to the consumer. In the karawang, the product will be

more potential than in the Sidoarjo because it is so near to the mega big cities such

as Jakrta, Bandung, Semarang, and Yogyakarta. About the parameter of supplier

location, both of these location share the same condition, so the better one is the

location which is in Karawang, West Java.

9.8 Plant LayoutEnergy candy plant layout is design based on BPOM RI regulation number

HK.03.1.23.04.12.2206 2012 about food production for industry scale. Energy

candy plant is separated in two main building area. The first area is factory


107

building which has function in manufacturing product. This building consists of

administration office center and manufacture area. Administration office is in

front of the building to control people or materials that enter to the building.

Materials will be received in the receiving room also will be controlled by from its

quality and quantity (weighing). The materials which have been tested, will

keeping in storage room. Ingredients and raw materials in solid phasa are in the

same storage room. Whereas, liquid materials such water is keep in the storage

tank. According to the regulations, warehouse or storage area must not have near

distance to manufacturing area to minimalize contamination risks. To solve that,

we put corridor between storage room and production area. Production area is

divided into three rooms, primary process area, secondary process area (molding

and cooling process) and packaging area. Because our product is candy with

contain, we dividing the primary process area into two parts which are chocolate

pasta making process room and hard candy making process room. This rooms is

side in side because the process was parallel. Chocolate pasta and sugar solutions

will bring directly into secondary process area to be molded and cooled. From

primary area to final storage room is not separated by corridor because the process

is continuesly. In this building also have supporting room, such monitoring room,

maintenance room, equipment washing room and electrical room. Monitoring and

electrical room has function to control manufacturing process. Supporting is

located near the production area but it separated by corridors.

Beside factory building, there are also second area which has function in

supporting, includes canteen, mosque and security. This buildings are in outside

the factory, include parking area. The total of land area is 2000 m2 and the

production unit area is about 90 m2. The pictures below are shown the energy

candy factory plant layout. The Plant layout can be seen in the Appendix XI.3 and

Appensix XI. 4.


CHAPTER X

SUPPLY CHAIN

A supply chain is a system of organizations, people, activities,

information, and resources involved in moving a product or service

from supplier to customer. Supply chain activities transform natural

resources, raw materials, and components into a finished product that is delivered

to the end customer. In sophisticated supply chain systems, used products may re-

enter the supply chain at any point where residual value is recyclable. Supply

chains link value chains. (Andreas Wieland, 2011)

10.1 Supply Chain of Raw MaterialSupply chain of raw material is the first step of supply chain system which

is needed to be estimated. Supply chain of raw material will discuss all about raw

material distribution until it can reach to the plant. So, there will be many time

aspects which is need to be evaluated such as time in delivering raw material from

suppliers to plant, and delivering time from plant to product inventory. Supply

Chain of Raw Material is affected by:

The distance between supplier and plant location

Type of transportation will be used

The rate of transportation delivery of raw material to plant location

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http://en.wikipedia.org/wiki/Value_chain

http://en.wikipedia.org/wiki/Raw_material

http://en.wikipedia.org/wiki/Customer

http://en.wikipedia.org/wiki/Vendor_(supply_chain)

109

10.1.1 Time and Distance Between Supplier and PlantBuzz energy candy product have two kinds of raw material that must

be supply, raw material for energy candy production dan raw material for

packaging. Overall raw materials are solid or powder that easy to damaged

especially by water. Moreover, we must give a barrier for each material and

put material in storage which condition needed like in appropriate temperature

so it does not melting or damage. So, our storage will be design for raw

material to avoid the damage and make our raw material stay longer.

We use two suppliers so that if the main suppliers are not able to

produce the appropriate amount of raw material required, we can increase the

supply of second supplier. As it mention in plant location, the region of our

plant will be at Cikampek, West Java. The location and the distance between

supplier to our plant is shown in Appendix VIII. 2.

From the location of alternative supplier, we determine the main

supplier for us to buy the raw material. The first consideration is how fast the

raw material to the warehouse and the cost neeeded. The supplier we choose

shows in table below.



Table 10. 1. Alternative Supplier are chooseRaw Material

Raw Material Composition (%)Total/day

(kg)

Amount to be

supplied/month (kg)Supplier 1 Location / Distance

Delivery Time

(day)

Sugar 51.8 792.50 23775PG. Subang Desa Pasirbungur, Kec.

Purwadadi, Kabupaten

Subang/ 58.7 km

1

Cocoa Powder 15.9 245 7350 Dienca Cocoa Bandung, West Java / 76 km 1

Menthol 0.04 0.6 18PT. Sentral Cosmos

Jayaprima

Surabaya, Indonesia / 707.6

km2

Taurine 2.38 36.75 1102.5

Sinoright

International Trade

Co., Ltd.

Shandong China

(Mainland) / 3,038 miles7

Vitamin C 1.59 24.5 735TNN Development

Limited

China (Mainland) / 2,929

miles15

Vitamin B

complex0.16 2.45 73.5

Hangzhou Toyond

Biotech Co., Ltd.

Zhejiang China (Mainland) /

2,669 miles7

Magnesium 4 60 1800 Huzhou City Linghu Zhejiang China (Mainland) / 7

110

http://toyond.en.alibaba.com/

http://toyond.en.alibaba.com/

http://tnn.en.alibaba.com/

http://tnn.en.alibaba.com/

http://dlsinoright.en.alibaba.com/




Raw Material

Raw Material Composition (%)Total/day

(kg)

Amount to be


Delivery Time

(day)

StearatXinwang Chemical

Co., Ltd.2,669 miles

111

Table 10.2. (Cont’d) Alternative Supplier are choose


Table 10. 2. Alternative Supplier are chooseRaw Material for Packaging

Raw Material Total/day (kg)Amount to be


Delivery Time

(day)

Metalized Film

PET (7 gr)226.9 6807 PT. Super Exim Sari Jakarta / 32 km 1

Metalized Film

PET (35 gr) 680.7 20421 PT. Super Exim Sari Jakarta / 32 km 1

Carton box 27228 816840PT Mabuchi

IndonesiaBekasi / 50 km 1

Cardboard 1140 34200PT Mabuchi

IndonesiaBekasi / 50 km 1


112

113

10.1.2 Transport for Raw Material DistributionSelection of the alternative suppliers above is based on the distance

factor from local supplier to the warehouse location so that it will reduce

delivery costs. The location of local material is around in Subang,

Bandung, Cirebon, Tangerang, Bogor, and Surabaya. For Jabodetabek

area the delivery cost is free. The raw material from Surabaya will be

transport by JNE expedition agent so the vehicle needed is according the

expedition agent. We decide to use JNE because the material needed not

too much.

Some of the materials are imported from China because of the

unavailability of the material in Indonesia. If any, the Indonesian traders

also imported from other countries so we choose to import directly from

the purchase of the merchant who also imported. But, for imported raw

material we will use cargo service. The cargo servive we use is

Taobaoindo Agent Services. The agent service price is including the tax

and customs in Indonesia so we will not bother with a permit issue and

tax. The delivery cost calculate by adding material cost with fee then

multipled with 5%. The delivery cost is shows in the Appendix VIII. 3.

10.1.3 Raw Material Supply ScheduleOverall raw materials are solid or powder that have minimum shelf

life 1 years provided that the storage is safety to keep the material dry. For

sugar, cocoa, and menthol, because the supplier area are close, we will

scheduling to buy them once a month. The shelf life of raw material are

long but the capacity of the storage area not too big. So we decide to buy

them once a month. For imported supplier we will order every two months

considering the distance supplier is far. The schedule can be seen in the

Appendix VIII. 4.

In scheduling process, for availability of raw material in the first

day factory operation we make contract with supplier. So, when the

operation is beginning, raw materials are available. The contract is

agreement between supplier and owner. In this contract has a different

time to accept. Usually, contract is make six months before the plant is

operating. The contract is agreed on several things, among others:


114

a. The amount of raw materials which will be supplied

b. Delivery time of raw materials

(All local raw materials will be sent once a month to plant operation,

while for imported raw material will be sent every two months).

c. Fee to be paid at the beginning of the agreement to delivery of raw

materials is done (50%), and will be repaid when the raw materials have

been received.

d. There is penalty if the raw material come late

e. Raw materials being sent has a good condition, if not then it will be

returned.

10.2 InventoryInventory of raw materials is located in warehouse which is integrated

with the processing plant in Cikampek, Karawang, and West Java. Storage space

is useful for storing raw materials to be processed into products energy candy

"Buzz". The raw material which is used are sugar (main raw material), taurine,

vitamin C, vitamin B, cocoa powder, magnesium stearate, menthol, and water. All

the materials do not require special treatment, therefore the raw materials will be

placed all subjects (warehouse storage) only with certain barriers as a barrier

between the raw material with each other. Raw material which is sent, already

have a particular container, so it does not require special treatment. However, raw

material for making candy basically is powder therefore the raw material cannot

be place in the wet place because there is a possibility that some bacteria or

fungus grow up.

Vitamin C and vitamin B Complex are needed to be place in the cool room

in the form of container. This container has thermostatic which can be adjusted so

that the temperature will be suitable for storage. Whereas, for packaging materials

only need a room that does not need special treatment. As we all know, plastic and

cardboard is a material that easy to maintain and will not be easily damaged.

Cardboard have a characteristic is sensitive to water, so it must be kept dry.

Storage for raw materials in the warehouse should be kept dry, cool and

well ventilated. The warehouse must be kept away from heat, sources of ignition,

water. For security, fire alarms need to be put in storage so that if a fire can be


115

dealt with directly. It must be considered to keep the raw material remains fresh

and good (quality maintained) that will produce a quality and healthy products.

For energy candy, it just need to place in the storage room which is in the

RTP condition.

There are three types of inventory, namely:

1. Cycle Inventory

Cycle inventory is the many inventories to fulfill the demand in the

period between the purchases of the product. In other words, the same as

the inventory cycle regular production capacity, ie 1425 kg / day. Because

of the distribution is happened once a week the cycle inventory must be

have a capacity 9975kg.

2. Safety Inventory

Safety inventory is inventory that is stored as a buffer of demand

uncertainty. For the safety of raw materials inventory, we use control of

delivery time. Raw materials are sent once in two months for product that

import such as taurine, magnesium stearate, vitamin C, and vitamin B

complex. Therefore the capacity must be 7422 kilos. And sugar, cocoa

powder, and menthol order once a month are 62286 kilos. As the result the

inventory must have a capacity for 69708 kilos. And for fulfill uncertainity

the inventory capacity is 72000 kilos to store an excess raw material.

3. Sessional Inventory

Sessional inventory is stored inventory in anticipation of increased

demand at any given time. In the production of energy candy "Buzz" is not

expected and there is a sudden demand due to the number of consumers in

this product is relatively fixed. Our customers are major in Java. If there is

an increase, the rise will not be too significant so that production does not

use sessional inventory energy candy.

10.3 Distribution SystemWe choose to make the distribution directly to the distribution center of

wholesaler because in our opinion is more practical. By using the wholesaler distribution

centers, our products will be delivered every week to each DC for further distributed by

the DC wholesaler to their wholesaler branches. As the result, making profits for our

company and will reduce the cost of shipping out of the city and also more practical.


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Distribution system that we use to sell our products into four different

areas that we have explained previously. Wherein, each of the regions we sell to

wholesaler such as Giant, Hypermart, Carrefour and Lotte Mart we are sure to

have a strategic location. To distribute we will send to the distribution center of

each wholesaler. Retailers will sell our product in their respective chains with the

amount that determined by themselves.

Distribution system for goods, we will do it once in a weeks using a box

truck. The reason we chose the shipping is done once a week, since the day we

produce about 95 cardboards ready for transport. To reduce the cost of shipping,

we make deliveries once a week means a week we will send our products as much

as 665 cardboards into four different regions. For distribution to wholesalers we

will send it to the distribution center. It will making easier for us to deliver the

goods.

The product will be distributed and stocked in retailers distribution

centers. Distribution center is a specialized storage often equipped with air

conditioner and refrigerator. Then from the distribution center product will be

delivered to respective chains outlet. The distribution from retails’s distribution

center to each retail is the responsibility of the specific retail. But mostly, all of

the retailers using (Just-in-Time) distribution method for its chain.

Giants has distribution center in Cibitung, West Java.

Hypermart has 2 distribution center in Balaraya, Banten and Cibitung.

Carrefour has two distribution centers in Pondok Ungu, Bekasi and Lebak

Bulus.

Lottemart has distribution center in Ciracas, East Jakarta.

For storage, our energy candy products are food products that are not

easily decompose, therefore, does not require the storage of such special

placement must be available cooling or heating. Our products simply stored in the

shade and not humid.

Box truck freight vehicles conduction is normally used for transporting

goods of delivery (delivery van) are included in a box made of steel or aluminum.

With this box the items will be protected from rain and wind, and in addition it

also protects the goods from the hands of ignorant.


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10.4 Distribution RetailsBased on the analysis we did before, we will distribute our products to the

central distributor of wholesaler. The following charge will be sent to each

distributor based on the number of branches owned. Our wholesale unit which is a

priority area of Jakarta or Jabodetabek. Proficiency level in those region is more

crowded than other areas of Java. Such as wholesale and Carrefour hypermart we

expect our products are sold in Jabodetabek region. The detail can be seen in the

Appendix VIII. 4.

10.5 Distribution RouteThere is 4 retails that need to be the target of our products. The retails will

then resell product to consumers. The transportation is conducted with box truck.

The load that must be distributed is 10 tonnes and need to be carried with 2 box

trucks with capacity of 24 CBM and capacity . The box truck that we need has

dimension 5.5X 2.4 X 2.0 (m) to carry out the whole cardboard in one time. We

need 2 unit truck because to speed up delivery time, as deliveries are made in a

variety of different cities.Table 10. 3. Time travel distribution of energy candy

Distributo

rRoute Time

Distance

(km)

capacity

(ton/truck)

Giant Cikampek-Cibitung 1 hour 51.2 3.80

Hypermart Cikampek-Cibitung 1 hour 53.3 1.66

Lotte Mart Cikampek-Ciracas 2 hours 79.7 1.36

CarrefourCikampek-Lebak

bulus2 hours 87 3.21

(Source: Group 13th private data)

The distribution for energy candy to the distributor centre of wholesaler

will be conducted by two units Fuso box truck where each truck has a capacity of

up to 10 tons. One of Fuso box truck unit will send the products to cibitung, in

cibitung there are 2 places that distributors Giant and Hypermart. For the other

units to send to lotte mart and Carrefour each are in Ciracas and Lebak Bulus.


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Figure 10. 1. Distribution route plant to giant wholesaler(Source: Group 13th private data)

Figure 10. 2. Distribution route plant to hypermart wholesaler(Source: Group 13th private data)

Figure 10. 3. Distribution route plant to lotte mart wholesaler (Source: Group 13th private data)


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Figure 10. 4. Distribution route plant to carrefour wholesaler(Source: Group 13th private data)

10.6 Raw Materials FluctuationRaw materials are important for predict the demand and supply energy

candy product. In this part, we will be shown the fluctuation of raw materials

because the raw material only on the plant as preliminary data to determine how

much product can be produced. There are some assumption using to determine the

fluctuation which is the total energy candy production for each day is 10030

kg/day. The table below showing amount of raw material delivery from supplier

in several times.


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Table 4. 5. Raw material fluctuation

Sugar Cocoa powder

Menthol

Taurine

Vitamin C

Vitamin B complex

Magnesium stearat

Small plastic

Large plastic

Small carton

Large carton

Amount of raw material/delivery 26945 8330 20.4 1249.5 833 83.3 680 7714.6 23143.8 77146 3230

Span of order (day) 30 30 30 60 60 60 60 30 30 30 30

Delivery Time 1 1 1 1 1 1 1 1 1 1 1

More details can be seen in the Appendix VIII. 11.


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10.7 Product Fluctuation in Distribution CentreProduct fluctuation is important for knowing the demand and supply in

selling our product. We will know the time for distributing the new product to

distribution centre. This will make sure that the product is available in the market

because our product always available in the distribution centre. This fluctuation

happens because of consumers behaviour that we may predict the demand from

consumers at the mean time. We distribute once a week to the distribution with

the capacity 10030 box of energy candy to Giant, Hypermart, Carrefour and Lotte

Mart, 37,8%, 16,5%, 32% and 13,5% respectively. As we can see the peak

happens when the new product send to distribution centre and decrease as well as

the day pass by. We assume that the product has been sold equally each day. The

table and the graph will be shown in Appendix VII. 23.Table 4. 6 Product distribution

Market Giant Hypermart Carrefour

Lotte Mart Total

Amount of product to

be sent (kg)

3800 1660 3210 1360 10030

Product distributio

n percentage

(%)

37.8 16.5 32 13.5 100

Delivery Time 1 1 1 1



CHAPTER XI

MARKETING

11.1 MarketingMarketing is a process of communicating the value of a product or service

to the customers. It is a critical business function for attracting customers.

Marketing is based on thinking about the business in terms of customer needs and

their satisfaction. Marketing inform the public consumer about the product or

services which is innovative, informative, and creative. One of the biggest parts of

marketing is finding a way to gain and keep customers to buy our product.

Basically, marketing is consisted of three main aspects, draw the attention

of the target product market (prospects). Second, to facilitate the prospect's

decision-making process. Teach and train people how to make the best purchasing

decision. Give them enough information to facilitate their making the best

decision possible when buying what you have to sell. And the third, Give your

customers a specific, low-risk, easy-to-take action that further facilitates their

ability to make a good decision.

The marketing of a Buzz Energy Candy Product has a purpose to helps

consumers recognize products, choose between products, it also notifies the

consumer in terms of new additions/products/promotions. What our marketing

need to do is figure out what's important to the prospects, educate them about

what constitutes the best deal they can get by buying Buzz Energy Candy, and

then provide quantifiable proof that we provide the best deal in terms of price and

value. If we communicate that message properly, the prospects and customer will

pay attention to the message, believe it, and then take action.

11.2 Define Target MarketTarget customers are those who are most likely to buy our product. A

well-defined target market is the first element to a marketing strategy. Targeting a

specific market does not mean that we have to exclude people that do not fit your

criteria from buying from us. Rather, target marketing allows us to focus our

marketing budget and brand message on a specific market that is more likely to

buy from us than other markets. The target market for Buzz Energy Candy

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product is approvable for all ages, but the most suitable perspective consumers is

people from

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a various age (15 – 39 years old) and various economic realm. Buzz

Energy Candy are made for those who have very busy work hour such as student,

college student, field worker, office worker, and housewives.

11.3 Market SegmentingTarget markets are groups of individuals that are separated by

distinguishable and noticeable aspects. Target markets can be separated by the

following aspects, geographic, demographic, psychographic, and behavioral. The

business must understand what its customers in each segment need and then

provide goods and services to meet needs. Marketing activities inform customers

about products and services and persuade them to buy.

11.3.1 Geographic Segmenting

The market is segmented according to geographic criteria-nations, states,

regions, countries, cities, neighborhoods, or zip codes. Geocluster approach

combines demographic data to create a more accurate profile of specific.

Geographic segmentation is an important process - particularly for multinational

and global businesses and brands.

Buzz Energy candy will be sold in the city all over Java Island, but mostly

only in the big city such as Jabodetabek, Bandung, Cilegon, Cirebon, Serang, and

many other city in middle and east java. The reason we choose those locations is

because the easiness of distribution, and the big amount of stores that has a big

refrigerator that can preserve our product while being displayed. In big city, it’s

easier to reach costumer trough advertisement, rather than in the small city. To

complement both side, we decide to increase advertising and sales efforts in big

city, and then slowly expanded to the small city.

11.3.2 Demographic Segmenting

Demographic segmenting is a grouping of some people from the same

demographic realm. The group are called demographic profile. Demographic

profile provides enough information about the typical member of this group to

create a mental picture of this hypothetical aggregate. A demographic profile can

be used to determine when and where advertising should be placed so as to

achieve maximum results. Demographic characteristics include age, gender,

marital status, family size, income, education level, occupation, race, and religion.


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Buzz Energy Candy is made for busy working people and candy lovers, and

since our product need to be lozenged to consume it, we narrowed our consumer’s

age, from 15 – 39 years old.

11.3.3. Psychographic Segmenting

Psychographics is the science of using psychology and demographics to

better understand consumers. Psychographic segmenting is dividing consumers

according to their lifestyle, personality, values and social class. A principal

concept in target marketing is that those who are targeted show a strong affinity or

brand loyalty to that particular brand. Target Marketing allows the marketer /

sales team to customize their message to the targeted group of consumers in a

more focused manner.

Nowadays, healthy life style is a popular choice for the upper and upper

middle class people. Our product provided what we called a healthy, easy, and

tasty meal for everyone who crave a healthy life style. It doesn’t matter whether

you are vegetarian or not, our product suits them both. Also, as we know most of

the children avoid eating vegetable because they said it’s tasteless, but Naturela

vegetarian nugget provide the nutrition from vegetable in the form of nugget, the

food that children will like.

1.3.4. Behavioral Segmenting

Behavioral segmentation divides a population based on their behavior, the

way the population respond to, use or know of a product. It is the process of

breaking down a larger target market into smaller, more homogeneous groups of

customers that you can more efficiently market to.

Buzz energy candy is a product that depends on usage rate, the usage can be

demonstrated in the form of heavy usage, moderate usage, or lesser usage.

Candies and supplements are not a primary food but it is highly needed due to

their busy working hour. We took number of 2 times a day at most. For behavioral

segmentation based on usage rate, we can give a promotion such as the maximum

discount goes to the one who buys the maximum, whereas others get lesser profits

as they also get lesser discounts.


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11.4 Marketing MixMarketing mix is a business tool used in marketing and by marketing

professionals in promoting their product. In marketing mix there are four

controllable categories, product, price, place (distribution), and promotion, or well

known as four P’s. These four P’s are the parameters that the marketing manager

can control, subject to the internal and external constraints of the marketing

environment. The goal is to make decisions that center the four P’s on the

costumers in the target market in order to create perceived value and generate

appositive responses.

11.4.1 Product

Buzz Energy Candy is an innovative candy product with sugar, vitamins,

and taurine extract which fulfill the consumer both in pleasing taste,healthy

benefit, and also the energy booster aspect. What makes Buzz Energy Candy

different from other similar products are the content which is contain taurine

substance as energy booster and vitamins which is improve the function of it

for consumer. Another strength of our energy candy product is the size which

is much bigger, almost double size than ordinary candy. Buzz Energy Candy

is save to be consumed daily or occasionally since this product does not

contain any harmful chemical material in the making and packaging process.

11.4.2 Price

We state the price of Buzz Energy Candy as Rp 3500 for 31.4 gr candies,

or equal to one package which is consisted of five pieces of candy. We

consider it as an affordable price for our market target. The price that we state

is equilibrate with the benefit that Buzz energy candy offered, considering all

the nutrition existed, good enough to compete with other similar products.

11.4.3 Place

Our product will be delivered and being sold in the whole seller and

supermarket such as Hypermart, Carrefour, Giant, Hero all around big cities

that has been mentioned before.


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11.4.4 Promotion

Promotion is the business of communicating with customers. It will

provide information that will assist them in making a decision to purchase a

product or service. Buzz Energy Candy is a new product in the market, so

promotion of the product is really important. To increase the product’s sale,

we need to first get the heart of the consumers and then gain the trust to keep

loyal in buying our product. There are some ways that we can do to get the

goal.

a. Advertisement

Advertisement is the easiest way to get the consumer attention on

introducing new product. Our advertisement will be appeared in some

forms, adlips voice, written, and online.

We will announce our product in some famous radio stations, such as

Elshinta Radio (, in the prime time, when the frequency of people listening

to the radio reach the maximum number.

For a written advertisement, we will cooperate with some national

magazine and newspaper, such as Jawa Pos, Seputar Indonesia, Media

Indonesia, and Kompas. Online advertisement will be appeared in some

famous online sites in Indonesia, such as Kaskus, Google AdSense,

detik.com, and iklangratis.com.

b. Product Website

Our company will provide a website as a support media that contains

company’s profile, product description, the latest news of our company

and product, and the health article. Also, to get in touch closer to the

consumer, we will provide a consultation facility and a critics that is

important for product’s development in the future.

We believe that online marketing is a great marketing ways, because it

connect with a world of potential consumers that can view the company in

different perspective. Rather than seeing your company as "trying to sell"

something, the consumer can see a company that is in touch with people

on a more personal level. This can help lessen the divide between the


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company and the buyer, which in turn presents a more appealing and

familiar image of the company.


CHAPTER XII

PRODUCT COSTING

“Buzz” Energy Candy is manufactured in Cikampek, Karawang, West

Java which consists of factory and office occupying indirect labors, sales

marketer, consumer service, etc. The factory has land area about 2000 meter

square land, with 50 meters in length, and 40 meters in width. The target

production of the factory is 493.05 tons per year. Total energy candy produce per

day is 228,000 piece. Every 5 piece of energy candy will package with plastic and

total each day is 45,600 package. Every 5 piece of energy candy then package

with carton which carton contain 24 pack of energy candy and total each day is

1,900 package. Next, every 24 pack of energy candy packaging carton will

package with cardboard which cardboard containing 20 carton box. The total

cardboard every day is 95 package. To maintain the rate of “Buzz” Energy Candy,

the factory operates full day in a week with labors working in shifts, excluding the

indirect labors and all the administrative officers.

The factory total workers in factory and office is about 171 people,

separate into direct labor and indirect labor. Direct labor takes position in

production plant, and the applicants is prioritized to buffer the plant surrounding

occupation demand with minimum education level for high school graduates.

Direct labor responsible in processing raw materials, maintains equipment and

monitoring the inventory. While for indirect labor takes position in administration

office maintaining the development and administration matters for “Buzz” Energy

Candy production. Indirect labor includes Finance and Accounting Department,

General Support and Service Department, HRD Department, HSE Department,

Product Planning and Development Department, Sales and Marketing

Department, Production Department, and Maintenance Department. Organization

of the structural divisions are managers heading each divisions, except for plant

division, each subdivisions will be led by one manager. While supervisors are

included in the amount of people in the division. Since the factory and office are

included in one location, so the integration of job description is not too

complicated.

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The detail of amount of workers in each division can be seen in the Appendix IX. 2.

Direct labors which positioned in plant will work in shifts to maintain the

production process. In one day, there will be three shifts for direct labors. The

workers who maintain the process will be divided into three types, which operates

directly to the plant, supervising the direct plant worker, and quality control

division. Each workers will work in 8 hours a day for each shift. A day will be

divided into three shifts. While for the indirect labors will work in 8 hours a day

to administer every documents and administrative matters. Indirect labors only

work in one shift a day with 8 work hours per day.

After the production process, the products need to be evaluated before

being distributed, which will be profitable or not. The prediction will be executed

precisely with economical analysis. By doing economical analysis, every costs

that can influence the price of the product needs to be considered. In this chapter

we will analyze the factors affecting the distribution of “Buzz” Energy Candy

product and calculate the precise sell price of the product in the market. The

calculation will take account of manufacturing cost and another operational cost

also with taxes charged. The estimation of estimation of capital cost is determined

with preliminary estimate. Preliminary estimate is also known as budget

authorization estimate or scope estimate. The accuration of this method is within

20%.

Predesign cost estimates (defined here as preliminary estimates) require

much less detail than firm estimates such as the definitive or detailed estimate.

However, the predesign estimates are extremely important for determining if a

proposed project should be given further consideration. Predesign estimates may

be used to provide a basis for requesting and obtaining a capital appropriation

from company management. Later estimates, made during the progress of the job,

may indicate that the project will cost more or less than the amount appropriated.

Management is then asked to approve a variance which may be positive or

negative.

12.1 Capital InvestmentIn order to establish a brand new factory, money is undoubtedly and

uncontestedly needed. The money which is going to called an Investment. Some

definition of investment, Investment is time, energy, or matter spent in the hope of


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future benefits. But here, in economic aspect, investment is the accumulation of

newly produced physical entities, such as factories, machinery, houses, and goods

inventories. All of that aspect is not count as a little cost, so a huge amount of

money is greatly required in this Buzz Energy Candy Factory.

Funds invested in a firm or enterprise for the purposes of furthering its

business objectives. Capital investment may also refer to a firm's acquisition of

capital assets or fixed assets such as manufacturing plants and machinery that is

expected to be productive over many years. Sources of capital investment are

manifold, and can include equity investors, banks, financial institutions, venture

capital and angel investors. While capital investment is usually earmarked for

capital or long-life assets, a portion may also be used for working capital

purposes.

In calculating total investment, there are some components which is

considered as major aspect such as plant equipment’s, infrastructure, building,

land, and etcetera. On the other hand, in figuring out the capital investment,

assumptions are highly needed so the result will be logic and sufficient.

1. The Buzz Energy Candy Factory is established and become operation in

year 2015.

2. To determine the selling price, some assumption are made:

a. Product will be sold to the market for 10 years. At the end of the

tenth year, new product will be made and other factories will be

built.

b. Within a year, plant will be on operational state for 346 days, with

24 works hours each day.

c. Workers are working in shift, within a month they will have

averagely 30 working days.

d. Calculation of depreciation is using single declining balance method with

20% factor.

3. The exchange value of rupiah for dollar is Rp 11,560.

4. The estimation of capital investment will use both manual calculation and

Guthire method


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12.1.1 Total Bare Module Cost (Equipment Cost) The cost needed to buy the main equipments are differentiated by the type,

characteristic, capacity and size of the equipment. After analyzing each aspect, we

can calculate the total equipment cost. Since the price we required are not the

prices we will be using, the price could be calculated by using annual index od

chemical equipment price. The index is as shown in the Appendix IX. 3.

Bare-module cost is the total cost of main equipment that required for

production process. It is the whole cost that calculated from the purchasing

process of the equipment until it is installed on the plant and ready to be used,

therefore it consists of Free On Board purchase cost, shipping cost, and

installation cost.

The processes to calculate bare-module cost are:

The required data to calculate bare-module cost are the Free On Board

(FOB) purchase cost, material cost, labor cost, and indirect module cost

The total material cost is added with the Free On Board purchase cost will

result on module cost

Labor cost is added with module cost will result on direct module cost

Indirect module cost such as freight, tax, insurance, engineering, and field

expense is added with direct module cost will result on bare-module cost

The method to calculate bare-module cost by using bare-module factor, We just

have to know the FOB purchase cost and the bare module factor of the equipment.

FOB purchase cost of the equipment can be obtained by accessing the internet. In

this bare-module cost calculation, the FOB purchase cost that being used is FOB

for year 2014, so that the forecast of FOB purchase cost for the next year is not

necessary anymore. The determining process of type, capacity, size, and amount

of equipment required has been done in the previous section. The value of bare-

module factor is different for any equipment. It can be found in Chemical

Engineering Handbook 8th Edition (Perry, 2006). The factoring actual equipment

cost with guthrie method can be seen in the Appendix IX. 4.


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12.1.2 Site CostPlant cost is the establishment and the building of the factory plant. Here,

we assumed that we are going to buy a new empty land and then build our factory

up there. As have been already mentioned in the previous assignment, our plant

location is in Karawang, West Java. Based on our research, the land price each m3

is Rp 700,000. Other aspects which will be count into this calculation are Building

area, Foundation, Contractors, and Development.

The building area means the building itself which will be really

established visually, and it has a cost Rp 900,000/m3. In the building process, we

need third party which is contractors, it has 10% value of 3% of land cost. Land

development means an effort in improve land surface, as if there are upper or

bottom ground. The land cost and its each value can be seen in the Appendix XI.

5:

12.1.3 Supporting Equipment

Supporting equipment is one of needs to operate production of our plant.

The supporting equipment is equipment for work which is estimated based on the

number of workers who need such equipment respectively. Supporting

equipments are divided into electrical and non-electrical equipment. Electrical

equipments are include computer, faximile machine, fotocopy and printer

machines which are useful in administration office. Beside that, there are also Air

Conditioner (AC), CCTV, generator, television and telephone to support the

whole process in our factory. We need computers in administration processes and

controlling activities. For back up the energy availabilities in our industry, we use

generators to keep the manufacturing process is still running. Whereas non

electrical equipments here are furnitures, such working table, chairs, sofa,

dispenser, lamps, telephone and television to complete the rooms facilities. In

most of rooms and security, there are CCTV to control the activites in our

industry. For product distribution, we use truk fuso box to distribute our products

from our factory to the markets and consumers. Transporation vehicles of this

indutry are used in administration purposes or company importances. This table

below will explain about the prices of supporting equipments we used in this

plant. The detail can be seen in the Appendix IX. 6


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12.1.4 Other Cost

There also another investment that supports the development of the plant,

like business license and patent. The following table shows them in details..

Licensing is needed for patent, and brand. Licensing helpful to make Buzz energy

candy cannot be copy to another producer. In this case we assume that all cost for

register our Buzz energy candy in first time. It can be valid for ever as long as the

plant producing. The licensing include clinical performance test to persuade

consumer that our product is safety in clinical side. It will appropriate that energy

candy is healthy food for daily consume as supplement. The detail can be seen in

the Appendix IX. 7

12.1.5 Market Research costMarket research is very important step in our product development and

market segmentation. This market research will be done by the third party such as

consultant so we are paying them. Market analysis will allow us to sell our

product accurately and sufficiently. The detail can be seen in the Appendix IX. 8.

12.2 Total Plant InvestmentTotal plant investment is the amount of investment required for the whole

needs of preparation of production process. It is the sum of total bare-module cost,

supporting equipment cost, site development and building cost, and market

research cost.

12.3 Working Capital Working capital is the cost that paid in the early month of production

process. This cost is paid before the company receives any revenue. The

component of working capital is raw material, human resource payment, and

operational cost for early month of process production. According to Guthrie

method, the amount of working capital is

Cwc = 17,6 % x Total Plant Investment

For our calculation we used manual calculation, because our plant is food

product. If we use Guthrie’s method maybe the calculation less accurate than

manual method. We calculate working capital according to a month production.

Detail about working capital is listed below.

Table 12. 1. Working Capital detailCost Segmentation Cost (Rp)


(1.1)

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Raw Material Cost 574,804,602.50

Utility Cost 130,315,413.77

Soft Launching Cost 85,000,000.00

Distribution Cost 8,449,200.00

Indirect Labor Cost 468,000,000.00

Direct Labor Cost 220,500,000.00

Working Capital 1,487,069,216.27

(source: 13th group private data)Soft launching is needed for introduce our product in first time, so our

product can be recognized to people. We need this strategy because our product is

never been before. The detail about soft launching cost is shown in Appendix IX.

9. After calculating the working capital, the total investment cost can be

calculated. The formula for total capital investment is the addition of total

permanent investment (TPI) and working capital (CWC) and also include offsite

cost. Offsite cost is about installation cost such as electrical, waste water, hydrant,

telephone and network. Installation is needed in once time to set that properties to

support and as auxiliaries such as sewage treatment and safety. The detail

calculation of total capital investment is as follow:Table 2. 1 Total capital investment

Cost Segmentation Cost (Rp)

main Process Equipment Cost 4,038,639,080

Supporting Equipment Cost 2,185,650,000

Plant Building Site Cost 3,068,875,000

Market Research Cost 25,000,000

Offsite Cost 114,000,000Other Cost 23,000,000

Total Permanent Invesment (TPI) 9,455,164,080Working Capital 1,487,069,216

Total Capital Invesment 10,942,233,297(Source: Group 13 Privat Data)


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12.4 Total Operating CostOperating costs are the expenses which are related to the operation of a

business, or to the operation of a device, component, and piece of equipment or

facility. They are the cost of resources used by an organization just to maintain its

existence. For a commercial enterprise, operating costs fall into two broad

categories:

Fixed costs, which are the same whether the operation is closed or running at

100% capacity. Fixed Costs include items such as the rent of the building.

These generally have to be paid regardless of what state the business is in.

Variable costs, which may increase depending on whether more production is

done, and how it is done (producing 100 items of product might require 10

days of normal time or take 7 days if overtime is used. It may be more or less

expensive to use overtime production depending on whether faster production

means the product can be more profitable).

In this Buzz Energy Candy Factory, the fixed cost cover labor’s salary,

insurances, building tax, and maintenance which is consisted of main equipment,

supporting equipment, and plant and building maintenance. While the variable

cost is consisted of raw material, utility, distribution transportation, and income

tax. Each of value of fixed and variable value of total operating cost will be

calculated so that we could know the total cost of operational aspect each year.

12.5.1 Fixed Cost12.5.1.1 Labor’s SalaryDirect labor is all of the labors who are involved directly in a production

process at a factory. In this section, we will explain about the cost in the direct

labor. The decision about the salary of the labors is based on National in

Indonesia. UMR is rule of Indonesia’s government about minimum salary for

employee or laborer. The use of National UMR for our laborer is because we

assume that our laborer come from many regional. National UMR in Indonesia is

Rp 2,200,000 in 2014. So, the minimum salary for our laborer will also Rp

2,200,000.


http://en.wikipedia.org/wiki/Expense

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Total of operator is 33 people which every shift consist of 11 operator for

operate the equipment of energy candy production. There are 3 people as shift

coordinator for our 3 shift a day. The mill hand consist of 30 people for sorting,

packaging energy candy to carton and cardboard packaging. We estimate 3 people

will enough to sorting energy candy. We have 1900 carton and 95 cardboard

every day or about 634 carton and 32 cardboard per shift. we estimate to package

energy candy into carton will need 5 minutes every packaging and 7 people will

enough for one shift, so total people to package energy candy into carton will be

21 people in one day. We estimate the packaging into cardboard need 10 minutes

and 1 people will enough for packaging into cardboard in one shift, so total people

to package into cardboard will be 3 people in one day. As for warehouseman there

will be 3 people in one shift because we have 3 storage. The detail can be seen in

the Appendix IX. 10

12.5.1.2 General ExpensesIndirect labor consists of employees who do not affect the amount of

product produced or not directly related to production activities of “Buzz” Energy

Candy products. Indirect labor’s requirements are suited to the organizational

structure owned. The salary of each employee is included employee benefits per

year and insurance costs for employees which are deducted each month for the

cost of insurance. The details of indirect labor can be seen in the Appendix IX.11.

12.5.1.3 InsuranceInsurance is the cost which is paid by cooperated insurance company.

Insurance is one way to protect assets of company either variable assets or fixed

assets. Paid insurances are included the cost of buildings, equipments, and

employees’ insurance. Employees’ insurance is calculated from salaries of labor.

The detail can be seen in the Appendix IX.12.

12.5.1.4 Maintenance CostThe continuous process which is done by each process equipment, can

make equipments did not work in intensive and optimum way. So, we need to do

maintenance. The maintenance is also done for factory building and supporting


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tools for office needs. The maintenance cost is estimated manually based on the

literature The calculation of maintenance cost shown in Appendix IX.13.

The amount of our main equipment is 11. It is assumed that each of our

main equipment has maintenance cost Rp. 2,500,000.00. Then, each supporting

equipments have the maintenance cost Rp. 50,000.00, while the plant and building

maintenance consist of sewer system and the building maintenance which is Rp.

500,000.00 and Rp. 1,000,000.00, respectively. The data is obtained from

Kementrian Pekerjaan Umum Indonesia and from similar industry. All of them

will be done twice each year, so the total maintenance is Rp. 63,400,000.00 which

is shown in the Appendix IX. 13.

12.5.1.5 LicensingWe will register patent for our product. It is important to protect our

product of counterfeiting and piracy effort. We will license our “Buzz” Energy

Candy to Certification Agency for Drug and Food Control (BPOM) and Halal

MUI Certification. Cost for the manufacture and maintenance of patents that will

be imposed on our energy candy company can be seen in the Appendix IX. 14.

All cost will be paid every year as a operating cost. In Indonesia,

trademark rights are protected by Law No. 15 of 2001. Term of protection for ten

years and the brand is retroactive from the date of receipt of the respective

trademark application and can be extended, as long as the brand is still used in

commerce.

12.5.2 Variable Cost12.5.2.1 Raw Material CostThe raw material cost include sugar, cocoa powder, menthol, taurine,

vitamin C, vitamin B, magnesium stearate, and for packaging there are metalized

film PET (7 gr), metalized film PET (35 gr), carton box, and cardboard.


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The delivery cost and total cost per order of imported material is calculate

based on order in every 2 month. Besides, the other material order every 1 month.

So, the total for the first year cost of material for one years (1 year=346 working

days) is Rp 6,897,655,230. The detail can be seen in the Appendix IX. 15.

12.5.2.2 Utilities CostUtilities are very important aspect in a factory. It is highly needed in order

to produce our Buzz Energy Candy. There are two main utilities which will be

used in our Energy Candy plant. They are electricity (power) and water. The

electricity source which we will use is from Perusahaan Listrik Negara (PLN) and

the water requirement is come from Perusahaan Daerah Air Minum (PDAM). The

electricity use in our factory is from two kind of equipments, main equipment and

supporting equipment. The electricity price is 872 rupiahs/kWh for Industry based

on the Perusahaan Listirk Negara (PLN). The explanation of its cost can be seen

in the Appendix IX. 16 and Appendix IX. 17.

The water requirements each year can also be seen in the table below. The

water service cost from Perusahaan Daerah Air Minum (PDAM) can be assumed

as 9500 rupiahs/m3. It will be used for three main usage which are process,

employee, and utility. The process is the water usage for the process itself, in

making energy candy from the start until become a product. The employee usage

is for employee’s drinking water in the work time hours and toilet, and the utility

usage is for washing, not only washing the equipment, but also washing the roon

and other utilities. It can be seen in the Appendix IX. 18 and Appendix IX. 19

As summary, we can calculate the total utility cost per year as shown in

the table below.Table 12. 2. Total utility cost

No Utility Total Cost (Rp)

1 Electricity 155,987,518

2 Water 1,407,797,448

Total 1,563,784,965 (Source: Group 13 Private Data)


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2.5.2.3 Distribution CostDistributing product to various retails seller it will need costs. The product

delivered to retails distribution center. Then distribution center of the retails will

distribute to retails outlet with their own discretion. The details of distribution cost

will be described below:

The cargo truck used by invest. It will be much cheaper then rent trucks.

The cargo truck used is Fuso Cargo Truck with capacity of 10 tonnes and volume

26.4 m3. Fuel Ratio is 1 L for 15.22 Km.

The Specification of cargo truck:

Fuso Cargo Truck 10 Tonnes :

Capacity : 10 Tonnes

Volume : 26.4 m3

Fuel Ratio : 1 : 15.22

Seat : 3 With Drivers

Price : Rp. 420,995,000,00

As for distribution, we have to make some assumptions

The truck we bought it Rp. 420,995,000,00 per truck

The truck we use in total is 2 truck

1 liter of fuel can last for 15.22 km

1 liter of biosolar for truck is Rp 6.500

The detail can be seen in the Appendix IX. 19.

2.5.2.4 Marketing CostMarketing is used to introduce and inform the people about Buzz Energy

Candy product with consumer needs. With this method, our products will be sold

quickly in accordance with the economic analysis which have been designed.

Marketing costs are include promotional activities that have planned. We promote

our product by newspaper advertisement, radio and online media advertisements.

In newspaper media, our product are marketed through Jawa Pos, Seputar

Indonesia, Media Indonesia, and Kompas. Then in radio, we use SPOT/Adlips

radio to market the product. Number of advertisement is 20 times per year. And

the last, we use online media to promote our prudoct which are detik.com,

kaskus.co.id, google adsense and iklan-gratis.com. We consider those media


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because they are effective to promote our new product and the costs is not to

expensive. It all can be seen in The Appendix XI. 20, 21, and Appendix XI. 23

12.5.3 Total Operational Cost per YearNow we have all the data of each operational cost aspect such as Labor’s

salary, raw material cost, Utilities cost, maintenance cost, licensing, distribution

cost, insurance, and marketing cost. The sum of each aspect is total operational

cost per year. It can be seen in the table below:Table 12. 3. Total operational cost per year

Cost Segmentation Price

Raw material 6,897,655,230

Labor's Salary 2,494,800,000

General Expenses 5,544,000,000

Utility Cost 1,563,784,965

Maintenance 63,400,000

License (patent) 9,200,000

Insurance 439,994,205

Marketing 1,965,034,400

Distribution 101,390,400

Total Operational Cost per Year 19,079,259,200

(Source: Group 13 Private Data)

12.5.4 Weighted Average Cost of Capital (WACC)Money are undoubtedly needed in order to initiate an industry. Here, Buzz

energy candy factory need a huge amount of money in the beginning. From the

calculation which have already done before, the needed money called as total

capital investment is Rp. 10,942,233,297. Surely, we could not afford this amount

by ourselves, so third party is highly invited to invest in this project. There are

two kinds of third party which will be joined in our product development, they are

Bank and investors. We will offer them a particular value due to the capital

investment above. The assumption is that the investor will be invest their money

40% and bank will lend their money out for 60% of total capital investment. The

MARR value which the investor attract is 12%, while the deposit interest value of

BCA Bank is 10.5%. From those data, we can calculate the WACC value which is

shown in the equation below.


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The weighted average cost of capital (WACC) is the rate that a company is

expected to pay on average to all its security holders to finance its assets. The

WACC is the minimum return that a company must earn on an existing asset base

to satisfy its creditors, owners, and other providers of capital, or they will invest

elsewhere. Companies raise money from a number of sources: common

equity, preferred stock, straight debt, convertible debt, exchangeable

debt, warrants, options, liabilities, executive, governmental subsidies, and so on.

The equation which will be used in this calculation is:

WACC=(0.4 ×12 % )+ (0.6 ×10.5 % )WACC=4.8 %+6.3 %WACC=11.1%

12.6 Economic Analysis12.6.1 Price DeterminingPrices can be determined from the total costs of goods manufactured that

is the total of every cost. In our project, we assume that no raw material turned

into left overs and all the products are sold out. Because of that, the cost of goods

manufactured is equal to cost of goods sold. Final product capacity is 15.702.229

candies per year as the basis. Table below shown the cost determining that have

been calculated.Table 12. 4. Price determining

Capital Invesment Rp. 10,942,233,296

Operating Cost Rp. 19,009,259,200COGs Rp. 29,951,492,496

Expected ∏(10%) Rp. 2,995,149,250Total Expenses Rp. 32,946,641,746

Expected Revenue (20%) Rp. 3,801,851,840Total Revenue Rp. 25,806,260,290

Energy Candy Production 1year(1pack) 15,702,229

Price/pack Rp. 1,643Price/pack Rp. 1.700

Total Income 25,123,566,400(Source: Group 13 Private Data)

12.6.2 Depreciation and Salvage ValueDepreciation is an effect of time in physical value

reduction. As long as time goes, the money value of most tangible object will be reduced, sometimes even make the object


(1.2)

http://en.wikipedia.org/wiki/Option_(finance)

http://en.wikipedia.org/wiki/Warrant_(finance)

http://en.wikipedia.org/wiki/Exchangeable_bond

http://en.wikipedia.org/wiki/Exchangeable_bond

http://en.wikipedia.org/wiki/Convertible_bond

http://en.wikipedia.org/wiki/Debt

http://en.wikipedia.org/wiki/Preferred_stock

http://en.wikipedia.org/wiki/Common_equity

http://en.wikipedia.org/wiki/Common_equity

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become invaluable. This effect should be reflected in the company’s economic report.

Our depreciation counted using single-declining balance method. This method decreases the amount of depreciation expense that would result in decrease every period. This methode assumes that the new assets are very large role in the effort to get the benefits, the role of these assets are increasingly smaller with the aging of the assets.

The difference of double-declining and single declining method is the depreciation rate of single-declining method lower than double-declining depreciation rate. We use single-declining method because our equipments have long life time and not damage quickly. Depreciation single-declining balance used for high-tech tools such as automation devices and computer. The depreciation in the early years of the benefit of sharper. To be able to calculate the depreciation expense which always decresing, the based used is % depreciation by the straight-line method, % is multiplied every year on the book value of fixed assets. Because the value of the book is always decreasing, the depreciation expense also always decrease.

From this calculation, we can estimate the total depreciation for main equipment is Rp1,013,144,079. Total depreciation for non electronic support equipment (for ten years) is Rp 12,247,881 and total depreciation for electronic support equipment is Rp 1,338,312,914.

Salvage value is money earned from the sale of tools that still have value at the end of the benefit. Total salvage value for main equipment is Rp323,063,341. Total salvage value for non electronic support equipment is Rp 73,884,276 and the total salvage value for electronic support equipment is Rp 220,604,382. Total depreciation and salvage value can be seen in Appendix IX. 23, 24 and Appendix IX. 25.


12.6.3 Cash FlowCash flow is a revenue or expense stream that changes a cash account over a

given period. Cash inflows usually arise from one of three activities-financing,

operations or investing although this also occurs as a result of donations or gifts in the

case of personal finance. Cash outflows result from expenses or investments.

Preparation of cash flow analysis aims to facilitate future profitability and also

gives information flows in and out. Cash flow divided by the entity or group

company itself:

1. Cash flow production, which includes entities supplier-plant and plant

production

2. Cash flow distribution, which includes plant-entity inventory, inventory-DC,

DC-retailers are realized in third party contracts.

3. Indirect cash flow, which include activities that are not directly related to the

production and distribution process, ie office and marketing activities, as well

as the maintenance of patents and brands.

For our cashflow, we state it from before tax cash flow (BTCF) and after tax

cash flow (ATCF). BTCF obtained from amount of income, operational cost and

loan payment minus it with salvage value. The first investment come from total

capital investment in first year. And for ATCF come from BTCF which have been

obtained minus income tax that we assumed for each income tax 30% from taxable

income. After 10 years according to our analysis, our cumulative cash flow is Rp

41,873,777,628. The following figure is about Buzz energy candy cash flow. The cash

flow detail can be seen in the Appendix XII. 1.

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12.6.4 Cost BreakdownCost breakdown needed to know which cost contribute to the total

expenditures. With the cost breakdown we can which variable can be adjusted to have

a lower or bigger price. From the Appendix XII. 3, we can see the cost

breakdown of all of our energy candy industry. It can be conclude that the biggest

cost of all is in the total capital investment, approximately 36%. Another values

which are also numerous shown in the Raw material, general expenses, and labor’s

salary. They have 23%, 19%, 8% of total cost, respectively. This values also shows

that raw material aspect is very sensitive with price change which also affect the

costing value. Another variable cost which is needed to be evaluated is marketing

cost, which have 7% of total cost. These Raw material, general expenses and

marketing cost are need to be analysed in the next stage.

12.6.5 Profitability AnalysisOne of the most frequently used tools of financial ratio analysis is profitability

ratios which are used to determine the company’s bottom line and its return to its

investors. Profitability ratios show a company’s overall efficiency and performance.

This profitability can be divided into two types margins and returns. For calculating,

we use methods Payback Period, Rate of Investment (ROI), Net Present Value (NPV)

and Internal Rate of Return (IRR).

12.6.6.1 Payback PeriodPayback period is the duration in years of an investment will be returned. We

know the payback period from the graphic below. This graphic is plotted between

After Tax Cash Flow accumulation and the time (years). If the payback period is less

than a predetermined period, the project is acceptable. If the payback period exceeds

the predetermined period, the project is rejected. Payback period for this plant after

reach full production capacity. Payback period for this project is 3 years. Therefore

with this payback period, our project for making new product Buzz! Energy candy is

possible because the payback period is less than 5 years, due to the normal payback

period for big project. As the result, this project can be fund not only from bank but

also can be fund from investors as the desirable payback period.

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From the Appendix XII. 2, we conclude that our project still can be run due to

payback period after 10 years production time according to depreciation calculation.

Our payback period is at a good point for a project with a small lifetime, because

project with small lifetime has a higher risk for investor because the time for gaining

profit is smaller than a project with long lifetime.

12.6.6.2 Net Present ValueNet Present Value (NPV) is the difference between the present value of cash

inflows and the present value of cash outflows. This is used in capital budgeting to

analyze the profitability of an investment or project. NPV shows the net benefits

received by a project over the life of the project at a certain interest rate. To calculate

Net Present Value, we use this formula below:

NPV =∑t=1

T Ct(1+r )t −Co

where :

Ct = net cash inflow during the period

Co = initial investment

r = discount rate

t = number of time periods

From the calculation according to formula above, we know the Net Present

Value (NPV) is Rp 41,873,777,628. Because the NPV of our plant is positive, we

conclude that this project is feasible to do. It will give profit or provide benefits if the

project is implemented. The calculation of NPV, use an assumption with wacc 11,1%

due to Bank BCA’s deposit interest and MARR for investor 12%. Tax for taxable

income 30%. This assumption is the minimum index at each point, so the NPV which

we calculated is the maximum NPV or maximum profit can be achieved without any

fluctuation from the capital cost either operating cost as we can say all the variable is

fixed and at the ideal value. NPV shows the profit for our project after 10 years

operating.

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(1.3)

12.6.6.3 Break Even Point Break even point (BEP) is an analysis to determine and find

number of products that have to be sold to the consumers in a certain price to cover the operational cost and other cost, and also to gain profit. The equation to calculate BEP is:

BEP=Total¿Cost ¿(Price per unit−Variable cost per unit)

Where total fixed cost is a cost which the value relative stable and variable cost is a cost which the value depend on number of production. The calculation of BEP is shown in the table below

From Appendix XII. 4, number of “Buzz” Energy Candy which have to be sold to cover the production cost and gain profit is 10,623,527 unit with the revenue is Rp 18,059,996,702. This breakeven point shown a point when our project reach the payback period, or our project begin to gain a profit. After achieving this BEP, our project will be gain profit and revenue. This point shows the initial point shown using BEP in unit and BEP in rupiahs. 12.6.6.4 Internal Rate of Return (IRR)

Internal Rate of Return (IRR) can be used to rank several prospective projects

a firm is considering. If the IRR value is higher than MARR, the project would

probably be considered to implemented. In our project, we borrow money from Bank

BCA and investorm the ratio is 60% and 40%, respectively. MARR equity for both is

11,1% due to equity calculation with WACC. Our IRR is 30 % which means higher

than MARR. Our IRR providing better income for investor because our IRR is higher

than bank deposit’s interest and higher than our competitor profit percentage.

Therefore giving loan for our project is more profitable rather than saving their

money in bank or investing their money at our competitor. Our IRR is higher than

MARR it makes our project can be implemented or feasible and can be fund by both

from investor or bank.

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(1.4)

12.6.6.5 Rate of Investment (ROI)Rate of Investment (ROI) is understand as a performance measure used to

evaluate the efficiency of an investments. To calculate ROI, the benefit (return) of an

investment is divided by the cost of the investment. The result is expressed as a

percentage or a ratio.

ROI=(Gain¿investment−Cost of investment )Cost of investment

Gain from investment refers to the proceeds obtained from selling the

investment of interest. If an investment does not have positive ROI or if there are

other opportunities with a higher ROI, the investment should be not be undertaken.

According to our calculation, we found that ROI value is 22,88%. From the result, we

analyze that in our project the investment can be undertaken because the value is

positive. This ROI shows the rate for our project become profitable. With the ROI

22,88% this project is possible to be implemented because as the result the payback

period is 2.19 year which means the profitable analysis for each category has been

passed the value and reasonable to be implemented.

12.6.6 Sensitivity AnalysisInstability in manufacturing process often occur in a manufacturing plant.

This instability is caused by changes of many factors. The changes can affect in

positive way or another way. To analyze how instability after manufacturing, so

sensitivity analysis is cdone to evaluate how several factors fluctuation affect the

manufacturing process. The parameter used to evaluate the effect of each factor is

NPV, IRR, and Payback Period. The factor altered is product selling price, raw

material price fluctuation, and general expense fluctuation. The raw material cost is

evaluated by altering the manufacturing cost.

A. Analysis of NPV Fluctuation

As we can see in the Appendix XII. 5, product selling price affect the NPV so

much. Product selling price gives the biggest magnitude because it directly affects the

profit of the factory. If the fluctuation makes the product selling price higher, the

NPV will be bigger and making this project more profitable. Furthermore, this

affection will be shown at IRR and payback period. On the other hand, if the

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(1.4)

fluctuation of product selling price goes down, our company will be bankrupt because

the NPV is minus as we can see shown in the lower part of the graph. Raw material

and general expenses cost is the second part that affect NPV. We can see in the graph

above that if the raw material and general expenses have only 10%, our factory will

not gain anything, it means that there are no any profit at all, and if the fluctuation

value of the raw material and general expenses increase 40% and 50%, the NPV goes

down and the project will be bankrupt. For solving this problem, as the solution we

can higher the product selling with making expected revenue more than 20% or lower

the general expense. Lowering the general expense will make labor cost lower as

well.

B. Analysis of IRR Fluctuation

Product selling price fluctuation affects the IRR so much, if the fluctuation

from -20% to 0% the IRR is zero. This means, the product selling price does not have

IRR because the project does not give any profit or in other words we can say

unprofitable or loss, while when the product selling price rises up, the IRR increasing

as well. It means the IRR is having a straight comparison with the fluctuation of

product selling price.

General expense and raw material have the same pattern for IRR fluctuation.

This happens because, raw material and general expense in the same group, operating

cost. Therefore, the IRR of the raw material and will decrease down as well as the

fluctuation risen up. But, for raw material when it reach more than 40% fluctuation

the IRR is become very less, it means the product became unreasonable and

unreliable to be implemented. Anticipating the fluctuation from raw material, we can

higher the price of energy candy or lowering the labor cost. The fluctuation from

general expense still make the project reliable to implemented until the fluctuation

40%, even though the fluctuation at 50% still in the upper part, but the IRR is below

MARR. It means the project will not make any profit because we can pay back the

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loan because the interest is higher than the profit. The graph can be seen in the

Appendix XII. 6.

C. Analysis of Payback Period FluctuationPayback period for big project is less than five years. The fluctuation for

payback period from general expense do not make any change for payback period,

eventhough the payback period is changing, the payback period still in the range

which this project still reliable to be implemented.

The product selling price with affect the payback period in a big magnitude

like IRR and NPV. This is because the product selling price determines the profit for

this project. After the fluctuation run into -10% payback period became realiable to

be implemented. As well as, the fluctuation of product selling price risen up the

payback period is getting lower it means, the payback period is lower and we the

capital can be return in the highest period.

For raw material, when the raw material achieve a lower price the payback

period is risen up. This is because the raw material affect operating cost and when the

fluctuation risen up into 30% or more the project became unreliable to be

implemented. For solving this problem like IRR and NPV we can adjust the selling

price higher or lowering the other operating cost such as general expense or

marketing cost. The graph can be seen in the Appendix XII. 7

The detail table for NPV, IRR, and Payback Period Fluctuation will be shown

in the Appendix XII. 8, 9 and Appendix XII. 10.

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CHAPTER XII

HEALTH, SAFETY, AND ENVIRONMENTAL

13.1 MSDS (Material Safety Data Sheet)

Material Safety Data Sheet (MSDS) is designed as a guide for using material in a workplace setting. Each MSDS provides specific physical information about product including appearance, boiling point, melting point, safety information, health effects, and the appropriate first aid in an industrial setting. They also include information to guide storage, disposal, cleanup, and other precautions in the workplace. Each ingredient in the factory should come with

MSDS which serves as the basis of material handling and is intended for everyone

who works with the material can be used to accurately and precisely and quickly act

in case of danger.

“Buzz” energy candy factory have seven materials that the workers should keep in mind about the MSDS. There are taurine, sugar, menthol, cocoa powder, vitamin C, vitamin B complex, and magnesium sterate. In general, all the material does not have a serious impact for workers because the material is kind of powder or crystal. Mostly, it will irritate the eyes or skin if it contact directly with eyes or skin. The first aid measure is washing eyes with water, and use water and soap if it irritating skin. As the result, eyeglass or safety chemical googles, appropriate gloves and appropriate protective clothing will be needed while producing “Buzz” energy candy to protect the eyes and the skin from hazard.

As for ingestion, most of material have low hazard and may cause minor respiratory irritation in inhalation. The first aid for ingestion is drink some milk or water and the first aid for inhalation

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is move to fresh air immediately. The personal protection needed to respiratory is use an appropriate respirator. For handling and storage, most of material should keep in room temperature and appropriate exhaust ventilation. Storage the materia in a tightly colsed container, in a cool, dry, well ventilated area away from incompatible substances. It prefer for workers to wash thoroughly after handling, remove contaminated clothing and wash before reuse

153

154

MSDS provides a product hazard rating. Four areas are measured: overall Hazard, Health Hazard, Flammability, and Reactivity. “Buzz” energy candy factory use a scale of 0 to 4, with 0 meaning no risk and 4 meaning an extreme risk. The following table explains the meaning of each area’s scale level.

Table 1. 1. Hazard RatingHazard Rating Health Hazard

0= No risk

1= Minimal risk

2= Moderate risk

3= High risk

4= Extreme risk

0= No hazard

1= Minimal risk

2= Temporary or minor injury possible

3= Overexposure causes serious injury

4= Overexposure life threatening

Flammability Reactivity0= Material will not burn

1= Preheating required for ignition

2= Exposes to high temperature will ignite

3= Material will ignite under almost all conditions

4= Rapidly or completely vaporizes at normal pressure and temperature

0= Normal stable, not reactive with water

1= May become unstable at elevated temperature and pressure

2= Normally unstable, may react with water

3= Capable of detonation or explosive reaction with initiating source

4= Capable of detonation or explosion under normal


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temperatures and pressure

(Source: Group 13’s private data)

For hazard rating, most material have maximum scale in scale 1 which mean the material have minimum risk. Except for menthol, it has scale 2 in health hazard which mean temporary or minor injury possible. It is caused by the physical and chemical properties of menthol as we know that it has peppermint odor. And menthol can cause gastrointestinal irritation with nausea, vomiting and diarrhea. So, it will impact the workers body health more compare with other material.

The MSDS can be seen in the appendix I.13.2 HAZID

HAZID or Hazard Identification is analysis of probability and prevention

of hazards in Energy Candy Factory. The analysis of our industry is by

considering some aspects which are:

Industrial installation information data, included PFD, PID, plant lay out,

meteorological data and the activities.

Location (operating facilities and support facilities)

Risk in human, environment, assets and during the production process

Hazard Trigger Factor, included operation, transporation and meteorology

Potential hazards such as fired, exploded and contamination to the environment

To analyze hazards, we use some parameters to classified potentials and the

preventions easily. The parameters are divided in hazardous effects and hazard

frequencies. The details of hazardous effects and frequencies level can be seen in

the Appendix I. 1

From the parameters there, we can identify hazards for each place or room

in energy candy factory, and also hazards of each equipment that used in

manufacturing process. Generally, energy candy plant has some important areas

which are warehouse, manufacturing area, control area, service area and office.

13.2.1. WarehouseThere are 3 warehouse storages for raw materials, packaging materials and

final product of energy candy. Warehouse storage of energy candy raw materials


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included taurine, vitamins, sugars, magnesium stearate, menthol and chocolate

powder. The all of raw materials are in powder form. Hazardous potential in this

room is raw material quality may be damaged because the storage is not at room

temperature and standard humidity. To prevent this hazard, we activated

temperature and humidity control system in the room. Beside that, because the

materials are in powder, there is possibility the powder can be spilled if the

container is not properly sealed or caused by winds in and out of the room. It can

contaminate workers if the materials exposed. The prevention is worker must

using goggle, mask and boot cover when working in that location. Packaging

material that used in energy candy products are plastic and carton. Hazard

potential in this location is damage of carton and plastic materials quality because

of high room temperature. So, we placed the materials in closed room with stabile

temperature to prevent the risk. The last storage is for final energy candy

products. Because this room is full of a lot of candy packages, there is possibility

that the boxes fallen and overwrite the workers. To prevent this, we can educate

the workers to working carefully and have periodic maintenance.

13.2.2. Manufacturing AreaThe first room in manufacturing area is energy candy raw material mixing unit

that included boiling tank, cooling tank and mixing tank. Hazard in this location is

the damage of equipments because of raw material spillage or high temperature

and pressure in boiling/cooling tank that can cause the equipments getting burst.

To minimalize the risks, we sets mixing speed and volume control, also for

temperature and pressure. In molding area, the accident may be happen is cut off

fingers of workers of the workers when molding process. To prevent this risk, the

workers must using protective coat, gloves and hair net during working in the

room. The last process area is packaging room. There is possibility that material

package was damaged such as folded and causes untidy and not hygienist

packaging or the product may be contaminated. So, the workers must check

material package quality before processed and doing quality control after

packaging.

13.2.3. Control AreaControl area in our factory is power plant and maintenance unit area.

Maintenance area is place for equipments, maintenance and repairing. And power


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plant area has function for managing electrical power source. Because this

location included electrical sets of equipments, the most of hazard potential is

fired and exploded because short circuit in electrical system. To prevent this, we

take routine control and putting fire extinguisher in the control area.

13.2.4. Plant Personnel Service AreaPlant personnel service area is place for employees service and facilities such

as canteen, mosque and also parking area. In canteen and mosque, we also get

routine control and putting fire extinguisher in the building to prevent fired and

exploded risk because of short circuit in electrical systems. For parking area, there

is possibility to damage vehicle or accident because of slippery road and vehicle

losses because robbery. To prevent this, we putting CCTV in some sides of

parking area and security control, also providing janitors to keep parking area safe

and clean.

13.2.5. OfficeOffice is a place for administration and marketing management of our factory.

Because this place has many kind of computers and other electrical equipments,

there is possibility to get fired and exploded because the computers damaged or

short circuit in electrical system. To anticipate and prevent the hazard potential,

we take routine control and putting fire extinguisher in the room same with

preventions in control area.

13.3 Waste Treatment13.3.1 Solid Waste

Buzz! Energy Candy product basicly does not produce any waste because

all the material is the material for making candy, while the waste is produced in

the packaging process. The remaining plastic and carton box that becaming patch

is unwanted component in the factory. The unwanted component are considered

as waste that need to be treated.

Before weathered, the unwanted components are collected in the container.

Twice a week, the content of the container delivered to the plastic reclycing

factory and carton box reclyclying factory. Our waste can be recycling because its

not deformation just cut into a patch so can not be use again as the packaging for

candy.


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We will cooperate with the company for plastic we choose PT. Artha

Persadar Investama. Co which addresed at Jln. Irida Timur 4 Blok D3/No.1.

Irigasi Danita, Bekasi Jaya, East Bekasi – 17112 Bekasi City, West Java,

Indonesia. Furthemore for the carton box we will cooperate with PT. Gudang Mas

Mandiri, which located in Cikarang, West Java, Indonesia.

13.3.2 Liquid WasteMain materials for making candy is sugar. Due to that, the waste is contain

sugar as the organic compound, as the result the treatment by using microbiology

with anaerob and aerob system. This waste will be treated using Waste Water

Treatment Plant that can be divided into fat trap for catching the fat in the waste.

Then, the waste will flow into screw to filter the particles that more than 0,2mm,

after liquid waste has been separated from solid particle, liquid waste will be

transfered into pump pit.

Waste will be pump into equalisation place A and equalisation B. In

equalisation A, liquid waste will reach pH 3,5 – 5,0 and in equalisation B liquid

waste will be maintain into till the chemical oxygen demand (COD) 15,000 mg/L.

Then, the liquid waste will be transfered into condition tank with adding NaOH

and nutrient such as nitrogen and phosporic as the food for bacterias.

Liquid waste will be processed in ECSB tank, this tank is used as an aerob

tank. All material will turn into monomer that contain volatile acids such as

piruvat acid, lactid acid, etc. This acids will turn into acetid by asetanogen

bacterias. This acetid will turn into gases (H2) by metanogen bacterias. The next

step, this liquid waste will be transfered into combustion tank for combusting the

gases. After the gases combust, the liquid will be transfered into aeration tank. In

this tank, waste treatment will be process aerob with DO minimal 2 kg/L. As the

final step, liquid waste will be transfered into clarifier tank that will contain a

liquid waste with spesification COD < 100 mg/L, BOD < 50 mg/L, SS < 100

mg/L. Making sure liquid waste is safe, it will transfer into tank that contain fish,

if the fish still alive, liquid waste will be pour to the river.


Report AssignmentFinal 13

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