After seventeen years of presence in Indonesia, PT Orindo Alam Ayu, also known as Oriflame Indonesia has been experiencing a tremendous growth in both of business and customer base. Especially in the last three years, as Swedish based company that produces and distributes cosmetics, it has been successfully implementing the campaign of "Natural Swedish Cosmetics".



At the request of Operation Manager of PT Orindo Alam Ayu, Mr. Anggit Wicaksono, in its main branch of Bulungan, Jakarta, a field observation was conducted to assess the adequateness of employee capacity in delivering services to Oriflame Indonesia's "distributors" and "independent consultants" (Oriflame's term for its customers). The observation was administered during two-month period from June to July 2003.



Questions like "When should I revise my cahiers' work schedule?"; "How do I know where I've been and where I'm going?"; "How many warehouse persons should I have on the floor each day?" are the most frequent comments coming out of the Operations Manager. If customers have to wait or cannot get answers to the questions raised to the servers, Oriflame may lose sales. Yet, if the Operations Manager fills the floor with more servers, the costs certainly rise. "Labor cost is a significant cost of doing business. "



The objective of the Group Field Project is to find answers to the generalized analysis of the situation of Oriflame: "How much people force does Oriflame need to serve its distributors better?" and "When does Oriflame need it?" The first question focuses on the proper size of capacity whereas the latter focuses on the timing of capacity necessary to achieve target revenue, cost, and service goals.



Customer demand is the lifeblood of any enterprises, no exception to oriflamme Indonesia as well. Sometimes, however, customers appear unexpectedly - no advance warning. When that happens, the organization scrambles. Quality, responsiveness, and customer service suffer. That should rarely happen.



Processes are the fundamental activities that organizations use to do work and achieve their goals. Manufacturers of cosmetics, steel, and computers have processes throughout every phase of their businesses and every functional area. So do health care providers, banks, and retailers.



Every organization, whether public or private, manufacturing or service, big or small, must manage processes and the operations where these processes are performed. Managing processes so as to add the most value for customers is the focus that every operation managers. By selecting appropriate techniques and strategies, managers can design and operate processes to give companies a competitive edge. Helping the operation manager at Oriflame Indonesia understands how to make operations a competitive weapon for the company prospers is the aim of this paper.



In simplifying the operations simulation, we introduce one of the most popular operation software, the latest version of Extend L T 5. This software can obtain many parameters that usually needed in operation department, such as, waiting time, queuing length, service time and so on.



Research Location: Oriflame Indonesia

Supervisor: Arief B. Suharko, PhD.

Accepted: 20 September 2003



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