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

ii
CONTENT
ontentsC
CHAPTER 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 ................................................................................ 6
2.6 Nutrition as Supplement .................................................................................. 10
CHAPTER III NEEDS AND IDEAS ............................................................... 18
3.1 Find Needs ...................................................................................................... 18
3.1.1 Interpreted Needs ..................................................................................... 19
3.1.2 Consumer Needs Identification ................................................................ 23
CHAPTER IV PRODUCT SPECIFICATION ............................................... 26
4.1 List of Metric................................................................................................... 27
4.2 Benchmarking ................................................................................................. 30
4.3 List of Specification ........................................................................................ 37
SUMMARY ........................................................... Error! Bookmark not defined.
REFERENCE ......................................................... Error! Bookmark not defined.

iii

iv
PICTURE LIST

Figure 2. 1. How supplement works scheme ......... Error! Bookmark not defined.
Figure 3. 1. The amount of respondent who need supplement ... Error! Bookmark
not defined.
Figure 3. 2. The amount of respondent who ever consume supplement ........ Error!
Bookmark not defined.
Figure 3. 3. Benefit after consuming supplement .. Error! Bookmark not defined.
Figure 3. 4. Supplements weakness ...................... Error! Bookmark not defined.
Figure 3. 5. People interest in Energy Candy......... Error! Bookmark not defined.
Figure 3. 6. The amount of respondent who likes candy ..... Error! Bookmark not
defined.
Figure 3. 7. Reason for consuming candy .............. Error! Bookmark not defined.
Figure 3. 8. Desired Energy Candy Texture .......... Error! Bookmark not defined.
Figure 3. 9. Desired Energy Candys Shape .......... Error! Bookmark not defined.
Figure 3. 10. Desired Energy Candys Flavor........ Error! Bookmark not defined.
Figure 3. 11. Candy colors ..................................... Error! Bookmark not defined.
Figure 3. 12. Desired Energy Candys Packaging . Error! Bookmark not defined.
Figure 3. 13. Frequency in Consuming Candy ...... Error! Bookmark not defined.
Figure 3. 14. Place to buy Candy ........................... Error! Bookmark not defined.
Figure 3. 15. Desired Energy Candys Price .......... Error! Bookmark not defined.
Figure 4. 1. Grouping Needs ................................................................................. 26

v

TABLE LIST
Table 3. 1. (Contd) List of Needs ......................... Error! Bookmark not defined.
Table 4. 1. List of Metrics ..................................................................................... 27
Table 4. 2. Unit of needs ....................................................................................... 28
Table 4. 3. Benchmarking of existing product ...................................................... 32
Table 4. 4. List of Specification ............................................................................ 37

1

CHAPTER 1
INTRODUCTION

1.1 Background
Supplement 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 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

Universitas Indonesia

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 Purposes
The 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.
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.

4


CHAPTER II
LITERATURE REVIEW

2.1 Definition Of Supplement
A 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 Supplement
A 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.
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.
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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 Supplement
Bodybuilding 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 several benefits for consuming supplement, like the following
below :
1. Increasing A Metabolism
Having a problem in metabolism and digestion can affect nutritions 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.
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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
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
(C
12
H
22
O
11
). Like all compounds made from these three elements, sugar is
a carbohydrate. Its 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, youll notice it comes in little
7


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
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 sugarusually, fructose and
glucoseto 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 wont fit together, and a crystal doesnt 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
8


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 crystallizationagain, 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
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
9


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.
Stevias 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
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,
10


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
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.
C
6
H
12
O
6
+ H
2
O + O
2
C
6
H
12
O
7
+ H
2
O
2
(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 Supplement
2.6.1 Vitamin C
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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 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.
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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).
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).
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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
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 B
12
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,
14


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
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 youre 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
15


normally 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 '''') 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
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
16


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 Mannitol
Mannitol (also referred to as mannite or manna sugar) is a white,
crystalline solid with the chemical formula C
6
H
8
(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
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,
17


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.
18


CHAPTER III
NEEDS AND IDEAS

3.1 Find Needs
As we have already known, candies are very well known product in
Indonesia. There are many kinds of candys 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 consumers expectation. There are few method which
we use to evaluate it. Those are:
Indirect Market Analysis
The 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
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.
19


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 Needs
The 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 supplement
First 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 supplement
Based on the interview which we have done, most of respondents
(88%) have ever consumed supplements, and 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.

20


3.1.1.4 Supplements weakness
From 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.
3.1.1.8 Desired Energy Candy Texture
Texture 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.
21


22


3.1.1.9 Desired Energy Candys Shape
We 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 animals shape and 2% like fruits shape. From Appendix I. 11,
we can decide which kind of candy form that consider to our products.
3.1.1.10 Desired Energy Candys 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 Candys Colour
Candys colors are variegated in the markets. 56% from our total
respondent answer that the colors have affect for consuming candies.
Some of them doesnt like eyecatching colors because they worry if the
products using harmful dyes. They expect candys 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 Candys 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 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
23


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 candys products.
3.1.1.15 Desired Energy Candys Price
To decide our products price, we asked the respondents about
price range they want if there are energy candy products. 82% respondents
want range of energy candys 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 Identification
From 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 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 needs
Number 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
24


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 Candys color represent taste
21 Energy Candy has solid texture
22 Energy Candy has oval shape
23 Energy Candy has smooth surface
(Source: 13
th
groups data)
3.1.3 Grouping and Ranking Needs
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 = undesirable
2 = unimportant
3 = nice to have
4 = highly desirable
5 = 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.
Appendix 3. 1. (Contd) Needs of energy candy product

25


Table 3. 2. Grouping and Ranking Needs
No. Need
Number
Need Description Rank
Product Perception
1. 11 Energy candy has a delicious
taste
5
2. 12 Energy candy has an interesting
color
4
Product Properties
5. 23 Smooth surface while being
eaten
4
6. 22 Has an oval shape 3
7. 21 Has a hard texture 4
Product Performances
8. 1,4 Supplement to refreshing body 5
9. 3 Supplement to increase stamina 5
10. 2 Supplement to increase the
mind focus
5
11. 5 Supplement to increase
endurance
5
Retailing
12. 6, 17 Price range for low until
medium economic rate
(< Rp2.500,00) per piece
4
13. 14 Plastic based packaging 3
14. 14 Packaging easy to carry 3
Regulations
16. 13 Does not cause caries and
diabetes
5
17. 13 Composition of taurine 40-400
mg
5
(Source: 13
th
groups data)


CHAPTER IV
PRODUCT SPECIFICATION

Figure 4. 1. Grouping Needs
(Source: 13
th
groups data)
Energy
Candy
Products
Perspective
Products
Properties
Products
Performance
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)
27


4.1 List of Metric
Specification 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 Metrics
Metrics
Number
Need Description Specification
Unit
Metrics
Rank
Products Perception
1
Energy candy has a delicious taste Taste Subjective 5
2
Energy candy has an interesting
color
Color Subjective 4
Products Properties
3
Smooth surface while being eaten
Ra ( Surface
Roughness)
Dimensionle
ss
4
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 g
5

8
Supplement to increase the mind
focus
Vitamin B complex g 5
9
Supplement to increase endurance Vitamin C g 5

28


Metrics
Number
Need Description Specification
Unit
Metrics
Rank
Products Retailing
10
Price range for low until medium
economic rate (< Rp2.500,00) per
piece
Price Rp 5
11
Plastic based packaging Packaging
Type Of
Plastic
5
12
Packaging easy to carry Effectiveness Subjective 4
Products Regulating
13
Does not cause caries and diabetes Sugar Concentration g/g 5
14
Composition of taurine 40
400mg
Taurine
Concentration
g/g 5

Table 4. 2. Unit of needs
Need
Number
Need(s)
Metrics
Subjective g dimensionless
Type of
plastic
g/g Rp
Product Perception
11
Energy candy
has a delicious
taste

12
Energy candy
has an
interesting color

Table 4.1. (Contd) List of metrics

29


Need
Number
Need(s)
Metrics
Type of
plastic
g/g Rp
Product Properties
23
Smooth surface
while being
eaten

22
Has an oval
shape

21
Has a hard
texture

Product Performance
1, 4
Supplement to
refreshing body

3
Supplement to
increase stamina

2
Supplement to
increase the
mind focus

5
Supplement to
increase
endurance

Table 4.2. (Contd) Unit of needs

30


Need
Number
Need(s)
Metrics
Type of
plastic
g/g Rp
Product Retailing
6, 17
Price range for
low until
medium
economic rate (<
Rp2.500,00) per
piece

14
Plastic based
packaging

14
Packaging easy
to carry

Product Regulation
13
Does not cause
caries and
diabetes

13
Composition of
taurine 40
400mg

(Source: 13
th
groups 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. (Contd) Unit of needs

31


that we use is kind of drinking so in list of benchmark this product doesnt have shape
and texture.
32


Table 4. 3. Benchmarking of existing product
Need
No.
Need
Description
Rank Unit
Scores
Own Kabang
Halls
Cool
X3 Proman* Fatigon
Products Perception
11
has a
delicious
taste
5 Subjective
12
has an
interesting
color
4 Subjective

33


Need
No.
Need
Description
Rank Unit
Scores
Own Kabang
Halls
Cool
X3 Proman* Fatigon
Products Properties
23
Smooth
surface
while being
eaten
4 dimensionless liquid
22
Has an oval
shape
3 Subjective liquid
21
Has a hard
texture
4 Subjective liquid

Table 4.3. (Contd) Benchmarking of existing product

34


Need
No.
Need
Description
Rank Unit
Scores
Own Kabang
Halls
Cool
X3 Proman* Fatigon
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


35


Need
No.
Need
Description
Rank Unit
Scores
Own Kabang
Halls
Cool
X3 Proman* Fatigon
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
14
Plastic based
packaging
3 Plastic Yes Yes Yes Yes No No
14
Packaging
easy to carry
3 Subjective


36


Need
No.
Need
Description
Rank Unit
Scores
Own Kabang
Halls
Cool
X3 Proman* Fatigon
Products Regulating
13
Does not
cause
cariesand
diabetes
5 g/g 3 3 4 1.316 26 0
(Source: 13
th
groups data)

Nb* :
= Exellent
= Very good
= Good
= Adequate


37


4.3 List of Specification
Table 4. 4. List of Specification
Metrics
Number
Spesification Rank Unit Metrics
Marginal
Value
Ideal Value Own
1 taste 5 Subjective -
2 color 4 Subjective -
3
Ra ( 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]
8
Vitamin B
complex
5 g 0 - 0.0036 0 - 0.01 0.01
[3]
9 vitamin C 5 g 0 - 1
0,0075 -
0,225
0.1
[4]
10 Price 4 Rp 1300 - 7500 2000 2000
11 Packaging 3
type of
Plastic
Yes and No Yes Yes
12 Effectiveness 3 Subjective -
13
Sugar
Concentration
5 g/g 0 - 26 3 3
[2]
14
Taurine
Concentration
5 g/g 0.025 - 0.4 0,3 0,075
[1]
Nb* :
= Exellent
= Very good
= Good
= Adequate
(Source: 13
th
groups data)
38


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

39

CHAPTER V
CREATING CONCEPT

5.1 Introduction
From the working in the chapter I until chapter IV, we have obtained
desired energy candy product specification. The specification are consisted of
cadys shape, texture, energy source, performace, taste, surface texture,
packaging, and candys price. The shape specification is determined as oval
shape, the performance is consisting body endurance, increasing mind focus, and
of course increasing energy. The candys taste, colour, packaging, and candys
price are determined as sweet mint taste, white color, plastic packaging, and two
thousand rupiahs (Rp. 2000), respectively. Those specifications are aqcuired by
team members 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 Concepts
One 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,
40


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 37
0
C 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 25
0
C, therefore in
37
0
C 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
41


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 37
0
C 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 25
0
C, therefore in
37
0
C the sucrose will be dilute and release slowly in the mouth, from solid phasa
into liquid phasa.
42


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 phases 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
43


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
37
0
C 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 25
0
C, therefore in 37
0
C
the sucrose will be dilute and release slowly in the mouth, from solid phasa into
liquid phasa.
44


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.

45

CHAPTER VI
CONCEPT GENERATION AND SELECTION

6.1 Concept Generation
From 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.

46


6.1.1 Concept Elimating
In 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.
47


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
48


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 candys work principle focus on how to
consume the candy while the subparameter of in mouth digestion are about
the candys 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
energys source. In this case, the energys 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 doesnt 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 energys source with
the amount that cant be tolerate by our body, means bigger than RDA.
49


Furthemore, energy candy also does not giving a bad effect for our orals
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 candys 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 teams
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.

50


6.2.4 Combine and Improve the Concepts
As 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
candys shape. If there is combine and improve concept stage, the result of it
stage will be nearly same.


51

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 0
2 0 0 + + - 0 - 2 3 2 0
3 0 0 + + - 0 - 2 3 2 0
4 0 0 + + - 0 - 2 3 2 0
5 - + - + - 0 - 2 1 4 -2
6 0 + - + - 0 - 2 2 3 -1
7 - - - + - 0 - 1 1 5 -4
8 0 + - + 0 0 - 2 3 2 0
9 0 0 0 0 0 0 0 0 0 0 0
10 0 - 0 + 0 0 0 1 4 1 0
11 0 - 0 + - 0 0 1 3 2 -1
12 0 0 + + 0 0 0 2 5 1 1
13 - + + + - + 0 4 1 2 2
14 - + + + - + 0 4 1 2 2
15 - - + + - + 0 3 1 3 0
(Source: Group 13s Private Data)

52

Table 6. 2.
Explanation of concepts number in screening concept table
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 extract
3 = Hard candy with tablet shape, consumed by lozenged, have a soft surface and contain taurine extract
4 = Hard candy with spherical shape, consumed by lozenged, have a soft surface and contain taurine extract
5 = Hard candy with pencil shape, consumed by lozenged, have a soft surface and contain taurine extract

53

6 = Hard candy with sugar cane shape, consumed by lozenged, have a soft surface and contain taurine extract
7 = Hard candy with thin layer shape, consumed by lozenged, have a soft surface and contain taurine extract
8 = Hard candy with lollipop shape, consumed by lozenged, have a soft surface and contain taurine extract
9 = Granule candy with powder form, consumed by lozenged, have a soft surface and contain taurine extract
10 = Jelly candy with fruit shape, consumed by chewed, have a soft surface and contain taurine extract
11 = Jelly candy with oval shape, consumed by chewed, have a soft surface and contain taurine extract
12 = Chewy candy with spherical form, consumed by lozenged, have a soft surface and contain taurine extract
13 = Candy with content with spherical shape, consumed by lozenged, have a soft surface and contain taurine extract
14 = Candy with content with oval shape, consumed by lozenged, have a soft surface and contain taurine extract
15= Candy with content with cube shape, consumed by chewed, have a soft surface and contain taurine extract
Reference: Jelly candy with animal shape, consumed by chewed, have a soft surface and contain taurine extract
54


6.3 Concept Selection
After 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 groups 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 Idea
Concept 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 teams 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 Manufacture
Easiness 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
55


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 Principle
Principle explains how this product works as energy candy and
products performance. This parameter is the main concern in this concept
selection, it has weighting 30%. First energys 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 Usage
Age 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.
56


6.3.1.4 Safety
Safety 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 Taste
Taste 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 Cost
The 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 Concept
These 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
57


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 Parameter
Scoring Parameter can be seen in the Appendix II. 9.
6.3.4 Rank the Concepts
After 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 Concepts
The 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 Concepts
Each 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.


58

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
Principle
Easiness to digested 5% 3 0,15 3 0,15 5 0,25
Energy 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 0,8
Taste 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 3,75
Rank 3 2 1
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6.2.7 Scoring Description
6.3.7.1 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
,
13
th
and 14
th
product concept will be described in details.
12
th
Concept
This concept has chewy candys 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.
13
th
Concept
The 13
th
concept has candy with content form with spherical shape. It
consumed by lozenged, have a soft surface and containing taurine extract. The
difference from 12
th
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.
14
th
Concept
This product concept has candy with content form and oval shape. Same
with the 13
th
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
60


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
, 13
th

and 14
th
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 industrys needs. For that reason, we give rate 3 for the third product
concepts in sustainability of raw materials.
Process Effectiveness
Chewy candies in 12
th
concept have easier process production than
candy with content. Candy with content production need two process which are
hard candys manufacture process and candys 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, 12
th
and 13
th
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
61


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. 12
th
concept is given by rate 4 which means has relative low
product cost. Meanwhile 13
th
and 14
th
concepts are given by rate 3 because the
process is less effective and need higher cost than chewy candys 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 Description
Energy candy is a developed candys 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
62


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 candys
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 Description
No 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.
64



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/cm
3
(at
173.15 C)
Melting point: 305,11
0
C

Table 6. 4. (Contd) Final Product
65



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/cm
3
Melting point: 190 to 192 C
(374 to 378 F; 463 to 465 K)

6

Mind Focus

Vitamin B
Complex

10mg
[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 consumers
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]

66



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.

67


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 32
0
C,
lower than body temperature.
10 Surface Softness
0.08 m
[6]

The surface roughness are
become one of our
specification due to
consumers comfort when
the candy is inside the
mouth. Rough surface will
tend to interfere the
consumers lozenge.
Besides, too rough surface
have a risk to irritate
consumers tongue. So, Soft
surface roughness is
choosen in order to fulfill
consumers satisfaction and
safety.

68


11 Color White -
The color selection is quite
important because it will
influence consumer choice and
consumers 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.

69


13 Price 2000IDR -
In Indonesia, candys prices
are very commonly cheap.
Commonly they are have the
range begin with Rp.250till
Rp.1000 per piece. So our
energy candy products price
have to compete with them.
So, we determine that our
products 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] : US5444795
Table 6. 5. Product Composition (% weight)
Composition Percentage
Taurine 2,38%
Vitamin C 1,59%
Vitamin B complex 0,16%
70


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 Testing
On 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 testing
The 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 survey
Survey 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. (Contd) Product Composition
(% weight)
71


consumed by lozenges, have a soft surface and contain taurine extractthat will
be made.
6.5.3 Determining the survey format
The 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 concept
For 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 response
The 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
72


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 Results
Based 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 Positioning
Answering to consumers need and competitors 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 products position and chance in the market, perceptual
mapping is done to depict our products exixtence relative to the other exixting
73


brands of products. Parameters that are used as comparison are performance, price,
packaging, taste, texture.

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
consumers 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.

0
2
4
6
8
Performance
Price
Packaging Taste
Texture
Kabang
Halls Cool
X3
Own Product
74


CHAPTER VII
RAW MATERIAL

7.1 Raw Material
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
(C
12
H
22
O
11
). Like all compounds made from these three elements, sugar is a
carbohydrate. Its 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.

75


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. Its a
good news because we can stay using cacao because it is in high production.

76


3. Menthol
Menthol is an organic compound with the chemical formula C
10
H
20
O
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
77


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
78


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
79


in the transfer of single-carbon units in the metabolism of nucleic acids and
amino acids. Vitamin B
12
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(C
18
H
35
O2)
2
. It is a salt containing two equivalents of stearate
(the anion of stearic acid) and one magnesium cation (Mg
2+
). Magnesium
stearate melts at about 88C, 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.

80

CHAPTER VIII
PROTOTYPE

8.1 Products name and Logo
For 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
81

81

8.2 Prototype
For 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 consumers
comfort when the candy is inside the mouth. Rough surface will tend to interfere the
consumers lozenge. Besides, too rough surface have a risk to irritate consumers
tongue. So, Soft surface roughness is choosen in order to fulfill consumers
satisfaction and safety
The color selection is quite important because it will influence consumer
choice and consumers 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
82

82

Figure 8. 2. Prototype of energy candy
(Source: Group 13 Private data)
8.3 Packaging
Outer 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,
83

83

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

Figure 8. 4. Front side of plastic packaging for 5 pieces
5cm
7cm
84

84

Figure 8. 5. Back side of plastic packaging for 5 pieces

L x W x H
(14 x 18 x 5) cm
Figure 8. 6. Packaging in carton box for 24 pack
85

85

L x W x H
(70 x 36 x 10) cm
Figure 8. 7. Packaging in cardboard for 20 carton box

86

CHAPTER IX
MANUFACTURE

9.1 Capacity Production
9.1.1 Market Segmentation
Buzz 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 candys 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 Approximation
Before 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:

87


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 Plannings
(BKKBN) data, Indonesias 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 candys 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 years 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
88


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
57,433,152
2015 58,581,815
2016 59,753,451
2017 60,948,520
2018 62,167,491
2019 63,410,841
2020 64,679,057
2021 65,972,639
2022 67,292,091
2023 68,637,933
2024 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
89


multivitamins in Java Island shows a person will consume approximately 1
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
90


Figure 9. 1. Projected multivitamin demand
9.1.3 Market Opportunity
The 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 competitors 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:

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
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
30,000,000
2012 2014 2016 2018 2020 2022 2024 2026
D
e
m
a
n
d

(
k
g
)

Year
Total Multivitamin Demand (kg/year)
91


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 18,174,746
2015 21,382,362 2,860,918 18,521,444
2016 21,810,010
2,935,795 18,874,215
2017 22,246,210 3,013,119 19,233,091
2018 22,691,134 3,093,038 19,598,096
2019 23,144,957 3,175,716 19,969,241
2020 23,607,856
3,261,336 20,346,520
2021 24,080,013 3,350,102 20,729,911
2022 24,561,613 3,442,242 21,119,371
2023 25,052,846 3,538,012 21,514,834
2024 25,553,903
3,637,697 21,916,205
92


Figure 9. 2. Market Opportunity
9.1.4 Production capacity estimation
From 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
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
2013.5 2014 2014.5 2015 2015.5 2016 2016.5 2017 2017.5 2018 2018.5
k
g
/
y
e
a
r

Year
Market opportunity
Total Multivitamin Demand (kg/year) Total Supply (kg/year)
93


Year Difference (kg/year)
Production Capacity
(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 share
After 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. (Contd) Production capacity of energy candy
94


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.
95


9.2. Main Process Production
A. Mixing With Boiler
In this process we want to make a chocolate paste as the candys
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 100
0
C 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 100
0
C. As the result in the cooling process the
temperature will be decreased into half, 50
0
C. 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 70
0
C and vitamin B Complex at 60 90
0
C, 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, 50
0
C 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
100
0
C. 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
96


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 30
0
C.
F. Molding
Firstly in the molding process the dough of outer energy candy
layer is made into a half, likes a half of footballs 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 dont need a specific pressure and temperature, just using a
room condition which the temperature is 25
0
C 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 candys quality. Defect
energy candy will be sort out and do not continue in the next process,
97


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 Equipment
There 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 Balance
9.4.1 Mass Balance
The 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 Balance
To 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
equipments energy specification and duration of equipment operation. However,
98


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.

99


Table 9. 5. Equipments capabilities in making energy candy
No Equipment
Electric
Power
(kW)
Number of
Equipment
Equipment Capacity
Production Target of
Equipment
Total
Operation
Time (
Minutes) Value Unit

Value Unit
1
Candy Boiling Mixing
Pot 5,75 1 200 kg/h

184,0145 kg 55
2
Electric 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 30
4 Cooling Tank 0,75 1 200 kg/h 111,0438 kg 30
5 Mixing Tank 7,5 1 250 kg/h 123,7838 kg 30
6 Wrapping Machine 3,4 3 150 bags/minute 45000 bags 100
7 Molding Machine 55 1 280 kg/h 285 kg 65
8 Packing Machine 4 1 1200 bags/minute 9000 bags 38
100


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 candys
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.

101


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 24
Cleaning 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 300
Packing 114
Process
Time (hours) Total
Work
102


9.7 Plant Location
The 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 m
2
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.
103


9.7.1 Alternative Plant Location
In 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 m
2
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 Layout
Energy 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
104


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 m
2
and the
production unit area is about 90 m
2
. 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.

105

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 Material
Supply 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

106


10.1.1 Time and Distance Between Supplier and Plant
Buzz 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.

107

Table 10. 1. Alternative Supplier are choose
Raw 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 23775
PG. 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 18
PT. Sentral Cosmos
Jayaprima
Surabaya, Indonesia / 707.6
km
2
Taurine 2.38
36.75 1102.5
Sinoright
International Trade
Co., Ltd.
Shandong China (Mainland)
/ 3,038 miles
7
Vitamin C 1.59
24.5 735
TNN Development
Limited
China (Mainland) / 2,929
miles
15
Vitamin B
complex
0.16
2.45 73.5
Hangzhou Toyond
Biotech Co., Ltd.
Zhejiang China (Mainland) /
2,669 miles
7

108

Raw Material
Raw Material Composition (%)
Total/day
(kg)
Amount to be
supplied/month (kg)
Delivery Time
(day)
Magnesium
Stearat
4
60 1800
Huzhou City Linghu
Xinwang Chemical
Co., Ltd.
Zhejiang China (Mainland) /
2,669 miles
7

Table 10.2. (Contd) Alternative Supplier are choose

109

Table 10. 2. Alternative Supplier are choose
Raw Material for Packaging
Raw Material Total/day (kg)
Amount to be
supplied/month (kg)
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 816840
PT Mabuchi
Indonesia
Bekasi / 50 km 1
Cardboard
1140 34200
PT Mabuchi
Indonesia
Bekasi / 50 km 1
110


10.1.2 Transport for Raw Material Distribution
Selection 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 Schedule
Overall 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:
111


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 Inventory
Inventory 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
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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 System
We 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 retailss 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 Retails
Based 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 Route
There 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
Distributor Route 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
Carrefour
Cikampek-Lebak
bulus
2 hours 87 3.21
(Source: Group 13
th
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 13
th
private data)

Figure 10. 2. Distribution route plant to hypermart wholesaler
(Source: Group 13
th
private data)

Figure 10. 3. Distribution route plant to lotte mart wholesaler
(Source: Group 13
th
private data)

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Figure 10. 4. Distribution route plant to carrefour wholesaler
(Source: Group 13
th
private data)

10.6 Raw Materials Fluctuation
Raw 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 Centre
Product 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
distribution
percentage
(%)
37.8 16.5 32 13.5 100
Delivery
Time
1 1 1 1

119

CHAPTER XI
MARKETING
11.1 Marketing
Marketing 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 Market
Target 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 Segmenting
Target 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, its
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 consumers
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 doesnt 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 its 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 Mix
Marketing 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 Ps. These four Ps 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 Ps 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 products 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
companys 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 products 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
125


company and the buyer, which in turn presents a more appealing and
familiar image of the company.

126

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 Investment
In 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 equipments, 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.

130


12.1.2 Site Cost
Plant 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 m
3

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/m
3
. 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
131


132


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 cost
Market 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 Investment
Total 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 Guthries 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.
(1.1)
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Table 12. 1. Working Capital detail
Cost Segmentation Cost (Rp)
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: 13
th
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 (C
WC
) 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 114,000,000
Other Cost 23,000,000
Total Permanent Invesment (TPI) 9,455,164,080
Working 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 Cost
Operating 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 labors 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 Cost
12.5.1.1 Labors Salary
Direct 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 Indonesias 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.

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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 Expenses
Indirect 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 labors 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 Insurance
Insurance 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 Cost
The 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
Table 2. 11 (Contd) Total Cost of Indirect Labor

Table 2. 11 (Contd) Total Cost of Indirect Labor

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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 Licensing
We 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 Cost
12.5.2.1 Raw Material Cost
The 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 Cost
Utilities 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/m
3
. 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 employees 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 Cost
Distributing 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 m
3
. 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 m
3
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 Cost
Marketing 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 Year
Now we have all the data of each operational cost aspect such as Labors
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
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:
( ) ( )

12.6 Economic Analysis
12.6.1 Price Determining
Prices 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. 19,009,259,200
COGs Rp. 29,951,492,496
Expected (10%) Rp. 2,995,149,250
Total Expenses Rp. 32,946,641,746
Expected Revenue (20%) Rp. 3,801,851,840
Total Revenue Rp. 25,806,260,290
Energy Candy Production
1year(1pack)
15,702,229
Price/pack Rp. 1,643
Price/pack Rp. 1.700
Total Income 25,123,566,400
(1.2)
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12.6.2 Depreciation and Salvage Value
Depreciation 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 become invaluable. This effect should be reflected in the
companys 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.

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12.6.3 Cash Flow
Cash 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 Breakdown
Cost 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 labors
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 Analysis
One of the most frequently used tools of financial ratio analysis is profitability
ratios which are used to determine the companys bottom line and its return to its
investors. Profitability ratios show a companys 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 Period
Payback 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.

144

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 Value
Net 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:

( )

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 BCAs 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.
(1.3)

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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:

( )

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 deposits 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.
(1.4)

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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.

( )

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 Analysis
Instability 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
(1.4)

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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 Fluctuation
Payback 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 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
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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 areas scale level.
Table 1. 1. Hazard Rating
Hazard 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 Reactivity
0= 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 temperatures and pressure
(Source: Group 13s 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
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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. Warehouse
There are 3 warehouse storages for raw materials, packaging materials and
final product of energy candy. Warehouse storage of energy candy raw materials
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
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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 Area
The 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 Area
Control area in our factory is power plant and maintenance unit area.
Maintenance area is place for equipments, maintenance and repairing. And power
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 Area
Plant 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
153


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. Office
Office 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 Treatment
13.3.1 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.
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 Waste
Main 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.
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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 (H
2
) 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.

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