SLIDE 1 :

Assalamuallaikum Warohmatullohi Wabarokatuh, and

Good morning/afternoon/evening to everyone

I would like to thank the honorable Judges, and the attendees of this blissful
2017 (two thausand and seventin) APQC

It is a great honor for us to stand before you to present the result of our
innovation entitled Economical & Prime Qualified Cement Sack Through The
Implementation Of Gramatur 75 Gsm - 2 Ply And Craft Dimension Redesigning

SLIDE 2 :

Before we start our presentation, I would like to introduce you our team. We
are, Eco-Zak, of PT Semen Indonesia (Persero) Tbk, Indonesia, a cement-
production company with the largest market share in Indonesia.

SLIDE 3:

Allow me to introduce you our team leader Rahadi Mahardika, our team
secretary Moch. Syafii, and Fatah Yasin and Achmad Baihaqi as the team
members.
SLIDE 5 & 6:

Ladies and Gentlemen,

Nowadays, there has been a tight competition in cement production in

Indonesia. This is caused by the raising number of new cement-production
companies, both from local players and from foreign players. Based on the data
obtained from Indonesian Cement Association (ICA), there were 14 new
cement-production companies in 2017.

Therefore, in order to win the competition, our company has to find a way to
make sure, that every field could run efficiently. One of the ways to do that is by
determining, the cost efficiency of the packaging.. In fact, in 2014 only, the
company spent 539.5 Billion Rupiahs only on the packaging cost, and this was
caused by the use of 80 gsm-2ply cement sack. Thus, to reduce the cost, we
have created an innovation entitled Economical & Prime Qualified Cement Sack
Through The Implementation Of Gramatur 75 Gsm - 2 Ply And Craft Dimension
Redesigning.
SLIDE 7:

Ladies and gentlemen,

Our estimated targets are:
1. Saving in craft cost. Our target is that we would be able to save at least 15
(five teen) Billion rupiah per year, with initial goal of 100%.
2. Lowering the percentage of broken cement sack. Our target is 0.2% with
initial goal of 100%

SLIDE 8:

The implementation of this innovation took 8 months, starting from April to

November 2015, from lab test to standardization

SLIDE 9:

To make sure that our innovation could run well, we follow the standard six
steps of innovation management system as follow:
1. Work Breakdown Structure,
2. Organization Breakdown Structure,
3. Cost Breakdown Structure,
4. Fast Diagram,
5. Risk Analysis,
6. And Quality Function Deployment
SLIDE 10:

Ladies and gentlemen,

In the implementation of our innovation, there were 7 stages that needed to be

done, started by conduting craft paper test and finished by releasing to the
market as well as the monitoring

SLIDE 11:

Our first stage is the lab analysis for the craft paper test
Parameters tested include Gramatur, Tear resistance, Drag resistance,
stretching power etc. The results of the analysis showed that the kraft paper
quality of 75 gsm - 2 ply is in accordance with the established quality standard.
Thus, it can proceed to the next stage.

SLIDE 12:

The next stage is redesigning bag dimensions. Additionally, the pocket

dimensions of 520 x (time) 495 x (time) 100 mm (80gsm) were changed to 550
x(times) 470 x(time) 100 mm (75gsm).
SLIDE 13:

After redesigning the bag dimension, the third stage was the drop-test bag.
Based on the test results of 10 drops, the broken sack occurred after 9.8 drops.
This was higher than the required standard. Therefore, the test was declared
successful.

SLIDE 14:

Our next step is market trial,

The number of cement bag release used for the trial was 38,550 bags. The trial
results showed that the percentage of damaged sacks was only by 0.18%. This
was far below the established requirements, 0.2%. Thus, the market trial was
successful.

SLIDE 15:

Our fifth stage was monitoring handling and the socialization of improvement.

SLIDE 16:

The sixth stage was the durability test of cement.

The result showed that the percentage of cement retained for 75 gsm was
10.23%, while for 80 gsm was 13.00%. Thus, it can be concluded that the
durability of 75 gsm cement bag was better than 80 gsm.
SLIDE 17:

Market release and monitoring were our last stage for this innovation.
The number of cement releases for monitoring was 333,725 bags, spread
throughout the city on the island of Java. The number of bags burst was as
much as 420, or only by 0.13%. Therefore, the Implementation of innovation
was declared successful.

SLIDE 18:

Our honorable judges and beloved attendees,

To record our target achievement, we ran a monitoring on the use of 75 gsm - 2
ply bags in the market for one year. From 176.13 million bags of cement
released on the market, there were only 293,147 broken. Thus, the percentage
of broken bags was only by 0.17%.

SLIDE 19:

Comparation result on target.

From the data, it can be concluded:
1. However, we had saved 15.45 Billion rupiahs from our target, 15 billion.
Meaning that our innovation could reach 103% of our initial target.
2. Additionally, the implementation proved that we could save lower the
percentage by 0.17% from our 0.2% target. Meaning that we have reached
118% from our initial target.
SLIDE 20:

Ladies and gentlemen

For standardizing our innovation for future use, we have created our Standard
Operating Procedure consisting of The next step is standardization.
We make SOP (Standard Operating Procedure) which consists of:
1. WI Craft paper test
2. WI Durability Testing
3. WI Dropt Test Cement Bag
4. WI Warehouse Setup, Storage and Cleaning
5. WI recommendation of New Kraft Procurement
6. WI Market Monitoring

SLIDE 21:

After creating the SOP, our next step was to Socialize the new standard, and this
step includes:
1. Applying E-Doc in Indonesian Cement Management System
2. Semen Indonesia Awards on Innovation
3. Corporate Meetings of Corporations
SLIDE 22:

Awards and Appreciation:

This innovation has been awarded as the first winner of Raw Materials &
Products category at Cement Indonesia Award on Innovation 2016. Additionally,
it obtained "diamond medal" in Indonesia Quality Convention in 2016.

Ladies and gentlemen, it has been an honor to present our innovation in front of
you. I hope that our innovation would contribute a great benefit to everyone.
Thank you