Enhancing Operational Performance of Indonesia Pine Chemical Industry Through Delivery Improvement

Pine chemical products, namely gum rosin and turpentine oil have become one of the main exported non-timber forest products (NTFPs) from Indonesia. As biggest pine producer in Indonesia, a State Owned Enterprise named Perum Perhutani is required to operate at its optimum capability. Hence, this study aims identify measure some dimensions operational capability that most influence on increasing export performance Perhutani. The data are collected through online survey 207 employees who work production lines. Four-point Likert Scale questionnaires employed collect regarding respondent’s perception seven capability, Cost, Quality, Delivery, Flexibility, Service, Innovation, Sustainability. R statistics software selected run tests. By adopting Tukey HSD, multiple pairwise-comparison technique, Delivery rated as important dimension enhance performance. It significantly proven highest mean score. Another finding indicates found fair moderate correlation other which directly involved supply chain activities, i.e. Service. Therefore, demonstrates need for top management set minimum expected targets key indicators such on-time delivery, delivery accuracy, length lead-time, safe inventory level. higher rate in-full (OTIF) fulfilled, opportunity achieve better products.