Content area
Management information based on the barcode system helps the company work more effectively. Therefore, research is required to determine the impact of barcode management information systems on the effectiveness and performance of palm oil businesses. This study aims to determine how the implementation of system barcodes as management information in palm oil companies affects their effectiveness and performance. Stratified proportional random sampling was used to acquire 237 employee data samples from April to June 2022 at PT LNK for this study. The data were analyzed using SEM-PLS analysis with the SMART PLS 4. The outcome demonstrated that company success was driven by barcode management information system, suitable for increasing effectiveness and performance. This paper contributed to the creation of PT LNK's barcode system. All palm oil producers are required to employ the barcode system, which may be connected with cloud-based data to provide production statistics in real time.
Abstract
Management information based on the barcode system helps the company work more effectively. Therefore, research is required to determine the impact of barcode management information systems on the effectiveness and performance of palm oil businesses. This study aims to determine how the implementation of system barcodes as management information in palm oil companies affects their effectiveness and performance. Stratified proportional random sampling was used to acquire 237 employee data samples from April to June 2022 at PT LNK for this study. The data were analyzed using SEM-PLS analysis with the SMART PLS 4. The outcome demonstrated that company success was driven by barcode management information system, suitable for increasing effectiveness and performance. This paper contributed to the creation of PT LNK's barcode system. All palm oil producers are required to employ the barcode system, which may be connected with cloud-based data to provide production statistics in real time.
Keywords: Barcode Management Information System, Effectiveness, Oil Palm Company, Performance.
Introduction
Palm oil companies are expected to anticipate their palm oil output over a specified time frame. Using Information and Communication Technology (ICT) to increase oil palm output is the most effective strategy. ICT may be used as an expert system for recognizing oil palm plant illnesses (Irawan and Nasution, 2018), a recommendation system for coconut seed and palm oil mill sites (Annisa et al., 2020), or an information system for oil palm production (Bakti, 2020).
The barcode management information system is a form of ICT that palm oil farmers may implement. This strategy is used to collect data on each employee in order to evaluate their work performance. Efficiency in human resources is proportional to work activities and the amount of time it takes employees to complete company-assigned tasks (Samsuni, 2017). A appropriate work system design is necessary to achieve the effectiveness and efficiency of a productive manufacturing process employing the barcode management information system. PT. Langkat Nusantara Kepong (LNK), an Operational Cooperation company engaged in the agro-industry business that has used this barcode management information system, primarily controls palm oil.
The barcode as management information system is important for preparing products according to shipping papers, and it is also useful for ensuring that things are delivered according to the shipping document during the delivery process (Ariantoetal., 2021)
In Indonesia, the use of technology to improve theperformance of local enterprises is still quite restricted. This is supported by the findings of Jelita (2020), who found that foreign private companies continue to dominate the use of renewable technology. Technology advancement will help palm oil businesses to run more efficiently. Management of a business's supply chain is based on a barcode system, which is very helpful for coming up with a good strategy at both the corporate and the macro levels (Zulham et al., 2022). Based on this, this study aims to determine how the implementation of system barcodes as management information in palm oil companies affects their effectiveness and performance.
Literature Review
Agricultural Technology Development
Information and communication technology has an important contribution and role in the development of national agriculture. With the role of technology in agriculture, it is hoped that it will improve the quality and quantity of Indonesian agriculture. In addition, it is expected to make it easier for business actors in the agricultural sector to produce agricultural products optimally.
Agricultural technology in the world has been widely used, especially to help farmers or actors in the agricultural sector to facilitate marketing activities, obtain information, or to increase productivity. The correct use of technology will encourage more efficient production compared to production that does not use technology (Alene & Zeller, 2005). Some research on the application of technology in agriculture has had a positive impact. Pandeand Deshmukh (2015) argue that technology andinformation make it easier and help farmers decide at the right time and help find the best solution and create an efficient system for water management and irrigation so as to produce crops with maximum yields.
In line with the development of technology in agriculture, several terms have emerged, such as smart farming, Precision Agriculture/Precision Farming, digital farming, and agriculture 4.0. The use of barcodes is one part of digital agriculture. Agricultural digitalization promises to optimize agricultural production systems, value chains, and food systems. Digitalization is also expected to increase knowledge exchange and improve the monitoring of crises and controversies in the agricultural chain and sector (Stevens et al., 2016). Currently, digital competence is an important aspect in terms of improving performance (Aulia, 2023).
Definition of Barcode
Barcodes are defined as a form of combined codes that have the form of lines, and the thickness is different on each line depending on the contents of the code. Barcodes are a form of numeric and letter code combined with dashes and spaces in different variations. Barcodes contain information encoded according to certain conventions and graphics that represent information containing colored lines or uncolored dashes and spaces in the barcode field. Generally, barcodes are not in the form of descriptive data but rather have numbers or variable characters according to the type of barcode that composes the expected number. Barcodes have information stored in the form of voluminous data that can be organized and retrieved to combine numbers and/or characters in the electronic data processing.
Wallace Flint 1932 invented the goods inspection system in retail companies. Barcode technology was initially controlled by retail companies, then followed by industrial companies. Industrial companies started using barcodes in 1960. The application of barcodes was used to identify railroad tracks. In the early 1970s, common barcodes began to appear on grocery store shelves, making it easier to automate the process of identifying grocery items by placing barcodes on products. To date, barcodes have been widely used to make identification easier in all types of businesses. Utilization of barcodes in the business field, if barcodes are used in business processes, processing barcodes will automate to minimize human error, increase productivity, identify effectively, and can save time on work. This is supported by Noraziah et al. (2011), who concluded that the use of barcode systems in activities for data retrieval could minimize human error so that the results are more effective and efficient. Barcode systems have also been widely used to overcome manual system errors by providing accurate information at a faster speed than manual systems. So until now, its use has developed throughout the world.
The barcode system has a two-dimensional code that encodes letters, numbers, and alphanumeric characters; that has advantages, including this system is the ability to work quickly and store more data and information that can be read from any angle or 360 ° from any direction. In addition, the barcode system has a password that is protected in the QRcode so that data can be viewed and shared by people who have authority in that matter. In the world of agriculture, barcode systems have been developed to make it easier to identify varieties for several commodities, including watermelons and soybeans.
Use of Barcodes in Agriculture
The use of barcodes in agriculture has helped a lot in making it easier to identify agricultural products, so the barcode system also makes a great contribution to improving the supply chain management system. Varallyai's (2012) research on horticultural companies can easily identify common plant names, Latin names and pronunciation, location information, size, blooming time, soil type, and others. In addition, barcodes can also assist partners in tracking the suitability of the information on purchased plants before and after delivery. In addition, Ampatzidis and Vougioukas (2009) examined the use of barcodes on peach and kiwi fruit plantations, showing that the use of barcode technology used in fruit harvesting is more efficient and effective in harvesting peaches and kiwi compared to harvesting done manually. Usage and viability of barcode system have a big effect on how well the company does, which means that if these two things go up, so will the agriculture company's performance (Zulham et al., 2023).
The integration of barcode technology into daily operations not only ensures consistency in tasks like recording harvest results and managing inventory but also significantly contributes to an overall improvement in company performance. The system's ability to offer accurate and consistent monitoring plays a crucial role in boosting satisfaction levels among both harvesters and management. The transparent and readily available information provides a comprehensive overview of performance and production results. The resultant increase in productivity, achieved through the reduction of manual recording time and the minimization of human errors, fosters a more efficient and effective work environment. These positive outcomes, as identified in the study by Nisa and Rahmawati (2023), collectively elevate the overall performance of the company, positioning it for sustained success in the competitive landscape
Methodology Location and Time
In selecting the research location was done purposively based on the affordability of the respondents and the research location. This research was conducted in four estates owned by PT LNK namely Basilam, Bekiun, Gohor Lama, Padang Brahrang. The time of the research was carried out for 3 (three) months from April to June 2022.
Data Source
This research employed both primary and secondary data sources. The primary data were derived from interviews conducted with employees, providing firsthand insights into the study's focus. On the other hand, secondary data were sourced from various estates, encompassing production-related information and data pertaining to increases in production.
Sampling Method
This study targeted the entire estate population at PT Langkat Nurasantara Kepong. The research sample was narrowed down to four specific estates: Basilam, Bekium, Padang Brahrang, and Gohor Lama Estates, which collectively house a total of 1,870 employees.
To ensure a representative sample, the study employed a stratified proportional random sampling technique. This method was chosen due to the relatively homogeneous nature of the variables under investigation-namely, the employees within the oil palm plantations at PT. Langkat Nusantara Kepong. Through this approach, the selection of sampling units was conducted proportionally, ensuring that each unit within the population contributed to the overall representativeness of the sample.
Calculation of the sample size from a specific population, as formulated by Issac and Michael to accommodate error rates of 1%, 5%, and 10%, as outlined by Sugiono (2012), can be computed using the provided formula:
Sampling within each estate was conducted using a random approach to ensure a representative representation of the respective populations. This method aimed to eliminate bias and provide an unbiased selection of participants from each estate, contributing to the overall reliability and generalizability of the study's findings. Random sampling ensures that each member of the population has an equal chance of being included in the sample, making the results more robust and reflective of the diversity within each estate. By employing this approach, the study sought to capture a comprehensive and accurate picture of the characteristics and perspectives of the employees across different estates, enhancing the validity of the research outcomes.
Framework
The framework in this study can be seen in Figure 1. The management information system, in this case based on barcodes, will increase the effectiveness and performance of the company. Effectiveness will also improve performance.
Based on this framework, the hypothesis can be seen as follows:
H1. Barcode Management Information System has a significant effect on increasing the effectiveness
H2. Barcode Management Information System has a significant effect on increasing Performance
H3. Effectiveness has a significant effect on increasing Performance
H4. Barcode Management Information System has a significant effect on increasing effectiveness indirectly
Partial Least Square Analysis
Partial least squares (PLS) is a multivariate statisticaltechnique used for data analysis and modeling. It is often used when the relationship between the independent variables and dependent variables in a dataset is complex, nonlinear, and high dimensional. PLS is a flexible technique that can handle both continuous and categorical data, as well as handle multicollinearity between independent variables.
The choice of analytical tool depends on the nature of the data and the research question being investigated. PLS is preferred over other techniques such as linear regression or principal component analysis (PCA) when the dataset has many independent variables that are highly correlated and when the relationship between the independent and dependent variables is nonlinear.
However, PLS is not always the best analytical tool for every situation. For instance, when the relationship between theindependent and dependent variables is linear, simple linear regression or multiple linear regression may be more appropriate. When dealing with small datasets or datasets with a low number of independent variables, PCA may be a better choice.
Therefore, the selection of the appropriate analytical tool depends on the nature of the data, the research question, and the assumptions made about the underlying relationships in the dataset. It is essential to choose the appropriate technique that will best answer the research question and provide valid and reliable results.
Combining regression with path analysis to examine complex hypotheses concerning direct or indirect relationships among variables can be effectively achieved through the Partial Least Squares (PLS) analysis method. This approach, particularly useful for intricate models, is capable of providing a comprehensive depiction of the relationships between dependent and independent variables in a single analysis. A widely used program for implementing PLS analysis is SMART PLS 4, which facilitates the exploration of relationships posited in theoretical models, such as the impact of the Barcode Management Information System on effectiveness and performance.
According to Hair et al. (2022), PLS offers several advantages. Firstly, it can handle intricate models with a large number of dependent and independent variables without complications. Secondly, PLS is adept at processing data plagued by multicollinearity issues among independent variables. Additionally, it can effectively manage missing or abnormal data, producing robust and reliable results. PLS is versatile in its application, accommodating both reflective and formative constructs. It can be applied to small samples, and the requirement for normal distribution of data is not stringent. Furthermore, PLS is suitable for data with diverse scale types, including nominal, ordinal, and continuous.
Comparing Structural Equation Modeling (SEM) with PLS reveals distinctions in their purposes and methodologies. PLS is predominantly predictive, focusing on forecasting outcomes, while SEM typically tests theoretical frameworks. In PLS, there exists a dual model structure - the measurement model and the structural model. The measurement model outlines the relationship between observed variables and latent variables, emphasizing validity and reliability. Meanwhile, the structural model elucidates the connections between latent variables, assessed through the evaluation of explanatory power and the significance level of path coefficients. These nuances highlight the significance of a valid and reliable measurement model in PLS analysis, contrasting with the structural model's emphasis on explanatory power and path coefficient significance in SEM.
Before determining the results, this research passed the bootstrap stage. Bootstrapping is a resampling technique that can be used in Partial Least Squares (PLS) analysis to assess the stability and accuracy of the PLS model. The bootstrap method involves generating multiple random samples with replacements from the original dataset and creating a new PLS model for each sample. By repeating this process multiple times, it is possible to obtain estimates of the variability of the PLS model coefficients and the prediction error (Hair et al., 2022).
Bootstrapping can be used in PLS analysis for several reasons. A common application is to determine the optimalnumber of components to be used in the PLS model. The optimal number of components is usually determined based on criteria such as cross-validated prediction error or explained variance. However, these criteria can be influenced by random variations in the dataset, particularly when the sample size is small. Using bootstrap resampling, it is possible to obtain more robust estimates of the optimal number of components.
Another application of bootstrap in PLS analysis is to assess the stability and robustness of the PLS model. By generating multiple bootstrap samples and creating a PLS model for each sample, it is possible to estimate the variability of the PLS model coefficients and prediction error. This information can be used to assess the stability of the PLS model and to identify the variables that are most important for predicting the dependent variable.
At the bootstrap stage, it is important to examine several metrics to evaluate the stability and accuracy of the PLS model, such as the mean squared error, root mean squared error, R-squared, and coefficient stability. The bootstrap results should also be compared to the original PLS model to evaluate any improvements in model performance or stability. Overall, the bootstrap method can be a valuable tool in PLS analysis for improving the accuracy and reliability of the model estimates.
Operational Definition
Operational definition of the company in activities, are as follows:
1. Barcode Management Information System is network or data processing procedures based on barcode which were developed together or involve others in order to achieve a common goal.
2. Performance is the "rate of success in in carrying out the task as well ability to achieve that goal has been established.
3. Effectiveness is the degree to which something is successful in producing a desired result.
Result And Discussion
Hypothesis Testing
In hypothesis testing, the t-table value, with an alpha level of 5%, is commonly set at 1.96. The acceptance or rejection of a hypothesis is determined by comparing the t-statistics value with the t-table. If t-statistics > t-table, the hypothesis is accepted; otherwise, if t-statistics < t-table, the hypothesis is rejected. The outcomes of hypothesis testing for direct effects in the model are presented in Table 2. Notably, the hypotheses concerning the influence of the Barcode Management Information System on both Effectiveness and Performance, as well as the relationship between Effectiveness and Performance, are affirmed.
Furthermore, the results of indirect effect hypothesis testing, as outlined in Table 2 (item 4), indicate the acceptance of the hypothesis regarding the impact of the Barcode Management Information System on Performance. These findings contribute to the overall understanding of the relationships posited in the model, confirming the direct and indirect effects as hypothesized.
Derived from the study's outcomes, the integration of barcodes significantly impacts company performance within oil palm plantations. The adoption of a barcode system in these plantations offers numerous advantages, such as minimizing calculation errors, aiding in fruit quality determination, reducing paper usage, and expediting information delivery. Istiqomah et al.'s (2019) investigation in warehouses further supports these benefits, showcasing that barcode implementation can diminish errors in goods receipt, hasten the receipt of goods, facilitate precise storage location determination, reduce errors in storing goods, minimize retrieval errors by pickers, expedite goods retrieval by pickers, assist in determining shortages or excess quantities of goods, assess the feasibility and quality of goods for dispatch, diminish human errors in goods checking, curtail paper usage, and accelerate the issuance of manifests for delivery.
Additionally, the research aligns with Akmal's (2018) findings, highlighting the advantages of implementing barcodes in warehouses, including error reduction in goods receipt, automatic location determination, and enhanced efficiency in various warehouse processes. The application of barcodes also proves instrumental in the timely harvesting of fresh fruit bunches, ensuring optimal ripeness conditions and supporting the production of high-quality Crude Palm Oil (CPO).
Furthermore, studies, such as Ong's (2019) research on material production, affirm the cost-saving benefits of using barcode systems, emphasizing the significant improvement in employee performance in daily operations.
The paper underscores the role of the Barcode System as a Management Information System, facilitating decision-making and offering alternative solutions to various challenges, as noted by Paoki (2012). Despite these positive impacts, it is important to acknowledge that some employees express dissatisfaction with the barcode system, particularly due to the perceived inability to manipulate harvest data for personal gain, especially in high-production estates.
Notably, PT LNK has implemented the barcode system since 2017, garnering overall satisfaction for its positive effects on efficiency and increased production. However, it is crucial to recognize that certain individuals remain dissatisfied, primarily due to perceived impacts on employee income, which may not be fully understood by the company.
PT. Langkat Nusantara Kepong
This company is a collaboration between PT. Perkebunan Nusantara II (PTPN II Persero) and Kuala Lumpur Kepong (KLK) Plantation Holdings Malaysia, specializing in the agro-industry business. PT. LNK has implemented a comprehensive barcode system across all employee levels, including assistants,fruit counting clerks, field foremen, senior managers/managers, office clerks, and field staff. The barcode system serves dual purposes: recording attendance and capturing fruit counting data. In the field, employees use the system to provide essential information such as the date and time of harvest, the number of fruit, harvester details, and location. The collected data are then transmitted to the data center for processing into wage distributions.
The barcode system also facilitates the tracking of employee attendance details, including names, date and time, work type, and fields worked. This attendance data is subsequently sent to the data center for the generation of salary slips or wage distributions. Some data, such as overtime, off days, premiums, and adjustment data (overpaid, underpaid, and medical discounts), require manual input into the barcode checkroll system. In summary, PT. Langkat Nusantara Kepong (LNK) employs the barcode system to enhance employee work efficiency in attendance management and fruit harvest calculations. The overarching goal is to cultivate a skilled workforce and increase palm oil production.
While the implementation of the barcode system is crucial for optimizing operations, it's noteworthy that many other palm oil companies have yet to adopt this system. Despite its proven benefits in enhancing employee performance, such as ensuring responsible harvest areas and preventing unauthorized movements, the adoption rate remains varied. The barcode system provides insights into unharvested areas, harvest rotations, and production frequencies for each zone. The technology minimizes the risk of errors, saves time, and simplifies activities (Kubanova et al., 2022).
Additionally, the barcode system captures data on fruit ripeness and loose fruit, enabling foremen, field assistants, or managers to easily access information on workers involved in substandard harvesting and their frequency. This streamlined process allows harvest foremen to focus more on critical tasks related to harvesting, crop checking, and rotations without manual note-taking.
The system enables a comprehensive view of harvest data, encompassing global estate planting years, areas, or individual harvesters. This holistic approach allows for the discovery of production and productivity metrics with certainty. In instances where an area falls below standard productivity, it becomes easier to evaluate the cause and formulate effective solutions. Ultimately, the barcode system contributes to increased employee productivity, offering immediate insights into the bonuses earned from the previous day's harvest. Harvesters can calculate their anticipated monthly income more accurately.
Barcode as Management Information System
Barcode technology emerged as an automatic identification method that evolved through practical applications in computer systems during the 20th century. This represents an integrated technology that incorporates principles from barcode theory, optical technology, computer science, communication technology, and barcode printing technology. Known for its speed and precision, barcode technology ensures highly reliable data with a bit error rate of less than one millionth and a first read rate exceeding 98%. This reliability has led to its widespread application across various computer management sectors, including human resource, production process, and commodity circulation management.
In practical terms, a barcode is composed of a series of black and white bars with varying widths and reflectivities structured according to specific coding rules (code system). The primary function is to visually represent a set of numbers, characters, and symbols for graphic identification. Essentially, a barcode is a graphical arrangement of parallel lines with different thicknesses following predefined principles. The traditional barcode features black bars (referred to as "bars") and white spaces (also known as "space" spaces). Although barcode symbols can be printed in colors other than black and white, the essential requirement is that these colors reflect light differently to maintain adequate contrast.
Barcode technology serves as an efficient means of automatic information scanning, effectively eliminating the bottlenecks associated with data input and capture. It offers a robust security guarantee for supply chain management and provides a computer-generated automated identification technique for crosschecks. This technology significantly enhances the accuracy and speed of data collection and identification, contributing to improved calculation and logistics efficiency in various processes. In the contemporary era of information technology, barcodes have become ubiquitous and globally employed because of their simplicity, cost-effectiveness, and high-speed input capabilities (Weng and Yang, 2012).
The Management Information System implemented at PT LNK (Langkat Nusantara Kepong) is very good. In the current digital era, barcodes have been widely used in retail companies. The use of an information system in the form of a barcode system for plantation companies is a new innovation worldwide. The barcode system, as described above, has many benefits, such as being able to facilitate the company in fruit-counting activities to minimize the incidence of theft and data manipulation carried out by individuals or employees involved. In addition, it facilitates the process of inputting attendance data and measuring employee performance so that the barcode system affects employee discipline, because the information obtained will be used as a reference in the payroll of employees. The management information system in the form of a barcode system carried out by PT LNK (Langkat Nusantara Kepong) can be used as an example for other plantation companies, especially oil palm plantations, because it has been proven that the barcode system can improve company performance. However, it is a big challenge for the company to continue to implement the barcode system because there are some employees who do not like it.
Barcode technology is an automatic identification technology generated and developed in computer applications, and effective data collection methods are designed to achieve the automatic scanning of information. It is suitable for use in palm oil plantations. Barcode management and identification systems have been widely used in various types of businesses such as supermarkets. However, this study is the first to introduce theuse of barcodes in palm oil plantations. It is hoped that the manufacture and recognition of software barcodes can be developed. The feature of this study is that barcodes as a management information system can improve data accuracy, facilitate divisional coordination, improve human resource quality, and reduce operational costs.
This research serves as a significant stride in advancing the oil palm industry's barcode system, offering valuable insights into its application for agribusiness management. The findings underscore the pivotal role of the barcode system in enhancing overall performance within oil palm companies. The study establishes a clear connection, indicating that the effectiveness of the barcode system plays a key role, and, in turn, positively influences the overall performance of the company. As corroborated by Qaim et al. (2020), the synergy between the barcode system and effectiveness emerges as a catalyst for heightened performance, paving the way for sustainable agribusiness practices in the oil palm sector.
Conclusion
The implementation of a barcode system yields numerous advantages, including cost-effectiveness, precise fruit counting, enhancement of work culture, and facilitation of policy evaluation and other aspects. The effectiveness of the barcode management information system significantly impacts company performance, signifying that improvements in these variables lead to enhanced overall performance. This study underscores the applicability of the barcode system across all palm oil companies as a means of enhancing performance.
Recommendation
This study contributes to the advancement of the barcode system at PT LNK, envisioning widespread adoption by all palm oil companies integrated into cloud-based platforms for real-time production data. Encouraging employee acceptance of the Barcode System and motivating them to strive for appropriate income are crucial aspects for companies. Understanding the factors that drive managers to embrace new technologies as they act as gatekeepers for such innovations (Liang et al., 2007) is essential. In addition to information system development, enhancing competencies is pivotal for improving overall business performance (Aulia et al., 2023).
Furthermore, it is imperative to integrate a Barcode System with a sales system. As revealed by this research, the current utilization of the Barcode System primarily focuses on tracking shipments, with room for further integration into the sales stage.
PT LNK (Langkat Nusantara Kepong) needs to increase the digital literacy of employees to match the barcode system that is run, and employees need to be given an understanding of the importance of technology to generate awareness. PT LNK (Langkat Nusantara Kepong) should also integrate the barcode system into the sales system and feedback from buyers not only to track shipments. In addition, the barcode system should be developed so that it can be accessed mobile using an android-based application, as the results of Sudarma's research (2019) show Barcode Scanner can be Android-based so that data can be accessed mobile.
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