The Influence of Labor Productivity and Raw Material Inventory Management on the Operational Performance of Companies

Abstract

Based on observations, the background to this research is the fluctuating in production numbers and the number of employees at PT Kewalram Indonesia. This is thought to be related to labor productivity and raw material inventory management.This research aims to determine the influence of labor productivity and raw material inventory management on the company's operational performance at PT Kewalram Indonesia, both partially and simultaneously. The object of this research is employees at PT Kewalram Indonesia unit 1. The type of research is associative quantitative, primary data type, data collection techniques are observation, interviews, literature study and questionnaires. The population in this study was 1.872 employees at PT Kewalram Indonesia Unit I and a sample of 95 employees. The research results show that there is a significant influence between labor productivity and the company's operational performance. This can be seen from the value of t_count > t_table (18,994 > 1,986) of 79.5% from the R² test results. There is a significant influence on raw material inventory management seen from the t_count > t_table value (8,981 > 1,986) and the contribution of Raw Material Inventory Management to Operational Performance is 46.4% from the R² test results. Simultaneously, Labor Productivity and Raw Material Inventory Management influence the Company's Operational Performance at PT Kewalram Indonesia Unit 1, this can be seen from the value of t_count > t_table (44,422 > 3,09) and the contribution of Labor Productivity and Raw Material Inventory Management to the Company's Operational Performance simultaneously amounting to 49.1% of the R² test results with a significance point of 0,000<0,05.