Production Cost Control Strategy to Increase Profits at Mbak Atik's Pecal Ayam

Strategi Pengendalian Biaya Produksi Untuk Meningkatkan Laba Pada Pecal Ayam Mbak Atik

Abstract

The development of micro, small, and medium enterprises (MSMEs) in the culinary sector in Indonesia is experiencing rapid growth, including the Pecal Ayam (chicken pecal) business. Despite high demand, intense competition demands that business owners manage production costs effectively to achieve optimal profits. This study aims to analyze the production cost control strategies implemented in the Pecal Ayam business and their impact on increasing business profits. The research method used was a descriptive qualitative case study approach. The research subjects consisted of the business owner and employees directly involved in the production process. Data were obtained through interviews, observations, and simple financial report documentation. Data analysis was conducted using a descriptive qualitative approach, with the stages of data reduction, data presentation, and conclusion drawing. The results indicate that production cost control in the Pecal Ayam business has been implemented, but remains informal. Raw material cost control is achieved through purchasing according to daily needs and through regular suppliers, while labor cost control is achieved through the direct involvement of the owner. However, recording of production costs per unit and controlling overhead costs has not been systematically implemented. Weak cost control directly impacts profit fluctuations, especially when raw material prices increase or sales decline. Based on these findings, implementing more systematic production cost control strategies, such as recording unit costs, preparing budgets, and periodically evaluating costs, can help Pecal Ayam (Chicken Pecal) businesses improve operational efficiency, set appropriate selling prices, and maintain profit stability. This research provides an empirical contribution to production cost management in traditional culinary MSMEs.