Integration of K-Means clustering and fuzzy AHP to establish development strategy on cassava chips produced by SMEs

Malang Regency is an area that has potential to be developed on agricultural sector, with one most superior commodity is cassava chips. Main issue remains in the cassava chips SMEs is the partial or individual work condition in among SMEs. This research objective is to establish an industrial cluster using K-Means Clustering, and to determine the cluster's development strategy using Fuzzy AHP. Respondents involved in this research are five SMEs' owners and three experts from government and SMEs experts. Results showed that there are two clusters established. Cluster 1 belongs to small scale business with between 6 to 19 workers involved (SMEs of Dua Bawang, UD Wijaya, Pokmas Mandiri, and UD Langgeng Jaya Abadi). Cluster 2 belongs to medium scale business with 20 to 99 workers involved (SMEs of UD Pondok Tua). SME in cluster 2 has above average value of production capacity compared to cluster 1. Development strategy for cluster 1 could be done by implementing quality improvement and product standardization, as well as improving capital access. Development strategy for cluster 2 could be done by implementing quality improvement and product standardization, as well as training to improve the workers' skill and performance.