USING SIX SIGMA ROAD MAP TO IMPROVE THE ACCURACY OF THE OER CALCULATION AND REPORTING IN COMPANY ASALSATU

• Main Author: HANDOKO (NIM 29316071), ANTONIUS
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/25703
• Institution: Institut Teknologi Bandung

The main objective of the palm oil mills is to contribute to the attainment of as high as possible on the Oil Extraction Rate (OER) and Kernel Extraction Rate (KER). The daily OER and KER are calculated by counting the production of CPO and PK in certain day and divided them with the amount of Fresh Fruit Bunches (FFB) processed in the mills. In the middle of 2017, the West Kalimantan Managing Director detected the fraud conducted by the Mill Manager and Assistant Head in S4 mill, in which the Mill Manager instructed the Assistant Head to conduct fraudulent activities to falsifying OER data in S4 mill in order to achieve the OER KPI. At this point, the management team of Company AsalSatu had the doubt regarding the accuracy and validity of OER data that reported every day to the Corporate Mill, because at the end, the management team realized that the high OER achievement maybe actually obtained by falsifying and manipulating the OER data. <br /> <br /> Among many tools and methodologies available, Six Sigma is considered one of the best to solve the problem. Six Sigma is a structured methodology to fix the process that focused on the efforts to reduce the process variances and at the same time reduce the defect (out specification goods or services) by using intensively the statistics and problem solving tools. By definition, it can be concluded that Six Sigma can also be used in order to reduce the inaccurate OER data reported by the mill personnel since the Six Sigma application varies and can cover almost all aspects that related with the output quality. <br /> <br /> Several critical problem factors/causes that generated from the observation results that confirmed and agreed by mill personnel (including Mill Manager) are the wrong methodology used to calculate CPO stock, error in Mill Daily Report template, error in inputting the sounding results into the Mill Daily Report and OER data falsifying (fraud). <br /> <br /> After analyze phase, the main improvement recommendations in order to solve this critical causes are mill audit program enhancement, calculating the CPO stock only from the Storage Tank, recheck and revise the Mill Daily Report template in accordance with Storage Tank Volume Table, standardize the Ms. Excel template used by mills to calculate the CPO height level from the sounding results and review & recheck the Mill Daily Report summary before submitted to the Regional Office and/or Corporate Mill.