BUSINESS PROCESS IMPROVEMENT OF PRODUCTION AND PLANNING CONTROL OF DETAIL PART MANUFACTURING IN PT. DIRGANTARA INDONESIA

• Main Author: GITA ASARIA HUTAURUK (NIM : 13414006), YOSEPHINE
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31776
• Institution: Institut Teknologi Bandung

<p align="justify"> PT. Dirgantara Indonesia (Persero) is South-East Asia and Indonesia’s only aerospace company. After its bankruptcy status in 2007 was cancelled, the company received state investment to re-structure its organization in 2011. The re-structuring program of PT. DI altered its previous production system of Engineer-to-Order (ETO) to Assemble-to-Order (ATO) and Make-to-Stock (MTS). However, the re-structuring program still have not solved the organizational issues currently afflicting the company. In fact, company’s continuous failure in delivering aircrafts on time resulted in a total fine of Rp222.56 billion in 2016. <br /> <br /> The Detail Part Manufacturing (DPM) division is one of the most important division to guarantee company’s performance in delivering aircrafts on time. The division is responsible for producing airplane’s basic components. However, the production planning and control of this division currently failed to perform its goal, whereas more than 50% of Work Orders is in Delay and/or No Activity Status every month. Other than that, workload is currently not assigned to work stations according to their actual capacity. <br /> <br /> To solve the organizational problems currently embedded in the production and planning control of DPM Division, a research to improve the process business was done. The improvement effort started with a semi-structured interview with company’s workers to identify the business process. The business process was then analysed with Value-Added Assessment (VAA), which discovered that, out of 79 processes, 7.60% are value-adding, 48.10% are organizational value-adding, and 44.30% are non-value-adding. In this research, VAA is accompanied with Failure Mode and Effect Analysis (FMEA). Through FMEA, 15 out of 54 potential risks were identified as critical. <br /> <br /> After that, a root cause analysis for every critical risks was done using a cause-and-effect diagram, creating a foundation for constructing an action plan to minimize each of the critical risks. It is then followed with process elimination, addition, and modification, as a consequence for applying such action plans. The improved business process is comprised of 75 activities only, a decrease from 79 activities in existing business process. It is also much leaner, with 10,67% of all activities identified as value-adding, 86,67% of all activities identified as organizational value-adding, and only 2,66% of all activities identified as non-value-adding. <br /> <p align="justify">