Defect Product and Waste Reduction for Elhijab Using Six Sigma Method

• Main Author: Qalbi Imani Antadiredja - 29116391, Zahra
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/31872
• Institution: Institut Teknologi Bandung

Elcorps is a company that owns brands in Muslim fashion retail and halal food. Elhijab is responsible with the fashion retail business in Elcorps. Nowadays, fashion industry growth in Indonesia is really emerging, including Muslim fashion. Indonesia is also a country with the largest population of Muslim in the world which makes this situation as a big opportunity for Muslim fashion manufacturer in Indonesia to gain more profit and have their business grow in the future. Because Muslim fashion demand increases each time, it pushes Muslim apparel manufacturer to deliver a high-quality product to the customers. This situation is quite challenging for Elhijab to fulfill market demand since there are so many competitors and new entrants in the industry which could provide product for a customer with good quality.Elhijab was facing a problem in providing a high-quality product for their customerswith the result that their total production cost increased from 2015 – 2017. Thus, the company wants to reduce the number of defect product and waste until the sigma level is 5&#963; so that their production cost will decrease. <br /> <br /> <br /> Six Sigma is a selected method in this research to reduce the number of defect product and waste in Elhijab. From the define phase, internal and external customers want to get products which correspond with their orders and no defect found in the product. A SIPOC diagram and process flowchart are tools for this research to evaluate the unnecessary or improper steps and decisions in the production process. After analyzing the whole production process, the root cause of defect material, defect production, and waste in Elhijab is the improper scheduling for the production process. Elhijab usually makes their planning three months before they do the production, but it makes them get disadvantages, such as they have to order raw material from the small supplier which has no standard for the quality of the product and have to work with home industry vendors currently who has a poor performance for doing their orders. <br /> <br /> <br /> For the improvement, Elhijab should make their planning four months before the production process, so that they have enough time to produce a high-quality product. They can find good suppliers and make an agreement with them to order raw material or to sew some of their products. Next, Elhijab should build a supplier relationship management with key suppliers so that they could provide a high-quality product for customers. The last proposed solution is Elhijab should start an in-house production for the seasonal product but still outsource the sewing process of the basic product to vendors. To make sure the improvement is holding up over time by conducting a dialogue with key suppliers quarterly and controlling supplier’s performance annually.