PROPOSED LEAN MANUFACTURING IMPLEMENTATION TO INCREASE GLOBAL EFFICIENCY SCORE (A CASE STUDY AT PT XYZ INDONESIA)
PT XYZ Indonesia operates a subsidiary of ABC International Inc. PT XYZ Indonesia is one of the company operates in dairy industry. There are intense competitions on dairy industry especially in Indonesia. Companies compete to each other to gain the larger market share and to get more profit. In thi...
Saved in:
| Main Author: | |
|---|---|
| Format: | Theses |
| Language: | Indonesia |
| Subjects: | |
| Online Access: | https://digilib.itb.ac.id/gdl/view/38691 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Institut Teknologi Bandung |
| Language: | Indonesia |
| Summary: | PT XYZ Indonesia operates a subsidiary of ABC International Inc. PT XYZ Indonesia is one of the company operates in dairy industry. There are intense competitions on dairy industry especially in Indonesia. Companies compete to each other to gain the larger market share and to get more profit. In this intense competitions, company movement to gain more profit through price increase is limited. So, another way to gain more profit is by conducting cost efficiency policy. Production cost can be reduced by doing production process effectively and efficiently in order to conduct cost efficiency.
In 2018, PT XYZ unable to fulfill the demand volume for each month. The gap between actual volume produced and demanded volume caused PT XYZ lost sales in total IDR 83,059,426,637.07 from January 2018 to July 2018. Production process unable to fulfill the demand volume related to Bandung Plant’s Global Efficiency (GE) Scores which still low and below the target.
Volume demand can be achieved if the volume output that PT XYZ produce is increased. To increase the volume output, improvement on global efficiency scores is needed. To increase global efficiency score, losses and rework produced is need to be identify and eliminate. Methods to identify and eliminate losses is with lean manufacturing. Global efficiency scores can be calculated with calculation from internal source from company and also with Overall Equipment Effectiveness equation. Direct observation done using time and motion study technique to identify losses and reworks that occurs. Current Reality Tree shows standardization is the root cause of the problem.
There are proposed solution to solve the root cause which are: visual information, new work instruction, and 7 wastes training. Simulation to get the result of each solution and Analytic Hierarchy Process survey is done. From both simulation and AHP survey, work instruction become the best solution for current condition. With work instruction solution, PT XYZ can reduce the sales lost up to 39%.
|
|---|