INCREASING PRODUCTION CAPACITY OF RACK STEERING LINE AT PT.ABC USING LEAN SIX SIGMA METHODOLOGY

• Main Author: Harasta Fadruzil, Farhan
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/54755
• Institution: Institut Teknologi Bandung

The economy and population in a country are growing positively, the demand for vehicles has also increased, and the companies demand for cars has also increased. PT ABC, as one of the top steering gear assembly suppliers for Daihatsu and Toyota cars also affected by this condition. This condition certainly has a positive impact on company revenues, but what is certain is that the production capacity must be enough to fulfil this demand. Demand that cannot be fulfilled will be handled by over time. The excess of overtime results the increase of overtime cost, so it is necessary to increase the normal capacity to overcome this problem in the future. This research aims to reduce the cycle time in the rack steering line so that production capacity increases and have an impact on reducing overtime costs as management requested (because company profits are decreasing due to the COVID pandemic conditions).The principle of Lean Six Sigma was selected as a problem-solving method, DMAIC (Define, Measure, Analyze, Improve, and Control) was selected as a Six Sigma tool and VSM as a Lean tool. In the Define phase, the author determines the critical process which become potential problem using the help of the SIPOC tool. In the Measure phase, it was found that high machine time affects normal capacity. High machine time occurs in OP-10 (55sec), OP-20 (55sec), OP-30 (55sec), and OP-90 (57sec), so it is necessary to do improvements to the machining process. The Analyze phase was used to consider potential waste in the machine. In the Improve phase, improvements were made to the machine by the considerations that was done to each machine, and a decrease in machine time was obtained for the OP10 (42sec), OP-20 (49sec), OP-30 (49sec), and OP-90 (50sec). The decrease in machine time has an impact on reducing cycle time from 1.1 minutes to 1.0 minute, thus affecting the production normal capacity increase, decreasing over time, and overtime cost. The control phase was helpful in maintaining the improvement results in the rack steering line; things that need to be controlled are the normal capacity of 818 pcs/day and the cycle time of 1.0 minutes.