EFFECTIVENESS ANALYSIS OF PROCESS IMPROVEMENT METHODOLOGIES AT PT XYZ

• Main Author: Hasibuan (NIM 291 05 138), Cesar
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/5889
• Institution: Institut Teknologi Bandung

Abstract : <br /> <br /> <br /> <br /> <br /> To face growing competition, globalization trends and free trade market in current market condition, companies who intend to sustain or grow their business cannot rely on their existing or past performance and achievements. To face the raging competition, companies must continuously improve their business process. One concept that religiously practiced by Japan companies, which adopted from Japanese life culture is kaizen, or continuous improvement. <br /> <br /> <br /> <br /> <br /> <br /> PT XYZ, a subsidiary of a US-based company is a cost center of the company. As such, PT XYZ is evaluated by its capabilities to control its operational cost. Consequently, the strategy employed by PT XYZ to increase their competitiveness is to set the lowest operational cost target possible. This strategy is generally known as cost leadership strategy. In this generic strategy PT XYZ dont target to create profit, but to control all incurred cost from its busincess process, operational and product (which mainly driven by material and labour cost). <br /> <br /> <br /> <br /> <br /> <br /> Currently as an implementation of the above-mentioned strategy, PT XYZ is employing a process improvement initiative through the formation of several process improvement teams. Two widely used process improvement methodology are DMAIC (Define-Measure-Analyze-Improve-Control) approach from Six Sigma methodology, and DD (Differential Diagnosis) approach, which was introduced to the company by Dr. Gondhalekar of Kaizen Institute. <br /> <br /> <br /> <br /> <br /> <br /> The teams employ the two approach separately, since DD approach was more preferable, mainly due to its easy-to-understand steps. This approach was also accepted through all the teams as more powerful to identify problem causes, so defect rate can be reduced faster. <br /> <br /> <br /> <br /> <br /> <br /> The main objective of this final project is to conduct analysis in both methodologies implementation in a real case in PT XYZ, to review whether the main objective of the process improvement initiative, which is cost reduction, is achieved as well. Based on observations in production shop floor, this final project gives several analyses on cost reduction and some suggestion to achieve the main objective of the whole process. <br />