ANALYSIS OF PRODUCTION TRANSITION LOSS RATIO AS PRODUCTION PLANNING PERFORMANCE INDICATOR AT PT MANDOM INDONESIA TBK

• Main Author: Muhammad Fuad, Azhar
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/65126
• Institution: Institut Teknologi Bandung

For industries that have lots of product variants, time losses caused by adjustment settings between production could be a major problem. The stop time caused by adjustment or setting activities performed in each production transition could also be categorized as opportunity loss because the time could be utilized to produce more Goods. Therefore, the more the line stops by transition, the more opportunity loss it creates. PT Mandom Indonesia Tbk, one of the famous cosmetic manufacturers in Indonesia that supplies both domestic and international markets, has about 2.500 product variants. In a month, they could produce about 600 different variants. With so many variants existing, production transition became a major issue and often create conflict between production division and planning division. Because there is no research within the company that could show how much losses the production transition could cause, production transition often become a matter of debate and was not on the priority list to be solved. The condition is also supported by existing management policy regarding production schedule that mentioned about a product must be produced twice a month to anticipate market demand (“two phase” policy). With this condition, although the variant that is scheduled to be produced in a month is 600 variants, the actual transition could be twice or triple in a month. Therefore, production transition losses also doubled or tripled. Moreover, the pandemic caused the production cannot run smoothly with fewer working hours and production output. Within this paper, author analyzed samples of production transition records from several production types to validate the data accuracy and also analyzed sources of opportunity losses related to transition activities. SPC was used to analyze the consistency of the transition data. The validity of the samples was also strengthened by measuring the margin of error for each transition category. After the data has been justified as valid, the data was used to determine the solution for the problem which is a new production planning policy which is “one phase” policy. One phase policy is a production planning strategy that applies the transition category’s priority level to determine the order of the production therefore the transition activities could be controlled. For a better understanding of management causes, opportunity losses caused by transition activities were visualized as the ratio in iii quantity and ratio in value of money. The calculation later will be proven by using the availability ratio formula from OEE to validate the previously mentioned loss ratios. To see the loss that would occur in the future, the data has been processed by using System Dynamic approach with the help of Vensim software. For more precise data, the data has been divided into three different times which is before pandemic (2019), start of pandemic (2020), and amidst pandemic (2021). One phase policy was implanted as a pilot project from August 2021 to September 2021. After the implementation in August 2021, the transition loss ratio gradually declined and eventually hit the lowest transition loss ratio in September 2021 which is 7,5%. That value is the best record since the start of the pandemic which is 9,5% despite the production condition, especially at the number of work hours, production volume, and variants are similar. The availability ratio also proves that September 2021 has the best availability ratio since 2021 which is 86,7%. With the comparison of 2020 production data and differences in transition loss ratio from the previous conditions and after implementation of one phase policy, PT Mandom Indonesia Tbk could reduce the opportunity loss caused by the transition that worth of Rp. 14.145.807.440 each year.