PERANCANGAN PERBAIKAN PROSES BISNIS DIVISI PRODUCTION PLANNING AND INVENTORY CONTROL PADA PT DUTA LOGAM

• Main Author: Rizky Siswanda, Luthfia
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/75619
• Institution: Institut Teknologi Bandung

PT Duta Logam is one of the leading manufacturing companies in Indonesia specializing in fabrication and assembly of sheet metal with a job shop production system. PT Duta Logam aims to enhance its competitiveness through increased efficiency in its business processes. However, the company is facing a problem as the level of on-time delivery to customers has not reached the desired target. This issue arises due to the Production Planning and Inventory Control Division (PPIC) Division, who is responsible for production planning and scheduling to fulfill customer orders, still engaging in activities that are classified as non-value added. Yet the company struggles to identify all non-value-added activities done by PPIC Division because of the lack of tools to measure the efficiency of its business process. Furthermore, the business process of PPIC Division is not clearly defined and documented, which makes it more challenging to identify the root causes of the inefficiency and to make decisions for process improvement. Therefore, process mapping and process improvement are needed for PPIC Division to enhance their efficiency. The business process improvement was done using the model-based and integrated process improvement methodology. Process profile was used to provide detailed breakdown of the existing business process. The existing business process was then mapped using process classification framework, cross-functional flowchart, and IDEF0 diagram to visualize the business process. The efficiency of the business process was determined using Value-Added Assessment (VAA), which reveals that the existing business process consist of 22,55% value-added activities, 23,53% business-value added activities, and 53,92% non-value-added activities. Then, the proportion of activities performed by the PPIC Division was determined using multi-moment analysis combined with a Pareto Diagram, resulting in 15 critical business processes that need further analysis. These critical business processes were evaluated using VAA and waste analysis to identify problems that can be an opportunity for improvement. The root causes of these problems were determined using cause-and-effect diagram as an input for actions taken to improve process efficiency using ESIA techniques. The improved business process of PPIC Division was then mapped using the same method to map the existing business process. The proposed solutions for improving the business process of PPIC Division yield a streamlined process with 68 activities, a decrease from 102 activities in existing business process. Based on VAA and labor cost calculations, the improved business process is identified to have better efficiency with 35,92% value-added activities, 44,12% business-value added activities, and 20,59% non-value-added activities, as well as a 43,37% reduction in labor cost/day. These process improvements resulted in 10 proposed improvements in the form of a project charter.