LEAN-SIX SIGMA APPROACH TO MINIMIZE WAITING TIME IN COAL DELIVERY PROCESS TO CUSTOMERS: A CASE STUDY OF PT XYZ

• Main Author: Yudanto, Landung
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/85386
• Institution: Institut Teknologi Bandung

This research aims to identify and reduce waiting time in the coal delivery process at PT XYZ using the Lean Six Sigma approach. The analysis found that the lead time for each mother vessel is 131.5 hours, with 105.5 hours (80.3%) consisting of value-added activities. The remaining time consists of necessary non-value added activities (12.1%) and non-value added activities (7.6%). Four main causes of waiting time were identified using process capability calculations: weather conditions, waiting cargo, availability of the Floating Loading Facility (FLF), and coal contamination, with sigma levels of 2.33, 1.71, 1.92, and 2.27, respectively. Subsequently, the root causes of waiting for these four factors were analyzed using the 5 Whys method. Improvement recommendations were provided to address these root causes. It is expected that, with the implementation of these improvements, waiting time can be significantly reduced, with the sigma levels after improvement reaching 2.57, 2.12, 2.27, and 2.5. This increase in sigma levels will positively impact the reduction of delay time and demurrage costs. The reduction in delay time for each cause is 16.5%, 35.5%, 24.5%, and 13.2%. Meanwhile, the reduction in demurrage costs for each cause is 16.8%, 33.9%, 21.3%, and 11.8%. The implementation of the recommended technology and process improvements is expected to enhance delivery efficiency and reduce operational costs due to waiting time, in line with Lean Six Sigma principles that emphasize quality improvement and waste reduction in operational processes.