Productivity improvement at Portsite Plant Pt. Freeport Indonesia using six sigma

• Main Authors: Ariawan, Agus, Hasanbasri, Mursyid
• Format: Conference or Workshop Item
• Language: English
• Published: 2010
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/4108/1/Agu.pdf; http://repo.uum.edu.my/4108/; http://cob.uum.edu.my/ictom
• Institution: Universiti Utara Malaysia

Portsite plant is one of PTFI unit business that has objective to dry and load concentrate to customer ship. Business issue at Portsite plant is low productivity. Productivity is measured by number of production in one day (TPD – Ton per Day). Actual productivity is 7800 TPD lower than target that is 9840 TPD. Problem solving is done using Six Sigma with DMAIC framework. Each of root cause is analyzed by correlation analysis and process capability analysis. Analysis of variance (Anova) is used to find correlation of root cause. Process capability analysis is used to evaluate performance of each root cause. Alternative solution for each root cause is discussed by modified category importance weight that consider uncertainity of success of each criteria. Decision criteria for best solution are applicability, simplicity, performance, initial cost and on-going cost. Using Pareto Priority Index (PPI) selected business solution are create employee development plan, create computerized risk based inspection system (CRBI), implementation of occasional contract employee, implementation of vendor managed inventory (VMI), and create web based maintenance data record. Implementation of business solution will cost US$1.7M with potential saving US$82M.