Articles

Order Fulfillment Process Improvement in E-Commerce Warehouse: A DMAIC Approach for PT XYZ

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This research analyzes PT XYZ’s e-commerce fulfillment warehouse using the DMAIC (Define, Measure, Analyze, Improve, Control) methodology due to a shortfall in order processing, averaging 184.64 orders per shift versus a target of 250. The objective is to enhance operational efficiency and manpower productivity. Initial analysis identified significant inefficiencies and high variability in processing times due to Warehouse Management System (WMS) synchronization issues, manual rework, lack of standards, and non-value-adding activities. The improvement phase proposed solutions such as implementing a Pick-to-Light (PTL) system, WMS enhancements, standardized receipt picking, and incentive schemes. These improvements aim to reduce errors, optimize workflows, and increase employee productivity. The control phase includes comprehensive training plans, documentation, and monitoring tools to ensure sustainability and continuous improvement. Implementing these solutions is expected to increase order processing efficiency by 40-50%, build a more competitive and motivated workforce, and address issues between regular and freelance employees through targeted training and incentive schemes.

Enhancement of Foley Catheter Assembly Section Quality using Six Sigma (A Case Study of an Indonesian Medical Device Company)

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This study aims to enhance the quality of the Foley catheter assembly section at PT XYZ, an Indonesian medical device manufacturer, using Six Sigma methodology. PT XYZ currently faces an 8% defect rate in its Foley catheter assembly section, surpassing the acceptable 3% threshold. The current Sigma level of the Shrink process within the assembly section is 2.36, while the Balloon Vulcanizing and Assembly process stands at 2.68. The Six Sigma DMAIC (Define, Measure, Analyze, Improve, Control) framework was used to identify and address root causes of defects. Data collection methods included interviews, questionnaires, and field observations, revealing key issues such as incorrect tray loading, machine calibration errors, operator skill variability, and inadequate handling techniques. Proposed improvements include updating Standard Operating Procedures (SOPs), implementing SCAMPER for calibration, comprehensive training programs, and incentive schemes. Additional measures involve template overlays for precise cutting, vendor maintenance, and control charts for consistency. The Control phase ensures sustainability through documentation, training, and monitoring using control charts and Failure Modes and Effects Analysis (FMEA). Implementing these solutions is expected to reduce the defect rate and elevate the Sigma level of both processes to 3, enhancing process efficiency and product quality. This will improve operational efficiency and customer satisfaction, providing a robust framework for PT XYZ to elevate its quality control and contribute to better healthcare device manufacturing in Indonesia.

Six Sigma Approach to Reduce Revenue Leakage in Revenue Recognition Process: A Case Study

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This study investigates business process inefficiency of revenue recognition process at Gajah Logistics, which impact to financial loss. The primary objective of this research is to improve the business process of revenue recognition process, with the purpose to reduce revenue leakage using Six Sigma approach. Six Sigma DMAIC methodology was used as foundation of the problem-solving approach, while in each process Six Sigma Tools also applied.

The study conducted in five main approaches following the DMAIC methodology. First, business process related to defined into business process mapping on a swim lane visualization. Secondly, the fault factors measured using Fault Tree Analysis (FTA) and prioritized using pareto analysis. Third, each faut basic event analyzed using inferential statistics. Then the gap analysis conducted to improve with benchmarked state of the art. After that, solution was formulated and prioritized using effort-impact matrix. Finally, the post implementation impact was simulated to give new baseline of the process quality.

The overall process quality measured by DPMO at the current state was 2.5 sigma level, which was causing a huge loss to the company. After implementing sigma level is improved to 3.5 sigma level, while the loss reduce 76%.

The research conclude that Six Sigma approach could give company systematic approach to solve the complex and cross functional process inefficiency. The results also showed that if an organization applies effort-impact analysis, it obtains valuable information necessary to support decision-making processes.

Enhancing Fuel Ratio Efficiency for Sustainable Operations in Pit KX Mining: DMAIC Methodology

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PT ABC is one of Indonesia’s largest coal mining businesses, and the mining. Pit KX is one of the company’s pits worked by contractors, and it has been mined since 2008. According to the company’s historical data from January 2022 to June 2023, overburden and coal production from Pit KX has decreased while fuel consumption has grown. Fuel is a major cost component in mining operations. The overall fuel cost represents around 35% of the company’s total operational cost. This study investigates the use of the DMAIC (Define, Measure, Analyze, Improve, Control) approach as a systematic framework for improving fuel ratio efficiency and promoting sustainable practices in pit KX mining operations. The DMAIC technique provides a disciplined pathway for discovering, assessing, and eliminating fuel-related inefficiencies. DMAIC offers a disciplined framework for improvement. By implementing DMAIC methodology, it can systematically identify and address inefficiencies in fuel utilization leading to reduced operational costs, minimized environmental impact, and enhanced sustainability of pit KX mining operations.

Quality Improvement for Sleeve Shirt X Using Lean Six Sigma Approach at PT X

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PT X, a key player in the garment industry, faces operational challenges, including inefficient motion in packing and product defects. Current state analysis reveals a lead time of 3,424.90 seconds, with a value-added time of 3,054.90 seconds. Direct observations attribute motion wastage during packing to suboptimal hand movements, stemming from inadequate training in motion time measurement. The future state map proposes packing process improvements through motion time measurement, reducing time from 87.27 to 86.32 seconds, with a lead time of 3,423.95. From January to December 2014, total production reached 239,359 units, with 30,702 defective products. The main defect, stitch breakage in short-sleeved shirts ‘X,’ occurred 15,386 times. Current process capability stands at 3.690 Sigma. Using the 5W+1H method, addressing the root cause of stitch breakage reduced defects to 15,316, with process capability improving to 3.952 Sigma, a 0.262 improvement. Post-improvement analysis estimates an added value in quality costs at Rp1,943,297,372. Lean Six Sigma implementation aims to minimize defects and lead times, enhancing profitability.

Proposed Improvement of the Contract Award Process in Contracting and Procurement using Lean Six Sigma Methodology (A Case Study of an Oil and Gas Company in Indonesia)

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Oil and gas (O&G) production is crucial for Indonesia’s economy, and Company XYZ is actively involved in O&G exploration and production in three operational fields. Effective contracting and procurement procedures are essential for timely access to equipment, services, and materials while minimizing costs, delays, and risks. O&G procurement involves various responsibilities such as procuring drilling rigs, equipment, seismic services, and transportation. Insufficient planning in these processes can lead to project delays, increased expenses, and lower profitability. To address these challenges, the research proposes implementing Lean Six Sigma principles with the DMAIC methodology to improve the contracting and procurement process. In the Define phase, the current state of the contract award process is identified through process mapping. The Measure phase evaluates the internal contract routing approval performances, highlighting variations in completion time for IRS documents. The Analyze phase identifies factors contributing to redundancy, including lack of digitization, absence of a contract control system, time-consuming processes, and a complicated routing process. The Improve phase recommends three solutions: implementing a contract monitoring and control system, streamlining the contract approval routing process, and digitizing the contracting and procurement processes. These solutions aim to improve efficiency, coordination, and decision-making, ultimately enhancing the contract award process, reducing delays, and increasing operational effectiveness and profitability. The Control phase ensures the sustainability of proposed solutions through regular monthly reviews to assess the effectiveness of the control plan and make necessary improvements.

Proposed Improvement Plan for Quality Management in Crafting Industry (Case Study of PT Global Kriya Nusantara)

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Crafting industry is one of the creative economy subsectors under the Ministry of Tourism and Creative Economy of the Republic of Indonesia. PT Global Kriya Nusantara or later will be mentioned as Kriya Nusantara is one of the craft industry actors in West Java, specifically in Bandung City. Established in 1995, Kriya Nusantara exported craft goods to several countries. In order to fulfil its demand, Kriya Nusantara needs a great strategy, especially for its quality management. In this case, the proposed system to be improved is the quality management of Kriya Nusantara due to the occurrence of rejected products in one of its project production processes. One of the projects that will be analysed in this research is Ramadhan Box 2022 which was ordered by Al-Jazeera Perfumes – Qatar. The problem is, that there are some defective finished goods that later will be rejected and needs to be repaired or reworked.

The Six Sigma method has been utilised in this research as a primary tool. The Six Sigma in this research contains the DMAIC framework that will be useful to define the main issue, measure the capability of the process, analyse the business situation, and propose the improvement plans along with the control plans for the production process of Kriya Nusantara. According to this research, there are six defect types that occurred in this production process, and the defect type that has the greatest RPN value is the Minor Paint Defect with a 320 RPN value and has critical risk level. The causes of each defect type have been analysed using FMEA analysis and there are four causes which are human error, miscommunications, unskilled labour, and defective raw materials. The FMEA analysis also has been utilised to propose the business solution alternatives in this research. There are three proposed business solutions for the causes which are progress monitoring for the human error and miscommunication issues, labour training for the unskilled labour, and supplier’s product evaluation for the defective raw materials. Those improvements will reduce the defect of the products so that the quality of the products of Kriya Nusantara will be enhanced.