Articles

Strategic Multi-Factor Root Cause Analysis for Lead Time Optimization in Jewellery Manufacturing

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One of the strengths that company need to have been the ability to release new models faster than competitors. It will give the opportunity for the company to capture the market share. However, company need to have a quick mass producing for the new models after prototype released to the market. Slow mass producing will open the window for the competitor to imitate the prototype and give the chance for them to capture all the markets if they have quicker mass-producing time. This issue happens in jewellery companies in Indonesia, one of the companies is XYZ Company. Prototype models from XYZ company are widely imitated by competitors who have faster production time. To overcome this issue, company need to analyse the root cause of slow mass production process in the company. Based on this analysis, recommendations can be given to the company and applied to accelerate the production process so the company will not lose the market anymore. The root cause analysis was conducted by using a fishbone diagram with a case study in XYZ company. Through the analysis, it can be seen that the root cause of the slow production time is due to lack of human resources thar involved in production. Based on this finding, series of measures such as hiring additional employees and implementing the overtime hours for the employee can be applied to speed up the production time and even increase the capacity.

Reducing the Delayed Lead Time of Purchase Requisition to Purchase Orders for Standard Part Commodity in the Procurement Department of the Avionics Sector

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The efficiency and effectiveness of procurement processes perform a critical role in the smooth operation of organizations, particularly in industries with intricate supply chains, such as the aviation sector. This thesis focuses on the delayed lead time of purchase requisitions to purchase orders for standard part commodities inside Procurement Department. Through a comprehensive analysis of the procurement workflow, data collection, and interviews with key stakeholders, this study aims to identify the root causes and consequences of the delayed lead time in the procurement and also determine the best strategy supply chain for the procurement department. The root cause reveals several factors that contribute to the delayed lead time, such as ineffective and inefficient processes, manual working procedures, particularly in the negotiation and evaluation process between buyer and Supplier, bureaucracy in the document, poor in managing and updating the data of requirements supplier, no back up for new prospect supplier, and a lack of monitoring and communication between internal and external departments. Furthermore, the consequences of this delay include delays in following processes in other departments, increasing the potential of product delivery delays to clients, and affecting customer satisfaction. Based on the findings of these studies, several business solutions have been proposed to address these challenges. The conclusion of the entire analysis process is the implementation of e-procurement with a vendor management system. By implementing these suggestions, the Procurement Department significantly reduced the lead time by 65%. The benefits obtained lead to increased operational efficiency, reduced possibility of product delays to consumers, and increased customer satisfaction.