Articles

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

/in /by

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.

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

/in /by

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)

/in /by

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.