IMPLEMENTING LEAN MANUFACTURING IN HONDA AIR OUTLET PRODUCTION STUDY CASE IN PT.X

Abstract

Non-value added activities in a company could lead on many things, such as machine downtime, high defect rate, high overhead costs, high space requirement, high lead time, etc. All of sudden may lead to production loss. Lean manufacturing comes up with an idea to reduce non-value added activities by reducing waste using Lean tools. There are eight wastes which introduced by Lean methodology, such as defect, over production, over processing, waiting, unused creativity, transportation, inventory, and motion. There are 25 tools that will be shown in this thesis to reduce those eight wastes. This thesis will only reduce 3 wastes out of 8 wastes because limited time in the process of making this thesis. Those three wastes which will be reduced within months in this thesis are defect, waiting time, and inventory. In order to reduce those three wastes, some tools will be used, such as Economic Order Quantity (EOQ) analysis and Vendor Managed Inventory (VMI) to optimizing inventory cost and Total Productive Maintenance (TPM) in order to optimizing machine reliability. The focused will be on percentage reduction of cost, day of inventory and defect. The cost reduction if using VMI approach as future inventory management system is 48% or equal to Rp8,038,438. The cost reduction after implementing TPM is 11% or equal to Rp4,560,739 for component 1, Rp1,242,331 or equal to 7% for component 2, and Rp198,924 or equal to 2% for component 3.