ANALYSIS OF KAIZEN APPLICATION IN INCREASING EFFICIENCY - A CASE STUDY OF A PHARMACEUTICAL COMPANY

Abstract

The world economy is steadily moving towards a more global approach – rendering most large companies to receive the effects of globalization. As the world and advances in information technology grow, so do the relations between each company tighten and create a new level of competition between them. Therefore, the Small-Medium Enterprises (SMEs) are pushed to enhance their performance in terms of cost and time-efficiency. Kaizen implementation is one of many continuous improvement practices that companies can use to reduce costs and eliminate waste of time. This is one way for PT. DVL to increase competitiveness in efficiency among many pharmaceutical companies through standard setting, system simplification and gradual improvements by using the Kaizen concept. PT. DVL has implemented Kaizen but the effects and results have not been fully assessed. Therefore, the purpose of this research is to evaluate the impact of Kaizen on the cost efficiency and time wasting through interviews and direct field observation and analysis of secondary data. Through Kaizen, PT. DVL was able to improve the system and process by improving safety and standard, cost efficiency of Rp. 7,066,800, and time efficiency of 2,117 manhours in one year of implementation. Ultimately, PT. DVL could increase its competitiveness in the ever-changing globalization.