Abstract:
As the world leading toy manufacturing company, PT XYZ must be able to maintain the quality of the product to compete with the competitor. The quality of a product is one thing that determines customer satisfaction and the company’s profit. Product shipping process becomes an issue in the company which so many defects product in packaging up to 11,860 pcs/year with the total losses $177,900 when the product landed and arrived at the distribution center. This research objective is to find the solution and improvement which aims to reduces defect quantity that found in the distribution center. In order to implement the improvement, the research analyzes the problem and find the solution to reduce the defect is conducted using six sigma tool which is DMAIC methodology. The trial to find the best material to use for insulation and make a proper SOP proposed as an improvement. This research succeeded to reduce the number of defect quantity in the distribution center from average number of defect 988 to 22 by installing insulation for the container and make a proper SOP. The improvement also aims to reduce the cost that made by the defect product. The result of this research is the company can reduce the cost and losses from the defect. After improvement, the total losses is reduces by 63% from $177,900 to $64,989.
