Abstract:
PT. X is one of the largest toy manufacturers in the world. For PT. X, the process of shipment to distribution center often leads to defect products during the trip and the defect products often end up in the distribution center’s warehouse and not being handled. Both the distribution center and PT. X consider this as a loss of $361,290 but there is still no follow-up on this issue. In order to help the company to find out the options for this issue and define what factors which significantly affect the number of defect, this research is conducted. By using fishbone diagram and analysis of variance, the factors can be defined that temperature and average speed of truck become the significant factors towards the number of defect occurred, while the length of shipping time does not really affect. The proposed options of defects that occurred are stated and calculated. It is found that the best solution of this issue is to reship and rework the defect products occurred and it costs $73,615. It is way cheaper if it is compared with the reproduction cost, which is $367,990.
