THE IMPLEMENTATION OF LEAN APPROACH AND SIX SIGMA TO REDUCE OVERWEIGHT LOSSES AND IMPROVE GLOBAL EFFICIENCY (GE) IN AN FMCG INDUSTRY

Abstract

Fast Moving Consumer Goods (FMCG) Manufacturing Company, XYZ Factory is facing problems related to inefficiency process in Line 1. Based on data in 2017, the average Global Efficiency is 70%, out of the target from a company which is 85%. The main focus of this project is Biscuit Crackers JP Small/Large because it has high volume and has very critical to the specification. This research was conducted on 1st June- 31st August 2018. There are several objectives of this research such as Reducing the overweight losses in line 1, XYZ factory based on Lean Six Sigma; Improving the capability process, CtQs (Critical to Quality Characteristics) by using DMAIC, Lean Six Sigma; and Explaining how Lean Six Sigma approach improve the Global Efficiency (GE). There are several research and improvements in forming, baking, and oil spray process, such as proposed countermeasure (Kaizen) by changing the double rotary cutter pin become the single rotary cutter pin and changing the conveyor rotary cutter; standardized the working instructions for oil spray cleaning process, additional filtering in the oil tank; and optimum parameter setting by using Design of Experiment (DOE), Multiple Response Surface Methodology (RSM). After done the research and improvements, the overweight losses have been decreased from 9% (baseline) to 5.60%, saving cost up to IDR 122,286,793.38/month. The Global Efficiency (GE) get improved to 87%, achieve the target from the company, which is 85% and get improved from average GE in the Year 2017, 70%.