REDUCING WASTE OF ENDING SIZE SEMI MATERIAL PRODUCTION USING BUSINESS PROCESS IMPROVEMENT IN PT. XYZ

Abstract

Over production waste of Ending Size semi material production is one of the frequently happened problem in PT. XYZ. This problem happens mostly in Recycling and Building process. Recorded as of May 2019, there are over 5000 kg waste of cutting semi material. This number is higher by 132,84 Kg waste of Belt and 54 Kg waste of Carcass from April to May 2019. The identified cause is over planning caused by difference quantity of actual stock vs recorded stock, additional over production that happens because of raw material changes and holding stock of recycled material that is not being used because there is no information about it. Business process improvement is applied by proposing additional procedures in Generate Planning Process, Production Process and Recycling Process. The proposed improvement is in a form of redesigning flow of process and implementing recording documents to optimized the decision-making process. In the end, the prediction result is reduction cost of recycling by Rp.6.002.737,65/ Month and Rp.72.032.851,8/ Year along with Waste Management cost by Rp.5.985.070,5/ Month and Rp.71.820.846/ Year.