REDUCTION OF DEFECT OUTFLOW IN PROTOTYPE ORDER BUSINESS OF PT. X AUTOMOTIVE COMPANY USING BUSINESS PROCESS ANALYSIS

Abstract

PT. X is having business operation called Prototype Order Operation that support vehicle development stage. During the operation, quality problem outflow is considered as the Job’s KPI with the biggest contribution of defect outflow with 159 PPIR. Hence, the company focuses to minimize the defect outflow. It can begin to breakdown the problem into more detailed and specific problems to solve a bunch of micro-problems one at a time effectively. Fishbone diagram analysis is used to determine the major root cause of the problem and it will be analyzed further using Business Process Analysis which includes process flowchart and document. Business Process Analysis is chosen as a method to redesign the current condition that aims to help organization to throw away their old-fashioned processes to achieve new heights of success. It will be done in internal PT. X and PT. Suka Maju as business partner (supplier) that has worst performance during operation. To solve the problem, there are several proposed improvement ideas in order to reduce number of defect outflow. If the improvement ideas are implemented to one supplier then contribution target is 4% with the assumption of cost reduction of 2,071,350 IDR. Conversely, if it is implemented to the 22 worst suppliers, the contribution target is 89% with the assumption of cost reduction of 46,200,000 IDR.