REDUCING PRODUCT DEFECT IN FINAL ASSEMBLY PROCESS OF PT. P AUTOMOTIVE COMPONENT COMPANY USING BUSINESS PROCESS APPROACH AND FAILURE MODE AND EFFECT ANALYSIS

Abstract

PT. P is the automotive components company that producing wiring harness as a main product. In July 2017, PT. P received the new project of wiring harness, K93. The potential of this new project K93 will give sales revenue of 5.9 billion IDR per month (1,200pcs/day) in February 2018. By looking at that potential sales revenue, in September 2017 PT. P started to conduct the PP1 (Pre-Production 1) as the first phase to run the project with the production output result of 160 pcs/day and defect rate 384,615 ppm. The defect rate is quite high where the target of defect rate is 300 ppm. The defect clip is found as the highest contributor for defect rate product. By using fishbone diagram analysis, the root causes are defined and the improvements are determined using FMEA and Process Flowchart analysis. The final result of this research shows the defect clip is reduced from PP1 to mass production and a new documented process of handling of nonconformance product is designed as the standardization document.