IMPLEMENTATION OF LEAN SIX SIGMA METHODOLOGY TO ELIMINATE WASTE IN THE WHITE CIGARETTE PRODUCTION LINE, CASE STUDY IN PT. ZZZ

Abstract

In every process of production, non-value added activities may lead to various problem such as high defect rate, high lead time, overproduction, high production cost, machine downtime, etc. Lean manufacturing comes up with the idea of decreasing the non-value added activities through reduction production waste. There are seven type of waste identified by Lean which are transportation, inventory, motion, waiting, overproduction, overprocess, and defect. All types of waste can be identified and reduce using lean tools. Six Sigma, as management philosophy is an activity undertaken by all members of the company that become culturally and in accordance with the vision and mission of the company. Combined, Lean six sigma is the systematic approach that used in order to make continuous improvement upon process or activity. Six sigma consist of approach that is known as DMAIC methodology. DMAIC are stands for Define, Measure, Analyze, Improve and Control. In this thesis, two significant wastes identified which are waiting and defect waste. Due to a limited time, the concern will be only for waiting waste as it is results in high machine downtime which affect Overall Equipment Effectiveness (OEE) of packer machine especially. In order to reduce the waste, DMAIC methodology with the help of some tools such as Fault Tree Analysis (FTA) and Failure Mode and Effect Analysis (FMEA). The focused will be on packer machine’s OEE specifically for minor stop occurrences. After all root cause of minor stops at packer machine are identified. The improvement will be proposed and apply in the production line. The OEE of packer machine after implementation showed an improvement about 11% as it goes from 68% to 79% of OEE score.