Abstract:
Car manufacturer nowadays has high demand. PT BSC as a supplier of car com-ponents (Rear Axle Unit) has a project to increase its productivity to fulfil its cus-tomer demand, whilst reducing its labour cost. The new policy makes the perfor-mance of production line become lower with axle shaft machining is only 68% for 101.5” cycle time and 34 unit/hour production rate. The seven-step PDCA is in-troduced to tackle the problem with equipment design and facilities design are mixed to accommodate the improvement proposal. The Fishbone analysis result-ing five root causes suspected as waste that causing a high cycle time of A/S ma-chining line with only four root causes are feasible to be solved. High frequency task, long distance machine placement, and ineffective painting process are the problem that faces in this study. The alternatives of trolley, painting cover, and layout arrangement is proposed to overcome those obstacles and increase the productivity, which reduce overtime cost in response to lower labour cost. New equipment and arrangement of layout resulting in productivity increase from 68% to 82% or by 14%, overtime can be reduced from 3.4 hours to only 1.3 hours which affecting up to 60% reduction estimation for labour cost.