The Productivity Performance's Measurement in SME Industry by using DMAIC of Six Sigma

Abstract

It is crucial that Malaysia’s Small- Medium Enterprises (SME) in the manufacturing sector could achieve desired productivity rate as this could contribute not only to the country’s Gross Domestic Product (GDP), but also could contribute to the spending power of a nation. It is important for SME manufacturers to stay ahead in the ever-competitive market to ensure their survival and provide countless jobs for the nation. The objective of this paper is to study, analyse and propose viable solutions to improve manufacturer performance in terms of productivity and quality in the manufacturing sector by using various operation management tools. Hence, one SME company was chosen by utilizing the Value Stream Mapping (VSM) in DMAIC approach to measure their productivity. The aerosol production line was study, to see the gap measurement in productivity before and after applying a systematic method in operation management. Furthermore, along with various operation management tools such as Kaizen, Kanban system and 5S, a new layout (VSM) for the production line was proposed. Result shows that the proposed new layout could reduce the distance travelled by operator by 22.26 %, at the same time will increase the productivity and quality of product. Since the overall performance of the aerosol grease production line will be improved, the waste found in the production line also will be alleviated