Operational excellence implementation in wood industry (Case study: PT XYZ)

Abstract

Indonesia's wood industry is projected to improve in 2019. However, some challenges are facing the wood processing industry such as increase of raw materials cost, production cost, labour wages, and additional expenditures. Customers also require shortened lead time, higher quality, and more diverse product. Strategy that can be developed to face those challenges is operational excellence. This research is aimed at measuring the implementation of operational excellence at PT XYZ based on XEM and formulating recommendations for continuous improvement. The result shows that the two lowest scores are for implementing basic problem solving and hourly report. In terms of the basic problem solving, the lowest attribute score is about implementing 5 whys, and for the hourly report the lowest attribute score is about monitoring. Based on those results, the recommendation for implementing basic problem solving is to revise the 5 whys becomes 3x5 whys and to provide training on increasing problem-solving skill. Recommendation for implementing hourly report is to revise the foreman weekly progress report by adding monitoring aspect and to provide training on increasing awareness about the importance of monitoring hourly report. Different scoring result has been found between managers and supervisors. Therefore, the communication between them must be improved.