Analysis on Product Quality of Semi Refined Carrageenan using Six Sigma and Cost of Poor Quality

Abstract

The study aimed to minimize defective products to improve the production process quality of PT BI by identifying the most types of defects, calculating Defect per Million Opportunities (DPMO) value, suggesting the quality improvement of the Semi Refined Carrageenan (SRC) production process, and calculating Cost of Poor Quality (COPQ) value. The methods used in this research were Six Sigma and the COPQ. The priority improvement based on the Pareto chart was moisture defects with the percentage of damage of 36.9%. The Sigma level of the production process of PT BI was 3.42 with a defect rate of 27,429 DPMO. The analysis on the cause and effect diagram showed that factors affected the occurrence of defective products were error in reading on moisture content, diverse raw material, the wrong method of mixing raw materials prior to production process, and the lack of inspectors of production process. The most influential-dominant factor was the obsolete machine which causes error in reading on moisture content. The company can take preventive and corrective actions to suppress defective products and improve product quality. Based on the calculation of the COPQ, the costs that must be incurred by the company due to defective products was IDR 1,007,690,694.