Planning to Increasing Production Flexibility on Highest Unmatching Ratio Products in Automotive Company with DMAIC Approach

Abstract

This study aims to increasing production flexibility on highest unmatching ratio products in an Indonesia company. This study focuses on the problem of an inability to absorb orders fluctuations by dealer or end customer at one of Indonesia's leading automotive companies. If it is not solved, it will potentially causes cancelation order. Therefore, the necessary improvements in order to increase the production flexibility of the company. Method used in this research is DMAIC (Define, Measure, Analyze, Improve & Control) in way to get the right solution. Improvements will have an impact on opportunity cost and unmatching ratio. In this study, absorption scheme fluctuations order on a weekly basis in the form of WOC (Weekly Order Change) with adding a safety stock of unique part by using Q-model calculations. The results obtained from this study is the profit as the opportunity cost IDR 431,635,851 and unmatching ratio decrease from 4.9% in before condition become 1.2% in after condition.