Implementation kaizen method for reducing losses percentage of octopus frozen processing at PT. XYZ Makassar

Abstract

PT. XYZ is one of the companies in Makassar which engaged in the processing of octopus commodity. This study was aimed to identify factors contributing to the losses using kaizen method in a raw octopus processing industry. The factors contributing to the losses were identified from direct observation during octopus processing and analyzing company's data records from February until April 2018. The direct observation on gutting employees discovered the average shrinking size for A grade (2000 g-up) was 9.1%, B grade (1000-2000 g) was 10%, and C grade (0-1000g) was 10.6%. Inconsistencies were found after analyzing the data records at the gutting stage. While the standard gutting percentage is 12% on all octopus raw material sizes, the actual average gutting value was 13.7%. The results suggest that it is possible to establish a higher standard for optimizing corporate profits. The saving gained per 1% weight on C grade was estimated Rp 758,240,000,-/year while B grade was Rp 996,544,000,-/year, and A grade was Rp 1,191,520,000,-/year. These savings can be achieved by the addition of supervision during gutting process and sortation purchasing employee, training for employee awareness and work system applied by the company.