Six Big Losses Approach and Kaizen Philosophy Implementation to Improve Overall Equipment Effectivenes (OEE) (Case Study: PT. ABC, Areinforced Steel M

Authors : Untung Mardono, Doto, Anni Rohimah, Erry Rimawan.

Volume/Issue : Volume 3 - 2018, Issue 6 - June

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Business Competition of Concrete Reinforcement Industries in Indonesia is quite tight where the installed capacity of all factories is 7 million tons / year with the current requirement of 2.5 million tons / year. The quality of the products of each manufacturer refers to the acceptable quality of the market and has been standardized by SNI, so that manufacturers who can provide low product prices will win the competition of reinforced steel products in the market. It encourages PT. ABC as a pioneer of steel reinforcement in Indonesia which has a production capacity of 150,000 tons / year with rolling mill technology that has been left behind compared to other competitor’s production facilities to continue to make improvements in order to remain competitive in the market. Average Equipment effectiveness (OEE) from the manufacturer in 2014 – 2016 is still low at 42.5%. With the approach of analysis of Six Big Losses hence can be known problem and constraint on production operation causing low OEE and high rolling cost (rolling cost). Problems and obstacles that are analyzed and made solution improvement by using Kaizen philosophy approach, so there is potential to increase OEE to 80% which will affect the competitiveness of PT. ABC on the market.

Keywords : OEE, Overall Equipment effectiveness, Six Big Losses, Kaizen.


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