Building Model of Basic Stability for Productivity Improvement Journey in PT. Dow Agrosciences (VSM) in Production Shop Floor

Abstract

Dow AgroSciences is one of the biggest international chemical companies. As global competition become tightens everyday, there is an urgent need for manufacturing operations to continually striving to increase productivity and output of their operations. Improvement on production scheduling activity is one of areas improvement that PT. Dow AgroSciences Indonesia identified and became an important component in production shop floor. Title of this thesis is “Building Model of Basic Stability for Productivity Improvement Journey in PT. Dow AgroSciences Indonesia by Utilizing Value Stream Mapping (VSM) in Production Shop Floor”. The topic of this master thesis originates from practical problem that company faced which are difficulty in production scheduling activity and instability of MPS metric performance due to instability and inaccuracy of information that used to develop production schedule due to variations in production schedule execution. In other words, there is no standard works that used in each production shift as one of basic stability in lean manufacturing operation. The purpose of this study is to improve production scheduling activity by building model of basic stability in production shop floor. Model of basic stability in this thesis will be represented as Standard Operations Sheet (SOS) that will help the company to standardize their production activity and eliminates most of wastes by using Value Stream Mapping Methodology. Value Stream Mapping (VSM) tool will lead researcher to define the current state and to develop the future state of the process flow, and finally develop standard work that applicable align with future state for Tracer120SC product family. It has been concluded from the constructed current state map of Tracer120SC value stream that the most common reasons for the wastes were the requirement of minimum quantity of raw material to be purchased from supplier, the minimum lot size of formulation tank and the unavailability of direct line from formulation tank to filling line. The future state map suggests that a 42.49% lead time reduction could be achieved, mainly thru eliminating large batch production and install direct line from formulation tank to filling line. Standard Operations Sheet (SOS) as the model of basic stability developed using information from future state map, including information about takt time, effective process sequences and standard WIP between processes. It has been recommended to follow this Standard Operations Sheet as standard production schedule execution for each shift to achieve standard output per shift, which finally will improve production scheduling activity as the main objective of this research.