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By

ZUMAR AVIV JAUHARY 11307036

BACHELOR’S DEGREE in

INDUSTRIAL ENGINEERING

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15 Alam Sutera Tangerang, Banten 15143 - Indonesia

Revision after the Thesis Defense on July 17th, 2017

July 2017

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Zumar Aviv Jauhary STATEMENT BY THE AUTHOR

I hereby declare that this submission is my own work and to the best of my knowledge, it contains no material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Zumar Aviv Jauhary

____________________________________________

Student Date

Approved by:

Setijo Awibowo, MM

____________________________________________

Thesis Advisor Date

Ir. Triarti Saraswati, M. Eng.

____________________________________________

Thesis Co-Advisor Date

Dr. Ir. Gembong Baskoro, M. Sc.

____________________________________________

Dean Date

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Zumar Aviv Jauhary DEVELOPMENT OF A SYSTEM TO IMPROVE QUALITY CONTROL OF USED

UNITS INVENTORY IN BRANCH AND HEAD OFFICE A CASE STUDY AT PT. XYZ

By

Zumar Aviv Jauhary Setijo Awibowo, MM., Advisor Ir. Triarti Saraswati, M. Eng., Co-Advisor

SWISS GERMAN UNIVERISTY

Operational of Used Equipment Department is improved in this thesis. Used Equipment Department is responsible for all used (second hand) units stock across Indonesia. Those units are located in various branches from Sumatera to Papua, including the head office located in Jakarta. In current condition, the used unit stock quality, in terms of condition and component completeness, is not well maintained.

The condition of the unit is more likely to decrease when the unit arrives in head office compared to when it is purchased. To keep and monitor unit condition at any time, several solutions have been proposed. The solutions then developed into a standard procedure (SOP). By implementing the SOP, it is expected that the unit condition can be monitored at any time by UED team, which will minimize the chance of unrecorded unit’s condition drop or component loss. Gap analysis methodology is used for this thesis. UED team and branch performance will be monitored by developing a monthly report. The report then will be given to management for monthly performance report. By implementing the improvement proposed in this thesis, the Company can expect an increasing performance of Used Equipment Department.

Keywords: Performance monitoring method, performance evaluation, unit quality, Used Equipment Program, Standard Operating Procedure

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Zumar Aviv Jauhary

© Copyright 2017 by Zumar Aviv Jauhary

All rights reserved

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Zumar Aviv Jauhary DEDICATION

I dedicate this works to my family, who have given endless supports,

and to all my lecturers of Industrial Engineering, for valuable lessons taught.

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Zumar Aviv Jauhary ACKNOWLEDGEMENTS

First, I would like to thank Allah SWT for giving me strength and capability to finish my study and this thesis.

I would also like to thank to my parents for giving me endless supports through my entire life, the supports which I would never be able to return the favor. I would also like to express my gratitude for my thesis advisors and co-advisor, Mr. Setijo Awibowo and Ms. Triarti Saraswati for the guidance that helps me to be able to finish this thesis. Also to all my Industrial Engineering lecturers, I would thank for all lessons, knowledges, and supports since the first semester.

I would like to thank Andhanta Putra and Astri Martiarini Kadarisman for the guidance given to help me finish this thesis, and also all Used Equipment Department team members for the cooperation to help me work on this thesis. I would also thank to the heavy equiments distributor company for giving me the opportunity to conduct this thesis.

For the last one, I would like to thank to all my Industrial Engineering friends who have given me help and support I needed during the thesis work and for all unforgettable memories in the last four years.

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Zumar Aviv Jauhary TABLE OF CONTENTS

Page

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

LIST OF FIGURES ... 9

CHAPTER 1 - INTRODUCTION ... 12

1.1 Background ... 12

1.2 Problem Statement ... 14

1.3 Objectives ... 14

1.4 Scope and Limitation ... 14

1.5 Thesis Structure ... 15

CHAPTER 2 - LITERATURE REVIEW ... 17

2.1 Lean Management ... 17

2.2 Maintenance ... 19

2.3 Inventory Management ... 20

2.4 Heavy Equipment ... 21

2.5 Gap Analysis ... 22

CHAPTER 3 – COMPANY OVERVIEW ... 23

3.1 Used Equipment Program ... 23

CHAPTER 4 – RESEARCH METHODOLOGY ... 26

4.1 Tools ... 26

4.2 Analytical Method ... 26

4.3 Flowchart ... 27

CHAPTER 5 – RESULTS AND DISCUSSIONS ... 29

5.1 Problem Identification ... 29

5.2 Proposed Solution ... 33

5.3 Data Collection and Analysis ... 34

5.4 Proposed Improvement ... 39

5.5 Expected Result ... 79

CHAPTER 6 – CONCLUSION AND RECOMMENDATION ... 80

6.1 Conclusion ... 80

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Zumar Aviv Jauhary 6.2 Recommendation ... 80 GLOSSARY ... 81 REFERENCES ... 83

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