developing an improvement to eliminate bottleneck in a

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By

HAFIAN SUGENG ACHDIPUTRA 11307006

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

August 2017

Revision after the Thesis Defense on July 26^th, 2017

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Hafian Sugeng Achdiputra 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.

Hafian Sugeng Achdiputra

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Student Date

Approved by:

Ir. Setijo Awibowo, MM

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Thesis Advisor Date

Ir. Triarti Saraswati, M. Eng

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Thesis Co-Advisor Date

Dr. Ir. Gembong Baskoro, M. Sc

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Dean Date

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Hafian Sugeng Achdiputra DEVELOPING AN IMPROVEMENT TO ELIMINATE

BOTTLENECK IN A PRODUCTION LINE IN PT. USAHA BERSAMA SUKSES

By

Hafian Sugeng Achdiputra Ir. Setijo Awibowo, MM, Advisor Ir. Triarti Saraswati, M. Eng, Co-Advisor

SWISS GERMAN UNIVERSITY

Satisfying customers by fulfilling their demand will always be an important aspect in the business. This research based on the case study in PT. Usaha Bersama Sukses, especially in AHM (Astra Honda Motor) gear oil bottle production line, is addressed to optimize the production line, so that the product can reach its production target and PT. Usaha Bersama Sukses can fulfil the customer’s demand. Based on daily report, the company did not meet the production target. Based on observation, the flow process didn’t run efficiently and it caused waste of waiting that leads to bottleneck.

The delivery process from one to the next station takes too long time that makes the next station has to wait for the product to be delivered and unable to add any value in a period of time of the production process. The SLP method is taken as the based methodology of this research but with several limitations to designing the new layout.

There are three proposed solutions to solve this problem with different of approaches and costs, those solutions then translated to system modelling simulation using Tecnomatix Plant Simulation as the result of this research. After all the solutions are proven could solve the problem the costs are being compared in order to decide which solution give the best result with the lowest cost.

Keywords: Bottleneck, Layout, Production Line, SLP, Productivity, Tecnomatix.

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Hafian Sugeng Achdiputra DEDICATION

I dedicate this work to my parents,

who have given me everything and all the supports I need, and to all the lecturers in Industrial Engineering SGU, who have taught me all the good lessons for my future.

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Hafian Sugeng Achdiputra ACKNOWLEDGEMENTS

Firstly and foremost, I would like to thank the God Almighty Allah SWT for the health and blessings that always given to me during my studies and completion of this thesis work.

Special thanks to my mother Dina Hanoem Rachbini, my father Achmad Kuntjoro and my older brother Rusydi Fauzan Achdiputra, for always giving all the supports and the best wishes.

I would like to express my deepest gratitude towards my thesis advisors, Mr. Setijo Awibowo and Ms. Triarti Saraswati. Thank you for your unwavering trust, patience guidance and supports towards me during my whole studies and the completion of this thesis work.

I also would like to thank to Om Bing, Kak Kendra, Pak Joko and Mas Arifin for giving me the opportunity to do my thesis work at PT. Usaha Bersama Sukses. Thank you for all the information and support for helping me finish my thesis work.

For all my best friends in Industrial Engineering batch 2013 for the last 4 years we spent together. Thank you for all the lovely memories.

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Hafian Sugeng Achdiputra TABLE OF CONTENTS

Page

DEDICATION ... 5

1.1 Background ... 11

1.2 Research Problem ... 12

1.3 Objective Research ... 12

1.4 Scope and Limitation ... 12

1.5 Thesis Organization ... 12

2.1 Definitions and Parameters... 14

2.2 Lean Manufacturing ... 16

2.3 Waste of Waiting ... 17

2.3.1 Types of Waste of Waiting ... 17

2.3.1.1 Parts Shortages ... 17

2.3.1.2 Machine Downtime ... 18

2.3.1.3 In-Process Waiting ... 18

2.3.2 The Costs of the waste of Waiting ... 19

2.3.3 Causes of the Waste of Waiting... 19

2.4 Production Process ... 20

2.4.1 Bottleneck ... 24

2.5 Lean Production ... 24

2.6 Manufacturing Plant Simulation ... 26

2.6.1 Tecnomatix Plant Simulation... 26

2.7 Tools... 29

2.7.1 Microsoft Office Visio 2003 ... 29

2.7.2 Microsoft Excel 2007 ... 30

2.8 Systematic Layout Planning ... 30

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2.9.1 Conveyor System... 34

3.1 Gap Analysis ... 39

3.2 Thesis Methodology ... 41

4.1 Company O verview ... 44

4.1.1 Organizational Structure... 45

4.1.2 General Production Process... 46

4.2 Current State Analysis ... 47

4.2.1 Working Time ... 48

4.2.2 Current Plant Layout ... 48

4.2.3 Current Capacity on Each Workstation ... 50

4.3 Observation Results ... 52

4.3.1 Proposed Solution 1... 53

4.4 Summary... 65

5.1 Conclusions ... 67

5.2 Recommendations ... 68

5.3 Further Studies ... 69