Internal Quality Defect Reduction at PT ITI
| Main Authors: | Indra, Indra; School of Business and Management, Institut Teknologi Bandung, Basri, Mursyid Hasan; School of Business and Management, Institut Teknologi Bandung |
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| Format: | Article info application/pdf eJournal |
| Bahasa: | eng |
| Terbitan: |
Proceedings of International Conference on Management in Emerging Markets (ICMEM) SBM ITB
, 2022
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| Online Access: |
https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4785 https://journal.sbm.itb.ac.id/index.php/ProceedingSBMITB/article/view/4785/1672 |
Daftar Isi:
- In FY 2020, PT ITI's internal defect rate could not reach the set target of 1% or less. This results also increasing other costs (hidden costs) that follow, such as segregation and rework costs. Currently, this quantity of segregation and rework is about 14% of total production. Under such conditions, it is estimated that total costs incurred will be around USD 1 million in FY 2020. This study aims to assist PT ITI in reducing the level of internal defects. Root cause analysis method used by the author is current reality tree (CRT). The results of this CRT analysis are four main root causes. These root causes involve humans, machines/equipment, and procedures. Author used Analytical Hierarchy Process (AHP) method to select the alternative solutions for each root cause. The proposed solutions are expected to help ITI reduce its costs which are estimated to reach 50% of current total costs (around USD 500,000 per year). Keywords: high internal quality defect, internal quality cost, high precision manufacturing, parts manufacturing, human-capital-based quality solution