Develop Draft of Future State Map

5.4.7 Defects

In order to reduce waste of defects, suggest to conducting deepest analysis to find the real root cause. If the root cause related to quality of cap and induction seal, suggest to involving quality and purchasing department to figure out the best specification and ask supplier to improve the performance. If the root cause related to reliability of equipment, same with waste of over-processing, researcher suggest to implementing total productive maintenance TPM to increase the efficiency as well as the useful life of the equipment involved. If those issues resolved, not only defect products and reworking process can be reduced but also inventory of cap and induction seal can be reduced since planner do not have to allocated so many quantity for scrap packaging due to damaged in production process.

5.5 Develop Draft of Future State Map

Having visualized the current state map, identified the wastes and associated problems, some of the necessary changes in the value stream of Tracer120SC product family were outlined in the draft of the future state map, as shown in Figure 13. In the beginning of the value stream, researcher propose to purchase material only according to MOQ set, while still continue analyzing possibility to reduce MOQ and safety stock set in the plant. By reducing MOQ, we can reduce lead time about 7.48 days from the current state. We also propose to start analyze possibility of VMI Vendor Managed Inventory implementation, the concept in purchasing where vendor keep inventory or consignment for us in their warehouse according to our Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 monthly or weekly consumption. Material will only bring in to the plant while production planner ready to release production order to the shop floor. By this concept we can tremendously reduce WIP in the warehouse. In the effort to reduce waste of motion in checking raw material, researcher suggest to implement FIFO and online database of material and lot number that can tell every one which lot number that will be processes next. FIFO will also enables to shorten lead times and aids in the continuous flow of the components through the process. Next significant changes we propose that can reduce most of the waste is eliminating process drumming off, purging and re-circulating bulk by installing direct line from formulation tank to head tank filling machine. Installing direct line means lead time can be reduced around 34.74 days and also will improve the process flow of Tracer120SC product. With current facility that Medan Plant have, which each equipment have their own minimum lot size to process product, supermarket model or pull system can not really be implemented. But plant still able to reduce WIP between processes and reduce lead time by only formulate and pack finish product according to minimum lot size which is 900 liter and equal to 4.73 days lead time. Another proposal to reduce lead time is to start implement QCO, TPM, 5S, and Standardize work which already shortly describe previously. By implementing those methods, most of waste that already identified can be reduced or eliminated Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 from the process and in the end will help to shorten lead time and eliminate non value added activities. Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 Figure 12 Transforming Current State Map to Future State Map for Tracer120SC Product Family Note: Production processes in the box with dash line are the process that researcher proposes to be eliminated in the future state by installing direct line from formulation tank to head tank filling machine. Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 Figure 13 Draft of Future State Map for Tracer120SC Product Family Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 Summary of changes introduced in the future state map In summary, we can reduce production lead time by 52.73 days by implementing some proposal which has explained previously. We condensate the proposed changes in the draft of future state map, as follows: 1. Purchase raw materials only according to MOQ, while continuously reviewing possibility to reduce MOQ. By this action we can reduce lead time about 7.48 days from the current state map. 2. Installing direct line from formulation tank to head tank filling machine. By this action we can eliminate process drumming off, purging and re-circulating bulk, which has explained previously these processes are avoidable. Installing direct line means lead time can be reduced by 34.74 days in total 14.74 days lead time between drumming off and purging, 14.74 days lead time between purging and re-circulating and 5.26 days lead time between re-circulating and filling. 3. Formulate only according to minimum lot size which is 900 liters, we can reduce lead time between formulation and filling about 10.01 days from 14.74 days to 4.73 days lead time. 4. Producing only according to minimum lot size 900 liters, will also reduce lead time between filling and warehouse about 0.5 day from 5.23 days reduced to 4.73 days. Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 Summary Current state and future state map resulted in this chapter has revealed some wastes in production shop floor and gave proposal to reduce it. Future state map will lead researcher to the objective of this research which is work standardization for productivity improvement in PT. Dow AgroSciences. Detail model of work standardization will discuss in Chapter VI. Devi Adhriany Rahayu :Building Model Of Basic Stability For Productivity Improvement Journey In PT.Dow Agrosciences Indonesia By Utilizing Value Stream Mapping VSM In Production Shop Floor, 2009 USU Repository © 2008 99

CHAPTER VI PROBLEM SOLVING