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This research aims to analyze the production system, especially the filling process, and several factors that influence production defects at Palm Oil Refining Companies in Indonesia. Continuous improvement and innovation in manufacturing production systems are key factors in the sustainable competitive advantages of Indonesian companies in global competition. Based on analysis, it shows that the company lost around IDR 1.474.229.696 in 6 months. The research calculated the amount of waste and defects from the filling machine and the effectiveness of the production process to analyze the process loss. Implementing Lean Six Sigma in the filling process can identify what improvements can be made to reduce waste. The analysis process is done by using tools that focus on finding the root cause of the problem, such as VSM, OEE, and FMEA, and calculating the DPMO of identified waste and converting it to a sigma value. The analysis shows that the most significant contributor to the waste is motion activity in the process, which is about 67%. In addition, an optimization process is needed to minimize waste and increase the process capacity. Based on improvement, the production process saved IDR 992.270.400 by increasing production capacity and reducing every waste in the value stream.

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Implementations of Lean Six Sigma, VSM, OEE, and FMEA to Reduce Waste in Palm Oil Packaging Process for Sustainable Competitive Advantage (Case Study: Indonesia Palm Oil Company)

  • 会议论文

  • 发表日期：

    2026年

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  • Fauzi Khair,
  • Fransiska Mulyani

摘要

This research aims to analyze the production system, especially the filling process, and several factors that influence production defects at Palm Oil Refining Companies in Indonesia. Continuous improvement and innovation in manufacturing production systems are key factors in the sustainable competitive advantages of Indonesian companies in global competition. Based on analysis, it shows that the company lost around IDR 1.474.229.696 in 6 months. The research calculated the amount of waste and defects from the filling machine and the effectiveness of the production process to analyze the process loss. Implementing Lean Six Sigma in the filling process can identify what improvements can be made to reduce waste. The analysis process is done by using tools that focus on finding the root cause of the problem, such as VSM, OEE, and FMEA, and calculating the DPMO of identified waste and converting it to a sigma value. The analysis shows that the most significant contributor to the waste is motion activity in the process, which is about 67%. In addition, an optimization process is needed to minimize waste and increase the process capacity. Based on improvement, the production process saved IDR 992.270.400 by increasing production capacity and reducing every waste in the value stream.