The Manufacturing and Engineering Department of PT 3M Indonesia is conducting an evaluation, expansion and development of its manufacturing processes, and so for such purposes will be addressed in the process efficiency, reducing process lead time, and cost saving through manufacturing efficiency from the starting of production until the arriving in the hands of its customers.



The intention of this group field project is to observe and to consider that the application and the implementation of lean manufacturing especially in the GPC printing division of PT 3M Indonesia, whether it is considered effective. In general, the expectation will be more simple processes but a thorough, an efficient processes with pull system and single pieces flow, and a process with more time-efficient, which in turn will automatically saving the costs and thus, can significantly increase net profits of the company.



In relation to doing this project, all data and information from the GPC printing division have been collected and analyzed. The analysis was conducted to provide some classifications and clustering items to check the sales order volume, whether it is easily forecasted or difficult to be forecasted. The monthly order from the major customer is quite stable during a year. Further analyzes are provided with ABC classifications, Volatility in Demand patterns analysis with Back testing analysis, Mean average percentage error or MAPE calculation and Pareto analysis.

The expected results of analyzes are in line with the requirements and expectations of the management Manufacturing and Engineering of PT 3M Indonesia. Cost saving was a subject which has been chosen as the most important measurement in detennining the effectiveness of the lean-tools that have been applied in the manufacturing division. Through the Analytical Hierarchy Process analysis, it has been shown that the highest decision score value is in accordance with what has been implemented in the current lean manufacturing and production strategy, namely the pull system or single pieces flow.



After that followed by value stream mapping technique and the best lay out out or work cell for the production flow, then by the built in quality, 5S implementation and reducing set time which are the basis of improvement in production processes. To summarize, it can be stated that the application and implementation of lean manufacturing in PT 3M Indol can be considered effective.



The main recommendation for PT 3M Indonesia is to continue deploying lean manufacturing program with current techniques that has been implemented. This proJ has to be reviewed in certain periods of 6 months or 1 year and the effectiveness has 1 analyzed by empirical and or historical data, i.e. inventory reduction, productivity pel hour, and quality defect reduction. In addition, another suggestion is to develop Cost; Benefit analysis based on a real internal data in order to know exactly the competitive benefit of this lean program for the company. Finally, it would be very useful to devevelop training program, build learning and continues improvement culture in the whole organization which is in line with the lean spirit to grow and respect people, and also 1 build the bottom-up problem solving culture.



Keywords:

Forecasting Customer Demand, Inventory Control, Production Scheduling and Strateg Single Piece Flow, Value Stream Mapping, Re-lay out or Work-cell, Build-in Quality, Implementation, Reduce set-up time, and Analytical Hierarchy Process.



Research Location : PT 3M Indonesia

Received date : 17 January 2012



Confidential until 17 January 2012