INCREASING PRODUCTION TO IMPROVE FINANCIAL PERFORMANCE BY IMPROVING MACHINE SPECIFICATIONS AND READINESS IN PROJECT-X OFPT XYZ

Abstract

This research is based on the background of project-X at PT XYZ experiencing financial performance losses, where the Net Income Operation before tax was minus. Then in the midst of industrial conditions of price wars, production that has never been achieved, policy constraints for investment and operation project risks, improvements must be made immediately. The aim of this research is to improve technical specification equipment and readiness aspects which will lead to achieving production and achieving positive financial performance. The method used in this research is based on the principle of DMAIC (Define, Measure, Analyze, Improve & Control). Starting from identifying problems, collecting and measuring data, analyzing the data whether it is in accordance with the standards and targets set or deviations occur. From the root caused analysis, production failures resulted in negative performance due to low equipment readiness and incorrect equipment specifications. And also operation aspect in terms of grade ability, rolling resistance and matching equipment and fleet numbers. The conclusion from this research is with improving the readiness, matching specification and fleet numbers as well as improving operational parameters has an impact on improving production and project financial performance become positive.