DESIGN & DEVELOP SIX SIGMA IMPLEMENTATION TO IMPROVE PRODUCT QUALITY IN REMANUFACTURING COMPANY

Abstract

PT United Tractors Pandu Engineering (UTPE) is one of affiliated company of PT United Tractors Tbk., (UT) in Construction Machinery Business Sectors. UTPE is one of the leading remanufacturing companies in Indonesia. The high remanufacturing forecast reaching 160 billion dollars/year in the heavy equipment industry sectors is a promising business opportunity. However, the remanufacturing industry has a higher risk of product failure compared to original Equipment products. The Failure In Process (FIP) for Engine & Hydraulic Cylinder in the early 2023 is 8.3% with Sigma level at 3.74, it's needs the activity to suppress as little as possible, where FIP can be caused by Man/Method/Material/Machine factors. Six Sigma method is used in this research to reduce remanufacturing defective product. It can be concluded that improving quality can be achieved by using the Six Sigma method, it can reduce product FIP into 1.7% with Sigma level at 4.36, and can increase company profits due to decreased product failure cost (1.125 Bio IDR to 360 Mio IDR).