Analysis of Production Transition Loss Ratio as Production Planning Performance Indicator in PT Mandom Indonesia Tbk

As one of the famous cosmetic manufacturers in Indonesia, and also as part of Mandom Group that support global demand, PT Mandom Indonesia Tbk has up to 2.500 product variants adapting domestic and international regulations with an average of 500 variants were being produced in a month. Because there are differences between each variant, adjustment setting between each transition is mandatory. This condition is worsened due to previous policy which made a product could be produced up to three times a month. With no clear controlling method, the production planning division creates a production schedule without considering thoroughly the time loss caused by transition activities and so the loss caused by the stop of production due to transition is also tripled up to 1.800 transitions in a month. Within this paper, author would like to describe a solution that has already been tested within the company which is one-phase production planning. One-phase production planning is a method developed by author to design a production schedule based on transition priority level in order to reduce transition activities as much as possible. The method is adopting the basic principle of OEE and is improved based on the company condition so it could be implemented easily and gave a positive impact on the company. Transition activities were divided into three categories which are washing transition, part changing transition, and small setting transition. Those transitions were tested by using SPC method and analyzed to determine which transition should be prioritized. To maintain the objectivity of the project result, a new monitoring tool for production planning performance has been created which is the transition loss ratio. Transition loss ratio is a simplified calculation method customized for PT Mandom Indonesia Tbk that visualizes the amount of loss by presenting it in the percentage of the total scheduled value. One-phase production policy has been tested for two months with the result of reducing transition loss from 9.5% to 7.5% which equals to 14,2 Billion Indonesian Rupiah (±>$984,000) in a year.