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Analysis of Factors Causing Delays in the Diesel Engine Remanufacturing Process at an Indonesian Company

Author

Listed:
  • Erwin Soeseno

    (Department of Management, Faculty of Economics and Business, Universitas Indonesia, UI Campus Depok 16424, Indonesia)

  • Ratih Dyah Kusumastuti

    (Department of Management, Faculty of Economics and Business, Universitas Indonesia, UI Campus Depok 16424, Indonesia)

Abstract

HeavyEq is an Indonesian company that remanufactures diesel engines for the mining industry. The company experiences delays in the remanufacturing process that lead to a sales backlog. The main purpose of this paper is to identify the root cause of, and propose a solution to, the problem. A fishbone diagram is developed to identify the root cause, and the results show that delays in the remanufacturing process are mainly caused by uncertainty over cores (used engines) in terms of their arrival time, quantity, and quality. Based on a literature review and interviews with experts, an improvement in core acquisition activity, separating job orders for disassembly and recovery, and reassembly processes is proposed to reduce delays in the remanufacturing process.

Suggested Citation

  • Erwin Soeseno & Ratih Dyah Kusumastuti, 2018. "Analysis of Factors Causing Delays in the Diesel Engine Remanufacturing Process at an Indonesian Company," Logistics, MDPI, vol. 3(1), pages 1-15, December.
    • Handle: RePEc:gam:jlogis:v:3:y:2018:i:1:p:1-:d:191883
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    References listed on IDEAS

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    1. Roland Geyer & Luk N. Van Wassenhove & Atalay Atasu, 2007. "The Economics of Remanufacturing Under Limited Component Durability and Finite Product Life Cycles," Management Science, INFORMS, vol. 53(1), pages 88-100, January.
    2. Tang, Ou & Grubbstrom, Robert W. & Zanoni, Simone, 2007. "Planned lead time determination in a make-to-order remanufacturing system," International Journal of Production Economics, Elsevier, vol. 108(1-2), pages 426-435, July.
    3. Fleischmann, Mortiz & Krikke, Hans Ronald & Dekker, Rommert & Flapper, Simme Douwe P., 2000. "A characterisation of logistics networks for product recovery," Omega, Elsevier, vol. 28(6), pages 653-666, December.
    4. Östlin, Johan & Sundin, Erik & Björkman, Mats, 2008. "Importance of closed-loop supply chain relationships for product remanufacturing," International Journal of Production Economics, Elsevier, vol. 115(2), pages 336-348, October.
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