analysis of kaizen application in increasing efficiency

ANALYSIS OF KAIZEN APPLICATION IN

INCREASING EFFICIENCY - A CASE STUDY OF A

PHARMACEUTICAL COMPANY

By

Adriel Albert Mangangka

ID No. 004201400004

A Thesis presented to the

Faculty of Engineering President University in partial

fulfillment of the requirements of Bachelor Degree in

Engineering Major in Industrial Engineering

2019

i

THESIS ADVISOR

RECOMMENDATION LETTER

This thesis entitled “Analysis of Kaizen Application in Increasing

Efficiency – A Case Study of a Pharmaceutical Company”

prepared and submitted by Adriel Albert Mangangka in partial

fulfillment of the requirements for the degree of Bachelor Degree in

the Faculty of Engineering has been reviewed and found to have

satisfied the requirements for a thesis fit to be examined. I therefore

recommend this thesis for Oral Defense.

Cikarang, Indonesia, January 11th

, 2019

Andira Taslim, S.T., M.T.

ii

DECLARATION OF ORIGINALITY

I declare that this thesis, entitled “Analysis of Kaizen Application in

Increasing Efficiency – A Case Study of a Pharmaceutical

Company” is, to the best of my knowledge and belief, an original

piece of work that has not been submitted, either in whole or in part,

to another university to obtain a degree.

Cikarang, Indonesia, January 11th

, 2019


iii

APPROVAL PAGE

ANALYSIS OF KAIZEN APPLICATION IN

INCREASING EFFICIENCY - A CASE STUDY OF A

PHARMACEUTICAL COMPANY

By


ID No. 004201400004

Approved By

Ir. Andira Taslim, S.T., M.T.

Thesis Advisor

Ir. Andira Taslim, S.T., M.T.

Head of Industrial Engineering Study Program

iv

ABSTRACT

The world economy is steadily moving towards a more global approach –

rendering most large companies to receive the effects of globalization. As the

world and advances in information technology grow, so do the relations between

each company tighten and create a new level of competition between them.

Therefore, the Small-Medium Enterprises (SMEs) are pushed to enhance their

performance in terms of cost and time-efficiency. Kaizen implementation is one

of many continuous improvement practices that companies can use to reduce costs

and eliminate waste of time. This is one way for PT. DVL to increase

competitiveness in efficiency among many pharmaceutical companies through

standard setting, system simplification and gradual improvements by using the

Kaizen concept. PT. DVL has implemented Kaizen but the effects and results

have not been fully assessed. Therefore, the purpose of this research is to evaluate

the impact of Kaizen on the cost efficiency and time wasting through interviews

and direct field observation and analysis of secondary data. Through Kaizen, PT.

DVL was able to improve the system and process by improving safety and

standard, cost efficiency of Rp. 7,066,800, and time efficiency of 2,117 manhours

in one year of implementation. Ultimately, PT. DVL could increase its

competitiveness in the ever-changing globalization.

Keywords: pharmaceutical manufacturer, kaizen implementation, time efficiency,

cost efficiency

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ACKNOWLEDGEMENT

This thesis was a big jumping stone for myself personally – it was a huge obstacle

for me to start my own life in the work environment and I would never be able to

finish it without the support from many people. However, I firstly would like to

take this opportunity to convey my honest gratitude and appreciation to:

1. Our Lord Jesus Christ for giving me the power and wisdom to go through

and finish this thesis with more than satisfying outcome.

2. My family – especially my parents – for guiding me throughout my ups

and downs in the process of making this thesis. I am extremely grateful to

have you both on my side every time, and I am sorry for any

disappointment I‟ve done. Thank you for giving me your time, patience

and love.

3. My Thesis Advisor and Supervisor Mrs. Andira Taslim, S.T., M.T. for the

never-ending barrage of knowledge and guidance – all in which helped me

push and finish my thesis and inevitably prepare me for my career in the

future. Without her my thesis would not be perfect as it is. Thank you,

Ma‟am, for the time and wisdom.

4. All lecturers and staffs of the Engineering Department for giving me the

necessary knowledge that I needed throughout my thesis-writing progress.

Thank you for all these years teaching me and my fellow classmates the

knowledge that would unexpectedly help us for our future.

5. All my friends that gave me support in many forms, no matter what shape

or size it may be.

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TABLE OF CONTENTS

THESIS ADVISOR RECOMMENDATION LETTER .......................................... i

DECLARATION OF ORIGINALITY ................................................................... ii

APPROVAL PAGE ............................................................................................... iii

ABSTRACT ........................................................................................................... iv

ACKNOWLEDGEMENT ...................................................................................... v

TABLE OF CONTENTS ....................................................................................... vi

LIST OF TABLES ................................................................................................. ix

LIST OF FIGURES ............................................................................................... xi

CHAPTER I INTRODUCTION ............................................................................. 1

1.1. Background ............................................................................................... 1

1.2. Problem Statement .................................................................................... 2

1.3. Objective ................................................................................................... 2

1.4. Scope and Limitations ............................................................................... 2

1.5. Assumption ............................................................................................... 3

1.6. Research Outline ....................................................................................... 3

CHAPTER II LITERATURE STUDY ................................................................... 5

2.1. Kaizen Background ................................................................................... 5

2.1.1 Kaizen Philosophy ........................................................................... 5

2.1.2 Kaizen Benefits ................................................................................ 7

2.2 Kaizen Implementation .............................................................................. 8

2.2.1 Plan-Do-Check-Action .................................................................. 10

2.2.2 A3 Problem Solving ....................................................................... 12

2.2.3 Lean Thinking and 3M................................................................... 13

2.2.4 5S Method ...................................................................................... 15

2.2.5 Total Productive/Preventive Maintenance ..................................... 21

CHAPTER III RESEARCH METHODOLOGY................................................ 25

3.1. Initial Observation ................................................................................. 25

3.2. Problem Identification ............................................................................ 26

3.3. Review of Literature Study .................................................................... 26

3.4. Data Collection ...................................................................................... 26

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3.5. Data Analysis ......................................................................................... 27

3.5.1 Defining the Variables ................................................................... 28

3.5.2 Defining and Observing Findings .................................................. 29

3.5.3 Implementing the Kaizen Activities .............................................. 29

3.5.4 Analyzing the Kaizen Implementation and Calculate Variables ... 29

3.5.5 Results and Follow up Action ........................................................ 30

3.6. Conclusion and Recommendation .......................................................... 30

CHAPTER IV DATA ANALYSIS AND DISCUSSION .................................... 31

4.1 Kaizen Implementation in PT. DVL ........................................................ 31

4.1.1 Lean Manufacturing Training ........................................................ 31

4.2 Department Standards in PT. DVL ................................................... 35

4.3 Findings .................................................................................................... 37

4.3.1 5S Standards................................................................................... 38

4.3.2 A3 Problem Solving Standards ...................................................... 39

4.3.3 TPM Standards............................................................................... 39

4.4 Kaizens per Department ........................................................................... 39

4.4.1 Department of Production Kaizen Implementation ....................... 40

A. Findings .............................................................................................. 40

B. Kaizen Implementation ...................................................................... 45

4.2.2 Implementation in Department of Logistic .................................... 62

A. Findings .............................................................................................. 62


4.2.3 Implementation in Department of Quality Control ........................ 73

A. Findings .............................................................................................. 73


4.2.4 Implementation in Department of Quality Assurance ................... 90

A. Findings .............................................................................................. 90


4.2.5 Implementation in Department of Engineering ........................... 103

A. Findings ............................................................................................ 103

B. Kaizen Implementation .................................................................... 108

4.3 Implementation of Big Kaizens ............................................................. 120

4.4 Final Analysis ........................................................................................ 126

CHAPTER V CONCLUSION AND RECOMMENDATION ........................... 131

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5.1 Conclusion ............................................................................................. 131

5.2 Recommendation ................................................................................... 132

REFERENCES .................................................................................................... 134

APPENDICES .................................................................................................... 135

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LIST OF TABLES

Table 2.1 – The 7 forms of waste classification that is based from 3M ............... 15

Table 4.1(a) – Findings in the Production Department. ........................................ 41

Table 4.2 – ............................................................................................................. 55

Kaizen activities in Production Department and Its Compliance Standards ........ 55

Table 4.3 –Kaizens that save potential time loss in Production Department ........ 59

Table 4.4 – Kaizens that save potential cost in Production Department ............... 61

Table 4.5(a) – Kaizen Activities in the Logistic Department. .............................. 63

Table 4.5(b) – Kaizen Activities in the Logistic Department. .............................. 66

Table 4.6 – Kaizen activities in the Logistic Department that comply to standard

............................................................................................................................... 70

Table 4.7 – Kaizens that save potential time loss in the Logistic Department ..... 72

Table 4.8 – Kaizen that saves potential cost in the Logistic Department ............. 73

Table 4.9(a) – Kaizen Activities in the Quality Control Department. .................. 74

Table 4.9(b) – Kaizen Activities in the Quality Control Department. .................. 78

Table 4.10 – Kaizen activities in the QC Department that comply to standard .... 84

Table 4.11 – Kaizens that save potential time loss in the QC Department ........... 89

Table 4.12 – Kaizens that savepotential cost in the QC Department .................... 90

Table 4.13(a) – Kaizen Activities in the Quality Assurance Department. ............ 91

Table 4.13(b) – Kaizen Activities in the Quality Assurance Department............. 95

Table 4.14 – Kaizen activities in the QA Department that comply to standard .. 100

Table 4.15 – Kaizens that saves potential time loss in the QA Department ....... 102

Table 4.16 – Kaizens that saves potential cost in the QA Department ............... 103

Table 4.17(a) – Kaizen Activities in the Engineering Department. .................... 104

Table 4.17(b) – Kaizen Activities in the Engineering Department. .................... 109

Table 4.18 – Kaizen activities in the Engineering Department that comply to

standard ............................................................................................................... 114

Table 4.19 – Kaizens that saves potential time loss in the Engineering Department

............................................................................................................................. 117

Table 4.20 – Kaizens that save potential cost in the Engineering Department ... 118

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Table 4.21 – 2 Kaizens from Production and Quality Control department that

provided huge production boost. ......................................................................... 120

Table 4.22 – Lead time in the Injection process per cycle .................................. 122

Table 4.23 – Extra Investment to compensate the new Kaizen .......................... 123

Table 4.24 – Kaizen #25 Benefit Summary ........................................................ 124

Table 4.25 – Kaizen #15 Benefit Summary ........................................................ 126

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LIST OF FIGURES

Figure 2.1 – An Illustration depicting Muda, Mura and Muri. ............................. 15

Figure 2.2 – 5S Method cycle ............................................................................... 16

Figure 2.3 – Good Sort Table ................................................................................ 18

Figure 2.4 – Shadowbox that is used to mark every tools necessary .................... 19

Figure 2.5 – Monthly Audit for 5S on every department. ..................................... 21

Figure 2.6 – A brief history of Total Productive/Preventive Maintenance ........... 22

Figure 3.1 – Theoretical Framework of the Research ........................................... 25

Figure 3.2 – Steps on conducting the Data Analysis ............................................ 28

Figure 4.1 – PDCA Training Documentation ....................................................... 31

Figure 4.2 – 5S Banners stretched across the plant area; some in the hallways

(left) and some in the parking lot (right) ............................................................... 32

Figure 4.3 – A3 Problem Solving team. Each A3 paper discuss different problems

and solutions ......................................................................................................... 33

Figure 4.4 – Machine tagging which directs the parts that needs attention. ......... 34

Figure 4.5 – Kaizen event in PT. DVL. Done to encourage staffs to be active in

participating Kaizen .............................................................................................. 34

Figure 4.6 – Graph denoting the Kaizen activities contribution to the three

variables in the Production Department ................................................................ 57


variables in the Logistic Department .................................................................... 69


variables in the Quality Control Department ........................................................ 83

Figure 4.1 – Injection Process Before and After Implementation ...................... 122

Figure 4.2 – Infuse Line Process ......................................................................... 125

Figure 4.3 – Graph denoting the measurable potential cost saved per department

in one year. .......................................................................................................... 127

Figure 4.4 – Graph denoting the measurable potential time saved per department

in one year. .......................................................................................................... 129

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CHAPTER I

INTRODUCTION

1.1. Background

PT. DVL is one of the top pharmaceutical manufacturers in Indonesia which is

located in Citeureup, Bogor. The company creates various types of medicinal

products – ranging from capsules, injection fluids, tablets and other ranges of

types.

Every profit-oriented company needs to improve its production capacity,

efficiency, manpower and other economic-boosting aspects in order to increase its

profit. With PT. DVL‟s vision being “To be the leading world-class

pharmaceutical manufacturer”, we have the reason to believe that PT. DVL is

striving in their business world as a profit-oriented company. It is then normal to

assume that the company needs to get more profit as much as possible. With

increased profit, the owner can get more benefit and the employees can get more

income, which can result in increasing productivity. One way to increase profit is

by implementing an efficient management method such as Kaizen.

As a lean manufacturing instrument, Kaizen improves quality, safety, workplace

culture, efficiency, and ultimately productivity. Kaizen is based on the application

of continuous small/large daily changes, which can produce major improvements

over time and therefore requires every employee to get a gradual improvement

whenever and wherever possible in their workplace. This continuous-

enlargement-process motivates work-floor operators to think about how to

improve their daily work with simple solutions such as modifying

equipment/machines or moving boxes. Simply doing these improvement-activities

is a healthy and motivated way for all employees to reduce worktime and cost

continuously. To gain the benefits from all improvement-activities, the company

implements a production system that enable to guide all departments to be

responsible throughout the coherent vision.

As the world-economic globalization is moving forward, many corporations

cannot avoid it. Globalization causes business judgments, decisions or actions in

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one part of the world significantly affect other parts of the world. The

advancement of information technology has driven parts of the world to become

more connected to each other. This has resulted in a higher level of competition

among industry stakeholders. Therefore, Small and Medium Enterprises (SMEs)

must be able to improve their performance by improving quality, delivery, and

efficiency of time and cost. In order the company to win the competition; they

need to reduce cost while improve their quality and performance.

1.2. Problem Statement

Kaizen has been implemented in PT. DVL since 2015. However, despite being

active for more than a year, it is not known whether Kaizen bring the necessary

benefit or not. Since 2015 PT. DVL has had increasing demands for its products,

and the system at that time was not effective and efficient to produce enough

products to fulfill the demands. This study will answer the following statements:

1. What is the impact of the current Kaizen implementation in PT. DVL?

2. What is the follow-up plan that could be done by Kaizen afterwards?

1.3. Objective

The primary objective of the research is to evaluate whether Kaizen improved the

company‟s production capacity and thus increasing the profit. Beside the

objective above, this research also aims to:

1. To identify and assess the impact of Kaizen in PT. DVL,

2. To determine the follow-up plan of Kaizen.

1.4. Scope and Limitations

Kaizen focuses on improving a company as a whole – both production wise and

employee performance-wise. In continuation, this research focus on the

assessment on how Kaizen improve the performance of a pharmaceutical

manufacturer with the following limitations:

1. Observe five departments closely related to production (Production,

Logistic, Quality Control, Quality Assurance, Engineering),

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2. Does not assess Employee‟s performance rating, instead focus on process

and machineries,

3. Assume continuous and non-stop execution of Kaizen

1.5. Assumption

In order to conduct the analysis of this research properly, some assumptions have

been made. The assumptions are as follows:

1. Spare parts and materials are always ready and available,

2. Machines operate over 24/7,

3. Employees (including labors and technicians) are all well-trained and

understand the concept behind Kaizen.

1.6. Research Outline

Chapter I Introduction

This chapter consists of the background of the final project, problem

statement, objective, scope and limitations, assumption of the study

and research outline.

Chapter II Literature Study

This chapter delivers the outcomes of the state-of-the-art published

research literature review. It explains research related background

information and identification of knowledge gaps.

Chapter III Research Methodology

This chapter explains the flow of this research steps and research

design.

Chapter IV Data Analysis

The data observation, processes and analysis are described in this

chapter. The results of data analysis are further explained and

discussed in this chapter.

Chapter V Conclusions and Recommendations

4

This chapter provides conclusions of this thesis, as well as

recommendations for future research.

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CHAPTER II

LITERATURE STUDY

2.1. Kaizen Background

Kaizen is derived from two Japanese words involving two concepts: Kai which

derives from “change” and Zen from “for the better” (Palmer, 2001). The concept

of Kaizen has a long history in the industry world that dates way back after World

War II. After the war, the American forces that occupies Japan were assigned with

the task to assist Japan on recovering from damages of the war. With the

cooperation of American experts and Japanese business managers, they developed

various ways to improve one‟s quality and productivity in the industry world.

There are several famous pioneers that contributed to the innovation of improving

productivity. Sakichi Toyoda – the founder of the Toyota Industries Co. Ltd. –

and a Japanese industrial engineer Taiichi Ohno, are ones of the few talented men

that revolutionized the industry world with the innovation of „Toyota Production

System‟. Through the success of the Toyota Production System, many other

Japanese companies adopted similar techniques of a „continuous improvement‟

concept for their processes. Stemming out from the Toyota Production System, a

Japanese businessman named Masaaki Imai published his book that illustrated a

new adoption from this system – namely Kaizen. According to Imai (1986),

Kaizen is a continuous improvement process involving everyone, managers and

workers alike. In a nutshell, Kaizen is a strategy to include concepts, systems and

tools within the bigger picture of leadership, involvement and people culture, with

its customer as the driving point. Today, it is a concept that has been widely used

by a majority of organizations and companies for ensuring continuous

development and efficiency.

2.1.1 Kaizen Philosophy

The Kaizen strategy is Japan‟s leading management system as it provides the most

competitive result in the business world. According to Yeo (1995), Kaizen‟s

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philosophy derives from the concept of „zero defects‟ and „do it better each time‟

– these two strategies are one of the important ways to continuously improve the

processes and quality of a company. However, as a whole Kaizen is not a project

that should be handled by a single group, let alone a single employee. Teamwork

is key in a success Kaizen and Wickens (1990) describes the contribution of

teamwork to make the concept of Kaizen. Each supervisor that acts as the leader

has the key role and authority to emphasize teamwork, flexibility and quality on

implementing Kaizen. Teian (1992) describes that teamwork and commitment do

not come from involving the representatives of employees, but from direct contact

and communication between the individual and his boss. This essentially means a

two-way communication is always needed in improving together to create a

mutual goal. With this being said, Kaizen can be applied to any area in need of

improvement, and not constricted to just one department alone. Hammer et al.

(1993) explained that Kaizen generates process-oriented thinking since processes

must be improved before better results are obtained.

Additionally, Imai (1997) explained his understanding on Kaizen‟s work of nature

through describing that an improvement can be divided into two focus – Kaizen

and innovation. From Kaizen, it signifies small improvements – one step at a time

– as a result of continuous efforts. On the other hand, innovation involves a drastic

and huge improvement that stems from large investment of resources in better or

new technology and equipment. Overall, both focuses requires every teams in the

project to work towards one goal – continuous improvement. Continuing from

Imai‟s work, he explains that Kaizen leans more on management work, and it has

two major functions: maintenance and improvement. Maintenance refers to

activities focused on sustaining existing system, technologies, managerial and

operating standards. From that it requires the managerial staffs uphold such

standards through extensive training and discipline. This will allow the operators

and lower managerial perform its assigned tasks while following standard

operating procedure. Improvement, meanwhile, refers to activities directed

towards elevating current standards.

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With both focuses, it creates a harmonious flow where staffs from every

department can boost the company through constant maintenance and adding new

improvements along the way. This is how the essence of Kaizen should be – a

method involving small improvements that pushes every staffs to innovate better

system and process, all the while maintaining the innovations and improve when

an opportunity presents itself. In other words, Kaizen can also be referred to as

Continuous Improvement (CI) concept.

2.1.2 Kaizen Benefits

Kaizen is one of the important tools of implementing a Lean thinking mindset into

the company. As stated before, Kaizen are activities or changes that starts from

small improvements and grow into providing bigger results in time. From the

surface, Kaizen may seem to only bring benefit in terms of the company‟s

performance values – such as output result of a production, the efficiency of

wastes people‟s performance, staff participation and others. However, according

to an article made by Jeff Roussel (2017) Kaizen impacts the company through

unexpected benefits as well. These benefits are:

1. Promote and improve Cross-functional teamwork:

Kaizen gives the chance for its staff to communicate and understand other

departments in the company. This can give staffs the knowledge of how

the work of every department contributes into the overall process as a

whole.

2. Allows every staff to demonstrate Leadership

Through a Kaizen discussion, the philosophy of Kaizen demands each

staff to promote their ideas and contribution to public, as the term “no idea

is a bad idea” is predominantly a mindset that is encouraged in Kaizen.

3. Adds the sense of ownership in the discussion panel:

Involvement is also a mindset that is needed when implementing Kaizen.

When staffs are involved in the discussion of improving a process, they

will have the sense of ownership to the overall project – which encourages

them to become more engaged.

4. Improved Standard work:

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Kaizen does not only improve the processes through new installations or

better system. Standard works can also be updated or improved due to

Kaizen, and this is essential as newer staffs in the team can learn the

“rules” quicker.

5. Getting priorities straight:

Kaizen targets all types of problems that exist within the company. The

area may include problems that affects a managerial level, to an

individual-only level. With a discussion among higher staffs, everyone can

clarify the priorities on which problems should be handled faster than

others.

6. Knowledge:

Kaizen training adds new knowledge. If the overall staffs of the company

embrace this new knowledge, future improvements will be easier as the

flow and procedure of a proper improvement implementation has already

been taught.

These unexpected benefits alongside measurable results (productivity etc.) proved

why most SMEs tries to implement Kaizen. This level of involvement that

stretches out from the highest management staffs to the lowest operating staffs

uses one concept that brings all the departments and positions together – using

Kaizen as the place for communication. Once every staffs understand the essence

and benefit of Kaizen, implementing it is the new challenge as PT. DVL has

demonstrated on the next sub chapters.

2.2 Kaizen Implementation

Kaizen (or Continuous Improvement) is a strategy that is mostly adopted by

companies with teams of employees at all management level – from top

management down to the bottom level within the company. They strive to work

together proactively on improving specific areas within the company with the aim

of eliminating wastes (Imai, 1986). This is the main goal of implementing Kaizen.

However as stated prior to this subchapter, Kaizen requires all the employees and

teams to implement a Continuous Improvement habit for the initial preparation.

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Summarizing from previous subchapter, Kaizen is a continuous, daily activity

which in principle should follow the basic rules:

1. Teamwork is a must: never blame on each other – mistakes can be made as

long as solutions are made as well,

2. Think systematically throughout the process – as stated before; process

must be improved before better results are made,

3. It is both process and result-oriented; a Continuous Improvement (CI)

habit with constant improvement and maintenance involved.

Abiding through these three principles acts as the foundation on Kaizen

implementation. After the teams have been thoroughly trained on embracing

Kaizen with the three principles, there are several concepts of Continuous

Improvement that are used as the helping tools on implementing Kaizen. The

following points states the relevant techniques/concepts that are important in the

process of Kaizen implementation:

1. The concept of PDCA: Every business activity and SMEs that wants to

start implementing Kaizen will need to follow correct procedures to

achieve their desired goals. PDCA is a concept with set procedures that

repeatedly puts the Kaizen teams to continuously monitor and improve all

Kaizen activities from the root cause of the problem to the solutions.

2. 5 “W” and 1 “H” (5W + 1H) concept: This concept is the mindset tool that

is the backbone of the PDCA concept cycle. The Kaizen teams will

constantly ask the 5W and 1H (What, Who, Why, Where, When and How)

for problems that needs Kaizen improvements – all the while following the

procedures of PDCA and creating a continuous and constant flow of

questions and solutions, which would repeate the procedures again with

new sets of problems.

3. Lean thinking, that revolves around the concept of 3M: The 3M concept

derives from the Japanese words Muda, Mura, and Muri. Muda refers to

activities that consumes resources without creating results, Mura is the

unevenness (of a measurable metric) in an operation and Muri refers to

overburdening of equipment or operators in work load distribution.

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4. 5S Method (Seiri, Seiton, Seiso, Seiketsu and Shitsuke). Each letter defines

the procedures to set the best standards. Seiri means removing unnecessary

items, Seiton means allocating locations for everything, Seiso refers to

activity of keeping the work area clean, Seiketsu means standardizing the

best practice and Shitsuke means discipline – which means sustaining

workplace procedures.

5. Total Productive/Preventive Maintenance. The concept of TPM revolves

around the constant flow of sustaining processes/machines that is done by

staffs and operators, which in turn provides a total productive/preventive

control. It uses standards and discipline that each staffs will need to follow

to undergo a perfect TPM.

2.2.1 Plan-Do-Check-Action

After having the three principles adapted, companies will adopt a concept called

Plan-Do-Check-Action (PDCA) cycle as the go-to method for solving problems.

As such, the first step on implementing Kaizen is to identify the target areas for a

rapid-improvement activity. What this mean is to identify areas that might

include:

1. Considerable amount of work-in-progress in its process;

2. Administrative process or production area with significant bottlenecks or

delays;

3. The most “value added” activities/areas – which defines as areas with

significant market or financial impact when an improvement is

implemented;

4. Any other processes where its quality or performance does not meet

customer expectations.

Once all problem areas have been fully identified and the teams assembled (teams

that consists of cross-functional employees and are typically assembled by

managers), the second step is into implementation.

In implementing Kaizen, according to Imai (1986) Kaizen improvements can be

in the form of huge events or even only advices and suggestions from the results

11

of a group analysis. Specifically, the scope of Kaizen can be broadened into 3

main segments depending on the needs of each company:

1. Management level of Kaizen, which focuses on very few but large issues

of the company that mostly requires immediate attention to pursue

progress and demands. This level of Kaizen involves mostly of higher

management staffs and even managers and company directors into the

team.

2. Group-oriented Kaizen (or Large/Big Kaizens) are mostly implemented by

smaller groups of teams (whether inter-department and/or cross-functional

employees) which mainly analyze, solve and implement problems as well

as set new standard procedures.

3. Individual-oriented Kaizen (or Small Kaizen) are all improvement or new

activities that focuses on many small issues. These activities may manifest

in the form of advices on following the set standard.

The employees can use a variety of techniques to develop clearer understandings

when observing and analyzing the problem areas. The analytical techniques that

PT. DVL used are the A3 Problem Solving strategy (which utilizes Five “W” and

One “H” technique) and Value Stream Mapping technique. As an effect, all team

members would then work together towards a same goal with the similar

understanding of the problems that they are working to solve.

In the phase of implementing, the team members seek all problems from all areas

and incorporate it into the A3 Problem Solving discussion to solve together. The

findings collected from the analysis are information that focuses on several

aspects: overall product quality, production routings, product and operators

distance traveled, frequency of changeovers on machines, amount of staff

allocation for specific task(s), areas occupied by equipment and products, amount

of work-in-progress and bottleneck sources. The findings use time study

measurements (lead-time, takt-time, cycle time) and production data (Input-

Output, efficiency) that would be assessed on where to improve (if there is any) in

order to reach the goal. Once the teams finished gathering enough information on

the target process, the data are then analyzed and thoroughly assessed to find any

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areas for improvement. In this part of the implementation phase, every member

discusses whether each new/eliminated step or element adds value towards

meeting their desired goal. With all identified wastes and non-value-added

activities are measured, the teams then brainstorm ideas and options for

improvement. This in turn will be observed and all results are recorded for any

new cycle times or system changes, which then the overall savings from

eliminated waste (in which case this research will observe the time and cost

efficiency from implementing Kaizen).

The third phase of PDCA was for all staffs of PT. DVL to follow up on the overall

Kaizen activity. In a nutshell, this last step of Kaizen implementation is the next

final action that comes after the objective of this thesis research (to evaluate the

effects of Kaizen in PT. DVL). Kaizen cannot be measured in one instance, as the

success of Kaizen depends on the completion of the improvement processes and

its further management. The key to a successful Kaizen implementation plays

heavily on ensuring all improvements are sustained – where all staffs would need

to always maintain the set standard and not just temporarily. The team members

would track key performance metrices routinely and document all the gains (and

if there is a loss). In PT. DVL, the department area that is in charge of tracking

Kaizen‟s status and condition throughout the plant floor is the Operational

Excellence division, a division that routinely seek new method for improving

processes and performances (more on Chapter IV).

The essence of Kaizen is that it focuses on three improvement areas of waste

elimination, deriving from the term „3M‟ – which are Mura (unevenness), Muri

(overburden) and Muda (waste) as stated by Imai (1986). Through PDCA

technique the company can flesh out the problems within the company that needs

elimination on wastes. By improving the company‟s system standard and

processes, Kaizen ultimately aims to eliminate waste – which is the main concept

of Lean.

2.2.2 A3 Problem Solving

13

As stated prior to this subchapter, A3 Problem Solving is a tool that was used in

the PDCA process to help analyze problems with in-depth root cause analysis.

The A3 Problem Solving is a reference to the European paper size of 29.7 x 42.0

cm. The history of this tool dates back when Toyota used this technique as the

template for three different types of reports – as proposals, reporting status and

identifying and solve problems. The essence of this tool is to put all analysis in

one big A3 paper.

By doing so encourages the team to analyze problems thoroughly with precise and

no repetitive attitude since they are forced to bring all the ideas into one compact

paper. PT. DVL followed the standard template of A3 Problem Solving but with

several changes to adapt the production process of the company (see Appendix

D):

1. Identifying the problem and add a summary in the “A3 Title”,

2. Assess the background of the problem – add in “Background”,

3. Understand the current condition and add the details in “Current

Condition”,

4. Set and agree on a goal/target under the “Goal/Target”,

5. Perform “Root Cause Analysis” with the help of analytical tools such as 5

Whys, Pareto, Fishbone and Cause-and-Effect analysis,

6. Brainstorm and “Develop Countermeasures” for each cause founded from

the Root Cause Analysis with its action plan on each cause,

7. Check the results after the action plan is implemented in the “Effect

Confirmation”,

8. Perform “Follow-up Action” for each confirmed action plan to keep a

continuous improvement.

Doing the A3 Problem Solving technique also trains the team members to think

critically in a problem-solving discussion. Thinking critically is a mindset that

each staffs of the company should have as it lets any discussion to carry heavy

thoughts and analysis when tackling a problem – this is one of the components of

Lean; to embrace the culture of communication, leadership, teamwork and

involvement among the staffs.

2.2.3 Lean Thinking and 3M

14

Taiichi Ohno, the Japanese industrial engineer and businessman that is considered

to be the father of the Toyota Production System, highlighted in his innovation

that irrelevant elements and values within a process are considered as wastes and

needs to be eliminated. He sees wastes as problems in a system that could be

improved and add value to the company – in a nutshell, they are problems that are

better viewed as opportunities to improve one‟s process and products. This way of

thinking is the philosophy and mindset of the famous “Lean Thinking”.

Implementing this mindset is the very first action that all other Japanese (and

eventually American) industries tries to embrace first before implementing the

Continuous Improvement concept. As such, Taiichi Ohno defined the wastes in

the Lean thinking concept into three categories: Muda, Mura and Muri.

The 3M concept is a practice that eliminates wastes in a process. The idea is for

team members to identify what the problem‟s “Muda”, “Mura” and “Muri” is

before implementing an action plan (which in PT. DVL is defined as a Kaizen

Activity).

Muda can be defined as activities that uses resources but does not create any value

for the customers. These activities can be multiple unnecessary movements of

products or staffs in a production process, to an activity of having one extra and

costly production process step that actually is not necessary. Mura is the state of

unevenness in an operation. This means that the scheduling of the machine or

operator‟s workload is not distributed evenly with considering the ability of the

machine and operator itself. Muri is the overburdening state for equipment or

operators by having them perform at a higher and harder task with more effort and

even a longer period of time. This relates to Mura as the managers or supervisors

does not consider the ability and time of the equipment and operator.

15

Figure 2.1 – An Illustration depicting Muda, Mura and Muri.

Source: Lean Enterprise Institute

Using these three waste categories as the connection on finding solutions within

the PDCA cycle, the team would give a better understanding on how to decide an

action plan to eliminate the Muda, Mura or Muri that exists in the problem. With

the 3M as the basis for the model of waste elimination, Taiichi Ohno formulate

other categories of wastes that incorporates within the Lean thinking mindset.

Table 2.1 – The 7 forms of waste classification that is based from 3M

Waste Examples of Causes

Transport Material or tool movement from one location to another.

Waiting time Delays (maintenance, breakdown, material shortage etc.)

Processing time Machine adjustments,

Over-production Larger batches that goes over demands/capacity etc.

Defects Equipment or material condition, poor communication

between shifts etc.

Inventory

Management

Unused/dead stock, long set-ups, no inventory

documentation/control

Displacement

(Motion)

Cleaning, finding spare parts/materials

Knowing what wastes exist in the problem allows the team members to better

understand the situation of the problem. In continuation, by understanding Lean

thinking and the concept of 3M, it will provide a clear view on how to implement

an action plan/improvement towards a problem. PT. DVL has mostly

implemented better standards within their Kaizen Activities which are based on

one of the Continuous Improvement tools – 5S Method.

2.2.4 5S Method

16

The 5S method is an instrument to continuously improve the lean management

process, with the aim of creating a highly ergonomic, clean and efficient work

environment. These are five simple rules that allow visual control to the

workplace (Falkowski, P., et. Al., 2018). Effective implementation of the 5S

method is the responsibility of managers and all team members in the company.

This can be applied after intensive and extensive training aimed at making staff

aware of the validity, and effectiveness of this method has been conducted.

In addition, employees are required to have the basic knowledge of practicing

PDCA prior to 5S. As the name suggest, 5S consist of five steps that starts with

the letter S – each letter correlates with one and another and unifies into one

perfect lean system. 5S is a technique originated from Japan, developed by

Hiroyuki Hirano in 1980s. 5S consists of five Japanese words: Seiri (Sort), Seiton

(Set in order), Seiso (Shine), Seiketsu (Standardize) and Shitsuke (Sustain). 5S

program have been widely practiced in organizations and in the world as a way to

improve production values effectively and efficiently – all the while also

improving employee morale and safety (Patel, V. C., et. al., 2014).

Figure 2.2 – 5S Method cycle

Source: Google Image

17

5S has 5 different standards with different goals and targets for each step.

Theoretically, Kaizen 5S only consist of five methods – Sort, Set, Shine,

Standardize and Sustain. However, DVL have implemented a new S as this S

should be listed individually to remind the staffs that Safety should always be

embraced. Below is the full definition of 6S and what employees are expected to

do on their daily life (Patel, V. C., et. al., 2014):

1. Seiri (Sort): “Any work area should have only those items needed to

perform the work required in that area.” This means that the Standard

area of Sort for every individual working area should only consist of

nothing more than the PC and mouse. Below is the summarization of what

Sort is:

Remove and dispose unnecessary items properly,

Make work easier by removing obstructions,

Reduce the possibility of being disturbed by unnecessary items

Prevent accumulation of items that are not needed,

Evaluate useful items, related to cost or other factors,

Remove all unused parts,

Separate unwanted items from the workplace

Provide highly skilled supervisors to check regularly

Do not put unnecessary material in the workplace & specify an area that is

given a red tag to store it,

Remove all wastes.

Sort is implemented by adding manuals for each department on how and

where to keep every office equipment in place. Similar to the function of a

shadowbox (see next “S”). In continuation, Sort can also be implemented not

only on office equipments but also inventory management as well. For every

department that requires inventory storage, a manual on every placement of

items should exist within the same room/area of the storage.

To maintain, each staff should monitor their desks on equipment or tools that

are disordered from its place. In addition, any leftover papers or unnecessary

tools that are not from the desk should be thrown/returned to its place.

18

Figure 2.3 – Good Sort Table


2. Seiton (Set): “Set focuses on the need for an orderly workplace - a place

for everything and everything in its place.” Set allows staffs to use what is

called a „shadowbox‟. Shadowbox is a place that marks every single time

that a staff uses and indents it in place. Only necessary items are marked

and indented, whilst unnecessary items are disposed from the work area.

Can be interpreted as “set in order”, “straighten”, or “streamline”,

Arrange all items that are still needed so that they can be easily selected

when they will be used,

Prevent loss and avoid wasting time,

Make it easy to find and grab items that are still needed,

Make sure that first come is first used,

Make an easy and smooth workflow,

All activities above should be conducted on regular basis.

Shadowbox installment can also be taught on every staff whenever new

replacement or addition is needed. It is also required for every staffs to learn

19

their own shadowbox placements. Similar to Sort, any disorganized item or

equipment should be placed back to its original position.

Figure 2.4 – Shadowbox that is used to mark every tools necessary


3. Seiso (Shine): “The key concept of shine is that cleaning be routine and

continuous.” Shine requires every staff to routinely check for their own work

space and free them from any dust or excessive trash such as unused papers

and food scraps.

Can also be interpreted as “sweep”, “sanitize”, or “scrub”,

Clean the workplace entirely,

Make cleaning as an inspection,

Prevent damage to equipment and machinery,

Keep the workplace safety and easy,

Keep the workplace clean and pleasant to work,

When at work, anyone who is not familiar with the environment must be

able to detect problems in 5 seconds within 15 meters

Every department should have Cleanliness Manual. The manual will work as

a tool to help the staffs know and maintain the initial cleanliness of the

department. Each week the Operational Excellence Department will monitor

20

the tidiness and positions of every equipment in that department.Every head

of department should always remind their staffs to maintain cleanliness in

their own stations

4. Seiketsu (Standardize): “Standardized practices and procedures provide

consistency, increase efficiency and quality. Having an agreed and

documented procedure will ensure consistency of service.” Standardize

requires every staff to create a standard of procedure and level of 5S for them

and their fellow staffs

Set standards for best practices in the workplace,

Maintain housekeeping and workplace organization in high standards at all

times,

Maintain everything regularly and according to the standards

Everything must be in the right place,

Every process must have standards.

Standardize is implemented by creating manuals and standard of operation

documents for every departments. In order to create the manuals and SOP, the

Operational Excellence and related departments need to create and authorize

every procedure and teach how to maintain for consistency.

5. Shitsuke (Sustain): “Sustain relies on the discipline and commitment of the

team.” Sustain is the hardest step out of all 5S. It requires every member to

systematically and CORRECTLY maintain every detailed procedure to

optimize the performance overall.

To keep functioning,

Also interpreted as “do without being told”,

Perform routine audits,

Training and Discipline,

Training is an objective-oriented process, which requires resulting

feedback.

In order to implement Sustain, each head of department need to constantly

monitor and encourage their staffs to follow every procedure and manuals.

21

Alternative way to encourage staffs other than by normal meeting or

conversation is by implementing reward-punishment system.

Each staff in PT. DVL has been trained to follow every 5S procedure that has

been applied and standardized by the Operational Excellence department. By

doing all of these, every staff can save more money and time to work their daily

activities.

Figure 2.5 – Monthly Audit for 5S on every department.

See Appendix C for more details.

In order to maintain the program throughout the future, OE department conducts a

monthly audit to monitor the steadiness and sustainability of every 5S. By doing a

monthly audit, every department is scored based on the level of intensity of every

aspect. The end score will then be presented on the Managerial Tier Meeting to

see which department needs better improvement.

2.2.5 Total Productive/Preventive Maintenance

Total Productive/Preventive Maintenance (TPM) can be defined as a systematic

work method aiming to develop disturbance free processes at lowest possible cost

through the commitment of all co-workers. It has three basic natures: total

effectiveness; total maintenance; total commitment. (Salonen, 2007) During this

22

time perspective, various maintenance approaches were introduced to meet and

realize different maintenance effectiveness and strategy in different industries. In

summary, the evolution of maintenance concept is presented in brief in the

following.

Figure 2.6 – A brief history of Total Productive/Preventive Maintenance

The overall goal of TPM is to improve overall equipment effectiveness (Sun et al.

2003). OEE provides an effective way of measuring and analyzing the efficiency

of a single machine/equipment or an integrated manufacturing system. OEE is

defined as the core metric for measuring the success of TPM implementation

program (Jeong and Phillips, 2001). OEE is the ratio of Fully Productive Time to

Planned Production Time. In practice OEE can simply be calculated by Equation

(2-1)

( )

(2-1)

Equation (2-1) only shows how to calculate the result to find OEE. To fully

understand how it is calculated, the real OEE formula can be seen in Equation (2-

2)

(2-2)

23

With Equation (2-2), it takes to account on all three aspects: Availability

considers all events that stop planned production long enough where it makes

sense to track a reason for being down (typically several minutes). It is calculated

using Equation (2-3)

(2-3)

Run time is basically the Planned Production Time minus any Stop Time. Stop

Time is defined as all the time where the manufacturing process was intended to

be but was not as planned due to Downtimes (Machine Breakdown) or Planned

Stops (Changeovers)

Performance however anything that causes the manufacturing process to run at

less than the maximum possible speed when it is running (including both Slow

Cycles and Small Stops). Performance is the ratio of Net Run Time to Run Time

(see Equation (2-5))

( ) (2-4)

Ideal Cycle Time is the fastest cycle time that your process can achieve in optimal

circumstances. Therefore, when it is multiplied by Total Count the result is Net

Run Time (the fastest possible time to manufacture the parts). Performance should

never be greater than 100% - as it will be a mathematical error due to setting the

Ideal Cycle Time too high.

Quality considers manufactured parts that do not meet quality standards, including

parts that need rework. It can be calculated with the Good Output multiplied by

the total Count.

( ) (2-5)

Thus, if all are pieced together, the final formula should be like as follows:

(2-2)

24

( )

(2-1)

25

CHAPTER III

RESEARCH METHODOLOGY

3.1. Initial Observation

The research methodology provides the explanation of flow and steps of

conducting the research, starting from the very beginning step until the objective

of the research is accomplished. The research was done through the several stages.

Below is the details of the research implementation starting from the study

preparation phase until the research complete.

Figure 3.1 – Theoretical Framework of the Research

• Determined the topic of the research by doing observation to the production floor

Initial Observation

•Formulated the objective and scope of the research

•Identified the problem

•Strengthened the problem by doing the interview to the expert

•Identified the variable and data of the research

Problem Identification

•Determined the literature review Literature Study

•Collected the historical breakdown Kaizen data from January 2016 to present

•Collected necessary production data after each Kaizen Implementation

•Collected the data and information through the interview to the Production department and supervisor

Data Collection

•Primary data were taken through interview with managers per department + direct observation and recording

•Secondary data were taken from department records and database

Primary Data

Secondary Data

•Determined the improvements made from each Kaizen

•Calculated the Cost and Time efficiency from each Kaizen

•Determined the best Kaizen implemented and how it could be taken further

•Did cost and reliability comparison between the current and previous Kaizen implementation

Data Calculation and Analysis

•Conclusion and suggestion Conclusion and

Recommendation

26

In the first stage, the research determined the topic and issues to be observed. It

started by doing the interview to the plant manager and other staffs related to the

problem in PT. DVL. The initial stage of the research was to find any problem

that exist within the company. PT. DVL is a medicinal product manufacturer, and

thus the company should focus on its productivity.

3.2. Problem Identification

After determining the issues to be observed, the research deepened the problem by

using problem identification process. The research also determined the objectives.

PT. DVL needed to have more productivity to meet the demand of 2016-2017.

Kaizen and Production data from January 2016 until December 2017 were used in

this research. All things that are suspected to be the cause of problem were

identified here. All the data collection was supported by the information from

technician and supervisor machine through interview.

3.3. Review of Literature Study

The study then continued to find the basic theory that strengthen the research

background and determine the method to solve the problem. An in-depth

understanding of past research which is relevant to this study was essential. The

knowledge necessary to support the research study was gained through a

comprehensive review of research literature. Through the literature review,

current state of knowledge on the following areas was acquired:

1. Lean manufacturing,

2. Driving factors of Kaizen,

3. Kaizen tools, etc.

3.4. Data Collection

All necessary data were collected from PT DVL to support this research, in order

to achieve the intended objective of the research. The data were generally divided

into data related to the cost and time-wise Kaizen implementation. There are two

main data which have been taken to help this research. The first data were the

Primary data that were taken through interviews with managers from each

27

department regarding the Kaizen implementation in PT. DVL. In addition, direct

observation on the production and non-production floor was also taken as the

Primary data with the help of photography to take and record pictures. For the

second data as the Secondary Data, the method of taking was through asking the

permission from each manager of all departments. Each department has different

documents that relates to their work process – and these documents helped the

analysis of each Kaizen activity. The list of data needed from PT DVL is as

follow:

1. Department job description and standards

2. Guidelines the implementation of Kaizen in PT DVL

3. All SOP related to Kaizen Implementation

4. All supporting data (attended list, data from absence machine, machine

and equipment service/repair, etc)

3.5. Data Analysis

After the data was collected, then the study continued to analyze and process the

data. There were several steps needed to take before analyzing the Kaizen result

itself. The very first step of this research was to find the problem that was used as

the basis of the thesis. PT. DVL has been implementing and improving its Lean

Manufacturing culture into each department since late 2015. As such, the first step

of PT. DVL was to improve each working area‟s standards in order to get closer

on becoming a Lean company. This in effect triggers the implementation of

Kaizen. However, since early 2016 until 2017, the management board did not

analyze and evaluate whether the Kaizen implementations brough any benefit to

the company. Thus, this research collected and analyzed relevant data over the

period of 1 (one) year. The figure below summarizes the overall steps taken in

analyzing the data.

Defined the

variables

Observed

findings

Implemented

Appropriate

Kaizen Analyzed

Kaizen

Implementation

in accordance

with variables Followed-up

Action

28

Figure 3.2 – Steps on conducting the Data Analysis

3.5.1 Defining the Variables

This research analyzed the benefits of these Kaizen through assessing three main

variables:

1. Standard-conformation: Did the Kaizen conform to any required Standards

of other Lean Manufacturing tools (5S, TPM, Kaizen etc.)?

2. Time-efficiency: Did the Kaizen save time (whether lead time, travel time,

production time, wait time etc.) after implementation?

3. Cost-efficiency: Did the Kaizen reduced cost (maintenance cost, re-

installation cost, product cost between old and new item etc.)?

Standard conformation variable was used in correlation with the documents of

Standards from Lean Manufacturing tools – which is attached in the Appendices

of this research paper. All Kaizen implementations (which would be named as

Kaizen Activities) were analyzed whether they comply to any of the document

standards. Complying to the standard indicates that the performance of the

department from the Kaizen Activity was improved. This performance may either

be a better environment for a safer work area, a faster approach on the production

process, a new and better productivity from a new installation of machines etc. All

existing standards were made in conjuncture with the theories of Lean

Manufacturing – thus it is guaranteed to indicate an improvement if the Kaizen

activity complies to the standard. If there are activities that does not conform to

any standard, further analysis was made whether the Activity is beneficial in a

long run. The activities with beneficial results require PT. DVL to create

new/better standards to accommodate them. Kaizen Activities with insufficient

results however were removed.

Time and Cost efficiency are two variables that were analyzed with the aid of any

Primary Data and/or Secondary Data. This means that calculation any time and

cost saving from each Kaizen Activity was done through direct observation in the

29

work area or through a copy of any production/performance/machine data from

any departments in PT. DVL. The calculations made were either yield results

from a direct relation with a visible data (tangible results), or results from the

observation (intangible results).

3.5.2 Defining and Observing Findings

After the three variables were defined, they were used as the basis of the

observation for problems and findings in each department. The departments

observed were the Production, Logistic, Quality Control, Quality Assurance and

Engineering Department. In this step, the staffs observed their working area for

any problem that hinders the productivity or has the potential of improving their

performance in every way (production process, time or cost improvement etc.).

This research then provided the analysis of the future negative effects when the

findings were ignored or not improved.

3.5.3 Implementing the Kaizen Activities

Through each findings from all 5 departments, the research then continued on

what action was needed to divert/fix the problems. These actions were the Kaizen

Activities that were implemented throughout the years. Any Primary data such as

photo evidence of the implementation was attached to provide a better

understanding of the comparison between before and after implementation. In

accordance with the Kaizen theory by Imai (refer to Chapter 2- 2.1 Kaizen

Implementation) the Kaizen Activities were categorized into two – small

Kaizens and Big Kaizens.

3.5.4 Analyzing the Kaizen Implementation and Calculate Variables

This step shows the analysis of the Kaizen implementations in correlation with the

three variables. The analysis includes graphical and theoretical results that were

collected and added altogether in the end of the chapter. The research analyzed

small Kaizens per department into one subchapter, and then included any Big

Kaizens into the next subchapter.

30

3.5.5 Results and Follow up Action

The final step provided the end results of each calculations. From these results,

the Kaizen implementation was included with any follow-up action, if necessary.

This links directly into the next chapter in Chapter 5 – Conclusion and

Recommendation.

3.6. Conclusion and Recommendation

Results and follow-up action from the previous chapter were summarized in this

chapter. The analysis of the Kaizen Implementation over the period of 1 year is

indicated here – and then provides PT. DVL on how they should approach the

next step if the company continues the Kaizen implementation in the future. Any

improvement for each 5 departments was also attached in this chapter. This also

included how each department‟s results are ranked.

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CHAPTER IV

DATA ANALYSIS AND DISCUSSION

4.1 Kaizen Implementation in PT. DVL

The implementation of Kaizen in PT. DVL demanded every employee to

contribute in improving the company through finding or making new

improvements/innovations. For starters, PT. DVL spent around five to six months

as the preparation period. Within the preparation period, the managers trained

every personnel and labours in implementing a Continuous Improvement mindset.

4.1.1 Lean Manufacturing Training

PT. DVL requested the supervisor of Operational Excellence division to train and

conduct workshops for every employee and department. This training had every

staffs learn the necessary tools as a precedent step before implementing Kaizen as

a whole. The results for each training do not stop in one period only – it is

required for every staffs to maintain the continuation for continuous improvement.

The trainings that were conducted are as follows:

A. PDCA

The training consisted of teaching the understandings and implementation of

Plan-Do-Check-Action habit into their work area. Most employees, especially

work labours, were unaware on the benefits and through this PDCA training,

each staff can follow the standard regulations whenever they found any

improvements. As a whole, this training was conducted to shape the mindsets

of each staffs.

Figure 4.1 – PDCA Training Documentation

32

B. 5S Method Training

The staffs were trained to memorize and implement 5S theories into their daily

work. The 5S training demanded every staffs to continually find

improvements and at the same time maintain the standards within their work

area. In addition to maximize the training capacity, various banners were

allocated throughout the company for everyone to see whenever they pass by.

Furthermore, the OE supervisor added an extra “S” into the training – Safety.

Safety was added as a reminder for every staff to never forget and abandon

safety whenever they work.

Figure 4.2 – 5S Banners stretched across the plant area; some in the hallways

(left) and some in the parking lot (right)

Every department and its staff was given the responsibility to follow the

standards, and by the end of every month the OE department assessed per

department by scoring accordingly. In addition, the OE supervisor printed out

the standard and working instruction for each “S” starting from Sort, Set in

Order, Shine, Standardize and Sustain.

1. For Sort, staffs were trained to keep every working tools and

equipment into a “shadowbox” or any neat storage area.

2. As for Set in Order, it was required for every staffs to label products

and mark floorings for hazard/keep clear/pipes/storage area according

to the standard set by the OE division.

3. In Shine, every staff was required to keep their respective work area

clean and tidied before and after work hours.

33

4. In continuation, Standardize required every department/division

supervisors and PIC to create a Leader Standard Work – a form that

they have to bring with them everywhere that records their daily

performance.

5. Last but not least, Sustain had every department to follow an Internal

5S audit – this is made in order to maintain the continuation of 5S.

C. A3 Problem Solving Training

A3 Problem Solving was another training conducted by OE division to enrich

the staffs‟ mindset on Lean Thinking. The staffs were trained in a workshop

where they are given real company production problem and try to solve it in

an A3 paper. This training demanded each department supervisor to conduct

separate meeting where they discussed extensively on solving any current or

recurring problems within their work area.

Figure 4.3 – A3 Problem Solving team. Each A3 paper discuss different problems

and solutions

D. Total Preventive Maintenance Training

In the Total Preventive Maintenance (TPM), staffs from Production and

Engineering departments were required to follow and fulfill the duties given.

This training was specifically made for both departments in order to maintain

machine age. It let every production labours to learn the steps on maintaining

their own machines – and how to communicate easily (by tagging) with the

Engineering department when specific helps were needed (spare parts, change

machine, purify water etc.). This removed the necessity for production labours

34

to constantly contact technicians personally to fix the machine. It is more

efficient and better to maintain rather than wait for the machine to break then

fix it, and tagging allows a continuous work.

Figure 4.4 – Machine tagging which directs the parts that needs attention.

E. Kaizen Training

Kaizen was then trained throughout the staff and departments after every other

continuous improvement tool training have been given. Each staff was

encouraged to find any improvements and/or innovations throughout their

working area, and then reported back to the department‟s managers. Similar to

5S training, the OE division installed several banners across the plant for

reminding its workers in always continuously adapt Kaizen. The training

ended with distributing a form that is required whenever a staff submits their

kaizens. The form can be found in APPENDIX F under title “Kaizen”

Figure 4.5 – Kaizen event in PT. DVL. Done to encourage staffs to be active in

participating Kaizen

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4.2 Department Standards in PT. DVL

With all necessary training to kickstarted the Kaizen Project, the project team

chose 5 departments to be the focus of the implementation. PT. DVL focuses on

developing a wide range of Prescription and Consumer Health products. Within

the company exists a range of job activities that circulate around the production of

these medicine products. Below is the full list of departments and their divisions

of PT. DVL and its Findings.

A. Department of Logistic

The department of Logistic has the role of organizing storage and distribution

of goods. The department consists of 4 main divisions in PT. DVL, all with

different focuses of responsibilities. The 4 divisions are the Procurement

division, Raw and Packaging Material division, Dispensary division and

Operational Excellence division.

1. Procurement: The division that handles purchasing of starting

materials.

2. Raw Material (RM) and Packaging Material (PM): Raw Material

and Packaging Material division.

3. Dispensary: Division that handles raw material and packing materials

expenditures.

4. Operational Excellence: Operational Excellence division focuses on

helping through providing best alternatives or methods in the current

system of the company. The division has been implementing every

tool within the Lean Manufacturing theory:

5S Method

PDCA

A3 Problem Solving

TPM

B. Department of Production

Production department shall be carried out in accordance with established

procedures and compliance with the provisions of the Good Manufacturing

36

Practices (GMPs) which ensure that they always produce products that meet

quality requirements abide the production permit and distribution permit

(registration). The production department at PT DVL consists of four

divisions:

1. General Pharmacy Solid (GPS): This research defined this division as

the Solid Production.

2. Sterile Liquid Injection (SLI): This research defined this division as

the Liquid Production. The SLI division deals a higher safety and

hygiene clearance than the GPS.

3. Cephalosporin: This research defined this division as the Antibiotics

Production. The Cephalosporin division has the highest safety and

hygiene clearance as it deals with antibiotics raw materials – this affects

the Kaizen activities since it will be different with the rest.

4. Central Packaging: This division has not implemented any Kaizen

Activities.

C. Department of Quality Control

Department of Quality control is an aspect of the management function that

determines and implements a Quality Policy which is a formal statement from

the top management of a pharmaceutical industry and states the direction and

commitment to product quality. The quality policy should be formulated and

signed by the general manager. The Pharmaceutical Industry must make

medicines in such a way as to suit their intended use, meet the requirements

stated in the distribution permit document (registration) and do not pose a risk

that endangers its use because it is unsafe, low quality or ineffective.

D. Department of Quality Assurance

Quality assurance is a broad concept that covers all things either individually

or collectively that will affect the quality of the resulting drug. Quality

assurance is also the totality of all arrangements made with the aim of

ensuring that the drug is produced in a quality appropriate to its intended use.

Quality assurance not only covers the implementation of Good

37

Manufacturing Practices (GMP) but also Good Laboratory Practices (GLP)

and Good Clinical Practices (GCP) and Good Distribution Practice (GDP).

E. Department of Engineering

Engineering is the department responsible for the smooth operation of the

factory, especially the maintenance of machines/equipment, production

facilities and production support. The department is led by a manager who is

assisted by two supervisors namely supervisor production & utility

maintenance and electrical supervisor. Department of Engineering consists of

3 divisions namely Maintenance, Electrical and Utility:

1. Maintenance

Maintenance technicians are responsible for maintaining and solving

problems in the production machinery and department facilities. The

works done are fulfilling demands of each department, undertake

project work, prepare the availability of sufficient raw water for

production purposes, handle the Air Handling Unit (AHU), prepare the

availability of compressed air, preparing a steam boiler, making an

instrument image of how machines work or are used by the production

department, creating drawings or floor plans that will be renovated,

keeping the hydrant system in a ready-to-use state.

2. Electrical

Electrical technicians are responsible for procuring and distributing

electricity at the plant (in collaboration with PLN) based on the needs

of each department, preparing the operation of the generator set to

operate normally when required, handling the control panel of the

machines, communication tools and PLC (Programmable Logic

Control) system.

3. Utility

Utility Technicians are responsible for handling water production

management and system, compressed air, HVAC system, steam boiler

and WFI.

4.3 Findings

38

Each department has been given responsibilities and duties which all conform to

their own department‟s work standards. After getting through the Lean

Manufacturing training, every employee was expected to implement the training

into their everyday work. This resulted with numerous findings that posed critical

threat on the goal to improve the overall performance of the company.

Each department was given the task to list each finding they found while

conforming to the standards from the Lean Manufacturing Training. These

standards are the foundation on how to categorize each problem and how to solve

them. Essentially, the problems are considered as Kaizens that will then be

continuously implemented.

4.3.1 5S Standards

Every employee is expected to implement all 5S aspect into their work area. In

order to fully implement 5S into the whole company, every department has to

follow the working instructions and standards set by the OE division. Each

Working Instruction form for every 5S can be found in APPENDIX C under the

document titles:

1. “Implementasi Ringkas – Sort Implementation” as the working

instruction for Sort,

2. “Tata Cara Penandaan Lantai dan Pipa – Floor and Pipe Marking”

and “Cara Pelabelan Dan Penomoran Odner – Odner Labelling and

Numbering” as the working instructions for Set in Order,

3. “Implementasi Resik – Shine Implementation” as the working

instruction for Shine,

4. “Tata Cara Penggunaan Leader Standard Work – Leader Standard

Work Use” as the working instruction for Standardize,

5. “Audit Internal 6S – 6S Internal Audit” and “Kriteria Penilaian Audit

Silang 6S – Rating Criteria Cross Audit 6S” as the working instructions

for Sustain.

39

In addition, Product labelling is related to the implementation of 5S, and can be

found in APPENDIX B. The 5S scoring form can also be found in APPENDIX

C under the form name “Laporan Cross Audit – 6S Cross Audit Report”

4.3.2 A3 Problem Solving Standards

The OE division distributed the correlated working instructions and forms for

doing an A3 Problem Solving meeting which can be found in APPENDIX D

under the form “A3 Problem Solving” and “A3 Report”. This A3 Problem

Solving method helped the department managers to solve two of the hardest

Kaizen found in the company.

4.3.3 TPM Standards

TPM allows the work labours to continually work while maintaining their

machine‟s functionality and performance. When problem arises, the labours can

simply issue a TPM form that will be continued into the Engineering Department

where its technicians will help fix the machines together. The working

instructions on how to assess machines and report to associated staffs/departments

can be found under APPENDIX E under the form “Kondisi Mesin – Machine

Condition”

4.4 Kaizens per Department

After every staffs records the findings, PT. DVL then starts its Kaizen

implementation. There are Kaizens that are a one-time installation yet provide

continuous benefit, and also the other way around. The Kaizens are then analyzed

on what results it will give. As stated in the first Chapter of the thesis, the analysis

of any findings and implementation of its corresponding Kaizen activities will be

revolving around 3 main variables:

1. Does the Kaizen conform to any Standard that exists or maybe it

requires a new standard establishment after the Kaizen implementation?

2. Does the Kaizen provide any visible/potential time efficiency?

3. Does the Kaizen provide any visible/potential cost efficiency?

40

These three variables will be the analysis of this thesis on the subchapters after

showing the Findings and Kaizen Activities of each Department. The result of

implementing Kaizen can have two sides: a tangible result – which shows a

benefit that can be acceptable in terms of its deviation from the expected

calculation, and the other is an immeasurable result. The Kaizens that provide an

immeasurable result gives benefits that may have small impact in short period of

time, but builds up throughout the time. Additionally, these Kaizens with

immeasurable amounts yield potential results that could only be seen through

continuous improvement. In addition, the kaizen may also give indirect benefit

which may also benefits other areas than the initial observation.

4.4.1 Department of Production Kaizen Implementation

The production department alongside its 4 divisions worked together to analyze

and define any findings or problems within their work area. As stated before in

the first chapter of this research, the problems and findings will not include the

staffs and worker‟s ability and performance – this helps this analysis from any

bias from genders, age or disabilities.

A. Findings

The production department founded a total of 25 problems within their area. From

there they formed the necessary kaizens to counter the problems. Most of the

kaizen from the list were labelling and location/PIC mapping for each production

area. However, there are some Kaizen that provided a preventive standard where a

machine‟s survivability can be preserved and avoids breakdowns. In addition,

there is 1 Kaizen that gave a performance boost in terms of Lead time reduction

and production capacity.

The following table shows the findings from the Production department in all 4

divisions – alongside the analysis of what would happen if these findings are not

correctly solved/handled.

41

Table 4.1(a) – Findings in the Production Department.

No. Findings Effect

1 Recorded accidents where employees crashed

while bringing lorry around the plant floor

Lorries have no breaks. If there are no brakes, safety violations can happen. The

Recorded accidents are:

1. 2 counts of failed-brake from operator – scattering material boxes

2. 3 counts of lorry scraped into wall paint

3. 1 count of crashing with other lorries

4. 1 count of dropping lorry from Drop-Zone for material acquisition

2

Operators were found accidentally tripping

over crates that was filled with finished

products in the Solid production area

Without Safety Line Indication on the floor, workers cannot establish their work area

between an area to place boxes/crates to an area to work on – in turn it will violate the

health and safety environment where operators can have accidents, thus wasting time

from healing and possible material break

3 Ink cartridge stumbles when machine runs due

to vibration

Ink will continue to be spilled as the Machine runs due to vibration if there are no

methods of preventing it. This will then in turn cost money and time on replacement

4

The Primary Packing storage room lacks labels

for parts and tools, boxes lie around in

passageway

Hard accessibility for workers to enter and find a specific machine part when needed +

violate safety of employees from untidy environment. This adds to the time waste on

finding the desired item if no labels are added into the inventories.

5

The Production Department‟s Supervisor

requested for additional Information Board that

can be used in their daily meeting

With extra boards the Supervisor can display more data and information for the

Production employees and workers can view the information any time they can. This

allows communication between positions in the department

6 Stokes Machine's Monitor screen gets covered

from airborne raw material

With constant dust from raw material, the Stokes machine can easily break. Repairing

the Stokes Machine costs 2 days (6 shifts, already included with repurchasing) of no-

production – this is only IF the machine expert can identify the problem immediately

42

7 No visual indicators for area around APAR

With no Red Line indicator on the floor near the APAR installed, objects may obstruct

the way on getting the Fire Hydrants – causing health violation. APAR area should

always be clear from objects so in an event of a fire accidents, the Fire Hydrant can be

easily taken out of their place.

8 Change room has no boundary between

"Outside" zone and "Sterile" zone

Employees and operators will make the Sterile zone dirty by bringing their dirty shoes

in if there is no boundary to remind them to change before entering the Sterile Zone.

9

No water pipe system installed for

Cephalosphorin Antibiotic Production area and

no label

The Chephalosphorin is a category of medicine production in the company that uses

Antibiotic chemicals. With Antibiotic chemicals, the production area has to be

separate from other Production (solid and liquid) area

10 Hard accessibility to find a specific document

when needed

Without any document storage, employees will have difficulties in finding and

organizing documents. In turn, this will create excessive time waste and decrease

productivity and performance

11 Scraps are left untidied all around the storage

floor

If there are no marking tape for separating the scrap area, the employees will discard

their scraps all over the place. Having an untidy workplace can lead to accidents such

as materials spilling from operators tripping over scraps, waste of time on cleaning up

and others.

12 No labels in document

Documents needed to have labels in order to conform to the standard set by the

company. In addition, documents without its standard labelling will affect future

employees where if there was a new staff, it will be hard to find a specific document if

it is not organized.

13 3M durability easily wears out and breaks

Respirators are used daily by every operators that work in the Production Area. The

Production Area in PT. DVL has 3 main products (solid liquid and antibiotics), with

each area requiring its operators to use a respirator. The respirators are re-purchased

twice a year, 3M

43

14 No protective paint from heat in the oven

The Oven Room has its walls with no heat-resistant paint before implementing the

Kaizen. Without a Protective Paint, the Oven Room can be affected by the heat from

the Oven Machine if it is exposed for a duration of time. This effect directly applies to

the product where the products in the Oven Room is sensitive to temperature changes

15 No ear muff hanger

Within the Production Area, ear muffs for loud machineries were only placed on work

tables and often taken into the operator‟s lockers. Ear Muffs are used by every

operator from every shift, and without the hanger it will cause time loss from the

operator on finding a pair.

16 No containers to store liquid materials or water

in the storage room

The Storage room has no way to contain any liquid-type materials for the Production

process. Before the Kaizen is added, operators had to go to the Logistic to grab

cylindrical drum containers for the liquid storage. This added to the potential time loss

17 A PIC and meeting room is needed without

making a new room

The Production supervisors needed extra rooms for meeting and other work-related

activities within the Production area. In a pharmaceutical company with its own plant,

an authorized permit is needed by the BPOM whenever a new room is built/renovated.

To avoid going through BPOM administrations, a storage room which has 3-areas are

made into 1-area and used the 2-areas as the meeting room.

18 There were no records on the Precursor Keys

If there are no records for the Precursor Key, its PICs have been found keeping the

key and not returning to its original place. When the precursor key is needed and the

key is kept by the previous PIC, it will take time for finding the person to take the key

back

19 Punch and Dies tools have no labels

Punch and Dies tools have many varieties and sizes, which are specific in dimensions.

Finding the right dimension is better with labels as it will prevent potential time loss

from finding it without labels.

20

There were no labelling and identification for

each inventory in the Compounding storage

area

Compounding storage area has the biggest inventory due to its many machines within

the processing area. The parts are confusing and without label will make the staffs lose

time from searching

44

21 The stripping machine spare part has no label

Stripping Label machine has its part specifications that adjusts with the sizes of the

product strips (there are more than 50 products with strip packaging). Employees need

a label for its tools to prevent potential time loss on finding the correct part size.

22 Mop was only leaned against the wall in the

corner of the room

One of the standards from 5S classification requires cleaning tools to be packed neatly

in its own area of storage. This will maintain the cleanliness of the tools itself and

avoid any safety accidents with the mop

23 No TPS for temporary storage for

wastes/inventory in the Production area

Adding a TPS (Tempat Pembuangan Sementara) for temporary tools/wastes in a

Production area will allow operators to clean up the mess in one spot – this prevents

potential time loss from cleaning in many places if the Kaizen is not implemented.

24 Water control valve was a gate valve

A gate valve (especially the one in the Production washing area) is loose. Gate valves

are confused on whether the valve is completely closed or not. Without implementing

the Kaizen of changing the valve type, a loose gate valve will loose around 1-3 liters

of wasted water per day

25 Demand from National Heatlh Insurance to

supply 2,300,000 Injection vials for year 2017

Production Capacity 1,8m per year (in 2016), needed more than 2m for the demand.

Without meeting the demand, it will create severed ties with the National Health

Insurance and damaging the trust and reliability of the company‟s name.

45

B. Kaizen Implementation

This thesis provided the analysis of the after-effects from a prolonged neglection for

each 25 findings. Through these 25 findings, the analysis continues with the

implementation of activities that would be the Kaizens for each finding. The result of

the Kaizen implementation yielded analysis results, indicating that several Kaizen

Activities are made in response to complying on standards made by the Operational

Excellence division of the Logistic Department. The analysis results can be found on

the next sub-chapter.

The Production Department consists of 4 production processes as mentioned in

subchapter 4.2. These processes include 3 main production processes and 1 packaging

process. From the 3 production processes, the company‟s sterilization standard differs –

the Solid production as the least tight in sterilization standard, Liquid production as the

second and Cephalosphorin as the production area with the tightest and strict

sterilization standard. This is due to the Cepha production being a process that requires

more attention on its material handling as it uses antibiotic agents in the production.

This is also similar to the Liquid production due to the production of liquid-based

pharmaceuticals. With this in mind, the findings that were acquired requires some new

installations in order to follow the standards established (such as having a labelled and

separate pipeline for the Cepha area or have a clear labelling for product placements on

the production floor).

In summary for Production Department Kaizen activities and findings, the following

documentations are the standards that relates with some of the activities. These include:

APPENDIX A under the form “Pembuatan Daftar Zona Tanggung Jawab dan

Ownership Mapping – Zona List of Responsibility and Ownership Mapping

Establishment” shows the working instruction for allocating zone responsibilities and

ownership Kaizens, APPENDIX B under the title PRODUCT LABELLING shows

the labels used for materials – this include materials that confirms the “Halal” label,

labels for Before and After Weigh, Identity Label, and Hazardous Material

46

Identification, APPENDIX C that compiles all related 5S standards and APPENDIX E

that illustrates the form used when a machine repairment is involved.

47

Table 4.1(b) – Kaizen Activities in the Production Department.

No. Findings Effect Kaizen Activity Implementation Result

1

Recorded accidents

where employees

crashed while

bringing lorry around

the plant floor

Lorries have no breaks. If there are no

brakes, safety violations can happen. The

Recorded accidents are:

1. 2 counts of failed-brake from operator

– scattering material boxes

2. 3 counts of lorry scraped into wall

paint

3. 1 count of crashing with other lorries

4. 1 count of dropping lorry from Drop-

Zone for material acquisition

Adding Safety Lock

to material lorries

Lorries can now easily brake and prevent

more

accidents.

2

Operators were found

accidentally tripping

over crates that was

filled with finished

products in the Solid

production area

Without Safety Line Indication on the

floor, workers cannot establish their work

area between an area to place

boxes/crates to an area to work on – in

turn it will violate the health and safety

environment where operators can have

accidents, thus wasting time from healing

and possible material break

Making Safety Lines

in 3 solid production

areas (Compressing

& Capsule Filling,

Primary Packaging,

Coating)

Better visual on where workers should travel

and avoid while working (according to

standard)

3

Ink cartridge

stumbles when

machine runs due to

vibration

Ink will continue to be spilled as the

Machine runs due to vibration if there are

no methods of preventing it. This will

then in turn cost money and time on

replacement

Added an ink holder

on Markem Printing

Machine

The ink cartridge now stays in one position

while machine runs

48

4

The Primary Packing

storage room lacks

labels for parts and

tools, boxes lie

around in

passageway

Hard accessibility for workers to enter

and find a specific machine part when

needed + violate safety of employees

from untidy environment. This adds to

the time waste on finding the desired

item if no labels are added into the

inventories.

Tidied the machine

part storage room for

Primary Packing -

added a Rack

Easy search, wider and safer space to travel

around

5

The Production

Department‟s

Supervisor requested

for additional

Information Board

that can be used in

their daily meeting

With extra boards the Supervisor can

display more data and information for the

Production employees and workers can

view the information any time they can.

This allows communication between

positions in the department

Founded an

unnecessary amount

of board in the SLI

(Liquid) area.

Reduced the

Information Board in

SLI (Liquid)

production area from

3 pieces to 1 piece

only

The 2 leftover boards from SLI used on

Supervisor Room for Tier Meeting

6

Stokes Machine's

Monitor screen gets

covered from

airborne raw material

With constant dust from raw material, the

Stokes machine can easily break.

Repairing the Stokes Machine costs 2

days (6 shifts, already included with

repurchasing) of no-production – this is

only IF the machine expert can identify

the problem immediately

Added a Cover on the

Stokes machine panel

(used on Solid

Production)

Prevents damaging the machine's monitor

screen

panel

49

7

No visual indicators

for area around

APAR

With no Red Line indicator on the floor

near the APAR installed, objects may

obstruct the way on getting the Fire

Hydrants – causing health violation.

APAR area should always be clear from

objects so in an event of a fire accidents,

the Fire Hydrant can be easily taken out

of their place.

Red Line for APAR

Better visual on locating APAR - and

prevented any

obstruction near

APAR

8

Change room has no

boundary between

"Outside" zone and

"Sterile" zone

Employees and operators will make the

Sterile zone dirty by bringing their dirty

shoes in if there is no boundary to remind

them to change before entering the

Sterile Zone.

Installed a Step Over

Bench

Workers now need to step over a metal bench

before entering "Sterile" zone

9

No water pipe system

installed for

Cephalosphorin

Antibiotic Production

area and no label

The Chephalosphorin is a category of

medicine production in the company that

uses Antibiotic chemicals. With

Antibiotic chemicals, the production area

has to be separate from other Production

(solid and liquid) area

WFI Line Installation

for tool washing

process in antibiotics

area

Cepha workers now have their washing area

for their tools and the flows are labelled

50

10

Hard accessibility to

find a specific

document when

needed

Without any document storage,

employees will have difficulties in

finding and organizing documents. In

turn, this will create excessive time waste

and decrease productivity and

performance

Added a Document

Storage Cabinets

(SOPs)

Better visualization when finding documents

11

Scraps are left

untidied all around

the storage floor

If there are no marking tape for

separating the scrap area, the employees

will discard their scraps all over the

place. Having an untidy workplace can

lead to accidents such as materials

spilling from operators tripping over

scraps, waste of time on cleaning up and

others.

Create markings for

the scrap area

Better visualization on where to throw scraps

away according to

standard

12 No labels in

document

Documents needed to have labels in

order to conform to the standard set by

the company. In addition, documents

without its standard labelling will affect

future employees where if there was a

new staff, it will be hard to find a specific

document if it is not organized.

Make a table of

contents for ATK

storage cabinets,

records, and

document

attachments

Workers now can find needed document and

records easily

51

13 3M durability easily

wears out and breaks

Respirators are used daily by every

operators that work in the Production

Area. The Production Area in PT. DVL

has 3 main products (solid liquid and

antibiotics), with each area requiring its

operators to use a respirator. The

respirators are re-purchased twice a year,

3M

Replaced 3M

Respirator to

Krisbow Respirator

Krisbow respirator is cheaper and more

durable

14 No protective paint

from heat in the oven

The Oven Room has its walls with no

heat-resistant paint before implementing

the Kaizen. Without a Protective Paint,

the Oven Room can be affected by the

heat from the Oven Machine if it is

exposed for a duration of time. This

effect directly applies to the product

where the products in the Oven Room is

sensitive to temperature changes

Furnished the Oven

Room with a

Protective walling

Prevents damaging the wall

15 No ear muff hanger

Within the Production Area, ear muffs

for loud machineries were only placed on

work tables and often taken into the

operator‟s lockers. Ear Muffs are used by

every operator from every shift, and

without the hanger it will cause time loss

from the operator on finding a pair.

Installed an Ear Muff

Hanger in the Final

Blend 2 Room

There is now a place to put ear muffs tidily

according to standard

52

16

No containers to store

liquid materials or

water in the storage

room

The Storage room has no way to contain

any liquid-type materials for the

Production process. Before the Kaizen is

added, operators had to go to the Logistic

to grab cylindrical drum containers for

the liquid storage. This added to the

potential time loss

Installed a water tube

container in the

storage room

Can now storage liquid materials or water in

the storage room

17

A PIC and meeting

room is needed

without making a

new room

The Production supervisors needed extra

rooms for meeting and other work-

related activities within the Production

area. In a pharmaceutical company with

its own plant, an authorized permit is

needed by the BPOM whenever a new

room is built/renovated.

Changed a 3-room

storage area in the

Compressing area

into 1 room

2 rooms from the storage area are used for

PIC and meeting room in order to avoid going

through BPOM administrations, a storage

room which has 3-areas are made into 1-area

and used the 2-areas as the meeting room.

18

There were no

records on the

Precursor Keys

If there are no records for the Precursor

Key, its PICs have been found keeping

the key and not returning to its original

place. When the precursor key is needed

and the key is kept by the previous PIC,

it will take time for finding the person to

take the key back

Made an area in the

Tool Room for

storing Precursor

Keys, with addition

of usage records

It is now easier to find and record the history

of every precursor key

53

19 Punch and Dies tools

have no labels

Punch and Dies tools have many

varieties and sizes, which are specific in

dimensions. Finding the right dimension

is better with labels as it will prevent

potential time loss from finding it

without labels.

Made a clear label

identity tagging for

Punches & Dies area

It is now easier to find the specific punch and

dies tools

20

There were no

labelling and

identification for

each inventory in the

Compounding

storage area

Compounding storage area has the

biggest inventory due to its many

machines within the processing area. The

parts are confusing and without label will

make the staffs lose time from searching

Clear and concise

labelling for the

inventory in the

Compounding area

Each machine spare part and stationeries are

now labelled

and easier to

locate

21

The stripping

machine spare part

has no label

Stripping Label machine has its part

specifications that adjusts with the sizes

of the product strips (there are more than

50 products with strip packaging).

Employees need a label for its tools to

prevent potential time loss on finding the

correct part size.

Making a new spare

part striping label

It is now easier to locate the spare parts for

the stripping machine

54

22

Mop was only leaned

against the wall in the

corner of the room

One of the standards from 5S

classification requires cleaning tools to

be packed neatly in its own area of

storage. This will maintain the

cleanliness of the tools itself and avoid

any safety accidents with the mop

Installed a Mop

Handler in the Janitor

room

Installed and are according to standard

23

No TPS for

temporary storage for

wastes/inventory in

the Production area

Adding a TPS (Tempat Pembuangan

Sementara) for temporary tools/wastes in

a Production area will allow operators to

clean up the mess in one spot.

Added a temporary

red storage bucket for

liquid waste disposal

Installed a red storage bucket for liquid waste

disposal according to standard this prevents

potential time loss from cleaning in many

places if the Kaizen is not implemented.

24 Water control valve

was a gate valve

A gate valve (especially the one in the

Production washing area) is loose. Gate

valves are confused on whether the valve

is completely closed or not.

Changing the water

control valve (from

gate valve to ball

valve)

It is now easier to turn on and off with the

lever from ball valve + better visualization to

see whether the water control is on or off.

Without implementing the Kaizen of

changing the valve type, a loose gate valve

will loose around 1-3 liters of wasted water

per day

25

Demand from

National Heatlh

Insurance to supply

2,300,000 Injection

vials for year 2017

Production Capacity 1,8m per year (in

2016), needed more than 2m for the

demand. Without meeting the demand, it

will create severed ties with the National

Health Insurance and damaging the trust

and reliability of the company‟s name.

Lead Time Reduction

in Cooling Process by

doing Parallel

Process between

Washing Vials and

Cooling Vials

Lead time 48hrs/cycle to 39hrs/cycle

Increased Capacity by 20%

Capacity from 1,911,938 to 2,353,154/year

55

A. Kaizen Conforming to Standard

In the Production department, there are a total of 25 findings from all three of the

production areas in the company. Most findings are regarding safety and health

violations, 5S standard violations, and machine maintenance. Its staffs

implemented all Kaizen throughout their areas of productivity. Having 4 main

productivity areas (solid, liquid, antibiotics which are known as Cephalosphorin,

and packaging), each area‟s supervisor were tasked to embrace the Kaizen ways

on their daily basis. Standard conforming requirements will be analyzed based on

the existing standards that have been attached in the APPENDICES page. If there

are activities that do not conform to standard, the action plan for the activities will

follow the three analyses, whether:

1. The Kaizen activity is not necessary to conforming any standards since it

is either a one-time installation or no further benefit can be gained,

2. Standard should be improved to accommodate the Kaizen Activity as it

can reduce cost/lead time,

3. The Kaizen activity needs to be revised/developed further to see any

significant benefit.

Table 4.2 –

Kaizen activities in Production Department and Its Compliance Standards

No. Kaizen Activity

Standard

Document

Referral

Recommendation

1 Adding Safety Lock to

material lorries APPENDIX C

2

Making Safety Lines in 3 solid

production areas (Compressing

& Capsule Filling, Primary

Packaging, Coating)

APPENDIX C

WI-04.11-004

3 Added an ink holder on

Markem Printing Machine

Doesn‟t comply

with any

standard

Improve standard to

accommodate this activity

as it can reduce cost (see

Table 4.4)

4

Tidied the machine part

storage room for Primary

Packing - added a Rack

APPENDIX C

56

5

Founded an unnecessary

amount of board in the SLI

(Liquid) area. Reduced the

Information Board in SLI

(Liquid) production area from

3 pieces to 1 piece only

Doesn‟t comply

with any

standard

Standard should be

improved to accommodate

this Kaizen activity as it can

reduce cost (see Table 4.4)

6

Added a Cover on the Stokes

machine panel (used on Solid

Production)

APPENDIX E

7 Red Line for APAR APPENDIX C

WI-04.11-004

8 Installed a Step Over Bench APPENDIX C

9

WFI Line Installation for tool

washing process in antibiotics

area

APPENDIX C

WI-04.11-004

10 Added a Document Storage

Cabinets (SOPs)

APPENDIX C

WI-04.11-005

11 Create markings for the scrap

area

APPENDIX C

WI-04.11-004

12

Make a table of contents for

ATK storage cabinets, records,

and document attachments

APPENDIX B

13 Replaced 3M Respirator to

Krisbow Respirator

APPENDIX C

WI-04.11-005

14 Furnished the Oven Room

with a Protective walling

Doesn‟t comply

with any

standard

Improve standard to



Table 4.4)

15 Installed an Ear Muff Hanger

in the Final Blend 2 Room

Doesn‟t comply

with any

standard

Improve standard to


as it can save time loss (see

Table 4.3) and reduce cost

(see Table 4.4)

16 Installed a water tube container

in the storage room

APPENDIX C

FS-04.11-009

17

Changed a 3-room storage area

in the Compressing area into 1

room

Doesn‟t comply

with any

standard

This activity is not

necessary, can be removed

or no further action needed

18

Made an area in the Tool

Room for storing Precursor

Keys, with addition of usage

records

APPENDIX C

19

Made a clear label identity

tagging for Punches & Dies

area

APPENDIX C

20

Clear and concise labelling for

the inventory in the

Compounding area

APPENDIX B

21 Making a new spare part

striping label APPENDIX B

57

18

7

5

1

0

5

10

15

20

25

Activities thatComplies to Standard

Activities thatprovides Time

efficiency

Activities thatprovides Cost

efficiency

Activities with nocontribution to the

three variables

Kaizen Activities contribution to three variables in Production Department

The following graph illustrates the percentage of activities that conform to

standards and those that does not. The graph also includes the number of activities

that contributes to the two other variables of increasing cost and time efficiency.

Figure 4.6 – Graph denoting the Kaizen activities contribution to the three variables

in the Production Department

The graph above illustrates that there is a total of 18 Kaizen activities that are

implemented in order to conform to a standard that has been set. These standards

include Area Ownership Listing from Appendix A, Product Labelling from

Appendix B, 5S Standards from Appendix C and TPM standard for Machine

22 Installed a Mop Handler in the

Janitor room APPENDIX C

23

Added a temporary red storage

bucket for liquid waste

disposal

APPENDIX B

24

Changing the water control

valve (from gate valve to ball

valve)

Doesn‟t comply

with any

standard

Improve standard to




(see Table 4.4)

25

Lead Time Reduction in

Cooling Process by doing

Parallel Process between

Washing Vials and Cooling

Vials

Doesn‟t comply

with any

standard

Improve standard to




(see Table 4.4)

58

Maintenance from Appendix E. Kaizens above are activities that if are repeated

and improved gradually over the years, will improve the overall performance of

Production department exponentially – specifically in its safety and health

aspects. In the safety improvement, for Kaizen #1, 4, 8, 17 and 18 are Kaizens that

benefits the staffs and operators with its safety guarantee results.

Kaizen 1 allows the operators to safely commandeer the lorry without

risking their safety.

Kaizen 4 and 18 provide new installations for the operators of specified

production room that benefits them by adding more functionality for their

work area (new Rack for extra tool storage and light panel for better light

control)

Kaizen 8 acts as the separator for sterilization purpose between the outside

zone and the production zone

Kaizen 17 added an extra 2 rooms that will act as the Production Tier

Meeting room. This allows the company to avoid creating a new room

from scratch as this makes the company undergo BPOM administration

steps for adding new rooms in an already-official plant layout.

Other than safety, the rest of the standard-conforming Kaizens comply to having

labels, markings and visual layouts that helps the production staffs work more

constructively. In addition, there is only one Kaizen Activity that does not provide

any benefits that relates to conforming to any standards. This Kaizen is the

Kaizen Number 17. Despite this, Kaizen No. 17 provides a benefit in the term of

having the process of increasing a work area without the need to go through a

BPOM administration process. This indirectly acts as saving any time and cost

needed for the managers.

B. Kaizen Time-Efficiency

Within the list of Kaizen implementations, there are several Kaizens that prove

benefits on minimizing potential time loss in a year‟s worth of production. There

are 7 Kaizen activities that theoretically save time loss within the span of 1 year.

The following table shows the times saved.

59

Table 4.3 –Kaizens that save potential time loss in Production Department

The Production Department has the following company data that are used in the

calculations above:

1. Working days in a year in PT. DVL is (on average after holidays) = 300

days of working days,

2. There are 3 shifts in a day – with each shift having 7 hours of work time

and 1 hour of break

3. Machine functions with No Stop in their production process. The only

time the machine stops is either when breakdown, changeover or

scheduled maintenance occurs.

With the following variables the calculations of potential theoretical time loss

analysis were made as follows (taking Kaizen No. 6 as an example).

Kaizen

No. Kaizen Activity Value

6 Added a Cover on the Stokes machine

(used on Solid Production) Minimal Potential Time Loss on

repair/year = 1 shift (8 hours)

10 Added a Document Storage Cabinets

(SOPs)

Theoretical on Potential Time Loss

for finding documents/year = 0.1

hour/day (avg. working days in

Production = 300 days = 30 hours)

14 Furnished the Oven Room with a

Protective walling

Potential Time Loss on

Repainting/year = 1 shift

Drying period = the rest of the day

(total 24 hours)

20

Made an area in the Tool Room for

storing Precursor Keys, with addition

of usage records


on making new records/year = 0.1

hours/day (30 hours)

21 Made a clear label identity tagging for

Punches & Dies area


on re-organizing/year = 0.2


23 Clear and concise labelling for the

inventory in the Compounding area




24 Making a new spare part striping

label




POTENTIAL TIME SAVED/year 332 manhours

60

The Stokes Machine is a filling machine that is used in the Solid division. The

process of filling products consists of either packing fine-grain raw materials into

capsule shells. The machine has an interactive LCD panel that the workers used to

input specifications and speeds for the machine to follow while operating. Whilst

operating, the filling production room is always clouded with leftover residue

dusts from the machine pumping raw materials. From the previous records by

the Engineering Department, the machine is always taken into inspection and

maintenance for any damage and cleaning more than once per year. This

maintenance includes fixing/repairing the LCD panel. By adding a cover (the

Kaizen Activity), the filling production workers save a potential of at least 1

shift-worth of time loss from unnecessary damage repairs.

This analysis is also done to the rest of the 6 Kaizens. The analysis of Kaizen No.

10 is done through direct observation of how an office worker finds any

documents it needs in their document storage. The duration is observed from the

staff‟s sitting position to the document storage area and back to its initial position.

Using the Maximum value from the observation (which ranges from 4 minutes to

6 minutes in a day), the time it takes to find a document is 6 minutes – which

would then be multiplied by the number of Production Day.

Kaizen No. 14 however is analyzed through Secondary Data in the

Engineering Department – where the time it takes to repaint the Oven room

from start to finish is 1 whole day. This flow of analysis is done similarly for the

next 4 Kaizen activities that provides a potential time saving result. With every

Kaizen activities that have time-saving potential in the Production Department,

the staffs could potentially save 332 hours of time (manhours) that could be used

for other activities in a year.

C. Kaizen Cost-Efficiency

From conforming to standard to saving potential time within a year, the

Production Department also implemented several Kaizens that lead to saving

costs. There are a total of 5 Kaizens that would bring a gradual money saving over

61

the years, with an addition of 1 Big Kaizen (Kaizen #25) that brought bigger

impact on cost saving (further explanation can be found in sub-chapter 4.6 Big

Kaizens). The following table shows the Kaizens that can bring potential cost

saving within a period of a year.

Table 4.4 – Kaizens that save potential cost in Production Department

Calculating cost efficiency also follows the similar method with the time

efficiency from the previous section. However, the data for costs are analyzed

through research on general market stock prices. For example, Kaizen No. 3 is

about ink spillage from the Markem Printing Machine. The engineering

department has a record of the machine spilling the ink at least two times a year.

Furthermore, from researching the market stock price of a markem ink holder plus

the ink cost, the calculation made is the ink cost spillage (times two) subtract with

the initial installation of the markem ink holder, yield the potential cost saved

(theoretically) per year – which of course the cost of the initial installation will be

removed on the future usage/year.

Kaizen

No. Kaizen Activity Cost

3 Added an ink holder on Markem

Printing Machine

Markem Machine Ink holder costs

Rp. 75,000

Ink costs Rp. 365,000/bottle

Spilled x2 = Rp. 730,000

5

Reduced the Information Board in

SLI production area from 3 pieces to

1 piece only

Rp. 450,000 purchase and

installation process from supplier

(for 2 boards)

13 Replaced 3M Respirator to Krisbow

Respirator

Rp. 132,150 per Krisbow

Rp. 340,000 per 3M

x2 purchase/year

x4 for each area

Rp. 1,057,200Krisbow

Rp. 2,720,000 3M

14 Furnished the Oven Room with a

Protective walling Repainting x1/year

Cost = Rp. 550,000

27 Changing the water control valve

(from gate valve to ball valve)

Water loss from drip =

Approximately Rp. 1,000,000/year

(water could have been used for

production instead)

POTENTIAL COST SAVED/year (730-75)* + (450) + (2720-1057.2)

+ (550) + (1000) = Rp. 4,317,800

62

4.2.2 Implementation in Department of Logistic

A. Findings

Recapping from previous subchapter in 4.2 Department Standards in PT. DVL,

the Logistic Department has 4 divisions working under it. They have 2 main

storage areas for supplies and office stationeries, and 2 main material storages for

production purposes. The flow of procuring materials within and outside of PT.

DVL revolves around the Logistic Department. Due to this, other department

staffs and outside guests are required to navigate around the logistic office in

order to fulfill their administration processes.

The Logistic department founded a total of 9 problems within their area. From

there they form the necessary kaizens to counter the problems. Most of the

Kaizens from the list are labelling and location/PIC mapping for each storage

area. Despite only having 9 findings, these findings are crucial in the Logistic area

as they provide a map for all non-logistic staffs whenever they require any

inventory-related requests. The following table shows the findings from the

Logistic department alongside the analysis of what would happen if these findings

are not correctly solved/handled.

63

Table 4.5(a) – Kaizen Activities in the Logistic Department.

No. Findings Effect

1 Raw materials in Non AC RM storage are exposed to

external risks

Raw material storage that are used for materials in Solid and Liquid

production are not as temperature sensitive as the Raw Material in AC

Storage. However, with only relying on only air ducts, the Raw materials

are exposed with external hazards (extra airborne dusts coming from

entrance, accidental damages from employees etc.). By binding with

shrinkwrap plastics, the raw material boxes can be extra safe

2

No distinct visualization between old and new design for

labelling

Labelling design has been re-standardized by the demand from 5S

implementation. However, the old-designs from Packaging Materials are

still used due to being the same label as the provider of that Material

(which functions as an administration purposes where it will be easier to

identify with older designs). This Kaizen allows old designs by adding

extra small label that distinguishes older and newer material acquisition

3 No identification and labelling for every inventory in the

General/Office Supplies

General/Office supplies consists of various stationaries ranging from

small inventories such as pens to bigger ones such as a folder container.

These inventories have a lot of quantity that it needed separate cabinets

for specific types of functionality (e.g. papers, pens, pencil, foldeers are

differentiated)

By adding codes and labels, employees will be able to identify the

needed inventory without wasting potential time loss

4 No ownership and its storage area was not officially

located in the Warehouse Location record

One of the standards of 5S also applies to labelling area ownership. With

area ownership, employees (specifically supervisors) can monitor the

condition of a specific area and report to its ownership if problems exist.

Without an ownership record, it will be difficult to

64

5 Dispensing labels used A4 papers

Using A4 papers for labelling will make worse potential cost on using

excessive paper amount in the future. Ticket stickers use one A4 paper

but are cut in 5 stickers, whereas the old labeling uses the full 1 A4 paper

6

Infuse Bottle area have unbalanced ratio between number

of pallets vs. total work needed = resulting with extra

pallets

Pallets in PT. DVL has already been distributed before by the

supervisors. However, it seems that in General Use storage, the operators

in that area needed more pallets for its forklift. Since Production Area

pallets (used for lifting finished products) are not used as often as

inventory lifting, 4 pallets are taken and allotted to Logistic

7 Weigh Area PIC and employees uses papers for its

administrative purposes

Whenever a Weighing-related work is needed (material weighing,

product weighing), data in and out are recorded by one operator within its

own area deep inside the Production area. However, the record document

needed to be transferred to the Logistic division after acquiring/reporting

a weigh-in. This Kaizen allows a change of communication flow where

the operator is placed in the Logistic room instead and are recorded

through computers

8 No storage area for small active materials

Active raw materials have no separate storage area. These materials are

sensitive to many external risks and can cause chemical failure if are

taken into the Production area carelessly. By adding a caged separate area

within the Raw Material storage room, employees and operators will

need to consult with the Production/PPIC supervisors if these materials

are needed to be taken out for production.

9 No records and working instructions for Scaling

Procedure

Scaling procedure requires the employees and operators scale raw

materials and finished products. With no records and working

instructions (a master list) future operators will not be able to accurately

carry on the task. Thus wasting time in having the new employees to train

again on using the scaling procedure

65


The department of Logistic has 4 main divisions that all contributed in finding new

innovations/improvements. The department have 9 Kaizen implementations which are

consisted of conforming to standards regarding the department‟s inventory storage and

layout. The logistic department needs a consistent and official labelling for each raw

material and inventory thus the Kaizens help every logistic staffs to apply the labelling

standards. Furthermore, the Logistic Department staffs associate with other departments

in terms of resupplying and material/product transportation. The findings from the table

above indicates that other departments and staffs are unable to process through

resupplying/transporting materials faster than it should be – this deduction is taken due

to the fact that the Logistic team requires to have Ownership mapping and storage

labelling.

These findings will have its benefit both from having an improvement that complies to

standards or have time-saving benefit. Thus, with the findings the documentations

related with it are: APPENDIX A under the form “Pembuatan Daftar Zona

Tanggung Jawab dan Ownership Mapping – Zona List of Responsibility and

Ownership Mapping Establishment” shows the working instruction for allocating

zone responsibilities and ownership Kaizens and APPENDIX B under the title

PRODUCT LABELLING shows the labels used for materials – this include materials

that confirms the “Halal” label, labels for Before and After Weigh, Identity Label, and

Hazardous Material Identification and APPENDIX C specifically for Floor Marking.

Below illustrates the table that shows its Kaizen implementation for each finding – as

well as photographical proof, if any.

66

Table 4.5(b) – Kaizen Activities in the Logistic Department.


1

Raw materials in

Non AC RM

storage are exposed

to external risks

Raw material storage that are used for materials in Solid

and Liquid production are not as temperature sensitive

as the Raw Material in AC Storage. However, with only

relying on only air ducts, the Raw materials are exposed

with external hazards (extra airborne dusts coming from

entrance, accidental damages from employees etc.). By

binding with shrinkwrap plastics, the raw material

boxes can be extra safe

Binding Raw material

with shrinkwarp plastic

in the Non AC RM

building area

RMs are protected from

external risks

2

No distinct

visualization

between old and

new design for

labelling

Labelling design has been re-standardized by the

demand from 5S implementation. However, the old-

designs from Packaging Materials are still used due to

being the same label as the provider of that Material

(which functions as an administration purposes where it

will be easier to identify with older designs). This

Kaizen allows old designs by adding extra small label

that distinguishes older and newer material acquisition

Providing different

labels on packaging

materials that have two

designs (old design and

new design) and both

are still active status

Packaging materials with old

label designs now conform

with

standard

labelling

3

No identification

and labelling for

every inventory in

the General/Office

Supplies

General/Office supplies consists of various stationaries

ranging from small inventories such as pens to bigger

ones such as a folder container. These inventories have

a lot of quantity that it needed separate cabinets for

specific types of functionality (e.g. papers, pens, pencil,

foldeers are differentiated)

By adding codes and labels, employees will be able to

identify the needed inventory without wasting potential

time loss

Adding Item Codes and

Labels for Non-

Inventory items for


Each supply now have codes

and the storage area conforms

to standard

67

4

No ownership and

its storage area was

not officially

located in the

Warehouse

Location record

One of the standards of 5S also applies to labelling area

ownership. With area ownership, employees

(specifically supervisors) can monitor the condition of a

specific area and report to its ownership if problems

exist. Without an ownership record, it will be difficult

to

Warehouse location

mapping and inventory

for general items plus

added ownership

General items inventory now

has location mapping and PIC

- conforming to standard

5 Dispensing labels

used A4 papers

Using A4 papers for labelling will make worse potential

cost on using excessive paper amount in the future.

Ticket stickers use one A4 paper but are cut in 5

stickers, whereas the old labeling uses the full 1 A4

paper

Removed dispensing

paper label (A4 papers),

used tickets (cut-outs of

A4) instead

Ticket stickers are now used

for dispensing labels

6

Infuse Bottle area

have unbalanced

ratio between

number of pallets

vs. total work

needed = resulting

with extra pallets

Pallets in PT. DVL has already been distributed before

by the supervisors. However, it seems that in General

Use storage, the operators in that area needed more

pallets for its forklift. Since Production Area pallets

(used for lifting finished products) are not used as often

as inventory lifting, 4 pallets are taken and allotted to

Logistic

Allocated unused

wooden pallets from

Infuse Bottle area to

General Use

4 unused wooden pallets are

used effectively in General

Use applications

7

Weigh Area PIC

and employees uses

papers for its

administrative

purposes

Whenever a Weighing-related work is needed (material

weighing, product weighing), data in and out are

recorded by one operator within its own area deep

inside the Production area. However, the record

document needed to be transferred to the Logistic

division after acquiring/reporting a weigh-in. This

Kaizen allows a change of communication flow where

the operator is placed in the Logistic room instead and

are recorded through computers

Weigh Area has

changed every

administration process

to paperless

One Weighing staff works

outside the Weigh Area and

into the admin room to do the

admin processes - with

computers

68

8

No storage area for

small active

materials

Active raw materials have no separate storage area.

These materials are sensitive to many external risks and

can cause chemical failure if are taken into the

Production area carelessly. By adding a caged separate

area within the Raw Material storage room, employees

and operators will need to consult with the

Production/PPIC supervisors if these materials are

needed to be taken out for production.

Changes to storage

shelter for small

materials (Sodium

Bicarbonate, enhancers,

sodium chloride,

paracetamol, aspirin

etc.)

Added an extra caged area for

smaller RM within the Raw

material storage area

9

No records and

working

instructions for

Scaling Procedure

Scaling procedure requires the employees and operators

scale raw materials and finished products. With no

records and working instructions (a master list) future

operators will not be able to accurately carry on the

task. Thus wasting time in having the new employees to

train again on using the scaling procedure

Added a master list for

Scaling procedure

Master list are added for

Scaling Procedure and as a

part of 5S standard

69

6

1 1

0 0

1

2

3

4

5

6

7

8

9



efficiency


efficiency


three variables

Kaizen Activities contribution to three variables in Logistic Department


The Logistic Department are located at the furthest site from the overall layout of

the plant. The department has several storage areas that provides many inventories

for every departments. In addition, the Logistic department also associates with

numerous amounts of vendors, third-parties, other companies and authorities that

come and procure/deliver inventories for PT. DVL. The following graph

illustrates the allocation of each Kaizen to the contribution of the three variables.


in the Logistic Department

With many visitors come and go, each storage area has been given a PIC that

organizes their respective area. However, before Kaizen is implemented, there has

been no visual record on the ownership of each storage. Thus, through complying

to the standard of having an Area Ownership it will provide a better visual record

for other employees to see when entering the storage area. From the overall graph

above, the following table shows all 7 out of 9 activities that conform to standards

made. As mentioned from the Production department, if there are activities that do

70

not conform to standard, the action plan for the activities will follow the three

analyses, whether:




can reduces cost/lead time,



Table 4.6 – Kaizen activities in the Logistic Department that comply to standard

No. Kaizen Activity

Standard

Document

Referral

Recommendation

1

Binding Raw material with

shrinkwarp plastic in the Non

AC RM building area

Doesn‟t comply

with any

standard

Improve standard to


as it can bring visible result

in the future

2

Providing different labels on

packaging materials that have

two designs (old design and

new design) and both are still

active status

APPENDIX B

Product

Labelling

3

Adding Item Codes and Labels

for Non-Inventory items for


APPENDIX B

Product

Labelling

4

Warehouse location mapping

and inventory for general

items plus added ownership

APPENDIX A

WI-04.11-002

5

Removed dispensing paper

label (A4 papers), used tickets

(cut-outs of A4) instead

APPENDIX B

Product

Labelling

6

Allocated unused wooden

pallets from Infuse Bottle area

to General Use

APPENDIX C

WI-04.11-004

7

Weigh Area has changed every

administration process to

paperless

Doesn‟t comply

with any

standard

Improve standard to



in the future

8

Changes to storage shelter for

small materials (Sodium

Bicarbonate, enhancers,

sodium chloride, paracetamol,

aspirin etc.)

Doesn‟t comply

with any

standard

Improve standard to



in the future

71

From the 9 Kaizens above, 4 of them are involved in redesigning/making new

labels or identification for inventories within the department. In a long run, it will

provide a more organized flow whenever an item is delivered in or out of the

storage. From each Kaizen, the following points show possible long-run potential

benefits if the Kaizen continues step by step:

Kaizen #2, 3 and 9 will provide an easier record-keeping system for future

employees. Given that the position for each staff is always rotated yearly,

having a master list, clear product labelling and codes will provide an

easier understanding for the staffs that are rotated into a new position that

they have no time to learn. This will give extra time from not having to

learn from scratch and allow them to perform more organized.

Furthermore, external visitors can also easily find and contact the person

in charge through these Area Ownership forms.

Kaizen #4 provides a record that can show all staffs from every

departments on who are in charge for the General Storage and Engineering

Spare Parts storage. These two storage areas are always active since many

staffs from every department (and specifically the technicians from the

Engineering department) come to procure specific types of inventories.

With a clear mapping, the PIC of that shift can deliver the requested

materials with better and organized flow.

Kaizen No. 1, 7 and 8 are implementations that do not follow any standards.

Despite so, there is a potential of time and/or cost efficiency for the future.

Immediate benefit for these 3 Kaizens is impossible to be analyzed, but if it is

continued to be maintained and a NEW Standard is issued,

Even with having only 9 Kaizens in the department, all 6 Kaizens that complie to

standards will allow other staffs and outside parties to have a better visualization

on the Storage area and for the Logistic Department‟s work area itself. All of

them will provide benefits in the future implementation if the Kaizen itself is done

9 Added a master list for Scaling

procedure APPENDIX A

WI-04.11-002

72

gradually over the year in terms of saving time from distance travelled or

unnecessary administration processes – but maintaining all of it, is necessary to

view any results in the future. Future benefits include a better communication

flow, a constructive working process for all staffs and an accurate labelling for all

area. Immediate results, however, could only be yielded by 1 Kaizen as shown on

the next sub-chapter.


Despite having 9 Kaizens implemented in the Logistic Department, there are no

real Kaizens that could give a potential big time saving in the immediate future.

As stated from the previous chapter, every Kaizenin the Logistic department

provides a standard-conforming nature and it will not give a substantial amount of

time-saving activity. Kaizen No. 3 provides a potential time saved that could be

calculated in a year. The table below shows the value of the time saved.

Table 4.7 – Kaizens that save potential time loss in the Logistic Department

Kaizen No. 3 is an implementation on adding item codes and labels for the Non-

inventory items in the General/Office supplies storage. Before the Kaizen was

implemented,


For cost-saving Kaizen, the Logistic Department cannot give a huge leap of cost-

efficient activity. However, through continuous implementation of this one

Kaizen, it can save the company a considerable amount of money-saved. In

addition, it can also move the company to a paperless development.

Kaizen


3 Adding Item Codes and Labels for

Non-Inventory items for


Minimal Potential Time Loss on

finding the required inventory = 0.5

hours per day


73

Table 4.8 – Kaizen that saves potential cost in the Logistic Department

There are also Kaizens that provide immeasurable value towards the cost

efficiency on Logistic department. The Kaizens in the logistic department focuse

more on continuous and gradual improvement over a long span of period. This

will provide gradual improvements in the overall performance of logistic staffs as

the Kaizens give small boosts yet steady increments every day.

4.2.3 Implementation in Department of Quality Control

A. Findings

For the Quality Control department, its staffs acquired a total of 16

findings/problems in their area. From there they form the necessary kaizens to

counter the problems. The QC department mostly has no fixed location for storing

any machine parts and work tools. The Kaizens formed were implemented to

conform with the standard regarding shadowboxes and 5S Sort and Standardize.

Below is the list of findings for the Quality Control Department.

Kaizen


6 Removed dispensing labels (A4

papers), used tickets (cut-outs of A4)

instead

Tickets = 5 cuts from A4 paper

In 1 rim = 2,500 tickets

Original label = 1 A4 paper

In 1 rim = 500 labels

Save 4 rim of paper, or 1 box (5

rims) = Rp. 200,000

POTENTIAL TIME SAVED Rp. 200,000 in one cycle – 2

cycles/year

74

Table 4.9(a) – Kaizen Activities in the Quality Control Department.

No. Findings Effect

1

No Shadowbox for weighing tools and machine

equipments in QC instruments area

Founded untidy work area with spare parts laying on work bench. With no

shadowbox employee safety and health can have risks that will affect directly to

their potential time loss on performing their daily tasks

2 No stock labels in the Microbiology lab storage

There are no identification and labels for stocks in the Microbiology lab according

to standard. There has been an added labelling standard of 5S where inventory

stocks are labelled to see whether the stock needs to be re-stocked or not. This

labelling is a simple Red – Yellow – Green sticker to the inventory area that

separates according to the amount of stock left.

3 Used papers in the calculation of utility HPLC

tools

Calculation for Utility HPLC tools was using papers. This used calculators and has

no database/spreadsheet data in the computer. It is slower and uses more time than

calculating through database in the computer

4 No storage for Vaporub analysis result

Vaporub analysis results were only stored that obstructs another staff‟s path. This

makes maneuvering from one place to another difficult and will have possible

accidents from tripping – hence wasting time and possible material break

5 No visualization and tidiness in the Glass lid

storage drawer

Glass lid storage drawer was founded untidy and all sizes for Glass lids were out of

place

6 There is no storage for water inspection

equipment Water inspection equipment was founded placed in the work bench

75

7 No lists and records for ATK items in the

document cabinet

ATK documents were not labeled. Without any document labelling, employees

will have difficulties in finding the documents. In turn, this will create excessive

time waste and decrease productivity and performance. The standard labelling will

allow flow organized search on the records of the cabinet

8 Instrument cable was not properly laid to

prevent safety violations

Employees trip over tangled instrument cable. This makes employees either get

through accidents or smash over the instrument and break it. This costs money to

fix and possible time waste on healing up if the staff got into an accident

9 There are no stock indications in the glassware

storage

Glassware storage have no visualization on the number of remaining stocks.

Glassware are often used repetitively, and need constant reminder of when to

restock. QA and QC uses the same stocking monitor method – since this is the

standard of 5S from PT. DVL

10 No labels or identifications for each pipettes in

its storage

Pipettes storage was not labelled according to its sizes. Without proper labelling, it

will create confusion for new employees when they try to find specific sizes.

Finding the specific sizes can waste time.

11 There is no safe transportation method for the

liquid reagents

Liquid reagents were founded dropped accidentally when transporting it through a

small container. QC needed a transportation method to carry the liquid reagents.

Manual carrying have proved to get 2 accidents where the reagents spill and break

– costing money and time waste on cleaning

12 Lab coats have no labels

Lab coats are mixed up between employees. The lab coats are always taken and left

in the lab only – the staffs cannot take it home. Each staff has been given a

personal lab coat, and it is better to be labelled to prevent any conflict and time

waste between 2 staffs fighting or finding their lab coats.

13 Liquid reagents have no identities and labels

Employees cannot identify the differences between each liquid reagents. Reagents

in the Reagent Storage Cabinet was founded untidy and unorganized. As part as

conforming to one of the 5S standard where documents are needed to be labelled,

this will allow future employees to find specific easier and prevent potential time

loss on searching

14 There are no visualization for product storage in

the PM specimens

Product storage in the PM specimens needed visualization and labelling. PM

Specimens have specific analysis results that QC staffs only know. But since the

products are heaps, color range and alphabetical orders is better to prevent time

waste in getting the wrong specimen

15 Dust mask was used for any process related to

sterile quality controlling. Afterwards, are

Employees throw away Dust Masks after 1-time use. These Dust masks are

periodically changed and repurchased. Staffs of QC department needed daily entry

76

thrown away and not reused.

on the sterile production areas and need masks every entry. But the staffs always

throw away the dust masks afterwards. This costs money.

16 Micrometers are used for measuring dimensions

of every materials

Small-sized materials are founded difficult to be measured with micrometer. In

addition, it is time consuming and inaccurate. Hence using a digital caliper will

increase the accuracy and prevent further time loss from trying to measure smaller

and harder-to-handle materials

77


The Quality Control staffs have one of their daily routine on monitoring and meeting

with the Production Department to keep all schedules and productions up to date and

follow according to the department‟s orders. Through this activity alone, the QC staffs

have founded several problems that could be improved on – such as replacing the

maskers used whenever they enter the sterile room. In addition to their daily monitor,

administration jobs are not far from the QC‟s main line of duty. There are several

findings that violate several standards and some have potential to improve the QC‟s

overall work performance. Through the table above, all 16 Kaizen activities of the QC

department have either standard-conforming nature to its functionality, as well as new

additions that improves the staff‟s work. As such, the documents related with the

department findings are from APPENDIX C that compiles all related 5S standards. The

next table shows the implementation result from each Kaizen activity that was

implemented for each findings.

78

Table 4.9(b) – Kaizen Activities in the Quality Control Department.


1

No Shadowbox for

weighing tools and

machine equipments in

QC instruments area Founded untidy work area with spare parts

laying on work bench. With no shadowbox

employee safety and health can have risks

that will affect directly to their potential

time loss on performing their daily tasks

Make a Shadow box

for weighing tools

and every instrument

equipment

Shadowbox provided a neat workbench

and conforms to 5S standard

2 No stock labels in the

Microbiology lab storage

There are no identification and labels for

stocks in the Microbiology lab according

to standard. There has been an added

labelling standard of 5S where inventory

stocks are labelled to see whether the stock

needs to be re-stocked or not. This

labelling is a simple Red – Yellow – Green

sticker to the inventory area that separates

according to the amount of stock left.

Provide color

differences based on

storage temperature

for item stock labels

in the Microbiology

lab

There is now identification and

visualization for item stock labels -

conforming to standard

3

Used papers in the

calculation of utility

HPLC tools

Calculation for Utility HPLC tools was

using papers. This used calculators and has

no database/spreadsheet data in the

computer. It is slower and uses more time

than calculating through database in the

computer

Make Calculation of

Utility HPLC tools in

excel HPLC

computers

Calculations are now done in

spreadsheets in Excel

79

4 No storage for Vaporub

analysis result

Vaporub analysis results were only stored

that obstructs another staff‟s path. This

makes maneuvering from one place to

another difficult and will have possible

accidents from tripping – hence wasting

time and possible material break

Make a temporary

storage place for the

results of the bulk

Vaporub analysis

Temporary storage area for temporary

items are now added - conforms to 5S

standard

5

No visualization and

tidiness in the Glass lid

storage drawer

Glass lid storage drawer was founded

untidy and all sizes for Glass lids were out

of place

Make a divider on the

glass lid storage

drawer

Divider provided better visualization

and tidier drawer and conform to

standard

6

There is no storage for

water inspection

equipment

Water inspection equipment was founded

placed in the work bench

Make storage of

water inspection

equipment (pH

meter)

There is now a storage area for water

inspection equipment

7

No lists and records for

ATK and related

document items in the

document cabinet

QC have so many documents and have not

been properly labelled. According to the

5S standard of labelling Odners (folders),

the staffs will have an easier time in

finding specific documents with their own

cabinets. Labelling also help new

employees or other staffs that needs to see

QC databases and records. ATK

documents were not labeled. Without any

document labelling, employees will have

difficulties in finding the documents. In



performance. The standard labelling will

allow flow organized search on the records

Make an ATK item

name list on the ATK

document cabinet.

Documents are stored

in the same category

(WI, FS, SOP etc.) in

a cabinet

ATK storage cabinet now has all items'

name recorded in a list - conforming to

standard

Red – Rejects Yellow – Temporary

80

of the cabinet

8

Instrument cable was not

properly laid to prevent

safety violations

Employees trip over tangled instrument

cable. This makes employees either get

through accidents or smash over the

instrument and break it. This costs money

to fix and possible time waste on healing

up if the staff got into an accident

Smooth out the

layout of the

instrument cable

The instrument cables now are taped

neatly into one single strand

9

There are no stock

indications in the

glassware storage

Glassware storage have no visualization on

the number of remaining stocks. Glassware

are often used repetitively, and need

constant reminder of when to restock. QA

and QC uses the same stocking monitor

method – since this is the standard of 5S

from PT. DVL

Make a list of stocked

glassware in stock

Glassware stock now has visualization

on when to restock

10

No labels or

identifications for each

pipettes in its storage

Pipettes storage was not labelled according

to its sizes. Without proper labelling, it

will create confusion for new employees

when they try to find specific sizes.

Finding the specific sizes can waste time.

Identification of the

volumetric pipette

and goiter pipette

There are identifications and labels

now per volumes in the pipette storage

11

There is no safe

transportation method for

the liquid reagents

Liquid reagents were founded dropped

accidentally when transporting it through a

small container. QC needed a

transportation method to carry the liquid

reagents. Manual carrying have proved to

get 2 accidents where the reagents spill and

break – costing money and time waste on

cleaning

Use of plastic pallets

in the liquid stock

reagent storage room

Liquid stock reagents now can safely

be transported to other places

12 Lab coats have no labels Lab coats are mixed up between Put labels and Lab coats now have labels - plus it

81

employees. The lab coats are always taken

and left in the lab only – the staffs cannot

take it home. Each staff has been given a

personal lab coat, and it is better to be

labelled to prevent any conflict and time

waste between 2 staffs fighting or finding

their lab coats.

identity on the lab

coat hanger

conforms to standard

13 Liquid reagents have no

identities and labels

Employees cannot identify the differences

between each liquid reagents. Reagents in

the Reagent Storage Cabinet was founded

untidy and unorganized. As part as

conforming to one of the 5S standard

where documents are needed to be

labelled, this will allow future employees

to find specific easier and prevent potential

time loss on searching

Put labels and

identities for liquid

reagent racks in the


Reagents now have visualizations -

conforms to standard

14

There are no visualization

for product storage in the

PM specimens

Product storage in the PM specimens

needed visualization and labelling. PM

Specimens have specific analysis results

that QC staffs only know. But since the

products are heaps, color range and

alphabetical orders is better to prevent time

waste in getting the wrong specimen

Color range

preparation & PM

specimens that are

often used per

product placed on the

bantex in alphabetical

order and stored in a

closet

Products now have color and

alphabetical visualization when stored

in its closet - conforms to standard

15

Dust mask was used for

any process related to

sterile quality controlling.

Afterwards, are thrown

away and not reused.

Employees throw away Dust Masks after

1-time use. These Dust masks are

periodically changed and repurchased.

Staffs of QC department needed daily

entry on the sterile production areas and

need masks every entry. But the staffs

always throw away the dust masks

afterwards. This costs money.

Using a more

economical mask

(from Dust Mask to

Surgical Mask)

Surgical Masks now replaces Dust

masks - it can be easily replaced and

cheaper

82

16

Micrometers are used for

measuring dimensions of

every materials

Small-sized materials are founded difficult

to be measured with micrometer. In

addition, it is time consuming and

inaccurate. Hence using a digital caliper

will increase the accuracy and prevent

further time loss from trying to measure

smaller and harder-to-handle materials

Measurement of

dimensions (length,

width, diameter,

thickness) with a

small size (mm)

using a micrometer is

replaced by using a

digimatic caliper

Digimatic Calipers are now used for

measuring smaller materials

83

8

1 1 2

0

2

4

6

8

10

12

14

16



efficiency


efficiency


three variables

Kaizen Activities contribution to three variables in Quality Control Department


The QC Department is the untidiest workplace out of all departments. From all 16

Kaizens that were implemented, the department had improvements that mostly

comply to the standards of 5S. If there are activities that do not conform to

standard, the action plan for the activities will follow the three analyses, whether:

1. The Kaizen activity is not necessary to conforming any standard since it is

either a one-time installation or no further benefit can be gained,





As such, the following graph shows the overall contribution for each Kaizen

activity towards the three variables of the thesis.


in the Quality Control Department

84

The graph above shows that there are 2 Kaizen Activities that do not follow any

variables. Table 4.10 shows Kaizen #6 and #8 have no standard conforming

nature to their implementation result. Both do not follow any existing standard

and do not provide an immediate visible result from the implementation. Through

constant implementation into the future, these two activities may provide a benefit

but the only benefit that could be taken is to save a miniscule amount of time from

saving the staffs on fixing any cable entanglement. This however could prove a

safety improvement.

Table 4.10 – Kaizen activities in the QC Department that comply to standard

No. Kaizen Activity

Standard

Document

Referral

Recommendation

1

Make a Shadow box for

weighing tools and every

instrument equipment

APPENDIX C FS-04.11-009

2

Provide color differences

based on storage temperature

for item stock labels in the

Microbiology lab

APPENDIX C

WI-04.11-009

3

Make Calculation of Utility

HPLC tools in excel HPLC

computers

Doesn‟t comply

with any

standard

Improve standard to


as it can reduce time (see

Table 4.11)

4

Make a temporary storage

place for the results of the bulk

Vaporub analysis

APPENDIX C

WI-04.11-003

5 Make a divider on the glass lid

storage drawer APPENDIX C

WI-04.11-005

6

Make storage of water

inspection equipment (pH

meter)

Doesn‟t comply

with any

standard




7 Make an ATK item name list

on the ATK document cabinet APPENDIX C FS-04.11-009

8 Smooth out the layout of the

instrument cable

Doesn‟t comply

with any

standard




9 Make a list of stocked

glassware in stock

Doesn‟t comply

with any

standard

Improve standard to



in the future

85

All 8 Kaizens from the table above are improvements made that allow the staffs to

work in a more organized and structured flow. Each activity has benefits that

range from providing visual aid by creating color-codes to adding records or lists

that could help the staffs identify a specific document faster. Through observation,

the following points explain how each Kaizen benefits the staffs of QC

department and possibly other departments as well.

Kaizen #1, 2, 7, 12 and 13 are activities that comply to one of the 5S

standards which is Set-in-Order. These Kaizens are activities require the

staff to label their tools in order to provide an organized work

environment. These labels are in the form of:

o Creating a shadowbox (Kaizen #1) that puts every tools and

instruments into a specified location within a drawer or a cabinet.

For example, every working tool such as pen, scissor, clipper,

stapler, tape, etc. is firstly replicated into a thin foam that is then

10 Identification of the volumetric

pipette and goiter pipette

Doesn‟t comply

with any

standard

Improve standard to



in the future

11

Use of plastic pallets in the

liquid stock reagent storage

room

Doesn‟t comply

with any

standard

Improve standard to



in the future

12 Put labels and identity on the

lab coat hanger APPENDIX C FS-04.11-009

13

Put labels and identities for

liquid reagent racks in the



14

Color range preparation & PM

specimens that are often used

per product placed on the

bantex in alphabetical order

and stored in a closet

APPENDIX C

WI-04.11-005

15

Using a more economical

mask (from Dust Mask to

Surgical Mask)

Doesn‟t comply

with any

standard

Improve standard to



Table 4.12)

16

Measurement of dimensions

(length, width, diameter,

thickness) with a small size

(mm) using a micrometer is

replaced by using a digimatic

caliper

Doesn‟t comply

with any

standard

Improve standard to



in the future

86

cut into the shape of the tools. This foam that has been cut with

shapes of the tools within should be the same size as the place

where it would be glued in (in this case, every working tools are

stored into the staff‟s personal table drawer). Through cutting the

shapes of the tools into the foam, and then placing the foam into

the table drawer, the staff of that work table will be able to place

their own tools into the drawer. This creates an organized way to

store every working tools so that whenever the staff need to take

the tools out, it will be easier and faster since it will be visually

visible whether the tool is in its place or not.

o Creating a re-stocking color-based identification (Kaizen #2)

where a colored sticker is placed into a storage of a material to

indicate whether there is enough stock in the inventory or whether

it is needed to re-stock the material. In this case, Kaizen #3 adds a

color indicator for a testing-purpose material in the Microbiology

Lab. This testing-purpose material are categorized depending with

its amount of temperature the material can withstand from the

testing. Since the material is one-time used, restocking is needed.

The colors used to indicate restocking are categorized by the colors

Red, Yellow and Green. By adding a color-based sticker to the

material stacks, the staffs can see the line whether it is needed to

restock (if it‟s Yellow), or needed to be restocked immediately

(when it‟s Red) or no restocking is needed (when it‟s still Green).

o Creating a master list that contains item name, item code and other

information regarding the item of the master list (Kaizen #7, 12

and 13). This master list is always located near or within the

storage area of the item(s) that are being listed. From the three

Kaizens, the master list records and organizes QC department‟s

document folders in a cabinet, lab coats of each staff and a material

used for testing (liquid reagents) into its own storage. With a

master list, finding the right item will be faster and easier and also

87

organized, with this it will provide a structured flow with no

potential time loss.

Kaizen #4 adds a temporary storage for the bulk result from the production

of Vaporub analysis. According to the 5S standard of “Sort

Implementation” (see the attached document for Kaizen #4), any

equipment, tools, documents or materials that needs a temporary storage

needs to have its own area (in this case a TPS area – tempat penyimpanan

sementara). Since the product of Vaporub bulk in the QC department is

the result of extensive research and analysis for Research and

Development purposes, the bulk has been stored temporarily without any

official area to store it in. Before the implementation of Kaizen #4, the

Vaporub analysis results had no area to temporarily store before

continuing to the next RnD process. Kaizen #4 allows a temporary storage

area for the Vaporub analysis – this will prevent any staffs that were not

part of the RnD team (e.g. janitor or new interns) to mistakenly take the

Vaporub analysis result into other places (i.e. trash or misplaced it

somewhere else).

Kaizen #5 and #14 comply to the standard of organizing documents into

folders that are stacked with coding/visual indications. According to the

Kaizens‟ documents that are being complied to, they use standardized

labels and codes with a patterned design within its folders. This allows

potential time saves from employees wasting excessive time on finding a

specific file and/or document.

Overall. All 8 out of 16 Kaizen activities have helped fixed the problems on

Quality Control‟s lack of proper standard procedure in document storage and

labeling.


Kaizen activities in the Quality Control Department seem to mostly help the

department on keeping their standard of procedures in check. However, this does

not completely imply that there are no room on improvements for time efficiency.

Table 4.11 shows two Kaizen activities that provide potential time loss.

89

Table 4.11 – Kaizens that save potential time loss in the QC Department

Kaizen #3 saves the staffs on calculating and recording Utility (a variable that the

Quality Control monitors in their production control) excessive amount of time

from using manual method of calculation. With a better and faster alternative in

the Excel computer, the Utility HPLC records can be administered to other staffs

as well. The reason for calculating the HPLC Utility in the manual at first is

because at the end of every calculation, the HPLC records are administered

throughout the Production department which in turn will be used in the production

process. However, with the addition of new facilities inside the production office,

the QC staffs are recommended to calculate through excel AND transfer digitally

as well. All in all, not only saves times from the average calculation in 6 minutes

per shift, it will also improve the flow of work in particular fields of Quality

Control.

Kaizen #13 puts labels and identities for reagents in the QC‟s storage room. Since

the QC staffs use these liquid reagents almost every time in their quality testing

processes, finding the right reagent requires at most 6 minutes of searching for the

staffs. By adding labeling and identities, staffs as well as future staffs can quickly

respond and find the correct reagent, thus saving a potential of 78 hours of

manhours in a year.


With the addition of having potential time saving, the QC department also

provides cost saving efficiency through several Kaizens within the big list above.

Kaizen


3 Make Calculation of Utility HPLC

tools in excel HPLC computers

Potential time loss on calculating

manually = 0.1 hours/shift =

78hrs/year

13

Put labels and identities for liquid

reagent racks in the reagent storage

room

Potential time loss on finding the

correct reagent without labelling =

0.1 hours/shift = 78hrs/year


90

However, there is only one that provides real solid data that could be calculated.

Despite having this problem, there are some immeasurable values that could be

taken for future long-period implementation.

Table 4.12 – Kaizens that savepotential cost in the QC Department

Table above shows the immediate and visible result of implementing Kaizen #15.

During the daily monitor routine, QC staffs are expected to wear sterile masks

whenever they enter the sterile room. However, the masks are always replaced

with new ones every end of the routine. Thus, changing the Dusk Mask into a

normal Surgical Mask (the mask that covers the nose and mouth)

4.2.4 Implementation in Department of Quality Assurance

A. Findings

QA Department‟s workload is divided by two parts; first heavily relies on

documentation and administrative and the other work within the production floor.

There are a total of 14 Kaizens implemented in the department. These Kaizens

were implemented due to the findings that are mostly regarding documentation

placement and storage, thus the QA department needed to conform with the set

standard. Below is the table that lists all findings from the Quality Assurance

department.

Kaizen


15

Using a more economical mask

(from Dust Mask to Surgical

Mask)

Dust mask = Rp. 1,625/pc

Surgical Mask = Rp. 320/pc

Use 6 masks/day (3 shifts + 2 workers

going in and out of Production area)

In a year = 300 (working days/year) x 6

= 1800 masks/year

Dust = Rp. 2,925,000

SM = Rp. 576,000

POTENTIAL COST SAVED/year Rp. 2,349,000

91

Table 4.13(a) – Kaizen Activities in the Quality Assurance Department.

No. Findings Effect

1 There are no cabinets for storing documents

Documents are only stored on work bench. With a new document cabinet in QA (since

QA constantly create new documents each year as record-keeping), employees will feel

easier to access them. But without any document labelling, employees will have

difficulties in finding the documents. In turn, this will create excessive time waste and

decrease productivity and performance. The standard labelling will allow flow

organized search on the records of the cabinet

2 No shadowbox for storing tools

Founded calibration tools placed in the work area, Shadowbox is added for calibration

tools and this will create a faster search time – hence saving potential time loss. But

just adding the shadowbox is not enough – the staffs should know that Kaizen is all

about maintaining – thus they have to have the habit of storing the tools again.

3 No lockers installed in QA

QA staffs put their belongings on the work area. QA is the department in PT. DVL that

has constant help from interns and new employees. By adding lockers, it will create the

sense of safety for each staff on their personal belongings, as they continue their work

every day – since with this sense of safety they can focus on their job at hand without

distraction, which basically improves performance

4 Papers were used to distribute analysis results

Other departments needed to view analysis reports from QA. Newer employees and

interns are used to bring requested documents into places on other departments. This is

time wasting as the staff has to travel – thus having a computer database for production

analysis result can prevent this

5 Documents have no neat labelling

Documents were only placed untidily in the cabinet. According to the 5S standard of

labelling Odners, the staffs will have an easier time in finding specific documents with

their own cabinets. Labelling also help new employees or other staffs that needs to see

QA databases and records.

6 Documents have no lists of document names

and records

There are no records for each documents in the cabinet. Documentation is important in

the QA department, and since labelling and records have not been set as the 5s standard

in QA documentation storage, this had staffs waste times in searching for specific types

92

of documents. With the Kaizen 5 visual identification for folders and Kaizen 6 as the

labelling, it will prevent more time loss from staffs finding their desired document.

7 No storage area for cleaning tools

Cleaning tools were placed in the corner of the storage room with no official storage

area for them This obstructs the way for other staffs and can potential harm them with

tripping or other accidents. This in turn will make them waste time in tidying up or (if

it gets worse) healing up.

8 There are no fixed area for storing big tools

and equipment

Big tools and equipment from QA department are placed in the corner of the storage

room. Without proper way and access for the equipment, it will take extra time to take

them out or put it back in. Using Kaizen floor marking standard 5S, it will create a

neater and organized way of storing these equipment – and have staffs an easier time to

take them out when needed.

9 No visual tracking on paper stock

Employees do not know when to ask for stocks of papers from Logistic. Similar to

other stocking monitor standard from other department (QC department), this Kaizen

uses the three colours as the indicator for restocking papers when needed. If there are

no indicators, there will be times when the staff will have to re-issue new stocks of

paper in a short period of time. This could actually ruin the planning of that day – and

the staff had to reschedule every other work to adjust with the new task of reissuing

new papers suddenly.

10 There are no storage box for storing QDR and

complaint forms

Complaint forms and QDR can be found piled with other documents in the cabinet -

these forms need separate area since the QDR forms are used daily. With no proper

labelling and record keeping and no individual storage, the staffs will have harder time

in finding specific QDR forms.

11 CAPA External Audit are tracked through

paper

CAPA External Audit are tracked through paper resulting with constant paper changed.

With Macro Excel (computer) system reminder, related staffs can save potential loss on

using excessive papers in making letters for the announcement. In addition, before this

Kaizen the HR department staffs had to travel to other departments to find and inform

the managers regarding Audit schedules

12 Infusion process only produces 1 batch each

cycle

NHI forecast for Infusion bottles demanded for an increase in Production capacity -

need to increase batch since the forecast was not enough to fulfill the demand from

NHI

93

13 UDT test have no records for employees to see

when starting a new cycle

Employees have to conform with QA manager to see UDT test result. Thus losing time

in travelling from one department area to another and resulting in potential time loss.

By adding a record that is set within the QA manager‟s work area, employees can

directly report and wait for the manager to check in after.

14 There are no cabinets for storing documents

With better and organized storage for documents, potential time loss on searching

specific document can be prevented. This will allow employees to search the needed

folder. In addition, other departments have close relationship with the QA departments

in terms of finding production data – with proper labelling and storage this will allow

other departments to find specific documents easier – preventing time loss in searching

excessively.

94


The Quality Assurance department and its 14 findings provide information on what

Kaizen activities are needed and its impacts if no actions are taken to fix these

problems. Most of the findings from the list above are findings that focuses on the need

to repair the staff‟s administrative and work processes. With all of these findings, it can

be concluded that the staffs have not yet achieved a better work performance in their

daily activities. Through counteracting the problems with Kaizen, it could yield better

upgrade to the efficiency in their performance. All in all, most of the findings require

the staffs to follow standards from Lean Manufacturing exclusively to 5S standards.

Documents related with the department are from APPENDIX C that compiles all

related 5S standards.

95

Table 4.13(b) – Kaizen Activities in the Quality Assurance Department.


1

There are no

cabinets for storing

documents

Documents are only stored on work bench.

With a new document cabinet in QA (since

QA constantly create new documents each

year as record-keeping), employees will

feel easier to access them. But without any

document labelling, employees will have

difficulties in finding the documents. In



performance. The standard labelling will

allow flow organized search on the records

of the cabinet

Documents are stored in

the same category (WI,

FS, SOP etc.) in a

cabinet

Every documents are now stored according

to corresponding labels - conforming

standard

2 No shadowbox for

storing tools

Founded calibration tools placed in the

work area, Shadowbox is added for

calibration tools and this will create a

faster search time – hence saving potential

time loss. But just adding the shadowbox

is not enough – the staffs should know that

Kaizen is all about maintaining – thus they

have to have the habit of storing the tools

again.

Installed a shadowbox

for Calibration tools

Calibration tools now have a neat storing

place - part of 5S standard

3 No lockers installed

in QA

QA staffs put their belongings on the work

area. QA is the department in PT. DVL

that has constant help from interns and

new employees. By adding lockers, it will

create the sense of safety for each staff on

Installed a locker for

personal belongings

Personal belongings now can be stored

safely

96

their personal belongings, as they continue

their work every day – since with this

sense of safety they can focus on their job

at hand without distraction, which

basically improves performance

4

Papers were used to

distribute analysis

results

Other departments needed to view analysis

reports from QA. Newer employees and

interns are used to bring requested

documents into places on other

departments. This is time wasting as the

staff has to travel – thus having a computer

database for production analysis result can

prevent this

Saved the production

data sheets into files in

the computer for easy

sharing

Every department now can view QA

reports through emails and file sharing

drive

5 Documents have no

neat labelling

Documents were only placed untidily in

the cabinet. According to the 5S standard

of labelling Odners, the staffs will have an

easier time in finding specific documents

with their own cabinets. Labelling also

help new employees or other staffs that

needs to see QA databases and records.

Added visual

identification at the

document storage

Document storage now have proper

labelling according to standard

6

Documents have no

lists of document

names and records

There are no records for each documents in

the cabinet. Documentation is important in

the QA department, and since labelling and

records have not been set as the 5s

standard in QA documentation storage,

this had staffs waste times in searching for

specific types of documents. With the

Kaizen 5 visual identification for folders

and Kaizen 6 as the labelling, it will

Added List of

documents at the

document storage

Document storage now have lists and

records

97

prevent more time loss from staffs finding

their desired document.

7 No storage area for

cleaning tools

Cleaning tools were placed in the corner of

the storage room with no official storage

area for them This obstructs the way for

other staffs and can potential harm them

with tripping or other accidents. This in

turn will make them waste time in tidying

up or (if it gets worse) healing up.

Added cleaning tools

and distributed cleaning

duties daily for each

employees

Cleaning tools can now be stored in its area

and cleaning duties are visualized

8

There are no fixed

area for storing big

tools and equipment

Big tools and equipment from QA

department are placed in the corner of the

storage room. Without proper way and

access for the equipment, it will take extra

time to take them out or put it back in.

Using Kaizen floor marking standard 5S, it

will create a neater and organized way of

storing these equipment – and have staffs

an easier time to take them out when

needed.

Managed all big tools

and equipment into one

storage room with lines

as separators

Tools and equipment are stored within

their respective area with lines

9 No visual tracking

on paper stock

Employees do not know when to ask for

stocks of papers from Logistic. Similar to

other stocking monitor standard from other

department (QC department), this Kaizen

uses the three colours as the indicator for

restocking papers when needed. If there

are no indicators, there will be times when

the staff will have to re-issue new stocks of

Added indicators for

Paper stock (Red -

restock, yellow - take

note to prepare to

restock, green - safe)

Stocks are now visualized and can see

when to restock - conforms to standard

98

paper in a short period of time. This could

actually ruin the planning of that day – and

the staff had to reschedule every other

work to adjust with the new task of

reissuing new papers suddenly.

10

There are no

storage box for

storing QDR and

complaint forms

Complaint forms and QDR can be found

piled with other documents in the cabinet -

these forms need separate area since the

QDR forms are used daily. With no proper

labelling and record keeping and no

individual storage, the staffs will have

harder time in finding specific QDR forms.

Added a storage box for

QDR and Complaint

sample form

QDR and complaint forms now have its

own storage area

11

CAPA External

Audit are tracked

through paper

CAPA External Audit are tracked through

paper resulting with constant paper

changed. With Macro Excel (computer)

system reminder, related staffs can save

potential loss on using excessive papers in

making letters for the announcement. In

addition, before this Kaizen the HR

department staffs had to travel to other

departments to find and inform the

managers regarding Audit schedules

Changed method of

tracking CAPA External

Audit from manual

method to Macro Excel

system reminder

Managers can change audit results in excel

then print without spending excess paper

12

Infusion process

only produces 1

batch each cycle

NHI forecast for Infusion bottles

demanded for an increase in Production

capacity - need to increase batch since the

forecast was not enough to fulfill the

demand from NHI

Changes to the CIP &

SIP process on Non-

Aseptic 1 Mixing line

and Bottle Filling line in the SLI area to every

2 batches (initial=1) for

product campaigns

Daily output 1 batch/day to 2 batch/day

Cooling cycle time 8hrs/cycle to 4hrs/cycle

Prod. Capacity 13,600 b/day to 24,000

b/day

99

13

UDT test have no

records for

employees to see

when starting a new

cycle

Employees have to conform with QA

manager to see UDT test result. Thus

losing time in travelling from one

department area to another and resulting in

potential time loss. By adding a record that

is set within the QA manager‟s work area,

employees can directly report and wait for

the manager to check in after.

Create Comparable

Dissolution Test (UDT -

Uji Disolusi

Terbanding) protocols

and UDT tracking

Employees now can see the record before

doing UDT test without going to manager

100


Similar to the department of Quality Control, the Quality Assurance department

focused more on organizing its document and equipment storage as it poses the

most issue towards conforming to 5S standards. Out of the total 13 Kaizen

activities, 7 were carried out due to the necessity on complying to standards set by

the Operational Excellence division. For activities that do not conform to

standard, the action plan for the activities will be one of three actions, whether:







Table 4.14 – Kaizen activities in the QA Department that comply to standard

No. Kaizen Activity

Standard

Document

Referral

Recommendation

1

Documents are stored in the

same category (WI, FS, SOP

etc.) in a cabinet

APPENDIX C

WI-04.11-005

2 Installed a shadowbox for

Calibration tools APPENDIX C FS-04.11-009

3 Installed a locker for personal

belongings

Doesn‟t comply

with any

standard




4 Saved the production data

sheets into files in the

computer for easy sharing

Doesn‟t comply

with any

standard




5 Added visual identification at

the document storage

Doesn‟t comply

with any

standard

Improve standard to



in the future

6 Added visual identification at

the document storage APPENDIX C

WI-04.11-005

7 Added List of documents at

the document storage APPENDIX C

WI-04.11-005

8

Added cleaning tools and

distributed cleaning duties

daily for each employees

APPENDIX C

WI-04.11-006

101

Similar to standard-conforming Kaizen Activities from QC department, there are

several similarities in the QA department from the Kaizens that are being

implemented. However, the QA department mostly focuses on reorganizing and

improving the existing document and equipment storages.

Kaizen #1, #6, #7 and #10 focus on conforming to the standard of making

labels and ordering document folders and storage. Similar to the QC

department, it is requires staffs compiling their documents according to

their own categories and organizing each category folder into a perfect

patterned look (see the attached document to see the illustration).

Kaizen #2 is the installation of a shadow box for calibration

tools/equipment. Just like the shadow box in the QC department, it is a

Kaizen activity that is mostly done to comply with the standard from one

of the 5S. But, through immeasurable analysis, adding a shadow box can

prevent potential time loss on finding lost Calibration tools. Since by

losing a calibration tool, the department needs to request new ones from

the Logistic department – thus making the whole QA department staff that

works on the Calibration process lose a lot time for waiting.

9

Managed all big tools and

equipments into one storage

room with lines as separators

APPENDIX C

WI-04.11-004

10

Added indicators for Paper

stock (Red - restock, yellow -

take note to prepare to restock,

green - safe)

APPENDIX C

WI-04.11-005

11

Changed method of tracking

CAPA External Audit from

manual method to Macro

Excel system reminder

Doesn‟t comply

with any

standard

Improve standard to


as it can reduce time (see

Table 4.15)

12

Changes to the CIP & SIP

process on Non-Aseptic 1

Mixing line and Bottle Filling

line in the SLI area to every 2

batches (initial=1) for product

campaigns

Doesn‟t comply

with any

standard

Improve standard to


as it can reduce time and

cost (see Table 4.15 and

Table 4.16)

13

Create Comparable

Dissolution Test (UDT - Uji

Disolusi Terbanding) protocols

and UDT tracking

Doesn‟t comply

with any

standard

Improve standard to



in the future

102

Kaizen #8 complies with the standard of 5S from the “Shine” category that

requires the department‟s cleaning tools to be safely stored and free from

obscuring other staffs from their work. This is mainly due to preventing

any health violation that could impact on the staff‟s performance if an

accident happens to stop the staff‟s work time.


There are only 2 solid values that provide potential time efficiency within the QA

department‟s Kaizen list. However, every single Kaizen activity provides

immeasurable value if this Kaizen activity is implemented continuously

throughout the year.

Table 4.15 – Kaizens that saves potential time loss in the QA Department


In terms of cost efficiency, there is only 1 Kaizen that provides a real cost-

efficient improvement. This Kaizen is also registered as one of the Big Kaizens

that gives a huge impact of performance boost in PT. DVL‟s production. Sadly,

Kaizen


11

Changed method of tracking CAPA

External Audit from manual method

to Macro Excel system reminder

Potential Time loss from HR

department on travelling to other

departments for Audit Reminder =

30 minutes/day = 0.5hrs/day (

12

Changes to the CIP & SIP process on

Non-Aseptic 1 Mixing line and

Bottle Filling line in the SLI area to

every 2 batches (initial=1) for product

campaigns

Daily output:

Initial 1 batch/day

Kaizen 2 batch/day

Effect: Increasing Prod. Capacity

13,600 b/day to 21,450 b/day

Change in:

Cooling cycle time

Initial 8hrs/cycle/batch

Kaizen 4hrs/cycle/batch

Save 4hrs/batch (Potential Save

1,200 hrs/year of Production)

POTENTIAL TIME SAVED/year 1,350 manhours

103

Quality Assurance department focused more towards improving the department‟s

environment and organizing skills and thus does not give a lot of immeasurable

values for cost-efficiency.

Table 4.16 – Kaizens that saves potential cost in the QA Department

4.2.5 Implementation in Department of Engineering

A. Findings

The department of Engineering has 3 separate supervisors that work alongside

every other departments. The basic workload for Engineers is as technicians for

every-day utilities such as Air Conditioners, printers, doors, forklift, water

drainage system and others. However, they also provide extensive help on every

production and calibration machines. These also include replacing broken

machine parts, ordering new parts/machines from suppliers and train work labours

and employees to self-sustain their own machine maintenance.

Kaizen


12

Changes to the CIP & SIP process on

Non-Aseptic 1 Mixing line and

Bottle Filling line in the SLI area to

every 3 batches (initial=1) for product

campaigns

Rp. X – Potential cost saved from

having 1 extra batch made/year

POTENTIAL COST SAVED/year Rp. X

104

Table 4.17(a) – Kaizen Activities in the Engineering Department.

No. Findings Effect

1 There are no existing storage for spare parts and

components

Spare parts and components have been stored untidily with no classifications.

This can make the technicians have harder times in finding the desired parts.

PT. DVL has more than 50 machines with thousands of spare parts – and

finding specific parts takes time (way more time) if there are no organized

labelling and storage

2 Documents are not stored neatly according to standard

Documents and forms are not within its categories and are not stored neatly in

a cabinet. Same with other departments in terms of document storage, having

the 5S document storage standard will have the engineering staffs a much

easier and faster time in searching documents – potentially saving time.

3 Water well needed to dispay every WFI standard for

monitoring

Water well didn't provide information other than a simple "turn on" and "turn

off. The water well only used a simple switch and does not provide an

accurate condition of the well. Having an interactive panel (automatic panel)

installed, the technicians can monitor the water well easier and prevent any

risks of recording inaccurate data – since it will need to be re-recorded and

thus wasting time.

4 Lubrication room needed tidying

The lubrication room was not clean with oil slick everywhere. This is an

obstruction for other staffs and technicians and can violate their safety- which

could lead to potential time loss on healing from accidents. Plus finding the

parts can take extra time if it is not properly organized. Labelling are used

according to 5S standard.

5 Engineering department needed an alarm system to

alert every staffs when a technical support is needed

Any accidents or any technical supports needed from other departments have

always been contacted through telephone and handheld radio. This have the

potential of wasting time from trying to connect through the phone or having

the need to replace the handheld radio. A Central Alarm lets the technicians

see which area needs assistance in a shorter time

6 Water hose needed an elbow connector for extending

extra hoses

Cephalosphorin staffs need an extra water-way when washing. The antibiotic

production area requires a separate washing area as their tools and packaging

bottles/vials etc. are separate with other production area. The separation is

needed to prevent any antibiotics mixed in with non-antibiotics products.

105

7 There are no temporary waste disposal area for

Engineering Department

Temporary wastes are disposed to the company's main wasteage area. With

the correct 5S marking (red) and a bin, the technicians can have a waste

disposal area ready whenever – since travelling to the main waste disposal

takes time.

8

The technicians need a realtime indicator whenever SLI

room temperature drops suddenly

SLI production area has no room temperature indicator and alarm. This makes

the technicians unable to monitor the room temperature. With this Kaizen, the

technicians can monitor the room condition through a monitor display that is

connected in the administration room. The monitor display also record real-

time data and this can help the technicians assist any temperature error faster

9

Blowdown steam and water system in the omnical

boiler needs automatic functions to be safer

Blowdown steam and water system in the omnical boiler is still manual. The

technicians will need to open the panel and check each cable to see where the

error is (if an error occurred). Manually consumes more time.

106

10

There are no utility lights as indicators for steam,

compressed water and HPW condition

Operators required an indicator to see the condition for steam, compressed

water and HPW. This is done manually through checking each machines‟

condition – and this takes more time than just simply looking through a light

indicator.

11

There are no timers for the SLI Inspection area lighting

The SLI inspection lights needed a timer to indicate the time to change its

inspection light. This is done manually through the technicians inspecting

each light‟s condition one by one. This takes more time than having an

automatic machine displaying the indications for a change needed.

12

Pressure steam needs a main control to indicate the

machine's overall condition

Operators cannot see the pressure steam's condition since it is done manually.

This have no real-time data recording ability – and there are high possibilities

when the pressure suddenly drops, and the technicians did not see the drop in

real time. When pressure drops, there will be time wastes in trying to fix the

boiler – since production and other departments using the boiler will have to

temporarily halt. Having this Kaizen can help the technicians monitor real-

time data of the pressure from the Boiler.

107

13 Drum hoop and other Solid production machines

needed operational safety manuals

GPS production machines have no manuals. If new employees or a cross-

functional staff uses the machine, they will need a proper training and

understanding before using it – and this uses more time than it should be.

14 Cleaning tools need a storage area

Cleaning tools have been found lying around in the storage area with no fixed

location for storing it. This is obstructing the ways of other staffs when they

enter the storage room. Cleaning tools should be stored according to the

standard since it will have an organized look and prevent further accidents.

15 Cables are not neatly placed and are scattered

Staffs and technicians tripped on the printer cables. This creates accidents

where printers fell. If it persist, the printers may break and costing money

from fixing and time from cleaning.

108


For findings in the engineering department, most of them come from requests made by

other departments. This is mainly due to the fact that the Engineering department staffs

and technicians focusmore on improving either the process or work of the machine

through new installations of parts or improvement on its software. However, there are

some findings that are more on setting the Engineering area to a standard level. There

are documents related with the department: APPENDIX C that compiles all related 5S

standards, APPENDIX F which shows the Kaizen form used when a potential big

Kaizen is involved and APPENDIX F under the forms Improvement Kaizen FS-

10.02-001 that shows 5 big Kaizens from the Engineering Department

109

Table 4.17(b) – Kaizen Activities in the Engineering Department.

No. Findings Effect Kaizen

Activity Implementation Result

1

There are no existing storage

for spare parts and

components

Spare parts and components have been stored

untidily with no classifications. This can make

the technicians have harder times in finding the

desired parts. PT. DVL has more than 50

machines with thousands of spare parts – and

finding specific parts takes time (way more time)

if there are no organized labelling and storage

Rearrange

spare parts and

components per

its category

(ball bearings,

air duct, cpu

etc.)

Spare parts and components now are

stored neatly according to standard

2 Documents are not stored

neatly according to standard

Documents and forms are not within its

categories and are not stored neatly in a cabinet.

Same with other departments in terms of

document storage, having the 5S document

storage standard will have the engineering staffs

a much more easier and faster time in searching

documents – potentially saving time.

Stored Bantex

folders and

files neatly in

the cabinet

according to

the 5S standard

Documents and bantex folders are

now neatly stored with standardized

coding

3

Water well needed to dispay

every WFI standard for

monitoring

Water well didn't provide information other than

a simple "turn on" and "turn off. The water well

only used a simple switch and does not provide

an accurate condition of the well. Having an

interactive panel (automatic panel) installed, the

technicians can monitor the water well easier and

prevent any risks of recording inaccurate data –

since it will need to be re-recorded and thus

wasting time.

Change the

current buttons-

only panel for

the water well

to an

Interactive

Panel

Water well now displays every WFI

standard for technicians to monitor

(pH level, sanitation status etc.)

4 Lubrication room needed

tidying

The lubrication room was not clean with oil slick

everywhere. This is an obstruction for other

staffs and technicians and can violate their

safety- which could lead to potential time loss on

healing from accidents. Plus finding the parts can

take extra time if it is not properly organized.

Rearrange and

tidy up the

lubrication

room neatly

(easy storage

and access)

Lubrication room now are free from

obstructions and safe

110

Labelling are used according to 5S standard.

5

Engineering department

needed an alarm system to

alert every staffs when a

technical support is needed

Any accidents or any technical supports needed

from other departments have always been

contacted through telephone and handheld radio.

This have the potential of wasting time from

trying to connect through the phone or having the

need to replace the handheld radio. A Central

Alarm lets the technicians see which area needs

assistance in a shorter time

Added a

Central Alarm

system

Other department now can contact

the Engineering department and

alerting them at the same time

6

Water hose needed an elbow

connector for extending extra

hoses

Cephalosphorin staffs need an extra water-way

when washing. The antibiotic production area

requires a separate washing area as their tools

and packaging bottles/vials etc. are separate with

other production area. The separation is needed

to prevent any antibiotics mixed in with non-

antibiotics products.

Added an

elbow

connector for

the water hose

in the

Cephalosphorin

washing area

Water hose now can extend further

or connect with other water outlet

7

There are no temporary waste

disposal area for Engineering

Department

Temporary wastes are disposed to the company's

main wasteage area. With the correct 5S marking

(red) and a bin, the technicians can have a waste

disposal area ready whenever – since travelling

to the main waste disposal takes time.

Added a

temporary

waste disposal

area for B3

category Waste

(Liquid/solid)

There are now an area to dispose

waste which conforms to standard

8

The technicians need a

realtime indicator whenever

SLI room temperature drops

suddenly

SLI production area has no room temperature

indicator and alarm. This makes the technicians

unable to monitor the room temperature. With

this Kaizen, the technicians can monitor the

room condition through a monitor display that is

Thermocontrol

installation for

DAQ masters

in AC SLI

Chillers on

The technicians can now monitor

SLI's room temperature through the

thermocontrol display

111

connected in the administration room. The

monitor display also record real-time data and

this can help the technicians assist any

temperature error faster

(Area) AHU B,

AHU C, AHU

D, and AHU E

9

Blowdown steam and water

system in the omnical boiler

needs automatic functions to

be safer

Blowdown steam and water system in the

omnical boiler is still manual. The technicians

will need to open the panel and check each cable

to see where the error is (if an error occurred).

Manually consumes more time.

Installation of

automatic

blowdown

steam and

water systems

in the omnical

boiler

Boiler will be more safe due to the

automatic nature of the system. This

way it can recalibrate itself if

operator forgot to blowdown

10

There are no utility lights as

indicators for steam,

compressed water and HPW

condition

Operators required an indicator to see the

condition for steam, compressed water and

HPW. This is done manually through checking

each machines‟ condition – and this takes more

time than just simply looking through a light

indicator.

Installation of

utility steam

lights,

compressed

water and

HPW in the

CDI area

Operators can now see the condition

of each Steam, compressed water

and HPW through the utility light

112

11

There are no timers for the

SLI Inspection area lighting

The SLI inspection lights needed a timer to

indicate the time to change its inspection light.

This is done manually through the technicians

inspecting each light‟s condition one by one.

This takes more time than having an automatic

machine displaying the indications for a change

needed.

Installation of

timers for SLI

inspector lights

Inspection lights can now be

changed on schedule according to its

timer or an hourmeter

12

Pressure steam needs a main

control to indicate the

machine's overall condition

Operators cannot see the pressure steam's

condition since it is done manually. This have no

real-time data recording ability – and there are

high possibilities when the pressure suddenly

drops, and the technicians did not see the drop in

real time. When pressure drops, there will be

time wastes in trying to fix the boiler – since

production and other departments using the

boiler will have to temporarily halt. Having this

Kaizen can help the technicians monitor real-

time data of the pressure from the Boiler.

Installation of

pressure

control in the

main steam

boiler header

Operators can now monitor the

condition of the pressure steam

through realtime data transmission

from the pressure control. The

technicians can monitor it through

the display.

13

Drum hoop and other Solid

production machines needed

operational safety manuals

GPS production machines have no manuals. If

new employees or a cross-functional staff uses

the machine, they will need a proper training and

understanding before using it – and this uses

more time than it should be.

Implemented

an Operational

Safety manual

on drum hoop /

GPS machines

There is now an Operational Safety

manual for all GPS machines which

is faster for staffs read

113

14 Cleaning tools need a storage

area

Cleaning tools have been found lying around in

the storage area with no fixed location for storing

it. This is obstructing the ways of other staffs

when they enter the storage room. Cleaning tools

should be stored according to the standard since

it will have an organized look and prevent further

accidents.

Hangers for

cleaning tools

Cleaning tools can now be safely

stored and conform to standard

15 Cables are not neatly placed

and are scattered

Staffs and technicians tripped on the printer

cables. This creates accidents where printers fell.

If it persist, the printers may break and costing

money from fixing and time from cleaning.

Created a neat

cable

management

for printers and

data cables

The cables are now neatly stacked in

one bundle – this is much safer even

though there are no standards set

regarding cable management.

114


The Engineering Department procured a total of 15 findings. Most of these

findings are requested by other departments regarding new installations or better

management of machine parts or software. However, there are also installations of

new gimmicks such as alarms or light indications for a better visualization or

safety precaution. If there are activities that do not conform to standard, the action

plan for the activities will be one of three actions, whether:







Table 4.18 – Kaizen activities in the Engineering Department that comply to

standard

No. Kaizen Activity

Standard

Document

Referral

Recommendation

1

Rearrange spare parts and

components per its category

(ball bearings, air duct, cpu

etc.)


2

Stored Bantex folders and files

neatly in the cabinet according

to the 5S standard

APPENDIX C

WI-04.11-005

3

Change the current buttons-

only panel for the water well

to an Interactive Panel

Doesn‟t comply

with any

standard

Improve standard to



in the future

4

Rearrange and tidy up the

lubrication room neatly (easy

storage and access)

Doesn‟t comply

with any

standard

Improve standard to



in the future

5 Added a Central Alarm system

Doesn‟t comply

with any

standard

Improve standard to



in the future

115

There are a total of 9 Kaizens that focus more on complying to standards set by

the OE division. In engineering department, these Kaizens comply with standards

that are also similar to other departments in terms of organizing and labelling

inventories and/or documents.:

Kaizen #1 is an activity that staffs and technicians of the engineering

department organize their tools and equipment storage with neat labels and

proper stacking. This is made with the standard from the Appendix 5S

under the document FS-04.11-009 which illustrates that tools and

equipment storages needed to be labelled and organized for a better flow

of work. By organizing the storage, it will also prevent safety violations.

6

Added an elbow connector for

the water hose in the

Cephalosphorin washing area

Doesn‟t comply

with any

standard

Improve standard to



in the future

7 Added a temporary waste

disposal area for B3 category

Waste (Liquid/solid)

APPENDIX C

WI-04.11-009

8

Thermocontrol installation for

DAQ masters in AC SLI

Chillers on (Area) AHU B,

AHU C, AHU D, and AHU E

APPENDIX F

FS-10.02-001

9 Installation of automatic

blowdown steam and water

systems in the omnical boiler

APPENDIX F

FS-10.02-001

10

Installation of utility steam

lights, compressed water and

HPW in the CDI area

APPENDIX F

FS-10.02-001

11 Installation of timers for SLI

inspector lights APPENDIX F FS-10.02-001

12

Installation of pressure control

in the main steam boiler

header

APPENDIX F

FS-10.02-001

13

Implemented an Operational

Safety manual on drum hoop /

GPS machines

Doesn‟t comply

with any

standard

Improve standard to



in the future

14 Hangers for cleaning tools APPENDIX C

WI-04.11-006

15

Created a neat cable

management for printers and

data cables

Doesn‟t comply

with any

standard

Improve standard to



in the future

116

Kaizen #7 also falls on complying with the standard of 5S which requires

the staffs of engineering department create a temporary waste disposal

area where the staffs can discard temporary wastes. By having a temporary

waste area, movements from discarding the waste from the temporary area

into the main waste disposal can be established for a better organized work

flow when disposing the wastes.

Kaizen #2 is the same activity done by the QC and QA department where

every document from their respective departments is stored and organized

in a standardized way according to the standards by the OE division.

Kaizen #14 provides an organized work environment where cleaning tools

have their separate storage. Similar to the QC and QA department, this

Kaizen activity is done to comply to the standard where cleaning tools are

needed to be placed in a separate area in order to create a more organized

environment and potentially safer work area where no cleaning tools are

lying around.

Kaizen #8, #9, #10, #11 and #12 are all Kaizens requested by other

departments. These Kaizens are listed as ones of the Big Kaizens since

they provide an impactful result, in a short period or a long period.

o Kaizen #8 is requested by the Liquid Production, where the

engineering department is asked to install a Thermo-control to

monitor the room temperatures within the whole Liquid

production. The Liquid production requires the rooms to have a

fixed and constant temperature in order to preserve the quality and

state of the products while they are being processed. Without a

thermo-control unit, the production rooms will have no way to

monitor any drop/rise of temperature in the room, and this can stop

a whole liquid production.

o Kaizen #9 is requested by the Production department as a whole to

add an automatic system in the current omnical boiler. This

automatic system can provide real-time and accurate data readings

so whenever the Production department uses the omnical boiler for

117

production purposes, there would not be sudden changes that could

harm the whole production processes.

o Kaizen #10 is requested by the Antibiotic production area where a

utility steam light is needed to be installed in one of the antibiotic

process. This utility steam light provides a Red-Yellow-Green light

on the wall that allows the antibiotic production operators see when

any troubles from the production occur. These problems include

change in temperature, machine rotary speed change, water

temperature change and so on. Without the utility lights, there will

be no indications whenever an error in the production occur, which

would cost the production process.

o Kaizen #11 is requested by the Liquid production specifically in

the Inspection process. By adding timers in the light panel where

staffs used to inspect defects from Liquid products, this potentially

saves the electricity costs.

o Kaizen #12 is an activity made and requested by the engineering

department itself. It provides the department with a pressure

control in the main boiler room where, similar to Kaizen #9,

provide a real-time and accurate data.


Kaizens in the Engineering department focus on having new installations or

improving an already existing system/machine/process with new innovation or

better. In terms of saving potential time loss, there are only a handful for the

Engineering department to truly provide a solid value. On the other hand, there

are more immeasurable values that could be taken from the big list, and these

Kaizens can give constant and steady improvement if the Kaizens are continually

implemented.

Table 4.19 – Kaizens that saves potential time loss in the Engineering Department

Kaizen


118


All Kaizens from the Engineering department do not have any huge values that

can be calculated to see the potential cost saved when implementing them. This is

due to the fact that the Kaizens are improvements and installations for machines

and systems that mathematically cannot be calculated accurately. But, if they are

converted into values, they provide a lot of benefits in the future over a long

period of time.

Table 4.20 – Kaizens that save potential cost in the Engineering Department

3

Change the current buttons-only panel

for the water well to an Interactive

Panel

Potential time loss from monitoring

with no data from the Panel = 1

shift (8hrs)

Water Well maintenance happen 3

times a year (total of 24hrs

potential time loss)

7

Added a temporary waste disposal

area for B3 category Waste

(Liquid/solid)

Potential time loss for engineering

staffs to carry B3 wastes to the

Main Wastage area = 20

minutes/trip = 1 trip/day (total of

100hrs/year)

9

Installation of automatic blowdown

steam and water systems in the

omnical boiler

Omnical Boiler uses manual panel

which has potential time loss of 10

minutes of startup. Boiler is started

and maintained once/day. (total of

300 minutes = 5hrs in a year)


Kaizen


3

Change the current buttons-

only panel for the water well to

an Interactive Panel

Water well maintenance happens 3 times a

year. Breakdown can occur and costs the

company water loss and machine repair

costs.

119

8

Thermocontrol installation for

DAQ masters in AC SLI

Chillers on (Area) AHU B,

AHU C, AHU D, and AHU E

Thermocontrol adjusts room temperature

when a critical temperature is reached.

Liquid Production is sensitive to

Temperature changes. If the

thermocontrol does not exist in the first

place, potential cost loss from failed

Production in the Liquid area can occur –

with X number of batches failing and

losing future productivity until the

Temperature is normal

9

Installation of automatic

blowdown steam and water

systems in the omnical boiler

Omnical Boiler is set once every day. If

the maintenance of the boiler fails (when

using manual blowdown and water

system), the potential cost of re-

purchasing another Boiler is Rp.

800,000,000

10

Installation of utility steam

lights, compressed water and

HPW in the CDI area

Utility Steam Lights are used for staffs

and operators monitor the Compressed

water and HPW status in the CDI area.

CDI is one of the production areas for the

Antibiotics products. This area is sensitive

to water changes (pH, temperature,

amount etc.) and need constant monitor.

Reaching a critical status will affect the

productivity of these Antibiotic-based

products – causing potential loss on

production.

11 Installation of timers for SLI

inspector lights

The SLI (Liquid) Production requires a

manual inspection process at the end of

the production. There have been instances

where the Inspection Light is being

overused thus causing unnecessary

electricity usage. This also damages the

lifespan of the Inspection light – which

can also requires the staffs to repurchase

new ones if it does damage it.

12 Installation of pressure control

in the main steam boiler header

Pressure control is added in the Main

steam boiler header in order to create a

better time management when the boiler

maintenance happens. The Boiler

maintenance required the technicians to

manually check the pressure value of the

boiler before the Pressure control is

installed. Now with the control, the

technicians can efficiently check the

pressure value without risking damaging

the boiler itself (since checking manually

creates time gap between fixing the boiler

in time and having the boiler break down

due to pressure failure).

120

4.3 Implementation of Big Kaizens

There are 2 Kaizens that are considered as “big Kaizens” since they provide

values that have huge impact on boosting performance. These two Kaizens are

implemented in the Production Department and in the Quality Assurance

Department. Each Kaizen has one small change effect that in turn gives a big

benefit which will be analyzed in this sub-chapter. There will be some values that

are immeasurable since they have been redacted by the company itself.

Table 4.21 – 2 Kaizens from Production and Quality Control department that

provided huge production boost.

15

Created a neat cable

management for printers and

data cables

Cable management is needed in the

Engineering admin rooms since there are a

handful of data cables lying around

between the printers and other machines

connected with one another. These

machines are panels that monitor

machines for Production area, panels that

monitor Plant condition (AC, HPW etc.)

and others. A cable management is added

to prevent damaging the machines from

accidents such as tripping from the cables.

No. Finding Kaizen Activity

25

Demand from National Heatlh

Insurance to supply 2,300,000 Injection

vials for year 2017

Lead Time Reduction in Cooling

Process by doing Parallel Process

between Washing Vials and

Cooling Vials

121

A. Kaizen #25 of Production Department

The first Kaizen (#25) is a kaizen that solves the demand from the National Health

Insurance. In order to solve the problem, the managers from Production

department and higher managements discussed thoroughly together through A3

Problem Solving meeting. The meeting first came up with two problems that

could give them the solution to Kaizen #25:

1. Capping, CIP/SIP, Mixing & Filling were run sequentially

2. Filling process awaiting CIP/SIP, filled vials is directly transfer to

Lyophilization chamber during filling

Lyophilization or in other words Freeze-Drying, is a low temperature dehydration

process. It involves freezing the products, lowering its pressure and then remove

the excess ice by Sublimation Process. In PT. DVL, Lyophilization processes a

liquid drug in a small capped bottle. It first started by mixing and filling various

raw materials than then gets packed into a small bottle. The process then ends

with a vial capping machine and are batched together for selling.

The NHI demanded to supply a huge amount of Injection fluid medicine at around

2,300,000 vials for the span of year 2017. However, with this current process, the

production capacity can only yield 1,800,000. Thus, through the aforementioned

A3 Problem Solving meeting, the solution that was made up was the following

(while conforming with the standard from the previous 2 problems above):

1. CIP/SIP is run parallel with Capping, Mixing & Filling,

2. Filling process can be run parallel with CIP/SIP by providing movable

LAF etc. as temporary storage of filled vials.

By changing the process as illustrated in Figure 4.1, the production capacity can

be increased.

12

Demand from NHI forecast for Infusion

bottles yielded 65% more from previous

record (year 2017). This increase is

35% more from the current capacity

Reducing Lead time CIP+SIP

mixing tank 800 Liter (by adding

more storage tank with cap. 500

liter)

122

The lead time for each Injection process cycle before and after implementing the

Kaizen is as follows:

Table 4.22 – Lead time in the Injection process per cycle

No. Process

Lead Time

Before After

1 CIP/SIP (Clean in Place and Steam in Place) 9 0

2 Mixing 3 3

3 Filling 5 5

4 Lyophilization 26 26

5 Capping 5 5

Total Hours 48 39

Production Process

Machine Validation and Testing

Machine Cleaning

Mixing

Filling

Lyophilization

Capping

BEFORE: 1,800,000 Vials AFTER: 2,300,000 Vials

Figure 4.1 – Injection Process Before and After Implementation

123

Total Shift 6 5

With all of the conditions above, implementing a simple Kaizen as just making a

step within a process run parallel with other steps is not as easy as it sounds. The

Liquid Injection production process requires several sterilization and health

standard which each machine within the steps has to conform with. In order to

handle the sterilization standards, PT. DVL invested in many equipment and tools

to make the Kaizen possible.

Table 4.23 – Extra Investment to compensate the new Kaizen

Investment Qty. Cost

Lyophilization Machine

Rim

45 pcs

4,500,000

SS Plats for Movable

LAF

7 pcs

14,000,000

Vial Trays 80 pcs 39,500,000

Plastic Containers 50 pcs 3,150,000

Lorry SS 1 2,000,000

N2 Regulator 1 5,095,000

TOTAL INVESTMENT 68,245,000

The resulted outcome with the detail of its price and individual costs is redacted

from the company itself. However, from the investment of 68 million rupiah, the

Kaizen was able to provide a return with approximately 20x the amount of the

investment and the outcome before the Kaizen (data estimation given directly

from interview by the Production manager).

In summary, the amount of benefit that brought by Kaizen #25 into the company

can be summed up in the following table:

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(1 Working day = 3 shifts, 1 shift = 8 hours, total working day 306)

Table 4.24 – Kaizen #25 Benefit Summary

Kaizen

No.

Lead Time Reduction %

Increase

Capacity %

Increase Before

(hrs/shift)

After

(hrs/shift)

Before

(vials/year)

After

(vials/year)

25. 48 39 18% 1,911,938 2,353,154 20%

Before Implementing: Rp. 68,245,000 +

X amount of money from materials and

packaging

After Implementing: Outcome

goes over Break Even Point from

Investment + estimated 20 times

more than before

B. Kaizen #15 of Quality Assurance Department

The second big Kaizen (#15) is a kaizen that changed the overall steps of the

Infuse production process. Figure 4.2 illustrates the infuse process. Kaizen #15 is

within the Infuse Line Process in the Liquid Production Department. The Kaizen

was made in response to the National Health Insurance demand where the

company was requested to provide an increase of Infuse bottle production by

65%, and the Kaizen itself is founded and issued by the Quality Assurance

Department despite being the production process in the Production Department.

125

Figure 4.2 – Infuse Line Process

The initial process of the Infuse Line consisted of starting with sterilization of

components and washing then drying the equipment. From there the production

process starts with Depyrogenation – which is a process of removing pyrogens

(substances that causes illness in pharmacy) from solution – in this case an infuse

liquid. The process then continues to mixing all raw materials and filling in into

individual bottles. Since the product is a liquid type of pharmaceutical medicine,

sterilization is required even after producing the product to prevent any defects or

foreign materials forming due to external components (accidentally adding water

into the mixture, dusts from the air into the mixture, condensation within the

bottle due to temperature). The process then finishes off with Visual Inspections

and its own packaging process.

The inspection requires the operators to view and defect of the bottle and/or

impurities in the mixtures. Kaizen #15 is a new activity from the Infuse

Production which adds an additional Storage Tank for storing extra mixture

within the Mixing and Filling step and more trolleys and trays for temporary

126

storing finished products ready for sterilization in the Sterilization step. By adding

a new Storage Tank and extra trolleys, it gives a lot of impact on the overall result

of the production in various ways:

Table 4.25 – Kaizen #15 Benefit Summary

No. Initial After Kaizen

1 Batch Capacity 13,600

bottles/day Batch Capacity

24,000

bottles/day

2 Total Batches/cycle 1 batch Total Batches/cycle 2 batch

3 Depyrogenation

Speed 18,900

Depyrogenation Speed

(to match up with

increased capacity)

24,000

bottles/day

4 Sterilization time 8 hours

Sterilization time (to

match up with increased

capacity in

Depyrogenation, thus

having it parallel)

4 hours

5 Visual Inspection 12,000

bottles/day

Visual Inspection (to

match up with increased

final output after

Sterilization)

24,000

bottles/day

4.4 Final Analysis

After having all 5 departments improve and implement every Kaizen in the span

of 1 year, a data emerged between each department that can be analyzed. Having

each department‟s Kaizen activities observed and calculated, the following

diagrams illustrates the impact of Kaizen in each department through analyzing

the potential cost and time efficiency the Kaizens could bring per year.

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4.317.800

400.000

2.349.000

0 0 0

500.0001.000.0001.500.0002.000.0002.500.0003.000.0003.500.0004.000.0004.500.0005.000.000

Production Logistic QualityControl

QualityAssurance

Engineering

Co

st

Department

Measurable Potential Cost Saved from Implementing Kaizen per Department

Figure 4.3 – Graph denoting the measurable potential cost saved per department in

one year.

The graph above illustrates that the Kaizen activity that creates the most benefit in

terms of saving cost is from Production Department. In continuation, both the

Quality Assurance and Engineering Department came up with 0 cost saved with

all its Kaizen. However, keep in mind that these values are measurable values that

the Kaizen Activities could potential save in the span of a year of constant

implementation. Overall, there are several points that could be made:

Production Department poses as the most Cost saving department with a

total of Rp. 4,317,800, followed by the Quality Control and the Logistic

Department with Rp. 2,349,00 and Rp. 400,000 respectively. With a total

of Rp. 7,066,800.

Quality Assurance and Engineering department have 0 values in their

Kaizen Activities in the measurable sense.

The Production Department‟s Kaizen Activities improve the area‟s

Productivity in all 3 areas – the Liquid, Solid and Antibiotics production

areas. These Kaizens improve not only the production process itself, but

also the environments around the operators. With these improvements

alone, the Production Department created the most cost efficiency Kaizen

that can be measured. In addition to this though, keep in mind that the

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Production Department also has one of the Big Kaizen which adds into the

overall value through immeasurable calculations. This simply means that

for now the result is immeasurable, but throughout the year it will provide

more savings and efficiency.

The Quality Control saved Rp. 2,349,000 from changing a Dust mask to a

Surgical mask. With just one change the company can save a lot – in a

long run this will provide constant potential cost saved as these masks are

always used whenever the QC staffs enter the Production area (which is

once per shift with 2 staffs entering each shift).

The Logistic Department only saved Rp. 400,000 with changing the design

of the labels. But this Kaizen‟s implementation encourages all staffs to go

paperless and be efficient in using papers – which in a long run can save

more both for the Plant and also creating a green environment.

The Quality Assurance has 0 „measurable‟ amount of cost saved from its

Kaizen activities, but the potential of saving a lot comes from the

immeasurable values that every Kaizen activity provides. QA department

has Kaizens that improve the administration and every day activities which

can provide better improvements through constant implementation. In

addition, there is one big Kaizen from the Quality Assurance that has one

small change but provides bigger impact in the result for future

implementation if the activity is constantly implemented.

Similar to the QA department, the Engineering department also has 0

measurable values. It has Kaizen activities that are mainly new

installations for machineries and systems. However, if these installations

are constantly maintained and used throughout the year, it will provide a

much more potential cost saving next to the Quality Assurance and the

Production Department.

129

332

150 156

1.350

129

0

200

400

600

800

1000

1200

1400

1600

Production Logistic Quality Control QualityAssurance

Engineering

Tim

e

Department

Measurable Potential Time Saved from Implementing Kaizen per Department

Figure 4.4 – Graph denoting the measurable potential time saved per department in

one year.

In addition to cost efficiency, we have calculated the time efficiency from each

department as well. Every Kaizen activity from each department provides at least

a time-saving benefit from one or more activities. These improvements can be

found from improving the work environment, the work process itself and even the

safety precautions from health and machine break down risks. Based on time

efficiency graph above (Figure 4.4), several notations can be taken:

From all 5 departments, there is a total of 2,117 manhours that could be

saved from implementing all Kaizens

From the highest valued, Quality Assurance is the first department that has

the biggest time saved with the value of 1,350 hours, followed by

Production with 332 hours, Quality Control with 156 hours, Logistic with

150 hours and Engineering with 129 hours.

The Quality Assurance Department has the highest value due to having the

Big Kaizen #12 giving the estimated potential time saved with a total of

1,350 hours in a year-long of production. But other Kaizens are focused

towards improving the administration processes and standards for the

130

Quality Assurance department, which means there are a lot of room for

new or improvements despite having the highest rank.

The Production department has the 2nd

highest value of saving manhours

time through the implementation of better work environment and new

additions to existing work process (such as adding new water storage). In

addition, the Production Department follows standards that will provide

immeasurable amount of time saved due to better and organized work

flow.

The Quality Control department has Kaizens that focus on conforming to

standards by following the 5S standards. However, with a measurable time

value at only yielded 156 manhours saved. This however does not mean

there are no other times saved from the Kaizens in the QC department. By

setting standards, staffs can follow a more organized work process which

saves immeasurable amount of time – which in turn boosts the staff‟s

overall performance.

The Logistic department was able to improve their inventory management

with additions to master lists and labels that are standards from 5S and

added their own standards such as Product Labelling for its raw material

storage. This will allow the staffs save immeasurable amount of time even

being the 4th

rank out of all other department.

The Engineering department has Kaizen activities that focuses more on

adding better installations and process for existing machines and systems.

Although it could not give a solid time value, if the Kaizen activities are

continually implemented (and improved if the opportunity presents itself),

it will give better time efficiency than all other department – as the

installations fastens the machine process, production process, staff‟s work

process and much more.

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CHAPTER V

CONCLUSION AND RECOMMENDATION

5.1 Conclusion

Kaizen is a method that requires constant implementation and maintenance to

successfully improve the performance of a company. It is also required for all

staffs to constantly seek out better improvements on top of existing ones

whenever the opportunity present itself. Through all 81 Kaizens from 5

departments, PT. DVL manages to create potential improvements for its cost and

time in the production and manhours. In addition, each department improves its

overall performances in many aspects. The following points below concludes the

two statements made early in this thesis paper on Chapter 1:

PT DVL has implemented Kaizen method in 81 activities, most in the

production department with 25 activities and the least is in the logistics

department with only 10 activities. However, some of Kaizen activities

implemented by PT DVL do not comply with any standard available. After

the implementation of Kaizen method, PT. DVL has the potential cost

efficiency of 7 million rupiahs, which is dominated by the Production

Department that contributes more than 60%. This is because the

department carried out the most Kaizen activities. Similarly, Production

department is also the department with most contribution on the

improvement to standard with 18 improvements, which is at least doubled

compared to other departments that were recorded – with the average

number of standard improvements between 6 and 9 standards. However,

from 2117 manhours time efficiency, the Production department only

recorded a time efficiency of 332 manhours, which although it was about

double compared to logistics department, QC department and engineering

department but only less than a quarter compared to QA department,

which jumped with 1350 manhours of efficiency. This is due to the fact

that QA has improvement made to helping the work process and flow of

the staffs through their Kaizens.

132

As for the next statement on how the follow up strategy should be after

Kaizen implementation is as following; since Kaizen principle promises

the continuous improvement to the company, it is recommended that PT.

DVL to continuously conduct and monitor the implementation of Kaizen

in its company. Kaizen implementation does not stop after one time.

Similar to the theory of PDCA, Kaizen‟s cycle follows loosely to that

theory – staffs discover and problems, a team is formed to solve the

problem, the problem is handled with a new implementation and then

improved if possible. Theoretically, there are a lot of other lean

manufacturing tools that could be implemented after Kaizen and it is wise

for all staffs to be prepared and trained for future implementations other

than Kaizen.

Each department provided a benefit on improving PT. DVL‟s time and cost

efficiency through each Kaizen activities. Do note that despite QA and

Engineering department does not have measurable amount of cost efficiency,

there are Kaizens in that department that improves cost efficiency that could only

be seen in a long period of time.

5.2 Recommendation

This research is conducted with the calculation of over a year long. Kaizen is a

method that should be continually improved after its implementation. The next

part that PT. DVL should do is maintainance. By maintaining the Kaizen activities

(by keep cleaning any new installations, updating any labels and master list,

maintaining standards etc.), the growth of the company will be exponential and

continuous. There are several points that could be taken from each department:

It is recommended that Kaizen activities which do not comply with any

standard are either removed, improved to meet the standard or improve the

associated standard to accommodate them.

Production Department has the most effective and efficient use from every

Kaizen activity with its contribution to saving both time and cost.

133

However, the main job for its staffs now should be maintaining the

continuation of the Kaizen as each activity are more on improving the

labels of the inventories.

Logistic Department is the department that applied the least kaizen. It is an

opportunity for this department to carry out more kaizen activities in order

to improve the company efficiency

Logistic Department improved its inventory management with its Kaizens.

Every activity requires the staffs to constantly maintain the inventory

labels as perhaps new or a reduction of inventories may occur in the

future. In addition, there are rooms for improvements such as following

more on other standards from the 5S such as adding a Shadowbox for a

neat work place.

Quality Control Department uses its administrative and researching job

description to its fullest potential by using the Kaizens. Each Kaizen

improved the overall job performance for each staff as it improves the

work environment and work process.

Quality Assurance Department has one of the impactful Kaizen in PT.

DVL. In addition, QA department focuses more on administrative process

improvement similar to QC department. With it, it needs constant

maintenance for the Kaizens to provide constant improvement.

Engineering department has new installations and processes that inevitably

increases the performance of the company in the long run. This means that

the staffs of every department that has the installations and additional add-

ons from the Engineering department is required to maintain and even

improve if there is the opportunity.

134

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APPENDICES

APPENDIX A