OPERATION MANAGEMENT

(Final Test: Take Home Test)

SIX SIGMA
Lecturer: PROF. DERMAWAN WIBISONO

SIX SIGMA IN PISANG SALE SONIA (CAU)

BY
MEGA MUSTIKA
29114929

COMPANY
Pisang sale Sonia is
founded in 2011. It has
4 employee who help
the production of
Pisang Sale Sonia.
It is located in
Kecamatan Cihideung,
Tasikmalaya

PRODUCT
Pisang Sale Sonia is made from
pisang ambon. It has four different
flavour:
original,
cinnamon,
ngiger, and sambal goang. The
added flavour is advantage or
Pisang Sale Sonia.
It is packed into 250g for each.
Each pisang sale has 1-2cm x 1517cm.
Price from owner is Rp.10.000 and
from reseller is Rp 12.000-15.000
It has approved by National
Health Ministry with Dinkes PIRT No. 2143278010657-18. It also
has certification from MUI West
Jawa with No. LPPOM MUI Jawa
Barat: 0112109357113.

STRUCTURE ORGANIZATION
Worker
Supervisor
1
Owner
and Chief
(Sonia)

Job Desk :
Chief : Organizing and Controling
the supply chain process
Supervisor : Helping the chief in
controling the process of production
Worker 1 : peeling, cutting, and
draining banana
Worker 2 : preparing the batter,
frying, remove its oil, and packaging
Helper : helping the workers and
delivering the product

SIX SIGMA
Six sigma programs seek to reduce the variation in
provess that lead to defects. Defect is simply defined as
component that does not fall within the customers
spesification limits.
The central idea behind Six Sigma is that if you can
measure how many "defects" you have in a process, you
can systematically figure out how to eliminate them and
get as close to "zero defects" as possible.
Six sigmas method employed in a systematic projectoriented fashion through the define, measure, analyze,
improve, and control (DMAIC) cycle.

SIX SIGMA
To achieve Six Sigma Quality, a process must produce no more than
3.4 defects per million opportunities. An "opportunity" is defined as a
chance for nonconformance, or not meeting the required
specifications. This means we need to be nearly flawless in executing
our key processes.
Key Concepts of Six Sigma based on General Electric Philosophy:

DMAIC METODOLOGY
SIX SIGMA
STEPS
DEFINE

PROCESSES
Identify customers and their priorities
Identify a project suitable for Six Sigma efforts based on business
objective as well as customer needs and feedback
Identify CTQs (critical-to-quality characteristics)

MEASURE

Determine how to measure the process and how it is performing

Identify the key internal processes that influence CTQ and measure
the defects curently generated relative to those processes

ANALYZE

Determine the most likely causes of defects

Understand why defects are generated by identifying the key
variables

IMPROVE

Identify means to remove the causes of defects

Confirm the key variables and quantify their effects on the CTQs
Identify the maximum acceptance ranges of the key variables and a
system for measuring the deviations of the variables
Modify the process to stay within an acceptable range

CONTROL

Determine how to maintain the improvements

Put tools in place to ensure that the key variables remain within the
maximum acceptance ranges under the modified process

PROBLEMS
PRODUCT:
The fluctuation of price
Problems occur when there is raising in price of materials. Sonia wouldnt easily increase the price
because the fluctuation but it obviously reduce the profit of owner.
The dried banana is break when frying.
There is no burnt from the frying process. The employee is really careful when frying the banana
although sometimes its break in the process. But the break sale pisang is still eligible for sale. Sonia
sells the break sale pisang with smaller package to the kiosk or warung around her home.
MACHINE :
Problem also occurs because of machine failure, temperature setting not optimal, lack of maintenance,
etc.
HUMAN :
Problems also occurred from the human error such as less experienced, exhausted or less control. The last
factor is from the machine such as
METHODS:
The main problem in producing sale pisang is drying process, such as :
The Banana is easily rotten if drying inapropiately especially in rainy season.
It is really difficult to control the drying process because the technic and machine are still using the
traditional methods.

DAY
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30

PRODUCTION DEFECT OUTCOMES

(g)
(g)
(g)
1.200
100.000
360
1.000
100.000
300
1.100
100.000
330
1.300
100.000
390
1.400
100.000
420
1.200
100.000
360
1.100
100.000
330
1.200
100.000
360
1.000
100.000
300
900
100.000
270
800
100.000
240
1.000
100.000
300
700
100.000
210
600
100.000
180
1.300
100.000
390
1.200
100.000
360
1.100
100.000
330
1.000
100.000
300
1.200
100.000
360
1.100
100.000
330
1.000
100.000
300
900
100.000
270
800
100.000
240
900
100.000
270
1.000
100.000
300
700
100.000
210
1.200
100.000
360
1.300
100.000
390
1.500
100.000
450
700
100.000
210
TOTAL
31.400
9.420

DEFECTS FROM DRYING

Defects from drying means:
The banana isnt dried properly or
rotten in process. So it has to be
disposed.
The outcomes from defects of drying can
be calculated:
Loss = (Total possible outcomes / weight
per pack) x
selling price
Loss = (9420g : 250g)*Rp.10.000,00
Loss = Rp 380.000
Sonia

has

lost

arounD

380.000/ month

Rp

Rp

DEFINE (1)
The first step is to define goals to improve the overall process . We create SIPOC
diagram that used to improve an operation process. This diagram also shows the
work flow of 5 elements : Supplier, Input, Process, Output and Customer.
SIPOC Diagram
SUPPLIES

INPUTS

Banana
Sellers

Ambon
Banana

Sonia

Batter (tapioka flour, rice

flour, butter, sugar,
coconut water, oil,
cinnamon, ginger, and
sambal goang)

PROCESSE
S

Cooking the
Banana

OUTPUTS

COSTUMERS

Sale Pisang

Traditional and
Super Market in
Tasikmalaya
Traditional Market in
Bandung

Smooking Maching

Sonia

Spoon

Others

Stove
Knife
Bamboo Tray
Plastic for wrapping

DEFINE (2): SALE PISANG

COOKING PROCESS
We also create the operation process chart
(OPC) in define. This OPC show a more
detail of the step of the process conducted of
the product.
1. The process of draining uses two methods:
spread out the banana on the bamboo tray
then dry it directly by under the sun and by
smooking machine. The drying process takes
two-three days depending on weather.
2. The ingredients of batter are: tapioka
flour, rice flour, butter, sugar, coconut water,
oil. The batter then pour into three separate
large bowl and be added several flavor such
as cinnamon, ginger, and sambal goang.
3. Sonia use spinner machine to remove the
oil from sale pisang
4. Each package contains 250 g.

PRODUC DEFE OUTCOM DRIED POSSIBLE PERCENT OF

DAY
TION
CT
E
BANANA
PACK
DEFECTS
1.200
0,90817356
1
100.000
360 39640
158,56
2
1.000
0,75566750
2
100.000
300 39700
158,8
6
1.100
0,83186286
3
100.000
330 39670
158,68
9
1.300
0,98459984
4
100.000
390 39610
158,44
9
1.400
1,06114199
5
100.000
420 39580
158,32
1
1.200
0,90817356
6
100.000
360 39640
158,56
2
1.100
0,83186286
7
100.000
330 39670
158,68
9
1.200
0,90817356
8
100.000
360 39640
158,56
2
1.000
0,75566750
9
100.000
300 39700
158,8
6
900
0,67958721
10 100.000
270 39730
158,92
4
11 100.000 800
240 39760
159,04 0,60362173
1.000
0,75566750
12 100.000
300 39700
158,8
6
700
0,52777079
13 100.000
210 39790
159,16
7
600
0,45203415
14 100.000
180 39820
159,28
4
1.300
0,98459984
15 100.000
390 39610
158,44
9
1.200
0,90817356
16 100.000
360 39640
158,56
2
1.100
0,83186286
17 100.000
330 39670
158,68
9
1.000
0,75566750

MEASURE (1)
In this step, we tried to
measure the process and
how its performing.
The next table shows :
The total production in
month is 3.000.000 (gr)
Its total production of
dried banana is 1.190.580
(gr)
The posibble pack is 4762
The percent of defect is
0,79%

MEASURE (2)
One of benefit of Six Sigma thinking is described the performance of a
process in terms of its variablitiy and to compare different processes using
a common metric. This metric is defects per million opportunities (DPMO).
The calculation of Pisang Sale Sonia shows below:

ANALYZE: FISH BONE DIAGRAM

We are using the fish bone diagram to elaborate the factors that caused
defects. The analysis conducted only in the drying process of banana.

IMPROVE (1): TRADITIONAL SMOKING

MACHINE
Weve found that the reliable
machine is important in reducing the
causes of defect in drying process.
However, Sonia didnt use properly
machine to fasten the process of
drying. Sonia has traditional smoking
machine which is illustrated beside.
The strenght :
Sonia has the machine since years
ago so it didnt cost her much at the
beginning stage of business
The fuel is from woods and coconut
shell that are cheap in Tasikmalaya.
The weakness:
It doesnt support the production if
Sonia get many order.
It doesnt have termostat or timer so
it is difficult to control the machine

IMPROVE (2): MODERN SMOKING MACHINE

One of improvement that Sonia
can do is having the modern
smoking machine
The strenght :
It is highly control and accurate
because has thermostat and
timer.
Its easy to use. It doesnt need
training to use this.
The fuel uses gases, the roof and
wall is made by alluminium so its
faster to reach its optimal heat.
It will reduce the time of drying
because the heat is optimum
The weakness:
The price is expensive

IMPROVE (3): THE COST OF CHANGING

MACHINE
The machine is costed around Rp.6-7.000.000
Based on the calculation before Sonia losses approximately
Rp. 380.000 each month.
By having this machine, Sonia can reduce defect because of
lack of control of machine.
Sonia will gain another profit by reducing the defect
gradually.
Moreover, it only cost sonia around Rp. 300.000 each month
in two years. It is from calcution of cost of machine / 24
month. It is equal with the loss that Sonia gain from defect.
Rp 7.000.000/24= Rp 291.667

CONTROL
Control means taking action in improvement will gradually reduce the defect of
product. It shows calculation in process improvement by including: the total
defect, percentage of loss, six sigma level, total loss per pack, and total loss in Rp.
99,90
10%
20%
30%
40%
50%
60%
70%
80%
90%
%
942 1.884 2.826 3.768 4.710 5.652 6.594 7.536 8.478 9.411

Current
Total Defect
9.420
Percentage
of Loss
0,79
0,71
0,63
0,55
0,47
0,40
0,32
0,24
0,16
0,08 0,0008
Sig Sixma
Level
4,00
4,00
4,00
4,10
4,10
4,20
4,30
4,40
4,50
4,70
5,90
Total Loss
per Pack
38
34
30
26
23
19
15
11
8
4
1
Total Loss
300.00 260.00 230.00 190.00 150.00 110.00
in Rp.
380.000 340.000
0
0
0
0
0
0 80.000 40.000 10.000

Sonia can gradually reduce the defect from 10% to 99%. Reducing the defect
means gaining the new profit as equal as with the total loss of its defect. If Sonia
eventually succeeded to decrease the number of defect up to 99,9%, She will gain:
total current loss-total loss of 99%= Rp.380.000 Rp. 10.000
= Rp.

370.0000

CONCLUSION
Six Sigma is one of means to measure total defects in production and the sistematically
figure out how to eliminate them as close to "zero-defect (99%)". It then employed in
DMAIC system. We (D)efines the process, (M)easure the defect in process, (A)nalyze the
causes of defect, identify the means to (I)mprove, then calculate the way to (C)ontroling the
maintainance of the improvement.
In Pisang Sale Sonia case, we found that the process is still traditionally. The total
production in month is 3.000.000 (gr). Its total production of dried banana is 1.190.580
(gr). The posibble pack is 4.762. The percent of defect is 0,79%.
The total loss of profit apporoximately Rp.380.000/month because of defect.
We've also found that the main problems is drying process and having the reliable machine
will surely reduce the cause of defect.
Sonia can improve its process of production by having modern smoking machine that will
cost her around Rp.6-7.000.000. It's equal with total loss that Sonia could possibly gain
from two years of having defect.
It can gradually reduce its defect and help Sonia to gain Rp. 370.000/month.

REFERENCES
Gupta, Praveen. (2006). Six Sigma Business
Scorecard, 2nd ed. McGraw-Hill .
Heizer, J and Render, B. (2011). Operations
Management, 10th ed, Global Edition, Pearson.
Jacobs, F.R. and Chase, R.B. (2011). Operations
and Supply Chain Management, 13th ed. Global
Edition, McGraw-Hill.
http://
www.ge.com/en/company/companyinfo/quality/wh
atis.htm
http://www.isixsigma.com/new-lean-six-sigma/