QUALITY CONTROL CIRCLE

THEME :
“OPTIMIZATION COST MANUFACTURING PART
WEIGHT COMP BALANCER TYPE SPORT 150cc”

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 TABLE OF CONTENTS

Cover ….……………………………………………………………………………………………… i
Table of contents ……………………………………………………………………………………. ii
Abstract ……………………………………………………………………………………………… 1
A. Company Profile ...………………………………………………………….…………………… 1
B. QCC Group Profile ...……………………………………………………………………………. 1
C. Project Timeline ..…………….....……….…………………………………………………….... 2
D. Skill Matrix before QCC ……………………………………………………………….…….…. 2
Plan : 1st Step Situation Analysis & Determine Theme ………………………………………... 2
Plan : 2nd Step Define Target ……………………………………………………….……………. 4
Plan : 3rd Step Condition Analysis & Source of Cause ………………………………………..... 6
Plan : 4th Step Excavation of Ide & Improvement Planning ……………………………………. 7
Do : 5th Step Implementation of Improvement Planning ………………………………………... 8
Check : 6th Step Result Evaluation ……………………………………………………………….. 11
Action : 7th Step Standardization …………………………………………………………………. 12
Action : 8th Step Determination of Next Plan ……………………………………………………. 13
Testimonial …………………………………………………………………………………………. 13

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 ABSTRACT
PT ASTRA HONDA MOTOR (AHM) is one of companies engaged in assembly and distribution of motorcycle. In
running this business, AHM depends on the fluctuation of Rupiah exchange rate against Dollar. Based on Sales
Data in 2014, AHM dominates the market share about 64%. However the fluctuation trend of Rupiah exchange
rate against Dollar tends to weaken in 2010 – 2015.
This is a concern of the annual budget and CR Target about 3.5% of Procurement Engineering Division in 2016.
To achieve this target, improvement must be done to reduce the impact of weaken of Rupiah exchange rate
against Dollar. Based on analysis results, part improvement must be done for Sport 150cc type motorcycle
because this type is not competitive with competitors in the selling price. Result of pareto and feasibility study
decide the Weight Comp Balancer part of PT Atsumitec Indonesia is the most appropriate part to become the
improvement target based on QCDSM aspects (Quality, Cost, Delivery, Safety, and Moral). If this part
improvement is not done, there will be a potential increase in spending of AHM by 1.3 Billions in 2016.
By doing this improvement, the result obtained by 1.9 Billions in saving spending and CR achievement about 3.2
Billions. Furthermore, this improvement will facilitate the monitoring process from quality aspect, morally raising
the spirit of work and skill of local employees.

A. COMPANY PROFILE

Company Name
PT ASTRA HONDA MOTOR

Main Business Number of Employees

Production and Distribution
Honda Motorcycle
Production Capacity
5.800.000 unit/year
24.015 (October 2018)
Ownership Status
50% PT Astra International Tbk
50% Honda Motor Co., Ltd

B. QCC GROUP PROFILE

Group Name : QCC MANA TAHAN

Division : 1. Procurement Eng.
2. Quality Technology
3. Engine Durability
Meeting : 21 Times

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C. PROJECT TIME LINE
Project started on September 2015 with
1st step Situation Analysis & Determine
Theme and finished at 8th step
Determination of Next Plan on April
2016. Recording of Cost Reduction
began on April 2016 and reporting was
held in the end of 2017.

D. SKILL MATRIX BEFORE QCC

The table below is the skill matrix of QCC members before improvement :

The average skill matrix before

improvement :
Score : 65
Category : Understand

PLAN : 1st Step Situation Analysis & Determine Theme

Background
Basic thing that Mana Tahan doing this improvement is
1. Economy
UMK Jabodetabek tends to significant increase from 2012 to 2015. However, the Rupiah exchange rate actually
tends to weakened. It becomes one of problems from economy factor.

2. Market

Based on AISI data, Honda motorcycle becomes the leader of motorcycle sales in Indonesia, so AHM must give
the competitive price for customer.

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3. Political
The Government invites the youth generation to love domestic products so much that industrial competition will
increase.

4. Government Policy
Development project in Indonesia begin to get in remote areas, so it enlarges the expansion of motorcycle
distribution in Indonesia.

5. Socio-Cultural
Motorcycle competition in Indonesia is getting higher
seen from needs or lifestyle. Therefore, automotive
industry is required to have a competitiveness both
in terms of specifications and selling price.

6. Analysis of Market Domination

Based on sales data on January to September 2014, Sport 150 cc type motorcycle has not be able to compete to
control the market share of Sport 150 cc type.

And CBR series type which production capacity by 1.755/day have significant impact if the improvement done.

7. Analysis of Part Process Classification & Feasibility Study

Doing this analysis, Mana Tahan make a Pareto Diagram based on Basic Process Manufacturing Part Engine with
the most expensive price. The result is part category with Basic “Assembling & Comp”.

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Then, screenIng from 5 parts Assembling & Comp to do feasibility Study

From the result of feasibility, “Mana Tahan” decide to do improvement on part :

“WEIGHT COMP BALANCER Type Sport 150 cc”

PLAN : 2nd Step Define Target

Management Policy

Application Letter of Cost Reduction Commitment to Cost Reduction

Supplier PT. Atsumitec Indonesia

Mana Tahan team with supplier discuss to define the activities to achieve cost reduction which defined by AHM
Director. Then, we agreed to do improvement on Weight Comp Balancer part. Based on the simulation by 3.5%
against Omzet is gotten cost reduction target about Rp 2.296.992.100.

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 Coordination Meeting
Team Mana Tahan & Supplier
(PT. Atsumitec)

Impact If There is no Improvement

Projection of Part Price Increase

384,1 M
382,8M

+ 1,3 M

Based on simulation, part price increase causes an increase of spending AHM in 2016 about 1.3 Billions to
supplier PT Atsumitec.

Impact of QCDSM Aspects

Based on the analysis result, if there is no improvement immediately to this part, so it will impact to company and
AHM supplier. The impact can be seen on this table below.

ASPECT BEFORE IMPROVEMENT

If there is a quality problem, it will need more time to follow up because manufacture
QUALITY
process basic is done overseas.
Total of spend
= Projection and spend 2016 – Current Prices Simulation
COST = Rp 384.141.846.846 - Rp 382.828.953.445
= Rp 1.312.893.401
So a potential increase in AHM spending by 1.3 Billions in 2016
The potential for pending delivery because majority of parts delivered from overseas so
DELIVERY
it’s difficult to monitor the level stock.
SAFETY There is no problem about safety
MORALE The use of import product reduces the sense of pride against domestic product.

Based on the result of situation analysis till determine theme, Mana Tahan agreed to take a theme :
“OPTIMIZATION COST MANUFACTURING PART
WEIGHT COMP BALANCER TYPE SPORT 150cc”

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PLAN : 3rd Step Condition Analysis & Source of Cause
Part Function

Current Condition
Current condition shown that there is sub part which supplied by local maker and sub part which still imported by
Atsumitec Thailand.

Screening Based On QCDDM Aspect & Why Analisys

Based on current condition, we screen all of sub parts based on QCDDM aspect to determine and ensure the sub
part that will be done improvement

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The result of screening activity states that all sub parts Weight Comp Balancer have a potential to be improved.
Then, found the root causes by Why Analysis method.

Obtained the root causes from sub part Weight Comp Balancer are
Shaft Balancer : Single Maker (Single supplier for manufacturing part)
Bush Balancer, Washer, Roller, Knock Pin : Part Pass trough (import supplier manufacturing-non local)

PLAN : 4th Step Excavation of Ide & Improvement Planning

Procurement Strategy
Procurement strategy are tools that used to determine the improvement by the point of view of Procurement
Engineering. All tools which used always regard of QCDDM aspects.

CHANGE MAKER
Changing existing supplier with new supplier which has the same or better competencies.

MULTISOURCING
Supplier additions which has the same or better competencies or even new competency based on benefit
cost and quality aspect.

BALANCE ORDER
Changing the percent of order against 2 or more suppliers based on benefit cost & quality that will impact
to company

LOCALIZATION
Changing existing supplier to new supplier which has the same or better competencies

SUPPLIER IMPROVEMENT
Increasing the efficiency of production process by decreasing the reject, improving lifetime of dies or tool,
reducing the cycle time of process, etc.

SPEC CHANGE
Proposing the design changes on drawing to make manufacture process so easier that impact for optimal
cost without disregard quality aspect.

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Selection Table

After analyzed by Procurement Strategy based on effectiveness, convenience, support & risk, obtained the
solutions are for single maker problem will be done the multisource activity & for Part Passtrough
problem will be done the localization.

DO : 5th Step Implementation of Improvement Planning

Drawing Analysis
After we obtain the solution of problems, we do the drawing study of All sub parts Weight Comp Balances to obtain
material type, dimension, and properties. The objective of the checking results of drawing specification details are :
1. Basic Process Manufacture Estimate can be done
2. Price Calculation Estimate can be done

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Propose Maker Layout
After we knew the information that we need to manufacturing parts from the result of drawing study, Mana Tahan
propose the maker layout supplier according to drawing requirement based on QCDDM aspects on scale 0 to 5.

Meeting Coordination for Implementation

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Flow Process of Development Parts
Flow process of Development Part is process of determined the improvement activities until part is stated that can
be sent to AHM with judgments OK.
Step 4 : Engine Durability 200 Hours
Step 1 : Preparation

Procurement, Quality & Supplier Meeting

Coordination are conducted to prepare improvement
step or part sample testing that it will be verified later.
Determining the target of improvement application.
Step 2 : Manufacturing Sample Parts
QTEDUA Section of AHM tests Engine Durability on
engine model of CBR series that has used part
sample Weight Comp Balancer after improvement.
The objective of this test is to test the durability and
ensure the machine performance after the
improvement has been done according to the
standard.

Step 5 : Quality Approval Notification &

Process Standardization
Fe Cold Special
Stamping
Casting Forging Process
Supplier do the manufacturing of part sample based
on basic manufacturing of each selected makers and
then do the test in the internal supplier refer to
drawing specification. Part sample which passed final
inspection step will be sent to AHM to do the part
verification as well as approval data. Standardization of flow process Quality Check Sheet
& Quality Approval Notification are related to
Step 3 : Approval by Quality AHM improvement area that had been done so the part of
improvement result can be sent and mass production
in AHM.
Step 6 : IPP (Initial Production Parts) &
Delivery
Standardization of flow
process Quality Check Sheet
& Quality Approval
Notification are related to
improvement area that had
Part sample that has been sent to AHM, it will be been done so the part of
verified later by Quality section of AHM according to improvement result can be
drawing specification, both of dimensional and the sent and mass production in
properties of material. AHM.

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CHECK : 6th Step Result Evaluation
From 5 sub parts Weight Comp Balancer, 4 sub parts can be developed but for Knock Pin part can’t be developed
because it need more time to analysis and process.

Achievement After Improvement

Actual Part Price in 2016

Although the USD exchange rate against Rupiah continued to increase, this improvement success to reduce the
part price of Weight Comp Balancer from Rp 75.701 to Rp 68.517 with achieve CR by (-7.184) Rupiah and
saving cost by 4.6 Billions.

Evaluation of QCDSM Aspects after Improvement

This table below are the evaluation of QCDSM aspects after improvement

ASPECT AFTER IMPROVEMENT

If there is quality problem, it will faster to follow up and the problem handling because
QUALITY
manufacture has been done locally.
Total of Spend
= Actual spend in 2016 – Before Improvement Projection
= Rp 379.552.625.545 - Rp 384.141.846.846
COST
= - Rp 4.589.221.301

After improvement, the actual of budget AHM in 2016 generates savings cost by -4.6 Billions

There is no potential of pending delivery because it is local production so manufacturing

DELIVERY
process, stock level monitoring, or delivery schedule can be controlled well.

SAFETY There is no problem about safety.

Enhancement confidence in skill and capabilities of local employees so that raised the spirit
MORALE
of work too.

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ACTION : 7th Step Standardization
Quality & Process Standardization
Standardization based on Quality aspect and Flow Process after improvement :

Cost Standardization
Standardization Cost aspect (Prices) Cost Reduction Achievement

Based on simulation, Team achievement exceeds the target of Rp. 979.405.800,-

, from the Cost Reduction Target Rp 2.296.922.100,- and actual Cost
Reduction Rp 3.276.327.900,-
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SKILL MATRIX AFTER QCC
The table below is the skill matrix of QCC members after improvement :

The average skill matrix after

improvement :
Score : 84
Category :
Understand & Take Control

ACTION : 8th Step Determination of Next Plan

From the result of evaluation

that there are obstacles in
implementing improvements,
so Mana Tahan setting for the
next plan to Localization/Maker
Change Sub Part Knock Pin
3X5.2 / 30905-216-000

TESTIMONIAL
GENERAL MANAGER PROCUREMENT ENGINEERING
First of all, I want to express my deepest appreciation to QCC MANA TAHAN team,
for all the hard work, and especially for such a great idea, that not only brings cost
reduction merit, but also gives good impact on Indonesian enterprises by
manufacturing the parts locally.
By increasing local content, we also contribute to society by creating new work
opportunity, reducing dependence to foreign currency and at the end also contribute
to better Indonesian economy. I hope you can continue generating good and even
better ideas so we can contribute more to our society and most of all to our beloved
country, Indonesia.
EMIRIA PARMAN I wish you all the best in your future.

THANK YOU

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