SIMULATION MODEL FOR OPTIMAL PRODUCTION QUANTITY DETERMINATION AND LEAD TIME REDUCTION IN MASS CUSTOMIZATION OF SINGLE PRODUCTION STAGE (CASE STUDY: PT MEGA ANDALAN KALASAN)

Abstract

In market competitive, the customer satisfaction is a key role in assessing the company power. In that case, many big companies cannot survive because they cannot adapt to the situation in satisfying the customer desire. With the globalization and pressure from customers for faster deliveries, lower prices, and higher variability in the choice of products, it is expected that manufacturing companies strive for a more efficient production. This company concern in produce hospital equipment such as bed hospital for product type of 73004, 73005, 73006 and 73010. This company has a problem in fulfilling the customer satisfaction. It means this company has longer lead time to deliver the product until 5.15 times longer before conducted mass customization. Therefore, there were several ways to solve this problem by conducted Theory of Constraint (TOC) to identify the existence of block in the components production process. This research using simulation model of Flexsim6 to make simulation based on the real manufacturing also. Besides that, there need to conduct Customer Order Decoupling Point (CODP) simulation to know the position of stock and order which has a purpose to reduce the delivery lead time to customers and increase the manufacturing efficiency by optimizing the bottleneck operation. For the lead time in simulation model development for an existing system or before CODP implementation equal to 1.5 minutes/components and lead time after CODP implementation or simulation model development for final system equal to 0.29 minutes/components. Therefore, based on the simulation model among the existing system and final system there can reduce lead time for 1.21 minutes to produce each component. The lead time improvement after conducted CODP simulation is up to 5.15 times better compared to existing lead time.