The Use of Lean Six Sigma to Improve Key Performance Indicators on The Plant Division of PT. PPN

This paper is aimed to analyze the applicability of the Lean Six Sigma in term of its capability to support efficiency and performance in the maintenance division of a coal mining contractor. The data collection was done in 5 months, from October 2016 until February 2017 taken from the company data base-computerized maintenance management system (CMMS). The Lean Six Sigma is an approach that provides a structured approach to resolve the problem through the implementation of five phase of six sigma methodology; Define, Measure, Analyze, Improve and Control (DMAIC). Six Sigma had been applied to focused on the quality to ensure the system maintenance activities are more effective and efficient to obtain an optimal maintenance management system by which capable to create a competitive advantage for the companies. Some performance improvements have been achieved such as the improvement on the key performance indicator namely Re-do Periodical Service (Re-do PS). Re-do PS value for PC1250 and HD4657R decreased to 0%. The other improvement can be seen on the Process Performance Index (Ppk) value of PC 1250 that increased to 8.30 and Ppk value of HD4657R that increased to 18.32. Overall, the financial performance has also increased, by saving the cost of maintenance as much as three billion rupiahs for HD4657R and 16 billion rupiahs for PC1250.