Wednesday 19 December 2018

How to improve manufacturing efficiency?

Basic Manufacturing Management (BM2) is a framework designed specifically by SSCX for manufacturing companies in Indonesia. BM2 contains knowledge of application tools , techniques, and systems to improve the performance and efficiency of processes in operation. The basic management aspects included in it serve to improve operational performance, namely:

  • Increased throughput

  • Inventory optimization

  • Cost savings.

The BM2 app is done to create the basic system in operating an organization. This method has a broad coverage with five main aspects, namely: employee engagement, customer relationships, supply chain, manufacturing systems, and innovation.

Employee Engagement

In the employee engagement aspect, one of the focus of the handling is the implementation of the policy, which ensures a clear system in the formulation of organizational goals at all levels of the organization-wide level for achievement of objectives and performance improvements. Performance level indicators can be measure by the KPI (Key Performance Index) system. As the execution of strategic planning in the company relating to all employees at each level.

This aspect also includes work area management and visual management. Which serve as the basic system and foundation for improvement initiatives on quality and productivity. With a clean, comfortable and clean work area, and a good discipline of employees, achievement of operational performance targets will be more easily achieve.

Supply Chain

In the Supply Chain aspect, a must-have system includes reconciling customer demand for resources, as well as mechanisms related to forecast management and sales and operational planning. Then the system is derive in production planning (Master Production Schedule), with a shorter time span. Implementation should take into account system limits, production capacity, and cycle time .

While the Production Activity Control system is use in monitoring the schedule to ensure timely delivery. This aspect is also related to the systems use in procurement strategy, organization, supplier relationships, and payment requisitions.

Manufacturing and Innovation Systems

In the aspects of manufacturing systems, evaluation of process stability and capacity is of primary concern; namely how the system can measure and monitor processes, detect poor product quality and prevention efforts, including excess consumption that impacts high manufacturing costs such as material consumption, employee time, energy, and indirect material supply.

Maintenance Management must also have a solid system. Its scope includes Breakdown Maintenance, Planned Maintenance, Autonomous Maintenance, Equipment Speed, OEE Measurement, and Changeover Time Reduction. In addition, many other basic systems are included in the scope of innovation and customer relationships, which are an important part in the implementation of the Continuous Improvement method to achieve Operational Excellence.

Basic Manufacturing Management

Implementation of BM2 in Automotive Component Company

To understand more about the implementation of Basic Manufacturing Management (BM2) method, let's look at examples of implementation cases in a company of the following automotive components. This company is a company from that produces components. For reasons of secrecy.

It has two main factories, namely East Plant and West Plant. This case study was selected because the company has successfully implemented the best practice of Continuous Improvement method and won the National Operational Excellence award.

The production process run by it is the process of stamping, blowing, injection, vacuum, painting, and assembly. The number of employees they have is about 300 people, and their biggest clients are Toyota, Daihatsu, Isuzu, Nissan and Honda.

Basic Manufacturing Management run by aims to:

  • Improving order fulfillment achievement up to 100%

  • Increase productivity

  • Reduce the number of internal defect products (internal defect)

  • Lower inventory

  • Fixed maintenance management

  • Create a cleaner work area and improve overall efficiency.

Implementation of BM2 at Optimal began in early 2010, with a primary focus on improving order fulfillment performance, including improvements in planning systems, procurement, warehouse management, and productivity management.

Process Improvement with BM2 Method

The BM2 program at begins with inviting experts to provide education on Basic Manufacturing Management to employees. The education ( awareness ) includes the concept, purpose, method of implementation, and evaluation mechanism. After that, the experts conduct a thorough assessment of the existing systems. Assessment includes policy deployment , performance management, human resource development, work area management, demand planning management , and other aspects.

This assessment is done to see the short comings. For example, whether the system is complete and adequate. Whether the newly developed system in the pilot area runs well. Whether the system has been run and replicate. It has a standard and conduct regular audits to ensure consistency. Through the results of this assessment. Then there is a gap in some areas.


The BM2 program then proceeds to determine the area of ​​priority improvement. Once the area is identify, a target achievement of the require improvements is made. Once the target is clearly laid out, the joint team of it and consultants from third parties form the infrastructure to run the project.

Many companies are trying to implement Lean, which fails because of inadequate basic systems. The basic system includes standard work , work area management, maintenance management ( maintenance ), and so on. The Lean Production System requires stability of the process prior to the implementation of the just-in-time concept , including pull systems and inventory restrictions.


Instability can be cause by several factors, such as very varied cycle time processes , high internal defects, frequent machine breakdowns, long and unpredictable changeover times, material availability problems, irregular placement of goods (much time wasted on equipment) , uneven operator capabilities and competencies, and so on.

The stability and smoothness of the production process is a major concern of the BM2 program. With the seriousness of the team running the project, underpinned by the full commitment of management and directors during the program.

The team at it has made a remarkable achievement. The results are:

  • Increase order fulfillment to 100% level

  • Management demand planning is better

  • Material readiness for production at 100% level

  • Decrease defect painting process to 40%

  • Increase productivity injection process up to 20%

  • Accelerate Blow process changeover time to 50%

  • Increase accuracy stock to 100% for warehouse

  • Lowered downtime of vacuum machine to zero downtime

  • Create a cleaner and cleaner production work area

And the company continues to implement and maintain the sustainability of the implementation of this BM2.

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