Integration of Overall Equipment Effectiveness and Six Sigma Approach to Minimize Product Defect and Machine Downtime

This study was conducted in a company that produces palm oil-based products such as cooking oil and margarine. The study aimed to encounter defects in packaging pouches. This study integrated the overall equipment effectiveness (OEE) with the six sigma DMAIC method. The OEE was performed to measure the efficiency of the machine. Three factors were measured in OEE: availability, performance, and quality. These factors were calculated and compared to the OEE world-class value. Then, the Multiple Linear Regression was performed using SPSS to determine the correlation between measurement variables toward the OEE value. Lastly, the six sigma method was implemented through the DMAIC approach to find the solution and improve the packaging quality. Supposing the recommendations are implemented, the OEE is expected to increase from 82% to 85%, with availability ratio, performance ratio, and quality ratio at, 99%, 86%, and 99.8%, respectively.