Delivery Performance Improvement Using Six Sigma Method: A Case Study At Fmc Agricultural Manufacturing

PT. FMC is a manufacturing company in producing pesticides and classified into 3 herbicides, fungicides and insecticides. The use of pesticides is very important to maintain the quality of the crop, the delivery of products may not be late because it will disrupt the consumer production chain but unfortunately PT. FMC delivery performance has a big issue, delivery is an important metric because influences to customer satisfaction. This research focuses on how companies are able to identify problems, analyze and solve these problems using the Six Sigma methodology. The method is used because the method has a cycle of how companies solve a problem that can disrupt business processes . And the results of research in finding problems in this business process are (1) problems triggered by delays in the arrival of material both raw material and packaging material. (2) the customer delays delivery several times (3) the Warehouse Leader is late in inputting data and Post Goods Issue.


Pendahuluan/Latar Belakang
The use of basic needs from consumers increases every year and this results in high demand for raw materials from agriculture. The high demand for Agricultural products requires farmers to maintain their production processes so that the quality of their products can be maximized. In a business process there will be several factors that can make farmers fail to harvest. If farmers fail harvest, they will reduce the supply of basic needs for consumers, especially the community. One of the causes that can disrupt the production process in the field of agriculture is pests. The existence of pests in the production process will reduce productivity both in terms of quantity and quality of a product. So that one of the treatments needed to maintain the quality of crops is to use the right pesticides or pesticides. This is because pests are one of the causes of farmers' failure to harvest.
FMC Corporation, an American company engaged in the chemical sector. FMC Corporation has various business units and one of them is in the agricultural sector. In Indonesia there are several companies engaged in the Agricultural industry sector and one of them is PT. FMC Agricultural Manufacturing. PT. FAM Indonesia has the task of producing pesticide products with types of Insecticides, Fungicides and Herbicides. With the presence of pesticide products it is expected that production in the agricultural sector will improve in quantity and quality, in the business process the relationship between one product to another product, or one business to another business is very important, and one of the measurement metrics is deliver. Delivery can be defined as a supply chain process that includes planning, implementing, controlling backflow, controlling flow, both in terms of effectiveness and efficiency, managing the movement and storage of raw goods, inventory in process, finished goods, services, and accompanying information. , starting from the supplier's starting point to reaching the final consumption point in the organization and marketing channels with the aim of fulfilling consumer needs so that they can achieve the company's profit aspects (Kim J., 2000). Successful delivery will affect customer satisfaction so that Delivery performance is also one of the key performance indicator (KPI) indicators in a company. Delivery can be said to be successful or successful if the goods sent by the sender will arrive at the consumer in a timely manner from the time period desired by the consumer. When the product delivery exceeds the estimated time limit by the organization, the shipment can be said to be a miss.
PT. FMC Agricultural Manufacturing is facing the problem of Delivery Performance. At PT. FMC Agricultural Manufacturing delivery performance is divided into 2 namely Delivery to Promise (DTP) and Delivery to Request (DTR). Delivery Performance is an evaluation of KPI from the Supply Chain & Sourcing division of PT. FMC Agricultural Manufacturing which will contribute to the assessment of satiscaftion customers. But in this study, researchers will only focus more on delivery to request (DTR). This is because the assessment of delivery to request metrics is more important and has more urgency value than the delivery performance delivery metrics, namely delivery to promise (DTP). Delivery to Request is an assessment that assesses how the organization meets the sales order according to the order request and date of the customer. Satyana Primandaru, Soeparno

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In Figure 1.1 shows the acquisition of data delivery performance from the delivery to request (DTR) metrics which are divided into months in 2018. From these data also can be seen also the monthly target of 90% delivery performance of PT. FMC and at the end of the year require a minimum score for DTR metrics of 90% .

A. Six Sigma
Six Sigma is a philosophy and methodology that has been used starting in 1986. This methodology is widely used by many industries because it is one tool that is powerful enough to eliminate disabilities that occur both on a product or on a process that the organization is doing. This approach focuses on making improvements and reducing variability in a process that can have an impact on quality by identifying the root causes of what affects the process.
Since being introduced by Motorola for a manufacturing training program in 1988 Six Sigma has developed into an extension of total quality management (TQM) (Green, 2006).
As a project-based management approach, the Six Sigma application series also develops from the production process to become a business strategy that focuses on increasing understanding of customer needs, business capabilities and financial performance (Kwak and Anbari, 2006). Six Sigma processes are a customeroriented, structured, systematic, proactive and quantitative approach to continuous process improvement in an organization's business processes to ensure quality improvement, low cost and fast delivery and drive waste from business processes using tools and technical statistics (Breyfogle and Cupello, 2001; Harry and Schroeder, 2000).
The application of Six Sigma in the company will have a good impact both for the company itself and for the consumers or suppliers of the company. And one of the benefits received from the application of the Six Sigma cycle is how this cycle requires managers to be able to read errors made in business processes carried out by the organization and can compare the process whether it runs perfectly or not using a metric called defects per million opportunities (DPMO), calculation of the metric requires 3 types of data, the data is Unit, Defect, Opportunity.
In making an improvement, the company will need tools that they can use according to the needs of their own company. By applying suitable tools, it will benefit the company both from the time needed to make a process improvement, up to the cost benefits. Broadly speaking, the Six Sigma goal of making improvements is (1) reducing the cost of rework or repair, (2) reducing the cost of improving productivity (3) growing market share, (4) reducing cycle times, (5) customer retention, (6) minimize defects, (7) changes in work culture and (8) develop service products. Based on the useful explanation of the application of Six Sigma, it is expected that the method will function well in an improvement so that the company will also have a positive impact (Pande, 2002).

B. DMAIC
Six Sigma has 5 stages abbreviated as DMAIC (Defect, Measure, Analyze, Improve and Control). And explained that the application of Six Sigma one of them must have an impact to the bottom line and also to customer satisfaction (Anthony, 2006).

1) DEFINE
Define phase is the management of the company must clearly identify the problems faced and determine the resources needed to make improvements. And in the define phase there are several steps that must be taken, namely: (1) Determine the problems that you want to make the project both in a concise and specific manner. determine how these problems will be related to customer satisfaction (Anthony, 2006).

2) MEASURE
In measure phase reseachers measure the amount of deviation that occurs compared to the quality standards that have been set from the product or process that you want to repair. The following are some items that must be

3) ANALYZE
Analyze phase is to identify the factors that cause the occurrence of irregularities, and conduct an analysis of rootcause problems that occur in a business process. The following are some important points that must be considered in working on the analyze phase in the six sigma methodology: (1) Finding the root cause defect of a process in both business processes and production processes or other processes. (2) Understand the various variations of root cause problems that cause further investigation to resolve defects in a process. (3) Understanding the data and distribution of the data and the pattern of the data also (4) Understanding what is the key to service process variables that might be related to defects in a process. After the researcher made analysis in Analyze phase then researchers will be formulated improvement solutions and key variables in a production process. In the improvement phase, the following issues must be considered: (1) Develop potential solutions to solve existing problems and also protect them so that they do not recur.
(2) Providing solutions that have a major impact on companies or organizations to be able to improve customer satisfaction and bottomline savings and determine how time, effort and capital is needed to carry out the implementation.

5) CONTROL
In control phase is the last step taken to be able to monitor the impact of the remedial solutions that have been made. Periodically, it is necessary to monitor changes that occur so that they can be sustainable. In the control phase, it should be focused on the items below: (1) Develop corrective action to maintain the level of service process performance that has been developed. (2)

Research Method
The review of the research methodology includes several consecutive explanations ranging from the type of research, the types and sources of research data, technical data collection, data processing techniques, data analysis techniques, and data interpretation techniques. Here's a review of the details

Types of Research
Research usually has sources and types of data, both primary and secondary data. To get accurate results, the researcher must be able to determine what type of data is appropriate to be used in the discussion of this study and this research is a research using descriptiveexplorative in qualitative method. This is based on researchers who use investigations and also conduct data processing in the field, exploring summary reports, expecting objectivity and validity from the data.

A. Types and Sources of Research Data
In this study using both primary data and secondary data to support the validity of the study. Primary data in this study are data obtained directly from the source or field based on written document at the factory and with

Figure. 2. Flow chat Research Stage
The steps taken in working on the Six Sigma DMAIC method, including it must be clearly defined what is the problem that is happening (D), performed calculations (M) whether the defect is very responsible for the problem, carried out data analysis (A) to look further about the root causes of the problem, after analyzing the defect and the root of the problem, then the next step is to do Improvement (I) of the process to minimize and even reduce even to eliminate the root causes of the defects that cause problems in the business process, and the latter is Controlling (C) or can be said to be monitoring the processes that occur to prevent the problem from settling for long and difficult to identify and solve.

C. Data Collection Technique
The study has various ways of collecting data, and in this study the data collection procedures in this study were carried out as follows:

Preliminary Study
During the preliminary study process, the researcher got an overview and found that there were problems in the business process in the delivery metrics at PT. FMC Agricultural Manufacturing.

Literature Study
In this research, the study of literature used are journals and books related to quality control, Six Sigma, and quality management. This literature study is used to deepen the writer's knowledge about the problem to be studied and to compile the theoretical basis used in literature review in research.

Field Study
Field Study is by visiting the object of research and collecting data that can be used in research using the following techniques.

a. Observation
Observation is a method of data collection by directly observing operational activities that are being carried out in a company which in this study was conducted at PT.

D. Research Scope
The research scope is a limitation of research in which there are limitations to the problem so that research is more focused on the subject matter. Limitation problems of this study are as follows:

Data Analysis and Interpretation with DMAIC stages
This chapter will explain and make some interpretation the analysis using the DMAIC stage.
a) Define Phase is a stage that requires researchers to determine the root cause or defect critically what happens to the business process. In this study the main root cause is the occurrence of problems in the delivery performance metrics of PT. FMC Agricultural Manufacturing. And this problem can be seen in Figure 1.1 which defines then the researcher will make a repair solution so that it can reduce the root cause effect that causes critical defects. Phase control, the researcher monitored the impact of repairs on the remedial solutions that had been made to one group for 90 working days. The monitoring process is carried out using a control chart. From the results of monitoring, it is known that the number of critical defects that occur in the production process after implementing a repair solution. The researcher will again do the calculation using Minitab and compare the results before and after making improvements.
Delivery performance for delivery to request in 2018. From the data it is explained that the delivery performance in 2018 is 85%, but the achievement of delivery performance is still below the standard determined by FMC Corporation, which is equal to 90 %. b) Measure Phase will explain how management measures the amount of irregularities that occur compared to the quality standards that have been set from the product or process that you want to improve. And in this study, researchers used Minitab 18. And the following stages of measure will be displayed using indicates that the data has been normally distributed and there is no data outlayer due to special conditions so that no data needs to be removed because of the outlayer value.
Satyana Primandaru, Soeparno 54 -JSH Figure 4 is a Data Process Capability Report for DTR. The data explains the sigma level which can be seen from the value of Z.Bench, and can be seen from the Data Process Capability Report of PT. FMC Agricultural Manufacturing has a Z.Bench value of -0.63, the data shown by Z.Bench is a measurement of the sigma value in the process and that there are various defects that make the delivery performance measurement metric less effective. Figure 5 is a Summary Report Data for DTR that shows the results of the calculation of data Delivery to Request PT. FMC Agricultural Manufacturing. In this summary report, it can be seen from the interval confidence for mean and confidence interval for median which indicates that if the business process in the delivery to request metric does not change and increase then in the future the value will not exceed the 0.79542 (79.45%) to 0.90036 (90.03 %) so that from these calculations it is highly recommended to carry out a project charter in order to increase the value of delivery performance, namely delivery to request.

c) Analyze Phase is a stage that requires researchers to identify the causes of irregularities and what factors
influence the measurement of delivery performance values and this will be seen from Figure 4.1 which is Pareto from the rootcause failure analyze data PT. FMC Agricultural Manufacturing is based on delivery performance review report data in 2018. In Figure 6 the main causes that cause problems in the delivery or delivery process are explained. And to reach 80% in the Pareto Chart 5 Root Cause is needed, namely knowing the problems that occur in the delivery performance metrics, the researcher will do the next stage on Six Sigma DMAIC, namely the Improve stage, and in the improve phase, suggestions will be given on what can be done to improve, minimize and avoid the problem so that it does not happen again.
The focus of improvements will be given to PT. FMC Agricultural will be in accordance with problem code which has a major contribution in delivery performance metrics, which can be seen from table

AVL1R
Material Planner has not used the SAP system to its full potential and often does not follow up on outstanding PO to suppliers • Material Planner must update frequently regarding the conditions that are occurring in the field to measure order leadtime and make it easier for planner material to follow up with suppliers and find out specific times when to reorder. • Developing a Kanban strategy to measure packaging material requirements and reorder before the packaging material is used up b e l o w Packaging Material orders by planner materials only rely on one supplier, so the supplier bergaining power is very strong • Providing one additional suppplier to be able to support a single vendor to meet the material needs of production and packaging PT. FMC Agricultural Manufacturing BUS3 Small-scale consumer product orders are divided into 3: sample, bonus, and small-scale order consumers • Conduct a separation of orders on a small scale, ie between samples and bonuses with consumers who actually order on a small scale, this is because bonuses and samples are not mandatory and are included in the customer satosfaction calculation. Small-scale shipping requires special requirements, namely by using LCL, but the contract to use LCL will be done when it will be needed • The Sourcing and CSR division make a cooperation contract with the Transportation Party which becomes a supplier in smallscale shipments or by using LCL, to determine the delivery leadtime requirements of CSR and also see the cost factors and LCL usage requirements from sourcing SHP6 Warehouse Leaders delayed entering Goods Issues in SAP because the Delivery Note made by the Supply Chain is late • Followed up the PO outstannding a week before the due date to make delivery delivery planning so that it is not too late to enter PGI and also not be late in making transportation orders to send products to consumers Transportation needed to send goods that will be sent to consumers is not available due to Delivery Notes that are made late e) Control Phase is the last stage of the Six Sigma DMAIC method is the Control stage. In the Controlling (C) stage, the researcher must be able to monitor the processes that occur to prevent the problem from remaining long and difficult to identify and solve. And at this stage data sampling will be taken for the next 3 months and viewed based on the value of the delivery to request metric. And during the monitoring process it is expected that the problems that become the root cause resulting in late delivery will be minimized and in the future it can be eliminated so that the corrective action expected by the researchers will have a positive impact on delivery performance metrics that will impact the increasing customer satisfaction.

A. Conclusion
(1) From the analysis stage it defines that PT. FMC Agriculture Manufacturing has an estimated shipping performance namely shipping to request that the performance value in 2018 is 85% of the target of 90% (2) From the analysis of the data at the measurement stage using Minitab and Figure 4 it can be seen that the shipping performance by PT. FMC Agriculture Manufacturing has a value of Z.Bench -0.63 ∂ of the highest standard value ∂ is 6. This data describes what makes defects that make shipping performance evaluation metrics less effective.
(3) Based on data analysis in the Analysis phase using Pareto tool to find rootcause and to reach 80% in Pareto Chart 5 Root Cause is needed, namely (1) AVL1R is a matter of Availability of Material / Supply, (2) CRH1 is Credit Hold BUS3 is an Order Consolidation, (3) SHP6 is Delayed GI. But that will only focus on 3 factors because the scope of focus is the company's operational scope, not the company's business scope.
This is because the main key performance indicators (KPI) in customer satisfaction in delivering goods on time to consumers are from the scope of the company's operations.
(4) The company has problems with human labor and also existing procedures. And companies should more often audit several companies that have a big hand in supporting the delivery of this because some companies understand about the procedure but do not require procedural and provide a bypass warning that is done so that it can be discussed appropriately when opening material or wrong input by employees.

B. Suggestions
(1) To be able to reduce the risk of mistakes by employees repeatedly, there must be strict supervision by management. This is because if there is no change in enforcement of employees, employees will always work in the same culture and not change. Then the change in work procedures will not work as it should. And also improvements to the 5S system to be more efficient thereby reducing the potential for 7 Waste so that the company can also work and run effectively and efficiently.
(2) One of the strategies that may be carried out by companies that discuss with the material will be able to calculate the potential late with the kanban system, but the new kanban system will be used properly if using a company that applies 5S properly and correctly