Proposed Production Process Standardization at Function ART Indonesia to Reduce Waste of Production

The growth of the property business goes hand in hand with the furnishing industry in Indonesia. The construction of apartments, minimalist houses which adjust to the limitations of land in Indonesia creates changes in furnishing designs which are minimalist, simple, and multifunctional that support, such as space saving models. In Indonesia, many space saving products are introduced by foreign companies such as IKEA and Informa. Function.id is one of the small businesses that has a goal to fulfill the needs of space saving product in Indonesia. With some limitations, Function.id does the production process using the makloon / outsource method. However, because the concepts applied are not standardized and well-structured, instead it creates a problem in the production process. Therefore, the purpose of this research is to identify the problem and to standardize the makloon production process of Function.id to be implemented in Function ART Indonesia.

The approach of this research is qualitative with expert interview, then continued to define the production process and communication process of Function.id and its vendor to ease the analysis of this research. After that do a root cause analysis to map the problems of Function.id with ishikawa diagram as a framework. The main causes of problems faced by Function.id are no designer specialist, limited source of vendor, lack of supplier source, having no a precise and measurable product design for vendor, having no clear letter of agreement, unstructured communication process, unstable ordering pattern, and having no standardization guidelines.

Solutions and improvements that can be applied to develop Function.id into Function ART Indonesia in its production process are creation of a structured and create an SOP for production process with instruments of communication to vendor and supplier with implementation of heijunka. Also, some requirements that needs to be prepared before the production process could be implemented, such as do a collaboration with designer, design maximizing, letter of agreement and survey for supplier and vendor.