Kaizen-six sigma to improve pipeline project performance base on balance score card framework

• Main Author: Amri, Hidayat Dwi
• Format: Conference or Workshop Item
• Language: English
• Published: 2014
• Subjects: HD28 Management. Industrial Management
• Online Access: http://repo.uum.edu.my/15964/1/P31.pdf; http://repo.uum.edu.my/15964/; http://stmlportal.net/ictom04/TOC.html

Purpose: This paper presents an example of a Kaizen – Lean Sigma for improving pipeline project performance at Project Site ABC base on Balance Score Card Framework.Methodology: Kaizen is a Japanese philosophy that focuses on continual improvement throughout all aspects. Kaizen looks to improve all aspects of a business through standardizing processes, increasing efficiency, and eliminating waste, include reworks in the process.Through Kaizen and Six Sigma, companies can make breakthrough improvements in existing processes.Six Sigma focuses more on improving the quality of the final product by finding and eliminating causes of defects, whether by variances in the business process or in manufacturing.Welding process takes important part for pipeline construction, and base on those approaches the defects on weld is decreased then thus to improve the project performance. Findings: The welding process in pipeline construction takes around 65% in the pipeline replacement project schedule and critical path for the project.From two previous segment, contractor have a reject welding ratio 14% and reject material 7%, so it will be reduce into less than 5% and 3%.The improvement process start from IPO diagram then the problem analyzed using fish bone. The improvement covered manpower skill, manpower certification, and procedure, and then resulted less rework and faster project.These improvements align with BSC Frame; Learning and innovation, Internal Process, Customer, and Financial. Research limitations/implications: This research focused on improvement of project performance on large diameter pipeline at site ABC, particularly on welding process. Future research work could consider variation on improved process, pipeline diameter, project site, and climate condition. Value: This paper presents an improvement in projects (Kaizen – Six Sigma) for pipeline replacement project that prove alignment the improvement process with BSC Framework for the company.