Integrating Fuzzy-AHP–Based Lean Tools and Six Sigma–FMEA for Defect and Lead Time Reduction in Creative Industry SMIs

Abstract

The expansion of the creative industry in Indonesia has intensified competitive pressure on manual-production-based SMEs, making process efficiency and product quality critical factors in maintaining competitiveness. At Gendhis Natural Bag, observations revealed that non-value-added activities accounted for 38% of total production time, with a lead time of 6,527 seconds and a defect rate of 15,183.73 DPMO. These conditions indicate that the challenges faced are not only related to process flow inefficiencies but also involve product quality issues, necessitating an integrated improvement approach to systematically identify, prioritize, and reduce waste. This study proposes an integrated lean improvement framework by combining Value Stream Mapping (VSM), VALSAT, Kaizen 5S, and Six Sigma–FMEA, while Fuzzy-AHP is used to objectively determine waste priorities. The research findings indicate that defects are the most critical form of waste, while PAM identified that 38% of total production time consists of non-value-added (NVA) activities, which are dominated by delays and setup time. Based on the improvement plan using the Kaizen 5S approach, production lead time is projected to decrease from 6,527 seconds to 4,377 seconds, with the potential to increase output from 30 to 42 units per day. Additionally, the proposed quality improvement using the Six Sigma–FMEA approach is estimated to reduce the DPMO value from 15,183.73 to 8,928.57 and increase the sigma level from 3.69 to 3.87. These findings indicate that the proposed integrated improvement framework has the potential to enhance the efficiency and quality of the production process and can serve as a relevant approach for SMEs with manual production systems.