Abstract
In the industrialized world, increasing productivity and profitability is very important for companies as a benchmark of success in business processes. Some literature has defined the success factor of the successful application of the concept of TPM as a tool to improve the productivity performance of the company, therefore improving the productivity performance of the company becomes the main thing in improving long-term sustainable profitability for the company .
 In the manufacturing industry pulp and paper mills, the contribution of the highest production costs is in raw materials (Pulp and chemical raw materials), followed by energy and packaging. The energy sector occupies the top three in the cost contributor to variable costs, it is triggered because in the pulp paper industry sector, the consumption value for electrical energy and heat is very high. Therefore, success in eliminating eight major losses is a major success factor in improving the profitability of the company.
 To analyze the effects of elimination of eight major losses, reduction of production costs and increase in profitability can be solved by evaluating the influence of all indicators of eight major losses using PLS-SEM. The data used is operational data co-generation plant production of PT. XYZ in 2019.
 From the research conducted it is known that the variable Overall Plant Effectiveness (OPE) is significantly influenced by 2 (two) of the 3 (three) constituent indicators, namely Availability and Performance, both indicators affect: Productivity Improvement, Decreased Production Costs and Increased Profitability of the Company. The priority of improvement that must be done by considering the production cost performance data from the review of variable costs of energy is elimination: Loss Shutdown losses (A1), Loss Production adjustment loss (A2), Equipment failure (A3), Process failure ( A4), Normal Production (A5), and abnormal production (A6).
Highlights
The Directorate General of Agro and Chemicals noted that in 2009, Indonesia's paper consumption is 29Kg per kg / capita / year, and continues to rise by 32.6 per capita in 2013, and the world's paper needs reach around 394 million tons in that year, the Director General of the Agro Industry Department predicts that the growth of the world's paper needs will grow by an average of 2.1 percent per year, so that the world's paper needs in 2020 are predicted to reach 490 million tons
The process flow in the industry is divided into four groups, namely: chemical and thermochemical pulp, mechanical pulp, paper production, and recycled paper, which in each process requires energy derived from fuel
Cogeneration technology is one of the energy-efficient technologies that can be applied in the pulp and paper industry to produce energy simultaneously. according to (Nayak et al, 2013), in the modern manufactur industry, machinery and technology are the driving factors in the business whose availability is functioned as one of the company's strategies in facing market supply, the performance of the machine must be considered because it has a role in the company towards world class manufacturing
Summary
The Directorate General of Agro and Chemicals noted that in 2009, Indonesia's paper consumption is 29Kg per kg / capita / year, and continues to rise by 32.6 per capita in 2013, and the world's paper needs reach around 394 million tons in that year, the Director General of the Agro Industry Department predicts that the growth of the world's paper needs will grow by an average of 2.1 percent per year, so that the world's paper needs in 2020 are predicted to reach 490 million tons This makes the government continue to strive to increase the national pulp production capacity to 10.53 million tons in 2017, and one of them is by expanding the construction of pulp mills and diversification of derivative products. Boilers are one of the supporting machines of co-generation combination technology to produce steam and steam turbine generator drives in order to generate electrical energy, the performance is a supporter of cost reduction in energy generation in the pulp & paper industry, because it can reduce low production costs in manufacturing. according to (Suzuki, 2017) Overall plant effectiveness (OPE) is a measurement indicator of complex engine performance in the industry process that can maximize production effectiveness and minimize process failure, defects and losses, all of which can be affected by three factors, namely : availability, performance and quality
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