Abstract

The high remanufacturing forecast reaching 160 billion dollars/year in the world of the equipment industry (heavy duty) is a promising business opportunity. However, the remanufacturing industry has a higher risk of product failure compared to original Equipment products. The remanufacturing of the heavy-duty industry in Indonesia in carrying out its production has a product failure rate of 834586,47 DPMO and is at 1.91 sigma with COPQ IDR 650,800,000.00 Six Sigma method is used in this research and is successful in reducing remanufacturing defective product for lift arm to 140762,5 DPMO, is at the level of 2.43 Sigma and COPQ IDR. 135,000,000.00 or decreased 78.71% from the previous condition.

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