American Productivity Center Method for Measuring Productivity in Palm Oil Milling Industry

The main products of palm oil milling in this case are Crude Palm Oil and Kernels. This industry shows production targets are not achieving that cause fluctuations in profits due to not optimal use of resources in production activities. The aim of this study is to measure the productivity of palm oil milling industry and identify its factors. Integration of American Productivity Center (APC) method and Failure Modes and Effect Analysis (FMEA) was used to measure productivity. The finding in year 2015 to 2016 showed that there were decreasing of productivity index (9.81% to 0.68%) and profitability index (-7.23% to 20.27%) which both of them were caused by variable input of labor. Then, focus of improvements should be done in the sterilizer process, boiler process and sorting process. Further research is suggested to direct in maintenance case in order to know the effect of each machine on industry.