The objective of this research is to minimize product defects based on labor performance and prove the hypothesis on how labor performance affects the quality of a product through a scientific calculation using Overall Labor Effectiveness (OLE). The primary data is obtained by interviewing the supervisor and labor directly. For secondary data is obtained from the company, such as labor working time, machine scheduled downtime, total production, and defective products. The approach to extract the data is using OLE and the continued regression method. Furthermore, it proceeds to Six Sigma using the DMAIC approach since the results show a significant correlation. The result from Failure Mode and Effects Analysis (FMEA) shows four of six potential failures caused by product defects are coming from labor. To prevent failure mode, it is recommended to have the regular machine checked by labor, check the temperature of the machine, and provide Standard Operating Procedures.

This study was conducted in a company that produces palm oil-based products such as cooking oil and margarine. The study aimed to encounter defects in packaging pouches. This study integrated the overall equipment effectiveness (OEE) with the six sigma DMAIC method. The OEE was performed to measure the efficiency of the machine. Three factors were measured in OEE: availability, performance, and quality. These factors were calculated and compared to the OEE world-class value. Then, the Multiple Linear Regression was performed using SPSS to determine the correlation between measurement variables toward the OEE value. Lastly, the six sigma method was implemented through the DMAIC approach to find the solution and improve the packaging quality. Supposing the recommendations are implemented, the OEE is expected to increase from 82% to 85%, with availability ratio, performance ratio, and quality ratio at, 99%, 86%, and 99.8%, respectively.