Abstract :
PT. GI is a manufacturing industry company which engaged in the Heat Exchanger. Based on the data obtained, the average of annual total production is 3,314,053 units which compared to an average annual production target set were 4,352,478 units. Thus, the production target still cannot be achieved. At the final assembly station there is an indication of bottleneck. At the final assembly station there are delays in the assembly process of the S-GHN type unit 063.21 / 37-HHD / 8P.I it could reduce the effectiveness of production and cause the production output cannot be optimal. Moreover, it is necessary to identify the bottlenecks and its efforts to reduce cycle times on the bottleneck station to increase production output, make the target production demand can be achieved. The methodology used in this study is the manufacture cycle effectiveness (MCE) approach and the final assembly system simulation design using arena software. Through the MCE approach, improvements are made by reducing the idle time that allows changes to non-value-added activities as of to increase the effectiveness of production by 94.4% and also with the productivity output by 36 units during 98 working hours. The use of simulation methods using arena software can reduce cycle times at final assembly stations where there is no any delay in parts or the loss of Coil waiting time in the system so that the output on the system also increases. In the system simulation using arena software produces a repair scenario towards the system, in the alternative repair scenario 1 system simulation produces WIP number (work in process) Coil with an average of 11,164 units, waiting time Coil in the Coil queue module and parts for 0 minutes, and produces the output of the system simulation model averages is 48.12 units.