Engineering and Technology Journal e-ISSN: 2456-3358 Volume 09 Issue 01 January-2024, Page No.- 3361-3365 DOI: 10.47191/etj/v9i01.16, I.F. – 7.136 © 2024, ETJ 3361 Satria 1 , ETJ Volume 09 Issue 01 January 2024 Optimizing the Use of Sealant Material Type 5977 for Car Engine Production at PT X Using the PDCA (Plan, Do, Check, Action) Method Satria 1 , Restu Faidin 2 , Tofa Luwih Apriandi 3 , Yudi Prastyo 4 , Tri Ngudi Wiyatno 5 1,2,3,4,5 Department of Industrial Engineering, Pelita bangsa University ABSTRACT: Business development in the world causes companies to be able to compete, especially in the field of automotive manufacturing so that companies must have a strategy. This study aims to identify, analyze, and evaluate the use of sealant type 5977 in automotive manufacturing companies to optimize the use of sealant material type 5977 at PT X to remain competitive in local and global markets. This research uses the Deming Cycle Method or PDCA Cycle and the tools used in this research are Checksheets obtained from data for the last 3 months. From the results of this study it can be seen that by optimizing the use of sealant type 5977 for engine production, the results are very good, for 3 months no defects were found or defects that could affect the quality of the engines produced and with the application of cost reduction it is good for the company to reduce its production costs. Based on these results the company can still compete competitively in local and global markets with more efficient costs, the costs incurred before the improvement of Rp 199,000 or 100 engine units to Rp 39,000 or 20 engine units in one month, which saves Rp 160,000 every month or Rp 1,920,000 per year. KEYWORDS: Sealant type 5977, Deming cycle, PDCA cycle, cost reduction. 1. INTRODUCTION PT X is a foreign capital company from South Korea, which is engaged in automotive manufacturing. Which sells products in the form of small 4-wheeled vehicles (cars). Established in 2019, this modern factory is located on a site of 8.35 million square feet (77.6 hectares) in Kota Deltamas, Bekasi. And started its first production in 2021 with an annual capacity of 150,000 units and eventually 250,000 units annually when it reaches its maximum capacity. Business development in the world has led to more and more companies competing in the business world. This causes each company to compete with each other to survive in the business world. In accordance with Michael Porter's classic theory, there are five types of competitive pressures that exist in business competition, namely the competition of competitors, the threat of new competitors, the threat of substitute goods, customer bargaining power, and supplier bargaining power. To overcome these five competitive pressures, companies can use five types of competitive strategies, namely cost leadership, product differentiation, innovation, growth, and alliance. One of the most effective ways to survive in a competitive market is to use a cost reduction strategy. To be able to run a cost reduction strategy, a company must be able to meet the requirements in two areas, namely: resources and organization. This strategy is only possible if there are several advantages in the field of company resources, namely: strong capital, skilled in process engineering, strict supervision, easy to produce, and low distribution and promotion costs. While from the organizational field, the company must have: good management capabilities in terms of control and cost reduction. [1] Cost Reduction is defined as an effort to manage activities related to the production process that can reduce production costs by eliminating costs that should not need to occur. Therefore, for manufacturing companies, production costs are an important factor in the success or failure of the company in financial terms. This production cost is a large cost item compared to other cost items. So the main objective in controlling production costs is to be able to use economic resources to produce effectively, so that there is no waste of costs in production. The concept of cost reduction is very appropriate in line with increasing competition and the level of supply that far exceeds the level of demand, so market forces have a greater influence on the price level. For this reason, cost reduction is needed to be able to achieve company goals in the context of cost reduction, which will ultimately have an impact on competitive price levels. As one of the innovation management, the implementation of cost reduction in a company must also pay attention to matters related to the successful implementation of the innovation. When cost reduction begins to be taken and implemented by the organization's business operations in other business environments, it can be assumed that something new about the approach can be learned by paying attention to what is happening with other business contexts. [2]