Cultivating Excellence: Palm Oil Producer Reaps Big Gains in Yield and Quality
increase in yield per hectare, from 0.57 to 0.98 tons/month
achieved in target estates (no leftover fruit in the field)
saved from improved equipment availability and utilization
saved from mill performance improvements
Total Savings
The Challenge
A leading agribusiness group operating across the palm oil value chain—from plantation to crude palm oil (CPO) processing—faced mounting inefficiencies and lost value.
Field operations revealed:
High levels of Free Fatty Acid (FFA) in fruit, causing revenue losses from buyer penalties
Suboptimal harvest yields, with ripe fruit left uncollected or damaged
Low Oil Extraction Rate (OER) at the mills due to poor-quality input and breakdowns
Equipment like dump trucks and harvest tools frequently offline or underutilized
Pervasive inventory and procurement delays, leaving critical materials out of reach
Compounded by inconsistent practices across company-owned and plasma plantations, the company needed to reverse declining output and rising cost—fast.
SSCX Approach
SSCX launched a Lean Six Sigma transformation across plantation, transport, and milling operations. The methodology emphasized:
Root cause discovery via field observations and stakeholder interviews
Process mapping and yield analysis using estate and mill performance data
Collaborative, on-the-ground execution across all estate divisions (harvesters, clerks, assistants)
Key initiatives included:
Yield diagnostics by afdeling
Equipment availability improvement plans
OER improvement roadmaps at the mill
Procurement-to-PO time compression
Behavioral change efforts for harvesting and transport compliance
The entire initiative focused on practical, data-driven solutions supported by daily performance monitoring.
Exploration & Validation
Through fieldwork and historical analysis, SSCX uncovered powerful insights:
Labor gaps were hurting yield: one estate was short 66 harvest workers, causing delays and uncollected ripe fruit
Poor loose fruit collection led to high restan percentages, often ignored by crews
Fruit falling into ditches due to pathing issues reduced quality and quantity
Dump trucks and mill machines suffered downtime from missing spare parts and poor scheduling
Fertilization in former rehab/peat areas was incomplete due to inaccessible terrain
Each pain point was validated through:
Observation
Data reconciliation
Pilot implementation
Yield mapping
This allowed the team to target specific root causes with precision.
The Solution
The company implemented a series of coordinated, hands-on solutions:
Field & Harvesting:
Labor redistribution and hiring to close harvest gaps
Harvest path reinforcement to prevent fruit loss and ease transport
Standardized loose fruit rakes and warning signage to reduce restan
Replanting and tree insertion to address low-density areas
Transport & Equipment:
Boosted dump truck availability and scheduling efficiency
Increased machine uptime at mills via preventive maintenance and inventory readiness
Mill Operations:
Reviewed press systems and processes to reduce oil losses and breakdowns
Enhanced throughput and OER performance via mill optimization
Fertilization:
100% application achieved in pilot blocks through targeted crew allocation
Use of automatic fertilizer spreaders increased application accuracy
The Result
The impact was transformational:
📈 Yield jumped to 0.98 tons/ha/month in pilot estates—a 72% increase from the 0.57-ton baseline
🔁 Restan was eliminated in focus areas, recovering lost output
🚛 Equipment availability and utilization improvements saved over IDR 5.2 billion
🏭 Mill breakdowns decreased, throughput rose—yielding >IDR 32.6 billion in value
🧪 Oil loss reduction and better fruit handling generated another IDR 4.2 billion
🗂️ Procurement efficiency improved dramatically—zero-stock issues and SKU availability improved
💸 Total savings: >IDR 80 billion/year in the first wave of initiatives alone
Beyond numbers, harvesting teams became more disciplined, path systems were safer and more reliable, and estate teams began using real-time performance tracking to lead their own improvements.
What We Learned
This case proves that agriculture doesn’t need to choose between tradition and performance. By combining Lean principles with deep field knowledge, SSCX helped this palm oil producer unlock hidden productivity across every link in its value chain.
When you empower harvesting crews, rework supply systems, and let data guide action, the results are not just better—they’re exponential. Excellence grows where care and clarity meet.
