ANALYSIS OF LEAN APPROACH BY USING VALUE STREAM MAPPING TO IMPROVE PROCESS CYCLE EFFICIENCY AND REDUCE LEAD TIME

Abstract

Warehouse operation is one of the most crucial elements inside a supply chain. The cost of warehousing is relatively high due to the existence of many non value adding activities. Thus, afterall efforts should be made in order to lean the warehouse operations by eliminating all non value adding activities and finally optimizing the value addding activities. During the past five years, the mechanism of operation inside Local Component Warehouse 3 of PT. XYZ has not been re-routed nor re-evaluated. It is then assumed that this may lead the overall operation to inefficiencies and ineffectiveness. Therefore, analysis of lean approach by using value stream mapping is done to identify, quantify and finally minimize major wastes in the local component warehouse 3 of PT. XYZ so that process cycle efficiency could be improved and total lead time could be reduced. As the result of using value stream mapping as a lean tool inside Local Component Warehouse 3, process cycle efficiency is improved by 7.1 percent, total lead time is reduced by 15.7 percent and total value added time is reduced by 4.7 percent.