Application of Lean Manufacturing to Optimize Working Space by Reducing Lead Time in the Production Department Using the Value Stream Mapping (VSM) Method

Abstract

Every company, especially manufacturing companies are required to make efficiency in each line to increase productivity in order to compete with other companies. With the increasing demand for new products from customers, or usually called a New Project, companies are challenged to utilize the work area as much as possible with the existence of new production lines to meet the customer's demand. To do that, the company should immediately make improvements on all lines so that free space will be obtained which will be used for new projects. To reduce the Lead Time on the line in the production department with the expectation to get an optimal working area which creating space to be used for a New Project. Using the Value Stream Mapping method as a first step to mapping the entire process from upstream to downstream to identify Lead Time and lead to waste in each process. High waste occurs in the inventory lead time. Non-value added activities are mostly found in the inventory part after platting in receiving and finished good parts. It also found in the information flow of the finished good parts. While developing the future state map, it decreased the total lead time by about 5% so that it creating a workspace for the new projects.