Design implementation of lean supply chain management: A case study on loading process of fertilizer at PT Petrokimia Gresik port

Abstract

Petrokimia Gresik is one of the largest fertilizer producer in Indonesia which has a cross-country network of supply chain and distribution throughout the archipelago, either in bulk fertilizer or in bag fertilizer. This research was conducted at PT. PG port which is the main point of the logistics activities in the firm itself, either loading or unloading. This research focus on the process of loading the in bag fertilizer. Problems that occur in this process are due to the inefficiency of the flow of the Supply Chain, caused by the presence of waste and non-value-added activities. The purpose of this study was to determine what kind of waste that occurs during the process, as well as suggestions for improvements using the concept of Lean Supply Chain and Value Stream Mapping, and look for the cause of the problem using the 5 Whys method. The most influential types of waste during the process stream is Waiting Time (20.42%), and Non-Value Added activies of 51.9%. By using 5Whys, the largest cause of waste found are the length of the truck waiting for the cargo, numbers of crane are already inproper, and the absence of the scheduling and charge allocation. Recommended solutions are scheduling and allocation, creation of special line in the warehouse, and supplying cranes with appropriate load speed. Based on improvement suggestions, total NVA predicted to be reduced to 59.8%.