Manufacturing Efficiency Improvement Through Lean Manufacturing Approach: A Case Study in A Steel Processing Industry

Abstract

The idle and delay time in an industry is categorized as production waste that will cause problems such as production quantity below the target. In addition, the waste also leads to cost losses and eliminate opportunities for the industry to gain profit. The need of waste analysis to optimize the costs incurred due to the idle and delay time. Lean manufacturing approach can be used to minimize that production waste. Value stream mapping (VSM) is one of lean tools that can be used to identify all production activity for an industry. This study is conducted in a steel processing industry. The result shows that the dominant production waste is delay time. There are seven factors causing the main production waste, i.e. operation, mechanic, adjustment, electric, computer, instrument, and utility. These factors are the cause of production waste and production activities that do not add value to product. A maintenance improvement program is developed to reduce the production waste. Manufacturing cycle efficiency in actual condition is 68,08% while efficiency value in the future condition is 71,3% so from proposed improvement plan that can increase manufacturing cycle efficiency equal to 3,75%.