Abstract
. Competitiveness of Indonesian essential oil industry is still low as efficiency is low. One of production system that has an aim to do efficiency, that are lowering cost, reducing lead time (faster delivery), higher quality is lean production system. The most suitable lean production tool for reducing lead time, also can be applied in all industries is value stream mapping (VSM). VSM has ben applied much in discrete industry, application in essential oil industry, that is process industry, need to be modified. The purposes of this reasearch is to design supply chain performance improvement system in the essential oil industry, using Rother and Shook's value stream mapping model that will be modified according to essential oil industry characteristic. The reserach shows that VSM can be used to design supply chain performance improvement system of essential oil industry. Supply chain performance of essential oil industry can be improved by setting up an essential oil cooperative.
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