Abstract
In general, this research aims to analyze and determine the effect of the application of lean manufacturing which is focused on eliminating waste and the influence of the physical work environment on labor productivity. This research used primary data through the distribution of questionnaires conducted to employees of Company X with a total of 230 respondents from sections in departments directly related to research variables. Data analysis methods using the Structural Equation Model (SEM) measured by the Partial Least Square (PLS) model, and data processing using SmartPLS 4.0 Software. Based on the results of calculations, data analysis shows that the application of principles related to lean manufacturing, which in this research is focused on the process of eliminating waste has a positive effect on the productivity of the workforce. The creation of a physical work environment that meets standards also positively affects the productivity of the workforce.
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