IPTEK Journal of Proceedings Series No.

(2) (2020), ISSN (2354-6026) 25

2nd International Conference on Industrial and System Engineering (IConISE) and
7th Annual Conference on Industrial and System Engineering (ACISE) 2020
July 22nd – 23rd 2020, Surabaya, Indonesia

Implementation Lean Manufacturing Method

of Plywood Manufacture Company
Jastine Koh and Moses Laksono Singgih
Department of Technology Management, Institut Teknologi Sepuluh Nopember, Surabaya
e-mail: [email protected], [email protected]

Abstrak—The Plywood company in this study was able to II. RESEARCH METHOD
produce 6,000m3/ year of plywood, but during 2018 and 2019
This study will use data from observations and
this company was only able to provide 2,905.14 m3/year and
1,120.73 m3/year. Production in 2018 and 2019 is far below the distribution of questionnaires to production employees.
production capacity. This research will apply the lean Then draw value stream mapping to describe the problem
manufacturing concept in the production process of a plywood and uses root cause analysis to find the root cause of the
company. This research uses value stream mapping (VSM), problem and eliminate it. The results of this study will
value stream analysis tools (VALSAT), process activity reduce the non-added value during the production processes,
mapping (PAM), Pareto diagrams, and root cause analysis. It is
suggest improvements to the root causes of problems in the
found extreme categories that occur in many processes, namely
processing production and inventory. The recommendations production process, and are expected to have further
given are to reduce employees and provide adequate storage. improvements after applying the proposed improvement
The future state VSM shows that a change in a lead time of results.
68%, and the reduction of the production process is 248.18
minutes.
III. RESULT AND DISCUSSIONS
Keywords—Lean Manufacturing, VSM, VALSAT, Root Cause
Analysis. A. Value Stream Mapping Current State
The following diagram will display the value stream
I. INTRODUCTION mapping current state which is the production process flow
that has been carried out by the company. Through the
C OMMENCING Increased industrial competition in
Indonesia makes companies compete to improve
company performance. To compete with other companies,
mapped production process flow from Figure 1. a
questionnaire was made to ranked seven wastes that could
occur during the production process. After the results of the
the company must be efficient and minimal waste in its questionnaire have been recapitulated, the results of the
production process. To achieve dynamic company questionnaire are used for calculations in the selection of
performance and minimal waste, the company apply lean mapping tools. Here are the results of calculating the
manufacturing methods to maximize value for customers selection of mapping tools. Based on Table 3. process
and increase company profitability by eliminating activity mapping is used to carry out further analysis for the
production processes that give no added cost. elimination of activities that give no added value to
The plywood company, which in this research study has consumers.
not yet maximized production performance. This company B. Eliminate NVA activities and maximize VA
has a production capacity of 6,000 m3 / year, but in 2018
Through the results of the process activity mapping, we
and 2019, production capacity is only at 2,905.14 m3 / year
get the time of production activities on operations,
and 1,120.73 m3 / year. The production results are not
transportation, inspection, storage, and delay. Also, this
optimal because there is a waste in the production process,
method can determine the time of events that adds value, or
which is processing raw materials into finished goods by
that's must be eliminated in the production process. The
50% - 70%, as listed in the following Table 1.
following results from making process activity mapping
In addition to wastage in the production process, this
current state. Based on Table 4., six activities do not provide
company also needs to make adjustments to the production
added value with a time of 248.18 minutes. So by
of employees' salaries. Table 2. To show salary costs almost
the same from 2017 to 2019, even with decreasing eliminating non-value added activities, the lead time will
production results. The following Table 2. compares product reduced by 68% in the process of 1 wooden block. The
results with full salary costs. following Table 5 shows events that give no added value
So through this research, researchers want to find the activity to consumers.
causes of waste that occur y examing the flow of the C. Critical waste mapping
production process, starting from the purchased raw material
to the finished products delivered to consumers. Also, this Based on the data questionnaries from twenty production
research will look for the root causes of problems that occur employees, they calculate the essential waste. Based on the
during the production process and provide recommendations ranking of seven waste and percentage cumulative waste
for appropriate improvement. below 80% (Figure 2.), four critical wastes are prioritized to
IPTEK Journal of Proceedings Series No. (2) (2020), ISSN (2354-6026) 26
2nd International Conference on Industrial and System Engineering (IConISE) and
7th Annual Conference on Industrial and System Engineering (ACISE) 2020
July 22nd – 23rd 2020, Surabaya, Indonesia

Table 1.
Processing Raw Materials into Finished Goods (m3)
Year LOG WIP Finished Good %Waste LOG to WIP and Finished Good
2017 14,741.20 5,257.63 242.50 62.69%
2018 7,112.16 2,748.35 156.79 59.15%
2019 4,406.41 969.83 150.89 74.57%

Table 2.
Comparison of product results with detailed salary costs for 2017 – 2019
Unit 2017 2018 2019
WIP + Finished Good m3 5,500.13 2,905.14 1,120.72
Salary Rp 4,614,498,505 4,219,566,775 4,887,389,211

Tabel 3.
Result of Value Stream Mapping Tools
Waste in Manufacture PAM RM PVF QFM DAM DPA PS (a) Volume (b) Value
Overproduction 39 117 - 39 117 117 -
Waiting Time 270 270 30 - 90 90 -
Transportation 324 - - - - - 36
Processing 486 - 162 54 - 54 -
Inventory 147 441 147 - 441 147 49
Motion 333 37 - - - - -
Defect 20 - - 180 - - -
Total 1.619 865 339 273 648 408 85

Figure 1. Values Stream Mapping Current State

find the root of the problem. Those four wastes are • Reduction of labor examined through the capacity of
processing, inventory, overproduction, and motion. engine performance and output results that can be
Through waste priority, a mapping of the possibilities and generated during one hour of the production process.
impacts of the problems obtained through root cause Based on Table 6. The number of employees required for
analysis is carried out, and seven issues are categorized in production is obtained through proper machine needs. The
extreme areas, namely: company only requires the production of the 71 wooden
• Lack of supervision blocks within one-hour of the production process; therefore,
• There is no clarity on the production output that must be a reduction in machinery and employees is made to
produced maximize production performance, the reduction in
• There is a lack of employee overtime employees can also reduce the salary that must be paid by
• There is no warehouse for storing goods the company. One machine just needed two employees,
• Stockpiling causes the production floor to narrow except sawmill one machine can be handled by four
• Inventories that accumulate often damaged employees and also grader and packing one machine only
• There are several employees in the same work floor required one employee to manage the machine.
which causes inefficiency in work • Eliminate inventory buildup that occurs in every corner of
Concerning the seven problems, there are two proposed the factory by making a storage rack and facilitate the
improvements given after analyzing the issues, namely:
IPTEK Journal of Proceedings Series No. (2) (2020), ISSN (2354-6026) 27
2nd International Conference on Industrial and System Engineering (IConISE) and
7th Annual Conference on Industrial and System Engineering (ACISE) 2020
July 22nd – 23rd 2020, Surabaya, Indonesia

Table 4.
Results of PAM Recapitulation and Value Added Activity
Activity Total Minute Activity Total Minute
Operation 17 40.55 VA 13 34.23
Transport 3 57.42 NNVA 9 82.56
Inspeksi 3 24.04 NVA 6 248.18
Storage 3 22.60 Total 28 364.96
Delay 2 224.99
Total 28 369.61

Table 5.
Non-Value Added Activity
No Activity Type NVA
1 Waiting for the Kiln Dry process D 21.60
2 Gather the remaining small pieces of wood blocks S 5.24
3 Collect molding shavings S 8.72
4 Choose small pieces of wood that are still good and compose on the machine O 0.59
5 Laminated wood beams pressed D 203.39
6 Wrapped Finished goods that are ready to be sent S 8.64

Table 6.
Calculation of Employee Reduction
Activity Block/ Minute Q Block/ Hour Q Machine Block/ Machine Current Employee Future Machine Future Employee
Sawmill A 4,83 12 1 300 4 1 4
Sawmill B 0,54 112 5 560 6 1 2
Planner I 0,89 67 2 134 6 1 2
Cross cut 0,16 378 3 1.134 10 1 2
Moulding 1,82 32 4 128 10 3 6
Finger Joint 1 60 1 60 8 2 4
Laminated 1,78 33 4 132 15 3 6
Grader dan Packing 3,58 16 9 144 9 5 5

Figure 2. Pareto Diagram

process of taking finished goods. The following is a the reduction of employees in the production process. The
display rack that will be used as a storage place for following Figure 4. will display the future state value stream
finished products. mapping.
The shelves will consist of five stacks, each stack will
have 100 wooden blocks and 25 shelves will be needed for IV. CONCLUSION
storage due to 12,500 wooden blocks required for a month. This study's results are proposed improvements to reduce
Although the costs incurred for the purchase of shelves are the number of employees by 37 people, from the reduction
quite expensive, the existence of storage shelves will benefit of the employee salary costs can also be reduced by Rp
the company. The benefit is the working space of the factory 129,500,000/ month. Also, the making of a storage rack is a
is wider so that it smoothens the production process, the proposed improvement so that factory working space
collection of goods becomes more comfortable and there is becomes more comfortable and the storage area tidier to
no accumulation of goods that get damaged (Figure 3). facilitate the forklift movement. By eliminating non-value-
D. Value Stream Mapping Future State added, the lead time is reduced by 68% for the future state
map. So the production process was reduced to 248.18
Based on the proposed improvements in the NVA
minutes..
elimination process and root cause analysis, the lead time in
the production process is reduced by 248.18 minutes, and
IPTEK Journal of Proceedings Series No. (2) (2020), ISSN (2354-6026) 28
2nd International Conference on Industrial and System Engineering (IConISE) and
7th Annual Conference on Industrial and System Engineering (ACISE) 2020
July 22nd – 23rd 2020, Surabaya, Indonesia

Figure 3. Finished goods storage rack

Figure 4. Value Stream Mapping Future State

[10]. S.K.P.N, Silva. 2012. "Applicability of Value Stream Mapping

(VSM) in the Apparel Industry in Sri Lanka." International Journal
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