BUSINESS PROCESS IMPROVEMENT THROUGH LEAN 4.0 CASE STUDY: INTI MAKMUR PLYWOOD DISTRIBUTOR

• Main Author: Triani Herlina Dewi, Nyoman
• Format: Theses
• Language: Indonesia
• Subjects: Manajemen umum
• Online Access: https://digilib.itb.ac.id/gdl/view/45729
• Institution: Institut Teknologi Bandung

Nowadays, business process of every company, specifically distributor company, were done using conventional methods with lots of non-value-added activities or waste process which result in high total cycle time. In order to increase the efficiency of this process by reducing total cycle time, technology from 4.0 industry can be applied to replace some of the conventional process. This research will measure the efficiency increase of the business process of a plywood distributor company in Indonesia due to lean 4.0 principle application. This research applies the Cyber-Physical System (CPS) to analyze control system in each activity and communication line between one company activity and another. Activities in the business process were analyzed by lean principle method to identify value-added activities and non-value-added activities. The lean principle consists of value identification, Value Stream Mapping (VSM), creating a continuous workflow, creating a pull system, and continuous improvement. Based on VSM results, activities which communication line can be automated to shorten total cycle time. Quantity order flexibility and fast demand fulfilment are main values which are offered by the plywood distributor company. From VSM analysis, it was found that fifty percent of the activities are identified as a non-value-added activity with several potential waste such as excessive processing, delay time, inventory, and unnecessary movement. In order to optimize the process flow, total cycle time must be reduced by relieving non-value-added activities such as identifying customer’s order, order approval, and checking incoming items invoices. Several 4.0 tools can reduce the total cycle time by replacing order receipt activity with mobile sales application to receive orders, supported with integrated tracking application. By replacing a conventional communication line with the automatic one which is more digital and real-time, the business process will be more efficient. This 4.0 technology application can also be performed in other company, should the similar study be performed to indicate the process which can be eliminated or improved.