Enhancing production performance using sustainable lean supply chain: A case study in an Indonesian Shoe Manufacturer Raditya Abyudaya Putra1, Emelia Sari1*, Parwadi Moengin1, Rahmi Maulidya1, Mohd Yazid Abu2
1. Universitas Trisakti, Faculty of Industrial Technology, Department of Industrial Engineering, 11440, Kyai Tapa No 1, West Jakarta, Indonesia
2. Faculty of Manufacturing and Mechatronic Engineering Technology, Universiti Malaysia Pahang Al-Sultan Abdullah, 26600 Pekan, Pahang, Malaysia
Abstract
Company X is an Indonesian shoe manufacturing company that collaborates with sports apparel from Germany as a manufacturer in the Partner supply chain. The material procurement, subcontractor, production, and storage take a long time in the product supply chain because the lead time is longer than the specified lead time, resulting in delays in shoe products and product quality problems. Moreover, it becomes waste that has a destructive impact on the supply chain. In the chain process, some effects impact environmental conditions due to the rest of the production process, and products rejected become waste. This research aimed to overcome this issue using the Sustainable Lean Supply Chain approach to improve economic gain, social security, and environmental quality. First, determine the cause of the problem using a fishbone diagram and Sustainable-Value Stream Mapping (SVSM) to map the supply chain flow of the current condition (inbound, operation, and outbound). The results of SVSM were analyzed using Process Activity Mapping tools to group activities according to the division of activity types, namely non-value-added, necessary non-value-added, and value-added. The Sustainability Index (SI) calculation uses indicators based on economic, social, and environmental pillars. The results of the SVSM mapping of the production operation process obtained a process cycle efficiency (PCE) of 62.34% and a manufacturing lead time (MLT) of 624,874.01 seconds with conditions after repair of 68.26% and MLT of 570,736.29 seconds. The SI for inbound improvement is 111.02%, the operation process is 86.01%, and outbound activity is 184.33%. The results of this research can guide practitioners in implementing a lean supply chain competitive strategy to enhance the SI. The research provides empirical evidence of the positive relationship between a sustainable lean supply chain and sustainable performance for academicians.
