Abstract

Competitiveness of Indonesian essential oil industry is still low due to inefficiency in the production and uncertainty in the availability. Lean production system is reported to have the capability to improve efficiency through lowering cost, reducing lead time (faster delivery) and higher quality. The purpose of this reasearch is to design production performance improvement system in the aromatic chemical industry, using modified Rother and Shook’s value stream mapping (VSM) model for aromatic chemical industry. Aromatic chemicals of clove leaf oil derivative were used in this research. Critical observation was used to understand the processes involved in the value stream. Current state of the selected clove leaf oil derivatives, Eugenol and Isoeugenol, were prepared using VSM and improvement areas were identified. A few modifications in the current state and, with these modifications, a future state map is suggested. After comparing the current state and future state map, it has been found that there was 64% reduction in the production lead time of Eugenol and 72% reduction in the production lead time of Isoeugenol. In this research VSM was also succesfully used to identify production losses in the value stream. The research shows that VSM can be used to design production performance improvement system of aromatic chemical industry. Production performance of aromatic chemical industry can be improved by implementing lean production system.

 

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