Lean Supply Chain Strategies for Minimizing Waste in CPO Shipping: A VSM-VALSAT Approach
Wike Agustin Prima Dania*, Annisa Wahyu Lestari

Department of Agroindustrial Technology, Faculty of Agricultural Technology, Universitas Brawijaya, Veteran St, Indonesia
*wikedania[at]ub.ac.id

Abstract

Palm oil is a major commodity in Indonesia, playing a crucial role in the nation^s economy. PT XYZ, a prominent company in this sector, operates 16 Palm Oil Mills and processes palm oil into Crude Palm Oil (CPO) derivatives for shipment to buyers. This study aims to identify the types and causes of waste in the CPO shipping process and propose improvement suggestions. Utilizing a lean supply chain approach, the study employs value stream mapping (VSM) and value stream analysis tools (VALSAT). The results indicated that the most impactful waste, which should be prioritized for elimination based on its intensity, difficulty of removal, and the extent of the resulting losses, is waiting time. The Process Activity Mapping (PAM) tool revealed that the standard shipping process took 296.47 hours, with transportation being the longest activity at 222.78 hours. Improvements led to the complete elimination of non-value-added (NVA) activities. Moreover, non-value-added but necessary (NNVA) activities were reduced by 3.7%, from 26.05 hours to 14.05 hours, while value-added (VA) activities decreased from 265.36 hours to 261.47 hours (1.5%). To minimize waste in the CPO shipping process, strategies such as early marine service registration, advanced truck scheduling, CSR initiatives including road repairs and dock improvements, enhanced employee performance monitoring, increased operator numbers, and an integrated administration system were implemented. These measures align with lean supply chain principles to streamline operations and reduce inefficiencies.

Keywords: Lean Supply Chain- Value Stream Mapping- Value Stream Analysis Tools

Topic: Agro-industrial system management and regulation