Abstract:
The objective of this research is to improve supply chain process in distribution service by identifying activities in each process which consist of: receive requirement from customer, finding goods, design package, sales conclusion, issue purchase requisition, issue purchase order, quality control, receiving goods, receive sales order from customer, issue tax invoice, deliver product to customer, bill issue and payment. After identifying all processing authors created value stream mapping to create overview of supply chain. The authors then applied lean technique to all activities and then created control chart and ran pilot tests. The study is confirmed again using ARENA simulation program.
Results from this research show that the application of lean technique in distribution service reduces 63.15% of waste time in operation per one purchase order. Nevertheless, company has to invest more on resources in the future when purchase order increase to maintain level of customer satisfaction.