Application of lean manufacturing to improve procurement lead time in the case of the steel industry

The steel industry is classified as a strategic industry that supports many industries, due to continuous national development. The steel industry must improve the quality of its production processes in order to increase its competiveness. One factor that supports the stability of the production process is the procurement process. Delays in the procurement process can disrupt the smooth production process. The purpose of this research is to minimize waste in the steel procurement process by using the value stream mapping method. This research begins by making current state mapping of the actual procurement process, then analyzed the activity categories including value added activity and non-value added activity. In the beginning, the total time value added activity is 7488 minutes and total time non value added activity is 12240 minutes. An improvement was made in terms of the negotiation process, document review, and waiting for an offer, the result of the total value added activity is 7488 minutes and non-value added activity is 2160 minutes, so the procurement process initially 41 days became 21 days.