Integration of Lean Manufacturing and Group Technology Layout to increase production speed in the Manufacture of Furniture

PT. ABC is a wood processing company which manufacture household appliances such as chair, table, wagon, shelf, and clothen hanger using rubber wood as the base material. Based on the results of observations made on the company, it was known that the production process in the company still having many non-value added activities such as delay and long distance transportation activities, causing longer lead time of the production process. From the problems that exist in the company, lean manufacturing approach is used to reduce non value added activities by using Value Stream Mapping to identify activities which are value added and which are the non-value added then to reduce non-value added activities 5W and 1H principles is used. After non-value added activities have been reduced, followed by Group Technology Layout approach to design three alternative layouts with the purpose of minimize the distance between station. This study aims to eliminate non-value added activities through simplification of the production process and redesign of the layout to reduce production time. The results of this study concluded that using this method the manufacturing lead time is decreased from the beginning of 19237.4 seconds to 14340.3 seconds. In addition, process cycle efficiency also increased by 34.15% and the completion of the process also increased by 20 units or by 25.64%.