Improvement of distribution process by lean thinking with business process modeling notation simulation based case study electric motor manufacturing industry
Abstract:
Business, nowadays, is highly competitive. Every enterprise has to adjust themselves and
tries their best to serve variety of customers whose need is always changed. Effective distribution
process is a major factor of logistics process that can satisfy customers. It can help to promote
their trust in enterprises. The principle of distribution process is that the products must be
delivered on time, at the right place, of the right quantity and quality. To be able to compete with
the others, enterprises have to improve their service and set their standard. This study applied
Lean Thinking to reduce time and cost, to increase profit, and improve quality of their
performance. Business Process Modeling Notation (BPMN), was used. Distribution process of
one-year order fulfillment cycle time was simulated and analyzed. The present and future status
of inventory level was compared. It was found that the time of an order fulfillment cycle time,
working time, and waiting time could be reduced up to 29.82 %, 19.38 %, and 89.17 %
respectively. The cost could be reduced as much as 45.34 %.