Analysis of The Application of Lean Distribution on Urea Fertilizer Products in Minimizing Waste with Arena Simulation (Case Study PT. Pupuk Iskandar Muda, North Aceh).

Abstract

PT. PIM is a company operating in the fertilizer industry. The main issue lies in prolonged lead times within the distribution process, causing inefficiencies and resulting in waste during distribution activities. The concept of Lean Distribution focuses on managing strategic distribution processes effectively and efficiently to reduce waste. The results of Big Picture Mapping and Process Activity Mapping identified six distribution groupings involving 20 activities with a total time of 343 minutes. Waste identification using Arena Simulation revealed three activities experiencing waiting time (waste): unloading goods (428.41 minutes), placing fertilizer onto trucks (55.55 minutes), and truck inspection at the warehouse (0.38 minutes). Proposed improvements include reducing time in activity 6 by 9%, activity 8 by 26%, and activity 20 by 28.8%. The results of the Arena Simulation indicate that scenario 6 achieves the highest efficiency, with a time reduction of 36.4%, resulting in a total time of 20 minutes.