Reduction of waste in biodiesel production with Value Stream Mapping (VSM)

Currently, the biodiesel industry in Indonesia presents significant opportunities within the broader industrial sector. However, competition within this field has intensified, leading to higher price offers. This situation may be caused by inefficiencies in the production floor. The application of Lean Manufacturing is implemented to map all activities involved in biodiesel production. A questionnaire method is employed to identify the inefficiencies. After assessing the current state, the root causes are analyzed using the 5W method, followed by a production gemba walk. This research is then carried out through process activity mapping to evaluate time utilization on the production floor. The steps undertaken include creating a future state map plan, which provides a design for improvements and the implementation of continuous improvement in biodiesel production, ultimately leading to cost savings. The results of this study indicate a production savings margin of IDR 1,870,726,000 per year, and the application of continuous improvement at the Biodiesel Plant successfully reduced the total time required by 3,920 hours.