Analysis of Waste in Inbound Process using the Value Stream Mapping Method (Case Study: Maersk Fulfillment DC LOGOS Adidas)

Abstract

As an integrated container logistics and supply chain services, one of Maersk’s lines of business is an omnichannel fulfillment. In Indonesia, the activities that can be assisted by this line of business include distribution center management, e-commerce fulfilment, and several other services such as track and trace, value-added, as well as trade partner services. In a distribution center, two main activities are the inbound and outbound processes. Since these two processes involve an overwhelming number of products and employees, there are inefficiencies that can cause high operating costs. Thus, a study to minimize waste in the inbound process is conducted. A lean warehouse method is used as an approach to minimize waste, with data collected using time motion study (TMS) with a stopwatch. Current value stream mapping is applied to identify the whole process as well as to determine which activities are considered value-added, non-value added, and necessary non-value added. The next step is categorizing the waste using Pareto theory, identifying the causes of waste through a Fishbone Diagram, and proposing the improvement by having interviews with the warehouse supervisor. After implementing the lean concept, a future value stream mapping is created. After calculation, it resulted that the new Process Cycle Efficiency (PCE) value increased to 92.4%, previously it was 76.6%. This indicates that the inbound process at Maersk Distribution Center LOGOS Adidas has increased efficiency and work effectiveness by minimizing waste.