An Application of Lean Supply Chain Management for Cost Reduction in Latex Industry

Abstract:

The objective of this research is to reduce the total systemwide cost of the latex industry supply chain, including three significant stakeholders, who are rubber plantation (farmer), latex factory, and glove factory. The lean concept is employed to investigate the wastes and to propose alternative methods for eliminating them. The value stream mapping technique (VSM) is used as a tool to identify non-value added activities in the supply chain. There are three main steps for this research, 1) create a supply chain model for latex industry, 2) assess the current state of the supply chain by evaluating value added (VA), non-value added (NVA) activities and the total supply chain cost, 3) move toward the future state by analyzing root causes and identifying countermeasures to eliminate wastes. The result indicates that the largest percentage of the total systemwide cost is the storage cost of raw materials and finished goods, which is accounted for 58.35%. The further research will be created forecasting technique and design collecting point field latex for reduce labor cost in supply chain. Keywords Lean Supply Chain Management, Latex Industry, Cost Reduction

• Periodical: Advanced Materials Research (Volume 844)
• Pages: 478-481
• DOI: https://doi.org/10.4028/www.scientific.net/AMR.844.478
• Online since: November 2013
• Authors: Suwanna Ponpakdee, Nikorn Sirivongpaisal, Sakesun Suthummanon, Wanatchapong Kongkaew, Pallapat Penchamrat
• Keywords: Cost Reduction, Latex Industry, Lean Supply Chain Management

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DOI: 10.1080/13675560802141812