Zero Waste Production Coconut Charcoal Syam Saputro Kudus with Lean Manufacturing Implementation

Export demand for coconut charcoal always increases from year to year. According to data from the Badan Pusat Statistik (BPS), the export value of coconut charcoal rose by 4.69%, increase from USD 145.1 million in 2019 to USD 151.9 million in 2020. Indonesia exported 188,050 tons of coconut charcoal, with the export value totaling USD 145.09 million. So, this requires producers to be able to meet export demand. Syam Saputro Kudus is a producer of coconut charcoal which is exported to various countries. The production capacity of this charcoal factory is approximately 240 tons per month. From this production capacity, Syam Saputro Kudus has set a production target of 200 tons per month. Unfortunately, from existing data it is found that the company has not been able to meet the production target. Failure to achieve production targets was caused by transportation, inventory, deffect and over processing problems. This is a fundamental problem for a producer in meeting production targets. This study aims to apply lean manufacturing through the use of Cost-Based Value Stream Mapping (Cost-VSM) method, so that it can be a solution for Syam Saputro Kudus in meeting production targets. Meanwhile, the expected outcome of this research is the creation of a future VSM model which can be used as a reference for entrepreneurs in minimizing non-value-added activities so as to achieve efficiency to increase productivity.