Material Flow Analysis and Waste Identification in Material Handling Using Value Stream Mapping at PT Giken Precision Indonesia

Material handling is an important component of manufacturing operations because ineffective movement, waiting, excessive transportation, and unnecessary inventory can increase lead time without creating customer value. This study analyzes material flow and identifies waste in material handling activities at PT Giken Precision Indonesia using Value Stream Mapping (VSM). A case study design was employed through direct observation, process documentation, and measurement of transportation time, waiting time, processing time, material movement frequency, and inventory. The analysis was conducted by constructing a current-state map, classifying activities into value-added, necessary but non-value-added, and non-value-added activities, identifying dominant waste, and developing a future-state map. The current-state analysis shows a lead time of 86 minutes per material-handling cycle, of which waiting accounts for 41 minutes (47.67%), and a process cycle efficiency (PCE) of 11.63%, where value-added time is limited to the processing time of value-added activities. Waste-category time burdens were assessed as overlapping measures and are not additive. The proposed improvement framework focuses on material-flow simplification, point-of-use material supply, layout adjustment, standardized material-handling routes, and synchronization between warehouse and production activities. The proposed future state has not been implemented; its values are estimates. It is estimated to reduce lead time by 32.56% (86 to 58 minutes), waiting time by 43.90%, and transportation distance by 38.33% per shift, and to raise PCE from 11.63% to 17.24%. The study contributes a material-handling-oriented VSM framework for identifying operational waste in a manufacturing environment.