Supply Chain Improvement in a Local Toy Manufacturing Company by a Kanban System

Lean operation has become a very important concept to be adopted in every manufacturing company. Since the competition of companies that strives to be the best in their business are aligned with the spirit of continuous improvement from lean operation. And as a local toy manufacturing company, they also concerns' in continuously improve their process to reach a better customer satisfaction. This research aims to identify lean wastes in the focus of logistics as a part of supply chain in the company injection molding production line. Hence, by doing direct observation and brown paper critique to gather the data, it was found that the usage of push production system in the process of material preparation has leads to the delayed material supply to the production line as a problem. Therefore, to encounter the problem, Kanban system as a material management system and a tool to apply pull production system was proposed. In addition, the performance of Kanban system application between material department and production line in the company was analyzed by a business process simulation software and has leads to 13% improvement of supply chain metrics.