Application of Lean Concept on Replacement Process of Gauze Catalyst at PT Kaltim Nitrate Indonesia

Abstract

PT KNI is a foreign investment company that produces Ammonium Nitrate (AN), used as a component in explosive raw materials. During the early-stage production process, PT KNI faced the problem of replacing the Gauze Catalyst, which took a long time, causing the machine to experience downtime for 169 hours, or equivalent to a loss of USD 5,874,440. This problem is caused by non-value-added activities (waste) during the catalyst replacement process. Therefore, this study aims to identify waste and recommend corrective actions to reduce or eliminate them. This study adopts the lean approach by applying Process Activity Mapping and Root Cause Analysis (5 whys, Cause and Effect Diagram) to help identify non-value-added/wasteful activities and determine their root causes. The proposed improvements to address the root causes of waste include implementing 5S to make employees work more effectively and efficiently, developing Standard Operating Procedures (SOPs) that are in line with the current situation to facilitate employee work, adopting Vendor Managed Inventory (VMI) to build mutually beneficial business relationships between PT KNI and vendors, providing training to improve employee productivity, and ensuring the availability of tools, group communication, and a more ergonomic work environment. These improvements could eliminate wastage for 478 minutes and save USD 276,921.33 (4.72%) costs, thereby improving company performance.