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Abstract This paper describes how to apply both of value stream mapping tools and kanban system for identifying and reducing wastes that happened on shop-floor. This research was conducted at a basic chemical company which produces the thinner. This study aims to reduce even to eliminate the types of waste that occur on the production line of jerrycan product type. The plot of VSM is used to picture the entire of value stream. The value stream mapping tools are used to analyze the certain waste after it has been figured out by using waste assessment model. Hence in this study two selected tools were applied and discussed further, i.e. process activity mapping, and supply chain response matrix. The Current-VSM shown that value-added time of 472.33 s compared with total lead time of 132,568.76 s, consequently obtained process cycle efficiency (PCE) approximately 0.36%. Kanban system will be implemented to eliminate waste of unnecessary inventory throughout the value stream. At last, the result of improvements shown that value of PCE probably will increase by 67.25%, non-value activity will reduce 6.74%, as well as order fulfillment time of the whole process will be 13 days with 3.59 days of physical stock.
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