Lean manufacturing approach for improvement of SMEs in Indonesian Industry

Globally SMEs face challenges from competitions whi ch drive them to strive to improve their performances on a r egular basis. The purpose of this paper is to introduce the lean m ufacturing approach as a means to improve productivity and man agement of the SMEs in Indonesian industries. This paper discu s ed and described the implementation of lean manufacturing tools and techniques which has evolved to be a form of corpor ate culture within the Indonesian manufacturing industries, esp ecially for the SMEs. Moreover, this paper also discussed the “how to” aspect of improving the productivity of a given company as we ll as the management systems by identifying waste that occurs and reducing and/or removing the identified waste. Some case studies from the Indonesian manufacturing SMEs were present d to illustrate the implementation of the lean manufactu ring approach. The outcomes of implementations from the case studi es confirmed improvements in performance for these SME s as a result of adopting the lean manufacturing tool and techniques.

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