Profit comparison analysis in production system simulation based on lean principles to achieve sustainable manufacturing

Abstract

Companies can achieve effective and efficient process if they make continuous improvements to achieve sustainability. In general, companies are aware of waste in the production process, but do not carry out measurements and analyzes related to this waste, including unit cost and profit analysis. A production system is needed that is able to minimize the unit costs and maximize profits in the company, one of the concepts used is the lean concept. This study aims to analyze the cost unit and profit generated in production systems that apply lean principles. Production system simulation is carried out using the concepts of Heijunka, Jidouka, and Kanban System. These three concepts are applied to a production system simulation that uses miniature cars with unit cost and profit comparison outputs with traditional production systems, pull systems, heijunka, jidouka, and Kanban systems. The results show that the unit cost of simulations 1 to 6 is getting lower, while the profit is increasing. In simulations 1 and 2 no profit was obtained because of implementing the traditional system while in simulations 3 to 6 there was an increase in profit because they had applied lean principles to the production system. Simulations that have implemented the lean concept have low unit costs and increasing profits, but what distinguishes the work methods applied. Production systems that apply the lean concept can help a company achieve sustainability in the economic field.