PT.McDermott Indonesia is one of the contractors who are trying to improve the efficiency and productivity in order to create higher value for consumers. Reduction of overall lead times and production costs in the pipe mill 2 is the target company to be achieved. To reduce overall lead time, it is necessary to identify the root-causes of long lead time by using value stream concept. In the manufacturing value stream, flow data material and information flow in the pipe mill 2 including the time cycle, data inventories, consumable purposes, and other supporting data were collected. After that, we map the big picture that illustrates the overall processes and activities that occur on the pipe mill 2 to identify the existing waste. From the identification, it was obtained 1008.2 minutes as the value added activity; 853.38 minutes as the non-value added activity; and 457.02 minutes as the value enabler. Non-value added activity breakdown to determine the cause of the largest waste, and the longest waste is the waiting time which is 684.66 minutes. By using fishbone diagram, we obtained the root of the main problems which is the frequent turnover frequency of the spreader bar that can reach 63 times in one day. Improper working methods also being the root problem since operator sometimes leave their workstation and so the production become idle. The problem of frequent turnover spreader bars is eliminated with the method of products design and development concepts of telescopic spreader bar that can save up to 834.16 man-hours of work per year. The proposed application of an andon light also can eliminate the time required for the operator to take Consumable, OHC, or experiencing engine technical problems up to 271.05 man-hours per year. Both proposals are useful for the implementation of enterprise to reduce production lead time in pipe mill 2, mainly caused by the waiting waste. With smaller lead times, the company can also reduce the manpower and man-hours required to produce material, so the company can produce more products to meet customer needs. |