Fast-Moving Consumer Goods (FMCG) Sustainable Strategies: Minimizing Waste in Cereal Packaging Process

Nowadays, competitive global manufacturing and service industries require companies to adopt sustainable business practices to provide high-quality products and services at an affordable price, particularly in the Fast-Moving Consumer Goods (FMCG) industry. The purpose of this study is to enhance the efficiency of the mono carton packaging process in an FMCG food cereal and snack company by identifying the largest waste through the application of the Value Stream Mapping (VSM) method. VSM is utilized to depict the flow of the packaging process from raw materials to finished products. The waste data in the Packaging Department between 2021 and 2022 was analyzed to identify the packaging flow, and current state mapping was utilized to discover the causes of waste. Hence, a proposed improvement design was obtained through Future State Mapping. The findings revealed that the most significant waste occurred in Non-Value-Added activities, specifically in the form of raw material inventory and work-in-progress material areas, causing a delay of seven days. The validated questionnaire results indicated that the most common forms of waste are Inventory (42.6^%) and Excess Processing (31.9^%). The Value-Added Ratio (VAR) before improvement had a percentage value of 99.94%, while the VAR value became 99.55% after the enhancement.

I. Introduction

Both manufacturing and service businesses are required to deliver high-quality goods and services at competitive prices and on schedule to maintain company continuity and the industry's viability in today's more disruptive and competitive global business climate [1]. The control of waste in the manufacturing process, which uses up a lot of time, resources, and space, is one of the key concerns that businesses concentrate on, in which classified as Muda or non-value-added process to the goods or services [2]. As a result, businesses need to ensure that the process flow is well-balanced. It is imperative for companies to take measures to minimize waste, as manufacturing companies typically utilize significant amounts of materials, which can result in substantial waste during the production process [3]. Waste may take the form of any operation within the process that does not add value, necessitating companies to minimize waste or any disruptions that may impede the smooth operation of the production process [4]. In general, manufacturing companies tend to use a considerable number of materials, which can lead to a significant amount of waste in the production process [3]. Waste can take various forms, including any operation in the process that does not add value. As such, companies must minimize waste or any obstacles that may impede the smooth production process [4]. There are seven types of waste: overproduction, waiting, transportation, over-processing, inventory, motion waste, and defects [5]. Furthermore, the concept of lean thinking has been developed into a strategy to enhance flexibility, dependability, and productivity [6]. Hence, all value from the customer or end-user perspective must be done to identifying the value stream, creating a smooth flow of value to the customer, creating a pull mechanism where value is only provided when requested by internal and external customers, and striving for excellence and perfection in producing high-quality products using the most efficient methods. Thus, the aim of this method is to achieve minimum cost while delivering products to customers on time through continuous improvement evaluation. By reducing waste and inefficient activities, the company can improve the performance of its supply chain.