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.