The Improvement of logistic management using Lean and RFID technology

One of the successful strategies in business competition is effectiveness of logistic management, especially when agriculture products, which have a short life-cycle, are concerned. This means that time management directly affect freshness of products. This study was based on Lean and RFID technology to reduce the amount of time in non-value-added germinated brown rice (GBR) logistic operations in a rice mill. In this study, it began with analysis of the GBR logistic operations in rice mill after that there was an investigation of 8 operation management. Finally, Value Stream Mapping in current state was drawn to show the GBR logistic operations, while Value Stream Mapping in future state was used to draw current maps integrated with Lean and RFID. The result of design using Lean and RFID showed that the GBR logistic operations significantly reduce time 617 from 3,731.5 minutes accounting for 16.53%. Moreover, according to evaluation analysis, break event point (BEP) is 3 years and the return on investment (ROI) is to be in the following the 28.77%.