Lean management in the rice industry; Case study at Widasari, Indramayu district

Abstract

Rice is a strategic product in Indonesia development because it becomes an essential aspect of economic growth. The inefficiency of food agribusiness system becomes a crucial aspect of developing the sustainable industry. Those affected by the lack of using technology that impacts the high amount of waste and losses, the inefficiency of time, etc. It could impact the competitiveness, equity of value-added, unstable price and poverty. Some amount of rice grade materials rejected from the production line due to the unsatisfactory quality. This article aimed to analyze efficiency in the food industry as a preparation in the development of agricultural digital supply chain. The analysis shows that inefficiency in the rice industry due to a lot of manual activities that impact the time and expense efficiency (labor intensive rather than the use of technologies). Improving efficiency in the food industry is not only about time and cost management, but it becomes complex issues which are involved in several barrier factors. It should be anticipated with appropriate technology, improving skills, and also develop an integrated logistics system. Importantly, improving efficiency in rice industry needs to develop soft skill as the key success factors to improve efficiency in the digital supply chain for the rice industry.