Identification of implementation Lean, Agile, Resilient and Green (LARG) approach in indonesia automotive industry

Abstract

Indonesia's economic growth, which has developed in the last few decades, has contributed to an increase in the automotive industry sector. The automotive industry continues to increase the competitiveness of the automotive industry. The Lean, Agile, Resilient, Green (LARG) approach that has been applied by several global automotive industries, is able to increase competitiveness and performance in a sustainable manner. The purpose of this study is to analyze the implementation of the LARG approach in Indonesian automotive, as one of the bases for the automotive industry in Asia. The LARG value index is conducted to determine the level of application in the automotive industry in Indonesia. The mapping of the level of importance and performance of each of the LARG sub indicators was carried out using the Importance Performance Analysis (IPA) method. The results of this study confirm that there are several LARG sub indicators that have not been implemented properly. Green has the most sub-indicators that need to be improved, namely PG1(ISO 14000 and OHSAS Certificates), PG2(Collaboration with suppliers and customers in protecting the environment), PG6(Carrying out industrial waste recycling), and PG8(Product design that can reduce consumption of energy and raw materials). The calculation of the LARG implementation index value is 4.41.