Synergy of supermarket system and human resources in manufacturing industry

This case study explores the supermarket concept to control raw material supplies and improve process flow between departments in the manufacturing industry, PT PI in the Sidoarjo industrial area, East Java province, Indonesia. This research is combination qualitative-quantitative research. Using observations and interviews with employee and management representatives. Use brainstorming to create a Failure Mode and Effects Analysis to find recommended actions and prioritize them. Annual panel data collection to determine safe stock and minimum – maximum stock levels. The research results show that the supermarket concept provides significant improvements to distribution flows, reduces inventory levels by up to 90%, improves production inventory and increases employee maturity, all of these improvements make production more reliable. Many papers only discuss the concept, model and quantity of inventory control but rarely discuss how to apply it in limited conditions (warehouse space, production space, operator behaviour, etc.). This paper suggests several approaches and actions that can provide great benefits regarding the implementation of supermarket systems in the manufacturing industry.