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PT. XYZ is a company that produces agar powder. This research aimed to minimize waste that happens in the production process of agar powder by using Lean Manufacturing concept with Value Stream Mapping and Simulation Model. The results of this research indicate there is waste such as human potential, inappropriate design, unnecessary, and with the highest waste is in the form of waiting time. It caused by inconsistent of raw material, unresponsiveness worker, lack of tools that help operator, bottleneck process and unscheduled process. Recommendations for improvement are embracing capacity in filtering workstation, equip workstation with timer, and making production schedule. Based on the simulation that have been done shows reduced total lead time of 2.94 days to 2.27 days or efficiency process increased 22.81%.

Design of lean production system with simulation model approach in agar powder production