PT Lautan Natural Krimerindo Inspires Other Companies to Increase Productivity

June 13, 2024

PT Lautan Natural Krimerindo takes continuous improvement very seriously. With several prestigious awards related to improvement under its belt, the Company was invited to speak at two events aimed at increasing productivity.  

The first event was a communication forum for HR personnels in Mojokerto on May 14th. The second was a productivity training held by the Department of Manpower of East Java on May 16th. 

During both appearances, a rep for PT Lautan Natural Krimerindo explained that the Company’s success was in large part due to the implementation of Productivity Improvement Management System (SIMPPRO), set by the Ministry of Manpower of the Republic of Indonesia. 

According to SIMPPRO, a good company should have these seven elements: 

  1. Leadership: Leaders committed to increasing productivity by providing necessary resources 
  2. Strategic planning: Effective plans to achieve clear and measurable targets  
  3. Development and management of human resources: Commitment to increase productivity through management of competence, creativity, and innovation 
  4. Customers and market focus: Continuous market research to improve company’s performance 
  5. Data, information, and analysis: Decisions that are based on data, research, and thorough analysis 
  6. Process management: The ability to make continuous improvement and adapt quickly, flexibly, and effectively to changes. 
  7. Business results: Tireless effort to improve performance to increase customer satisfaction, company’s financial condition, company’s ability to compete in global market, etc 

Several forms of SIMPPRO implementation around the Company included: 

1. The culture of Sort, Stabilize, Shine, Standardize, Sustain (5R) 

Known as Ringkas, Rapi, Resik, Rawat, dan Rajin or 5R in Indonesia, the culture is designed to decrease waste and create a conductive working environment to increase efficiency, safety, and working performance.

At LNK, 5S or 5R is carried out at least once a month with everyone from all departments taking part. Back in 2021, 5he Company even joined and won a 5R competition against other institutions around East Java.

2. Quality Control Circle and Kaizen Blitz 

Through these programs, employees were encouraged to work in groups or individually to identify problems around the company, then develop and implement solutions, and monitor the results. This process can lead to increased employee engagement, improved quality of products or services, and a culture of continuous improvement. 

QCC and Kaizen Blitz at LNK have led to incredible improvements over the years. One of the most notable results was a significant increase in production capacity from 18.557 tons in 2021 to 59.455 tons in 2023. Due to the increase of effectivity, the Company managed to save up to Idr 480.000.000 per year. 

Everyone’s efforts to make improvement were recognized with QCC and Kaizen Blitz Awards held internally and externally. In 2024, LNK also won the first-ever LIFE Award (Improvement Forum & Experience) against other companies belonging to their parent company Lautan Luas Group. 

3. Digital transformation 

At LNK, we have integrated digital technology into almost all areas of our business. From going paperless to using artificial intelligence, we’re looking to increase productivity and efficiency for all workers. The use of technology is also beneficial for our manufacturing process as it helps with early diagnosis of malfunctions, inventory, and planning maintenance during downtime. 

Technology has also been playing a huge part in increasing speed of production and reducing operational cost, helping us optimize generation of revenue. 

Our attempt at going digital has earned us multiple awards, including INDI 4.0 Award and Lighthouse Industry 4.0 from the Ministry of Industry. The increase in our productivity, meanwhile, was rewarded with the Paramakarya Award 2023 from the Ministry of Labor and Siddhakarya Award 2022 from the Department of Labor and Transmigration of East Java.  

LNK hopes to help reduce unemployment rate through sharing sessions 

By sharing its experience in implementing SIMPPRO, LNK hoped to inspire participants of the communication forum and productivity training to start doing the same. With more companies improving their performance and efficiency, LNK believes there will be more employment opportunities which will hopefully result in less unemployment and poverty. 

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