Value Chain Analysis and Lean Manufacturing on Increasing Corporate Profits

Abstract

This research aims to find out how Value Chain Analysis can understand the competitive advantages of companies and Lean Manufacturing can increase customer value through the elimination of waste. So that can be achieved by increasing the Corporate profits. According to VCA, activities in the company's value chain are explained, so that it can be known that activities are value-added and activities that are not value-added. While LM can explain the waste activity that occurs in the company can be minimized, VCA activities can be divided into main activities and supporting activities, Research on LM can identify against waste that occurs in the company. Therefore, the competitive advantage of the company and eliminating waste can be achieved in PT. Herlinah Cipta Pratama VCA and LM have a very strong effect on the increase in corporate profits. This rating is based on a Beta rating (0.646). This influence is also reported to be statistically significant (Sig = 0.000). Further results showed that VCA and LM influenced up to 41.7% of profitability changes. leaving 58.3% of the influence associated with other factors that also affect the profitability of manufacturing entities. In conclusion, related to the results of the study; partial VCA affects the increase in corporate profits profit and LM has no effect on the increase in corporate profits, and simultaneously VCA and LM affect the increase in Corporate Profits. The results of this research can be input for the company, as well as taking the company's strategy to increase profit. Value chain analysis and LM will be able to achieve the company's competitive advantage, eliminating waste, and adding value to customers, which will ultimately increase the Corporate Profits and Business Performance.