Value Chain Analysis of  Patchouli Oil Using Value Stream Mapping and Porter’s Model

Geta Ambartiasari; Hazful Maizi; Chairuni AR; Prima Denny Sentia

doi:10.21107/agrointek.v20i3.31889

Value Chain Analysis of Patchouli Oil Using Value Stream Mapping and Porter’s Model

Geta Ambartiasari, Hazful Maizi, Chairuni AR, Prima Denny Sentia

Abstract

Patchouli oil has a strategic position in the world essential oil industry. Compared to other essential oils, patchouli oil has high aroma stability and fixation power, tends to have greater economic value, and has the potential to generate significant income for stakeholders. However, farmers have not cultivated patchouli sustainably. Moreover, there are indications of inefficiency in the cultivation implementation. This condition makes industrial activities vulnerable to mishandling or noncompliance with standards, which affects the productivity and quality of patchouli oil. Mapping and analyzing the value chain of industrial activities from upstream to downstream is a priority and urgency of this research in realizing a sustainable patchouli oil industry. Industrial activities are thoroughly and comprehensively mapped, ensuring that each production activity is carried out in a measured and targeted manner, utilizing efficient resources to produce high-quality products. By integrating the Value Stream Mapping Method and Porter's Value Chain Analysis, this research successfully identified bottlenecks and waste in pre-production, production, and post-production activities. Improvements to waste and bottlenecks identified from upstream to downstream include Unused Talent (37.3%), Defects (27.5%), and Waiting (23.5%). The future state map formulation with internal improvements yields a Type I duration of approximately 218 to 292 hours, and the Type II path becomes approximately 248 to 296 hours, resulting in an overall range of approximately 218 to 296 hours (approximately 9.08 to 12.33 days). Therefore, the efficiency gains calculated for outbound logistics, which encompasses all upstream and downstream processes, amounted to 35.46%. This study recommends prioritizing improvements in Inbound Logistics (standardization, competency-based training, SOP enforcement) and Operations (cultivation, distillation) to reduce unutilized potential, defects, and lead times along the patchouli oil value chain.

Keywords

Optimization; Patchouli oil; Porter analysis; Value chain; Value stream mapping;

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References

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