Lean Six Sigma Improvement for Reducing Material Storage in Underground Mine at PT Freeport Indonesia
DOI:
https://doi.org/10.46799/adv.v4i9.664Keywords:
Lean Six Sigma, DMAIC, Inventory Control, Storage Management, Material VisibilityAbstract
Material availability is essential for underground mining operations; however, fragmented storage, limited inventory visibility, and delivery delays can disrupt production and increase operational waste. This study aimed to identify the root causes of inventory control and storage management issues for ground support materials at the Grasberg Block Cave, Kucing Liar, and Deep Mill Level Zone mines of PT Freeport Indonesia and to formulate prioritized improvement strategies. A case study approach was conducted using the Lean Six Sigma DMAIC framework, incorporating observations, 5S assessments, questionnaires, semi-structured interviews, operational records, Value Stream Mapping, Pareto analysis, Current Reality Tree analysis, Action Priority Matrix, and Impact-Complexity Analysis. The findings showed that waiting was the dominant waste, with a score of 115, followed by inventory waste with a score of 98; together, these two categories accounted for 44.9% of the identified waste. Six of seven storage locations were rated as fair or poor. Four root causes were identified: the absence of standardized inventory management, inadequate control and staffing in shadow storage areas, weak storage and 5S standards, and limited availability of transportation equipment. Dedicated storemen achieved the highest Impact-Complexity Ratio score of 3.23, followed by 5S compliance at 2.59 and daily inventory reporting at 1.91. The study concludes that implementing these initiatives can strengthen traceability, accessibility, inventory accuracy, and material flow reliability across mining operations.
References
Ambrusevi?, N. (2026). Integrated model for improved logistics with a focus on forwarding and warehousing services. Entrepreneurship and Sustainability Issues, 13(3), 405–419.
Asante, M., Epiphaniou, G., Maple, C., Al-Khateeb, H., Bottarelli, M., & Ghafoor, K. Z. (2021). Distributed ledger technologies in supply chain security management: A comprehensive survey. IEEE Transactions on Engineering Management, 70(2), 713–739.
Daniyan, I., Adeodu, A., Mpofu, K., Maladzhi, R., & Kanakana-Katumba, G. M. (2023). Improvement of production process variations of bolster spring of a train bogie manufacturing industry: a six-sigma approach. Cogent Engineering, 10(1), 2154004.
Dolch, D., Diebl, D., & Lasch, R. (2026). Challenges, critical factors and interrelated improvement measures in sustainable online grocery retailing: insights from the German e-grocery market. The International Journal of Logistics Management, 37(7), 244–282.
Ernest, S. N. (2024). Enhancing Warehouse Efficiency Through an Integrated Stock Management System: A Comprehensive Study. Istanbul Aydin University (Turkey).
Hasmee, N., Joshi, H., Gurung, M., Singh, B., & Naseema, S. (2026). Optimising ICU supply chains: Evidence-based strategies for efficiency, resilience and patient safety—a structured narrative review. BMJ Open Quality, 15(2), e003422.
Huerta, J. R., Silva, R. S., De Tomi, G., & da Silva, A. L. M. A. (2022). A dynamic simulation approach to support operational decision-making in underground mining. Simulation Modelling Practice and Theory, 115, 102458.
Karaduman, Ö., & Gülhas, G. (2025). Blockchain-enabled supply chain management: A review of security, traceability, and data integrity amid the evolving systemic demand. Applied Sciences, 15(9), 5168.
Khazaei, S., Mousavi, A., & Pourrahimian, Y. (2025). Strategic long-term planning for sublevel caving: A unified mixed-integer-linear programming framework for development, ventilation, production scheduling, and stockpile management. Mining, Metallurgy & Exploration, 42(3), 1741–1757.
Mostofa, M. G. (2024). Store, warehousing and inventory management system in Bangladesh: upgradation approach in Bangladesh Civil Aviation Authority (CAAB).
Mwizerwa, G., & Akumuntu, J. (2024). Effect of Warehousing Management on Supply Chain Performance: A Case of Inyange Industries Ltd. African Journal of Empirical Research.
Omar, I. A., Debe, M., Jayaraman, R., Salah, K., Omar, M., & Arshad, J. (2022). Blockchain-based supply chain traceability for COVID-19 personal protective equipment. Computers & Industrial Engineering, 167, 107995.
Samatemba, B., Zhang, L., & Besa, B. (2020). Evaluating and optimizing the effectiveness of mining equipment; the case of Chibuluma South underground mine. Journal of Cleaner Production, 252, 119697.
Sathursiya, S., Perera, B., Madhushani, S. J. L., & Ranadewa, K. (2026). Material Efficiency Framework for Construction Projects: Convergence of Kaizen Techniques with Circular Economy Strategies. Circular Economy and Sustainability, 6(4), 380.
Sekgetho, T. T. (2025). Enhancing Reliability and Availability in Underground Mining Through Optimised Maintenance: An Analysis of an Underground Mine. University of Johannesburg (South Africa).
Senanayaka, P. (2025). Lean management techniques for reducing material waste: Finland evidence.
Sishi, M., & Telukdarie, A. (2020). Implementation of Industry 4.0 technologies in the mining industry-a case study. International Journal of Mining and Mineral Engineering, 11(1), 1–22.
Walker, D. K. C. (2023). Integrating materials supply in strategic mine planning of underground coal mines. University of Wollongong.
Welarathna, H. (2026). Optimizing Inventory Management Practices to Minimize Food Waste: A Case Study of Fuumi Sushi and Wok, Seinäjoki.
Zeng, W., Wang, Y., Liang, K., Li, J., & Niu, X. (2024). Advancing emergency supplies management: a blockchain?based traceability system for cold?chain medicine logistics. Advanced Theory and Simulations, 7(4), 2300704.
Zhu, H., Cheng, Y., Song, X., Zhou, Y., Liu, F., & Chen, Z. (2025). Enhancing transparency and traceability in complex supply chains: Fine-grained access control, accuracy evaluation, and secure storage. Journal of Information Security and Applications, 93, 104169.







