Applying Lean Government to Improve Public Services Performance Effectively: A Case Study of Lean Implementation in Tangerang Customs Office

Abstract

This paper evaluates the implementation of a Lean approach developed by internal organization with a supervision froman external consultants into the Tangerang Customs Office (TCO) to improve public services. The purpose of thispaper is to examine which tools/techniques are implemented into the TCO together with their impact as viewed by the formal leaderwithin theorganization.

The research takes a case study approach based on visiting the TCO, by using the Library Research method on Activities Report VSM training, implementation of lean tools, and in-depth interview with formal leader.

This paper reflects on the implementationof a Lean approach into the TCO in order to understand which tools are relevant and have had an impact.This research showed that lean implementation have led to tangible and intangible benefits. Tangible benefit appeared in reduction of the average customs permit processing time, although average submitted documents increased. Intangible benefits include a better understanding of Lean concept and methods and its application know-how, a rise in employees motivation and morale by executing employees improvement proposal as a bottom-up approach..

To date the implementation of Lean as a business improvement methodologies are still under researched within public services in Indonesia. The majority of papers to date focus on presenting case studies of what happened outside of Indonesia. This paper attempts to go beyond that in order to present framework to help in understanding, implementing and challenging the concept ofLean in public services in Indonesia.

Keywords: Lean Government, Value Stream Mapping, Public sector organizations, Business process re-engineering