Lean Procurement Strategy in the Service Industry: Its Impact on Customer Satisfaction

Abstract

The problem of long lead time in the fulfilment of quality goods and services in the education sector has a significant effect on customer satisfaction. This study aims to identify the factors causing lead time in the procurement of goods and services in educational institutions and propose strategies to reduce it using Define, Measure, Analyse, Improve, Control (DMAIC) steps, Value Stream Mapping (VSM), and the Dynamic Powersim System. Data was obtained from the recapitulation of procurement of goods and services for Academic Year 21-22 to Academic Year 23-24. The results of the study showed that the average lead time in Academic Year 23-24 reached 52 days, far exceeding the target of 10 days, particularly during the submission, approval, and realization stages. With the implementation of Lean Procurement through DMAIC steps, VSM, and with Powersim Dynamic System modelling, it was found that before the improvement, the total lead time ranged from 27.98 to 39.57 days, while after the improvement the lead time decreased to around 16.85 to 21.07 days, so it is expected to increase customer satisfaction. These findings are expected to contribute practically to procurement efficiency in the education sector and academically to the development of Lean Procurement in the service industry.