<![CDATA[This research is motivated by the phenomenon of production output instability in SMEs in Indonesia, where a number of SMEs that already have and understand Standard Operating Procedures (SOPs) are still unable to predict daily output consistently. The aim of this study is to identify and analyze the opportunities for implementing lean manufacturing to improve production output stability in the SME sector in Indonesia. The research employed a multiple case study approach on 11 manufacturing SMEs in the Java and Lampung regions. Data collection was conducted through observation, cycle time measurement using a digital stopwatch (minimum 30 samples per activity), structured interviews, and documentation of existing layouts. Data analysis used descriptive statistics (coefficient of variation), Pareto diagrams, Ishikawa diagrams, and before-after comparative analysis. The results showed that all SMEs experienced output instability with an average cycle time coefficient of variation of 0.44, far above the ideal limit for controlled manufacturing industry (CV < 0.10). The three dominant wastes causing instability were motion (42.3%), waiting (30.3%), and transportation (20.1%). The root causes of these three wastes were not the workers' inability to understand SOPs, but rather the unstandardized layout of equipment and materials. The most promising opportunities for lean manufacturing implementation lie in the application of 5S as the main foundation, followed by Value Stream Mapping and layout redesign using Systematic Layout Planning. This study concludes that layout standardization serves as the missing link in the relationship between work method understanding and production output stability in SMEs.]]>
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