Abstract
The domestic auto industry is facing market saturation. Car manufacturers need to introduce new vehicles and reduce the cost to maintain market share. This study focuses on the increase of production efficiency by using Set Pallet System (SPS) with improved material supply in vehicle assembly line for small volume and high variety demands. SPS uses the set pallet mode (placing all the required materials in a pallet set for each vehicle) to supply materials to production line workers quickly and efficiently depending on the production car sequence. It can significantly reduce the storage space along the production line for material storage and supply and improve operating efficiency. In this study, the Toyota Production System philosophy and value stream mapping tool were used, as it is suitable for automobile manufacturing plant SPS model processes. It helps to systematically plan factory parts for the fill mode of operation and continuously improve even when the number of vehicle models continues to increase.