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Supply chain management is the process of integrating critical business procedures throughout the supply chain to generate value for stakeholders and customers. Total Quality Management is a system that emphasises quality and focuses on ensuring customer satisfaction. Customer satisfaction is a very important instrument for operational performance and business continuity. Therefore, this study aims to determine and analyse the effect of supply chain management (SCM) and total quality management (TQM) on operational performance (OP) mediated by competitive advantage (CA). Sample collection was carried out by distributing questionnaires, using purposive sampling technique, which is one of the non-probability sampling categories. The data analysis method uses structural equation model-partial least square (SEM-PLS). The results stated that the strategy of implementing supply chain management and total quality management together can increase competitive advantage. Increased competitive advantage can improve operational performance. The suggested policy implications are that the company can continue to maintain good relations with partners, produce products according to customer desires, competitive prices and timely products.

In general, this research aims to analyze and determine the effect of the application of lean manufacturing which is focused on eliminating waste and the influence of the physical work environment on labor productivity. This research used primary data through the distribution of questionnaires conducted to employees of Company X with a total of 230 respondents from sections in departments directly related to research variables. Data analysis methods using the Structural Equation Model (SEM) measured by the Partial Least Square (PLS) model, and data processing using SmartPLS 4.0 Software. Based on the results of calculations, data analysis shows that the application of principles related to lean manufacturing, which in this research is focused on the process of eliminating waste has a positive effect on the productivity of the workforce. The creation of a physical work environment that meets standards also positively affects the productivity of the workforce.

Supply chain management is the process of integrating critical business procedures throughout the supply chain to generate value for stakeholders and customers. Total Quality Management is a system that emphasises quality and focuses on ensuring customer satisfaction. Customer satisfaction is a very important instrument for operational performance and business continuity. Therefore, this study aims to determine and analyse the effect of supply chain management (SCM) and total quality management (TQM) on operational performance (OP) mediated by competitive advantage (CA). Sample collection was carried out by distributing questionnaires, using purposive sampling technique, which is one of the non-probability sampling categories. The data analysis method uses structural equation model-partial least square (SEM-PLS). The results stated that the strategy of implementing supply chain management and total quality management together can increase competitive advantage. Increased competitive advantage can improve operational performance. The suggested policy implications are that the company can continue to maintain good relations with partners, produce products according to customer desires, competitive prices and timely products.

In general, this research aims to analyze and determine the effect of the application of lean manufacturing which is focused on eliminating waste and the influence of the physical work environment on labor productivity. This research used primary data through the distribution of questionnaires conducted to employees of Company X with a total of 230 respondents from sections in departments directly related to research variables. Data analysis methods using the Structural Equation Model (SEM) measured by the Partial Least Square (PLS) model, and data processing using SmartPLS 4.0 Software. Based on the results of calculations, data analysis shows that the application of principles related to lean manufacturing, which in this research is focused on the process of eliminating waste has a positive effect on the productivity of the workforce. The creation of a physical work environment that meets standards also positively affects the productivity of the workforce.