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PT. XYZ is a company that produce agar powder. This research aims to minimize waste that happens in the production process of agar powder by using Lean Manufacturing concept with Value Stream Mapping (VSM), Value Stream Analysist Tools VALSAT, and Simulation Model. The results of this research indicate there are waste such as human potential, inappropriate design, unnecessary, and with the highest waste is in form of waiting time. It caused by unconsistent of raw material, unnresponsiveness worker, lack of tools that help operator, bottleneck process and unscheduled process. Recommendation for improvement are embracing capacity in filtering workstation, applicating bin system, equip workstation with timer, and making production schedule. Based on the simulation that have been done shows reduced total lead time of 2,94446 days to 2,270 days or efficiecy procces increased 22,81%.