The industrial sector in Indonesia is urged to improve efficiency and competitiveness through the implementation of lean manufacturing. However, challenges such as entrenched work culture and mindset often hinder success, resulting in persistent waste. Waste refers to non-value-added activities that increase costs and reduce productivity. Small and Medium Industries (SMIs) contribute significantly to Indonesia’s economy, including Yellow Noodle SMI. This study aims to identify dominant types of waste in the production process and recommend improvements. The methods used include Value Stream Mapping (VSM), Process Activity Mapping (PAM), Fishbone Diagram, and Failure Mode and Effect Analysis (FMEA). Current State VSM shows a Process Cycle Efficiency (PCE) of 48.32%. PAM highlights a high proportion of non-value-added activities. The Fishbone Diagram reveals causes such as equipment limitations, inefficient layout, and poor worker scheduling. FMEA results show that waiting and transportation are the most critical wastes. Improvement suggestions include installing a drying machine, redesigning the production layout, and optimizing worker schedules. These improvements are projected to increase the PCE to 91.66% in the Future State VSM, supporting the company in reducing waste and enhancing production efficiency.