Abstract
P.T. EDS Manufacturing Indonesia is a company that manufactures wire harnesses for vehicles. The outdated layout causes various challenges in the wire harness assembly line, such as excessive material handling costs. The initial step in constructing a new alternative layout is to measure process and layout data, determine time standards, and material handling, and continue in making an alternative layout using SLP methods. From the two alternative layouts created, alternative layout 2 features closeness from the external warehouse to every supply station and allocates every workstation to be sequentially and rotational layout allocation, resulting in an improvement of using 18 workers, 72 unit hourly production, and efficiency of 97.7%. SimPy simulation validates the proposed layout’s material handling cost and daily production. The result showed an improvement of a decrease of 13.9% in material handling cost and an increase of 3.92% in daily production.