Abstract

Every company, including the food and beverage industry shares the same goal, to increase productivity in operational activities. Productivity enhancement is a key factor indicating a company's development. The layout of production facilities plays an important role in improving a company's efficiency to ensure smooth production processes. This research evaluates a cake production factory facility layout and material handling, focusing on challenges from the significant distances between stations. Problems were identified through direct observation and interviews with the factory manager. Employing the Systematic Layout Planning method with ARC and dimensionless diagrams, an analysis was conducted to propose an optimized layout and material handling. The proposed improvements, derived from a keen analysis of workflow sequences and resource allocation, have been validated to substantially decrease the distance of material flow, thereby leading to reduced handling cost and enhancing overall productivity.