Track: Lean
Abstract
With business pressures on the rise, it is more important than ever to stay competitive and develop unique ways to reduce costs. Companies should focus on minimizing non-value added work to decrease indirect material cost and improve material movement throughout the plant. In this paper, we present a study on analyzing production layouts in a manufacturing company utilizing Lean techniques and Monte Carlo simulation. We consider three layout alternatives for a stockroom with the objective to reduce material movement and non-value added work as well as improve safety by reducing forklift traffic. Results from the case study show that the current location of the stockroom is the optimal when considering distance of travel and cost of moving the material.