Track: Graduate Student Paper Competition

Abstract

PT. Ocean Centra Furnindo is a company engaged in manufacturing beds or spring beds. The present layout of the company has already showed some signs of inefficiency in the form of suboptimal material transfer costs. The suboptimal material transfer costs are caused by the relatively large moving distances between each department inside production floor and also between warehouses that are used to store raw materials and finished goods. The company had just purchased a block of land to expand the company size to accommodate the growing demand. Therefore, this study was conducted to design a new and appropriate facility layout by selecting a hybrid layout type combined with product layout and group technology relative to the production activities. The factory layout design uses the CRAFT (Computerized Relative Allocation of Facilities Techniques) technique and the CORELAP (Computerized Relationship Layout Planning) algorithm to determine the best layout solution that can be applied to the company. The final result of the research can be determined by comparing the optimum material handling costs by considering the distance and displacement cost factor. The results of the analysis show that the layout of the CORELAP design has a level of efficiency of transfer costs as much as 26% and a distance of 49% compared to the layout of the CRAFT design.