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Production Layout Optimization at PT. XYZ

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0% found this document useful (0 votes)
23 views12 pages

Production Layout Optimization at PT. XYZ

Uploaded by

James Laurent
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Proceedings of the International Conference on Industrial Engineering and Operations Management

Istanbul, Turkey, March 7-10, 2022

Production Layout Replanning Using Systematical Layout


Planning with Shared Storage Method Analysis and Flexsim
Simulation at PT. XYZ
James Laurent, Lina Gozali, Ricky Farrel
Department of Industrial Engineering
Faculty of Engineering
Universitas Tarumanagara
Jl. S. Parman No 1, Jakarta, 11440, Indonesia
james.545180046@[Link], linag@[Link], ricky.545210004@[Link]

Abstract
PT. XYZ is a small to medium bussiness engaged in the production of textiles for children's apparel that produces
various product designs, such as jumpsuits, dresses, and clothes for children from 0-1 years old. PT. XYZ still has
problems in the production sector, such as the missed production process, the production layout which is considered
ineffective when compared to production standards, as well as The Warehousing system that dangerous and takes
massive time and energy. So the researchers conducted direct observations and implementations in the field using data
obtained from operations such as the amount of production, flow, time, and number of employees and processed using
a systematical layout planning method that use FTC, OPC, Routing Sheet, MPPC, ARC, ARD, AAD, and flow
processes to design new layouts and use shared storage methods that use Throughput, Assignment, Calculation of
needs and space. After being processed, result of the 2 alternative designs that have effectiveness, distance, shorter
time than the initial layout. From the two alternatives, simulations were carried out using the Flexsim application and
compared the time and production throughput, and alternative 1 was chosen because the number of production
throughput was 2 more pieces compared to alternative 2, with an increase of about 11.4% compared to the initial
layout. The final step is the implementation of the final design that has been selected at the production site.
Keywords
Facility Layout, Systematic Layout Planning, Shared Storage, Implementation

1. Introduction
Layout is one of the keys that determine the efficiency of a company's operations in the long term. An effective
layout can help an organization achieve a strategy that supports differentiation, low prices, or responsiveness. Layout
emphasizes systematic and logical design using multiple analytical processes.

PT. XYZ is a business engaged in textile production, with 2 production sites and 1 sales shop. The product
produced by PT. XYZ is clothing for girls aged less than 2 years. Based on observations of the production layout, the
main problem is the frequency of technical errors in production such as wrong colors, or missed processes due to
layouts that confuse workers in processing materials and the distance between the previous machine and the sewing
machine is quite far, also the road area is very narrow due to the large size of the machine. The layout is also considered
poor due to excessive activity in the material transportation process, a lot of time is wasted, making it more cost and
less effective. And the distance between the raw material warehouse and the production process is quite far, where the
raw materials are large and quite heavy, with many material handling processes making the process quite time
consuming and laborious, as well as dangerous.

Therefore, a research was conducted by redefining the layout with an emphasis on the shared storage method for
warehouses. The research uses a systematical layout planning method in determining the layout and design, with input
analysis based on warehousing management so that storage placement is more effective.

1.1 Objective
1. Provide a layout plan that has been designed using systematic method on PT. XYZ.
2. Analyze and redesign the system layout of the warehouse placement using the Shared Storage method.
3. Improve the workplace that has been systematically arranged and tested

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

2. Literature Review
A The literature reviews that are used in this research are:

2.1 Layout
Factory layout is an arrangement of physical facilities consisting of equipment, personnel, buildings, and other
facilities that must have the aim of optimizing the relationship between implementing officers, flow of goods, flow of
information and procedures needed to achieve goals effectively, efficiently, economically and safe.
Things that must be considered in designing a layout are Efficient planning arrangements for material flow is a
requirement for economical production, Material flow patterns are the basis for effective physical facilities
arrangement, Goods movement is a static flow pattern into an intelligent reality that provides a way of how material
is moved, Good arrangement of facilities around material flow patterns can result in efficient execution of various
related processes, Good process completion can minimize production costs, and Minimum production costs can
provide maximum profit.
2.2 Systematic Layout Planning
Systematic Layout Planning is a series of stages in planning a layout, starting from the pattern outline, placement,
to the final layout. These stages use several tools such as Routing Sheet, ARC, AAD, MPPC, and ARC
1. Operation Process Chart
Operation process chart (OPC) is a diagram that describes the process steps that will be experienced by raw
materials regarding the sequence of operations and inspections from the beginning to the finished product as
a whole or as a component, and also contains the information needed for further analysis. carry on. So in an
operation process chart, only operations and inspection activities are recorded, sometimes at the end of the
process storage is recorded [4].
2. Routing Sheet
A production routing sheet is a tabulation of the steps involved in producing a particular component and the
necessary details of related matters. Sequencing of production becomes the backbone of production activities
which is the recollection of all data developed by process engineers and the main communication tool
between product engineers and production people. This routing sheet is often referred to as a process sheet
or an operation sheet [1]. The aim is to calculate the number of machines, production quantities and time in
detail to determine the theoretical capacity of the tool for the next stage.
3. MPPC
MPPC (Multi Product Process Chart) is a diagram that shows the order for each component to be produced.
The MPPC map can also be useful as a general description relating to the processing steps of each product at
a certain time of processing so that information is obtained about the similarity of the process of each product
to the others. Based on the MPPC, it can also be seen that backtracking and flow patterns are not in accordance
with the process sequence [5].
4. From To Chart
From to Chart is one of the conventional techniques used in general in designing facility layouts and
transferring materials in a production process. From to chart is usually filled with the total cost of material
handling costs for each displacement that occurs [3]. The final result of the FTC is a number which will be
converted into a relationship value which will be used in the process of designing the Activity Relationship
Chart.
5. Activity Relationship Chart
Activity Relationship Chart (ARC) is a simple method or technique in planning the layout of a facility or
department or based on the degree of activity relationship which is often expressed in a "qualitative"
assessment and tends to be based on subjective considerations of each individual. each facility/department.
ARC will give consideration to the degree of proximity of a department to other departments with qualitative
measures such as: absolute or not absolute, must be close together, important enough to be placed close
together and so on.
6. Activity Relationship Diagram
Activity Relationship Diagram is a diagram that describes the various activity flows in the system that is
being designed, how each data flow begins, the decisions that may occur and how they end. Activity diagrams
are special state diagrams, where most of the states are actions and most of the transitions are triggered by
the completion of the previous state of internal processing. Therefore, the activity diagram does not describe
the internal behavior of a system exactly, but rather describes the processes and activity paths from the top
level in general.

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

7. Area Allocation Diagram


Area Allocation Diagram (AAD) is principally an area template compiled based on ARD. AAD is a
description of the final layout but each activity center does not yet contain facilities. Area Allocation Diagram
(AAD) is a continuation of ARC where the proximity of the activity layout is determined in the form of Area
Allocation Diagram (AAD). AAD is also a global template of information that can be seen only in area
utilization, while the complete image can be seen in the template which is the final result of the analysis.

2.3 Warehouse
Warehouse is a place where goods will be stored or stored within a certain period of time. Goods stored can
be in the form of raw materials, finished materials, and even supporting components. The purpose of the warehouse
is as a temporary place for goods before being sent to consumers, protecting and maintaining goods, and collecting
requests.
1. Shared Storage Method
Shared storage is a method of arranging the layout of the warehouse space using the FIFO (First In First Out)
principle, where the goods that are sent the fastest are placed in the storage area closest to the exit – entry
(I/O) door. This method would be better used in types of factories that have the same product dimensions or
not much different, because each storage area can be occupied by different types of products based on the
production time and delivery date of the product [6].
The method starts from compiling data related to the types of products and materials stored in the warehouse,
calculating the area and distance of movement to the exit direction, the number of product requests and
product deliveries every week, allowances, and the final design with the principle that goods that are often
moved or produced are placed at most. close to the door for easier material handling.
2. Stages of Shared Storage
The steps taken in solving the problem are as follows: [7]
1. Data Collection Average Amount of Goods Out of Warehouse
The first stage in Shared Storage is collecting data on the entry of raw material goods into the warehouse,
from all types of materials calculated separately.
2. Data Collection Average Amount of Goods Entered the Warehouse
The next stage is data collection of goods that come out brought to the production floor, also calculated
separately for each material supplied. Furthermore, from the data on the average number of exits from the
warehouse and entry into the warehouse, the number of monthly usages with a period of time running out
of a material is calculated, and the number of monthly needs for each raw material is obtained.
3. Space Requirements
Next is the calculation of the space required by calculating the amount of raw materials divided by the
storage capacity of one pallet of each raw material.
4. Determination of Aisle Width
Determination of Aisle Width aims to calculate the best pallet size and the width of the aisle or aisle
between each pallet available to store raw materials, Aisle is actually the diagonal of the pallet size.
5. Throughput Perhitungan
Throughput is basically a point that shows how often a raw material is moved or material handling. It is
calculated from the number of needs per month divided by the number of storage of 1 production pallet.
6. Assignment Calculation
Basically Assignment is Throughput multiplied by the number of room requirements, usually directly
proportional to Throughput.
7. Distance from Warehouse Area to Door
From the previously calculated points, the next step is to design a layout based on the distance from the
door to the material pallet, where each material pallet is ordered based on the calculated assignment point,
the bigger it is, the closer it should be to the door.
8. Final Layout
It was only at this stage that the final layout was designed with different numbers and color designs for
each material.
2.4 Flexsim
Flexsim is a production simulation application that aims to understand the design and simulate a factory or
facility in carrying out the production process. Flexsim aims to minimize a design by simulating it first, from which it
can be improved and revised before direct implementation. How to use the application starts from placing the

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

production components, such as processor, combiner, separator, queue or docking area, then each component is set
production time and setup time. The next step is to connect each component with a connecting line and each line and
component is paired with transporters and workers who can be workers, locomotion equipment, to robots. After
everything is designed, the last step is to do a simulation directly and see the selected parameters, if the results are
good, then the simulation is declared feasible to be implemented directly.

3. Method
The method that have been done in this research can be seen in the flowchart in Figure 1.

Figure 1. Method Chart


4. Data Collection
Here is the Previous Factory Layout in Figure 2, and with the average of production demand and production
planning per month.

Figure 2. Intial Layout Facility

Figure 3. Assumption Production Figure 4. Area total

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

5. Results and Discussion


5.1 Systematical Layout Planning
Proses tahap systematical layout planning dilakukan dalam beberapa tahapan perhitungan, dimulai dari
pembuatan OPC, Routing Sheet, MPPC, FTC, ARC, ARD, AAD, Flow Process, dan perhitungan layout akhir

1. Operation Process Chart


The Operation Process Chart of this Research can be seen in Figure 5

Figure 5. Operation Process Chart


2. Routing Sheet
The Routing Sheet of this Research can be seen in Figure 6

Figure 6. Routing Sheet

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

3. MPPC
The MPPC of this Research can be seen in Figure 7

Figure 7. MPPC
4. From To Chart
The From To Chart of this Research can be seen in Figure 8 and Figure 9, as well as the relations table in
Figure 10

Figure 8. FTC Inflow

Figure 10. Relations From To Chart

Figure 9. FTC Outflow

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

5. Activity Relationshion Chart


The Activity Relationship Chart of this Research can be seen in Figure 11

Figure 11. ARC


6. Activity Relationship Diagram
ARD dari penelitian dapat dilihat dibawah ini

Figure 12. ARD Alternative 1 Figure 13 ARD Alternative 2


7. Area Allocation Diagram
The Area Allocation Diagram of this Research can be seen in Figure 14 and 15.

Figure 14. AAD Alternative 1 Figure 15. AAD Alternative 2

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

8. Layout
The Layout Detail of this Research can be seen in Figure 16.

Figure 16. Layout Details


5.2 Shared Storage
Shared Storage start from calculating production needs, space requirements, aisle width, throughput, and
assignment as well as area distance in determining the final warehousing layout.
1. Production Needs
The Production needs of this Research can be seen in Table 1.
Table 1. Production Needs
Production Needs
No Material type Goods Amount (Roll) Period (Months) requirements
1 White Cotton Cloth 240 15 16
2 Light Color Cotton 852 6 142
3 Dark Color Cotton 372 48 7,75
4 Printed Cotton Fabric 400 1 400
5 Furing Cloth 24 6 4
Production Needs
No Material Type Goods Amount (Roll) Period (Months) requirements
6 Jumpsuit 1656 2 828
7 Shirt 265 2 132,5
8 Dress 624 3 208

2. Space Requirement
The Space Requirement of this Research can be seen in Table 2
Table 2. Space Requirement
Space Requirement
No Material type Goods Amount (Roll) Pallet Capacity Space Requirement Rounding
1 White Cotton Cloth 240 144 1,666666667 2
2 Light Color Cotton 852 144 5,916666667 6
3 Dark Color Cotton 372 144 2,583333333 3
4 Printed Cotton Fabric 400 144 2,777777778 3
5 Furing Cloth 24 144 0,166666667 1

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

Space Requirement
No Material Type Goods Amount (Roll) Pallet Capacity Space Requirement Rounding
6 Jumpsuit 1656 Lusin 600 2,76 3
7 Shirt 265 600 0,441666667 1
8 Dress 624 600 1,04 1
3. Aisle
The Aisle of this Research can be seen in Table 3.
Table 3. Aisle
Wide Height Volume Area
Size Lenght (M) (M) (M) (M3) (M2) Diagonal/Aisle
1 Pallet Size 1,5 1 2 3 1 1,802775638
1 Rack Size 2 1 3,5 7 2 2,236067977
4. Throughput
The Throughput of this Research can be seen in Table 4.
Table 4. Throughput
Throughput
N Goods Amount Period requirement Throughput
Material type Throughput
o (Roll) (Months) s Rounding
White Cotton 0,11111111
1 240 15 16
Cloth 1 0,1
Light Color 0,98611111
2 852 6 142
Cotton 1 1
0,05381944
3 Dark Color Cotton 372 48 7,75
4 0,05
Printed Cotton 2,77777777
4 400 1 400
Fabric 8 2,77
0,02777777
5 Furing Cloth 24 6 4
8 0,02
Throughput
N Goods Amount Period requirement Throughput
Material Type Throughput
o (Dozen) (Months) s Rounding
6 Jumpsuit 1656 2 828 1,38 1,38
0,22083333
7 Shirt 265 2 132,5
3 0,22
0,34666666
8 Dress 624 3 208
7 0,35
5. Assignment
The Assignment of this Research can be seen in Table 5
Table 5. Assignment

Assignment
Space
No Material Type Throughput Space Requirement Assignment
Throughput Rounding Requirement Rounding Assignment Rounding
White Cotton
1
Cloth 0,111111111 0,1 1,666666667 2 0,055555556 0,06
Light Color
2
Cotton 0,986111111 1 5,916666667 6 0,164351852 0,16
Dark Color
3
Cotton 0,053819444 0,05 2,583333333 3 0,017939815 0,01
Printed Cotton
4
Fabric 2,777777778 2,77 2,777777778 3 0,925925926 1
5 Furing Cloth 0,027777778 0,02 0,166666667 1 0,027777778 0,02

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

Assignment
Space
No Material Type Throughput Space Requirement Assignment
Throughput Rounding Requirement Rounding Assignment Rounding
6 Jumpsuit 1,38 1,38 2,76 3 0,46 0,5
7 Shirt 0,220833333 0,22 0,441666667 1 0,220833333 0,2
8 Dress 0,346666667 0,35 1,04 1 0,346666667 0,3

5.3 Validation
1. Alternative 1
The following is the 3D design of alternative layout 1 that has been pre-designed, with sufficient
throughput or production quantities produced, as well as the division of the working process of each
machine that works. After the design is done in the Flexsim application, then test the layout model with
parameters, namely the amount of throughput or the number of production as well as the state bar that
shows the state of the machine time from start to finish. Run time on the simulation is 10 hours of work.
Following is the result of simulation of alternative layout model 1.

Figure 17. Floor 2 Alternative 1

Figure 18 Floor 3 Alternative 1 Figure 19. Simulation 1

2. Alternative 1
The following is the 3D design of alternative layout 2 that has been pre-designed, with sufficient
throughput or production quantities produced, as well as the division of the working process of each
machine that works. After the design is done in the Flexsim application, then test the layout model with
parameters, namely the amount of throughput or the number of production as well as the state bar that
shows the state of the machine time from start to finish. Run time on the simulation is 10 hours of work.
Following is the result of simulation of alternative layout model 1.

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

Figure 20. Floor 2 Alternative 2

Figure 22. Simulation 2

Figure 21. Floor 3 Alternative 3

3. Comparison
From the simulation results that have been carried out, alternative 1 is chosen, due to the amount of throughput
that exceeds alternative 2 by 2 piece dress. The main changes are obtained from the flow and the number of machines
that have been installed previously designed, resulting in an increase of 11.36% higher than the layout before
rearranging (322 Pieces). As well as another comparison is the state bar of alternative 1 has a number of processing
in the MP Bis machine, Sewing Machine, Overlock, Khamp, Rub, QC, and Packing are slightly higher compared to
alternative 2, however alternative 2 excels in the cutting machine which has higher processing. In this study, the
researcher used the amount of production as main comparison, so that an alternative is obtained which is a design used
for the final implementation. Here are the results selection and final layout of the layout design.

5.4 Proposed Improvements


Proposed Improvements of Final layout after Calculations using Systematical Layout Planning, and Shared
Storage, and the Simulations using Flexsim can be seen in Figures

Figure 23. Final Layout

© IEOM Society International


Proceedings of the International Conference on Industrial Engineering and Operations Management
Istanbul, Turkey, March 7-10, 2022

6. Conclusion
From the results of the study, obtained 2 alternatives, based on the assessment of layout 1 being chosen because
the main parameter in the selection is the number of outputs, where the output of layout 1 (367 pieces of clothes) is
thinner than layout 2 (365 pieces of clothes), for the majority of production machines such as sewing machines, kamp,
rub, the average in system is higher in Alternative 1, with Alternative 2 only excelling in the cutting machine and
embroidery machine. The simulation results show that Alternative 1 is 11.39% more productive than the initial layout,
with an increase process in system percentage of 6.16% to 41.2%. Designing the structure of a warehouse shelf using
calculations such as Assignment, Throughput, and others, it was found that the value that had the largest Assignment
was Cotton Fabric Printing with a value of 0.92 and the smallest was Dark Cotton Fabric with point 0.01, it was
decided that the type of material that should be closest to the door in order to facilitate material handling is Cotton
Printing. And for finished materials, the highest Assignment is Jumpsuit with 0.46 points and the lowest is T-shirt
with 0.22, so the Jumpsuit is placed close to the door.

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Biography
James Laurent is a Industrial Engineering Student from Tarumanagara University. Born in Jakarta, 15 September 2000
as the first of three siblings. Graduated from Ricci 1 Elementary, Middle, and High School with major in Science, and
participated in OSN (National Science Olympics) in Astronomy and managed to achieve 5 th position of all Jakarta
student. Entered Tarumanagara University in 2018 and dreams to be a Bussinesman in the future.

Ricky Farell is a Industrial Engineering Student from Tarumanagara University. Born in Jakarta, 15 September 2000
as the first of three siblings. Graduated from Ricci 1 Elementary, Middle, and High School with major in Science, and
participated in OSN (National Science Olympics) in Astronomy and managed to achieve 5 th position of all Jakarta
student. Entered Tarumanagara University in 2021 and dreams to be a Bussinesman in the future.

© IEOM Society International

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