Redesigning the Production Floor Layout for Operational Efficiency Improvement (Case Study at PT.XYZ)

PT. XYZ is a manufacturing company that produces brown food-grade wrapping paper, commonly used for packaging rice and dry food items. Inappropriate material storage distribution in the factory causes issues during the manufacturing process. All materials are placed based only on approximations; no thought is given to the capacity in allocating storage spaces on the production floor.This study aims to reallocate storage areas for raw materials, work-in-process products, and finished goods, as well as to redesign the layout of storage zones across the production floor. The objective is to improve operational efficiency by optimizing material flow and minimizing the total travel distance of goods. Proposed layout based on proximity relationships is produced using the Systematic Layout Planning (SLP) approach. Two different suggested layouts come out of this investigation. Both suggested designs can maximize utility and allow the best inventory capacity. Proposed layout I produces a travel distance of 78,229.9 meters or a decrease of 10.23% from the initial layout, while proposed layout II produces a travel distance of 62,695.98 meters or a decrease of 28.06% from the initial layout. The backtracking that occurs decreases with the initial conditions, namely in proposed layout I and proposed layout II by 12.65% and 11.87% of the total distance. In this case, proposed layout II is recommended because it has the largest decrease in total distance of goods movement, and has the smallest percentage of backtracking.