Facility layout redesign for efficiency improvement and cost reduction

Abstract

Abstract. In a competitive market the manufacturing companies have to produce cost effective products which can be realized by minimized production cost and higher effectiveness. The effective facility planning can significantly reduce the operational costs of companies. An adequate facility layout can result in the improvement of the performance of the production line. The Facility Layout Problem (FLP) is relating to location of objects (departments, workstations, machines, etc.) on a given site and the material flow between these objects. The goal of this study is to show the reasons, objectives and steps of a layout redesign process. The minimization of the workflow realized on the shop floor is an often applied an objective function during the layout redesign. Material flow efficiency is a commonly used term for the determination of the amount of workflow, which is the multiplication of material flow data and distance data. In this study, this mathematical method for workflow calculation is introduced. The described case study shows how the efficiency and reduced manufacturing cost of a real manufacturing system can be improved by re-layout design, while smaller floor space is needed for the production.

Methods for Efficiency Improvement of Production and Logistic Processes

“…The definition of facility layout may be given as the arrangement of machinery and flow of materials from one facility to another. It minimizes the material handling costs, while considering any physical restrictions on such arrangement (16)(17)(18).…”

Layout Criteria for Enhancing Indonesian SMEs Production’s Performance

“…The main criteria that must be considered in the small factory business layout is related to product, process, capacity, and technology (Susanto & Azis, 2017) for reaching the most optimal cost (Kovacs & Kot, 2017;Singh & Singh, 2015) and for being on-time production processes as well (Bhowmik, 2008;Ojaghi, Khademi, Yusof, Renani, & Syed-Helmi, 2015). Those main criteria should be implemented with some principles, such: total integrated principles (Dias, Pereira, Vik, & Oliveira, 2012) minimum moving distance (Tao, Wang, Qiao, & Tang, 2012) smooth working flow or simple flowchart processes (Belic, Kunica, Opetuk, & Dukic, 2018) working with safe and secure condition (Fei, Feng, & Xia, 2011) and flexibility (Kareem, Oke, & Lawal, 2013).…”

Feasibility Study of a Facility to Produce Injection Molded Parts for Automotive Industry

“…Facility layout design has been considered as one of the essential aspects of a company to have a significant reduction in the operational costs of the firm (Kovàcs, 2019). The proper planning of the overall layout production plant needs to be deeply conducted as the first step of a company to run the business.…”