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CRAFT Method to Minimize Material Handling Cost in Automotive Component Industry
Abstract
In automotive component manufacturing, efficient plant layout minimises Material Handling Costs (OMH). This study focuses on redesigning the facility layout for the production of the 2DIN MK 56660 Radio Bracket at an automotive company, with production units located in both plant 1 and plant 9. The existing layout, characterised by a considerable distance between the two plants, contributes to heightened OMH. Employing the Computerised Relative Allocation of Facilities Technique (CRAFT), this research aims to optimise the plant layout by exploring alternative configurations that facilitate cost-effective material handling. The initial assessment of the MK 56660 2DIN Radio Bracket's layout reveals a material transfer cost of Rp 82,278.22. Applying the CRAFT method, two distinct alternative proposals for layout improvement emerge. The first alternative demonstrates a material transfer cost reduction of Rp 476.11. In contrast, the second alternative yields a slightly higher cost of Rp 476.21. The findings conclude that the first alternative, boasting the lowest cost of Rp 476.11, is the preferred choice for enhancing the plant layout and minimising OMH. This study provides practical insights into optimising plant layouts in the automotive component industry. It underscores the CRAFT method's efficacy in identifying cost-efficient solutions for material handling challenges.
Keywords
References
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DOI: http://dx.doi.org/10.22441/ijiem.v6i3.25388
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IJIEM - Indonesian Journal of Industrial Engineering & Management
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