Abstract:
Production Layout is an important aspect which influences material handling cost. Different product mix in PT. ABC, requiring one of the product to be produced in separate area (building). In this expansion, designing efficient production layout for Completely Knocked Down (CKD) and Service Part is very important. There are several tools to support the process of designing layout, such as; Storage Analysis Chart, Activity Relationship Chart, Activity Relationship Diagram, and Heuristic Method of CRAFT. The result of designing layout by using CRAFT calculation, it has Material Handling Cost Rp 4,892,138.5. However, the layout design still can be improved by using ARC before CRAFT process, resulting Material Handling Cost reduced by Rp 55085.5. This proposed layout (alternative 2) showing the better flow of material through the process.