REDESIGNING LAYOUT OF KNITTING PRODUCTION IN PT XYZ BY USING COMPUTERIZED RELATIVE ALLOCATION OF FACILITY TECHNIQUE (CRAFT)

Abstract

PT. XYZ is a manufacturing company that focused in textile raw materials of cotton yarn and blended yarn into the raw material of T-shirts and polo shirts. In the last several years, the production of company recorded a decline trend around 10-25 percent. This condition exists because there are arrangements of production that have not been efficient, the activity relation between each department is far enough and also backtracking. As the result the company's production costs are increase. This study uses CRAFT as a layout improvements method and comparing the results of each iteration. The results after using improvement the proposed layout is more optimal and the reduction in material handling costs are 4.62% in the first iteration and 7.97% in the second iteration. The total material handling cost of the company is after implementing the second iteration as the lowest cost is Rp 152.963.424.