Application of lean manufacturing concept for redesigning facilities layout in Indonesian home-food industry

Abstract

Purpose The purpose of this paper is to redesign the layout of production floor by considering lean manufacturing in order to eliminate the waste and using Block Layout Overview with Layout Planning (BLOCPLAN) algorithm to attain new layout of facilities in Indonesian home-food industry. Design/methodology/approach The common problems that might be appearing in home-food industry, especially in the developing countries like Indonesia are unstandardized production process and unorganized work environment which could produce the waste. One of many solutions to handle this problem is improving the work area (work station) in production floor by rearranging and designing standard operating procedure (SOP) by using lean manufacturing concept. The initial data to minimize the waste is motion time study (data) to identify production standard time. The next step is identifying the common waste(s). Meanwhile, the production floor layout used in this research is designed by using BLOCPLAN algorithm. Findings The recommendation of shop floor facility layout is based on identified waste, which is excess transportation. Subsequently, standard operational procedure (SOP) is developed to support the recommended facility layout as the reference for cookie production process so it can minimize the waste. Research limitations/implications Lean concept is one of method that is widely implemented to reduce the occurrence of defective products and waste that do not provide added value. Based on previous researches, it was found that the concept of lean manufacturing can be applied in various types of service and manufacturing industries, both large companies and small and medium enterprises. Home-food industry competition nowadays is getting intense. This condition makes the stakeholders (of home-food industry, especially in Indonesia) need high performance and productivity to keep their business stable in winning the competition. The new layout can reduce the disadvantages of actual condition. Practical implications This research is useful for small- and medium-sized enterprises (SMEs) in Indonesia especially for home-food industry. The BLOCPLAN layout (as the recommendation) has displacement moment with reduction of 40 percent. Social implications This research believed that it can help SMEs improve their productivity in producing cake and cookies in terms of better layout which can reduce worker movement and standardized working procedure. The design of the production facility layout is a method used to rearrange the production process area so that the distance between processes can be minimized. SOPs was provided as the direction and supervision of workers to work according to standards. Originality/value SOP design can support recommended layout as the reference on making the cake (product) to eliminate wastes, which are motion/movement (alternating in production process flow) and long waiting time due to process delays.