Changes in Layout and Handling Method for Raw Materials to Reduce Put Away and Picking Time: A Plastic Packaging Manufacturer Case Study

Abstract

This research was conducted at a plastic packaging manufacturer, where the company is required to be able to respond to customer demand from the aspect of raw materials storing process. However, the existing the warehouse is not clear. Improvement plan to reduce the put away and picking time in the raw material warehouse were conducted by changing the layout and handling method. Layout change was designed based on raw material selectivity and consumption rate with two improvement scenarios. Scenario I was designed by ignoring the area for the PET group, while scenario II was designed by determining the area for the PET group. The handling method which was originally using porters was changed to using a forklift. In the put away process, the layout change by determining the area for the PET group could decrease the travel distance of 6.96%, and the handling method change could decrease the travel time of 79.34% and total put away time of 68.84%. In the picking process, layout change by ignoring the area for the PET group could decrease in travel distance of 1.81%, and handling method change could decrease in travel time by 86.92% and total picking time of 65.86%. Based on these results, the handling method change could give better result on the decrease of put away and picking time than the layout change. By implementing this recommendation, the company could save their operational cost by the estimation of 24.03%.