Abstract
A layout and facility design problem is found in one of production lines, namely Track 11 at a fabrication factory in Tangerang. Therefore, an evaluation of material handling costs and re-layout of the production facility layout are used using the BLOCPLAN (Block Layout Overview with Layout Planning) algorithm to optimize the layout by minimizing the distance of movement between departments and minimizing material handling costs. The use of the improved layouts and facilities using Blocplan algorithm, which considers all department changes, if the change cannot reduce the layout cost, then the final layout will be displayed. After re-layouting, the total layout of the previous displacement distance is 590.85 m (material handling costs=Rp. 500,469.52) then it decreased to 460,0369 m (material handling costs=Rp. 383,488.35). So, it gets the efficiency of the displacement distance and the efficiency of material handling costs are 22% and 23%. Therefore, re-layout using the BLOCPLAN algorithm is more optimal than the initial layout.
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