Performance Analysis of a FLP Problem using AHP-TOPSIS and FAHP-FTOPSIS

Abstract

To meet the ever-increasing demands of manufactured product and rising competition among rival industries; well-organised, inexpensive, efficient and effective facility layout plan (FLP) needs to be equipped. FLP decision problem entails to assignment of departments, positioning of machine equipments, material handling decisions, design as well as planning of production operations, required for higher productivity with better quality and improved efficiency. It is estimated that 70% of the total production cost is due to material handling (including equipments, direct-indirect labour costs, etc.), within a facility layout however, better facility placement can contribute to up to 30% less operating expenses. ABC Pvt. Limited was considered for FLP problem because of improper material flow through shop floor and extended transportation time for material transfer. The objective of this research is to analyse and compare the performance of existing Front Axle Division Layout of ABC Pvt. Limited with the four proposed design alternatives using AHP-TOPSIS and FAHP-FTOPSIS, thereby reducing production time, material handling distance and material handling cost (MHC). The management of the case study company has adopted the analysis results as the basis to their future layout planning problem. The practical contribution of this research can, thus, be justified.