Material Handling Cost Research Articles

Design and improvement layout of a production floor using automated layout design program (ALDEP) and CRAFT algorithm at CV. Aji Jaya Mandiri

Different computerized algorithms are used to assist the layout planner in generating alternate layout. CRAFT (Computerized Relative Allocation of Facilities Technique) has been developed to improve an existing layout, while ALDEP (Automated Layout Design Program) is a construction layout. The improvement given by ALDEP over CRAFT technique was found to reduce annual material handling cost by 23% [1]. This study hypothesize that better result could be gained by combined two algorithms rather than their independent application. The hypothesis is verified by taking layout problems of CV Aji Jaya Mandiri. The objective of the study is to get the optimal layout of CV Aji Jaya Mandiri using ALDEP and followed by improving it with CRAFT. ALDEP based on the value of proximity (total closeness rating). The layout resulted from ALDEP is improved by exchanging machines positions. The newly layout obtained by ALDEP is compared with the result layout improved by CRAFT. There are two criteria for comparing the layout: material handling cost taken from MHES (material handling evaluation sheet), and the manufacturing lead time or processing time using Promodel simulation. The material handling cost of the layout resulted by CRAFT was decreased by 6,24%, that is mean that CRAFT was improved the layout effectively. The result of simulation showed the manufacturing lead time of the improved layout decreased 23 minutes. Layout evaluation using Adjacency Based Scoring for the CRAFT layout increase 15% compare with the initial layout so it was selected as the best layout. This study concluded that combined use of computerized layout design algorithms provides better result,

Redesign layout of production floor facilities using Algorithm CRAFT

High productivity is the main thing that must be owned by all companies and industry players in meeting the needs of consumers. To increase the productivity of the company must be supported by the smooth process of production, one of the ways is setting the right plant layout because it affects the cost of the production process. A cracker maker manufacturing company has constraints in layout arrangements that result in inefficiency in production and distance which results in high material handling costs so that a layout redesign has to be done to minimize material handling costs. The design of the production floor facility layout is done by CRAFT algorithm with the help of WinQSB software. The results of the study found that alternative proposals that provide a reduction result of 9.21% or equal to Rp 6,781,236, - per batch of the total cost of material handling initial layout.

Warehouse Layout Designing of Slab Using Dedicated Storage and Particle Swarm Optimization

Warehouse is a supporting facility and has the important role in the production system. Goods warehouse arrangement is an activity based on related/rationale reason. There are several policies in random storage, fixed or dedicated storage, and class-based storage. We conducted this study in XYZ Company which the main business is producing steel. In this research, dedicated storage and particle swarm optimization will be used in the layout design of slab raw material warehouse to obtain the best layout to minimize material handling cost. Based on the result of the research, particle swarm optimization method gives the best layout result with the least material handling cost compared to the existing layout and layout using dedicated storage method.

Re-design Facility Layout using Systematic Layout Planning Method: A Case Study : Biopro Cosmeceutical Sdn. Bhd.

High material handling costs can trigger inefficiency in company productivity. In the Biopro Cosmeceutical Sdn. Bhd. in Malaysia, as long as its sustainability results in high material handling costs, which amount to RM 45,793 per month. Material handling costs are classified as very high, therefore, re-layout is needed to reduce material handling costs by using Systematic Layout Planning (SLP) method. From the results of improvements in the layout of the facilities that have been carried out, a savings of 40% are generated or equal to RM 18,209 per month for alternatives 1 and 47% or amounting to RM 21,333 per month for alternatives 2.

Storage allocation optimization model in a Colombian company

The storage allocation in warehouse is about of deciding the corresponding areas in which the products must be allocated. It can be made using different techniques to stablish the specific position for the products. Some applications provide solutions and evaluate results independently, allowing the identification of its potential in warehouses. This paper presents the application of a storage allocation model in a food company considering several products in a defined time horizon. The algorithm identifies the operation area and the corresponding spaces that are required for the products allocation, aimed to reduce holding and material handling costs. As a result, the application of the algorithm produces a complete product allocation in each period and improves the cost efficiency in the warehouse.

Probabilistic Tabu Search for the Cross-Docking Assignment Problem

The Cross-Docking Assignment Problem (CDAP) is a challenging optimization problem in supply chain management with important practical applications in the trucking industry. The goal is to assign incoming trucks (outgoing trucks) to inbound (outbound) doors to minimize the material handling cost within a cross-docking platform while respecting the capacity and assignment constraints. A capacity constraint is imposed on each inbound/outbound door and an associated assignment constraint is imposed on each incoming/outgoing truck requiring it to be assigned to only one inbound/outbound door. To solve this NP-hard optimization problem, we develop two novel heuristics based on Probabilistic Tabu Search utilizing a new neighborhood structure applicable both to CDAP and related problems. The proposed heuristics are evaluated on 99 benchmark instances from the literature, disclosing that our approaches outperform recent state-of-the-art approaches by reaching 45 previous best-known solutions and discovering 53 new best-known solutions while consuming significantly less CPU time.

USULAN PERBAIKAN TATA LETAK FASILITAS PRODUKSI YARN PROCESSING DENGAN METODE SYSTEMATIC LAY OUT PLANNING (STUDI KASUS DI PT. AP Tbk.)

PT. AP Tbk. A company engaged in the integrated textile industry, one of the companies that produce various types of high-quality production in yarn manufacturing. Problems that occur at PT. AP Tbk. Superior in yarn processing facilities. In the layout production facility has not been used optimally, location settings are not optimal. found a step back that caused the distance to be far away. For that, it is necessary to restructure the layout of these machines so that the total distance of material handling is faster. Based on the results of research and data processing using a systematic Layout Lay out method, the layout is more efficient when compared to the layout before repair. With the SLP method, two alternative layout locations are produced which can minimize the distance of the material flow and the cost of material handling. Layout 1 can save a distance of 45 meters by issuing material handling costs of 3881.52 rupiah from the initial layout, while layout 2 can save a distance of 57 meters by looking for material handling costs of 4744.08 rupiah from the initial layout. Thus, layout 2 is more recommended so that activities and production results are more optimal and handling of cost material becomes smaller.

Analysis of simulated annealing cooling schemas for design of optimal flexible layout under uncertain dynamic product demand

Manufacturing facilities are subjected to many uncertainties such as variability in demand, queuing delays, variable task times, rejects and machine breakdown. These volatilities have a large impact on leap time, inventory cost and delivery performance of a manufacturing unit. To operate efficiently the manufacturing facilities should adapt to these variations. The paper explores the way uncertainties are addressed in designing of flexible optimal layout. Such facility layout problem is known as stochastic dynamic facility layout problem (SDFLP). SDFLP is an NP-hard combinatorial optimization problem, which means the time taken to solve increases exponentially with problem size. To solve SDFLP, the paper presents an adaptation of simulated annealing (SA) meta-heuristic. Various SA cooling schemas are discussed, computed and evaluated for generating the optimal flexible layout. An optimal layout is one that minimises the distance travelled by materials taking into account uncertain product demand (material handling cost). A computer-based tool was developed and analysis was conducted on small to large size problem set. The results showed that SA with exponential cooling schedule provides better solution in terms of layout efficiency and gave better solution as compared to literature.

A dynamic multiobjective model for designing machine layouts

This study proposes a model for (re-)designing machine layouts in already existing facilities with a multi-period time planning horizon. The model can be applied in several situations and at different moments of a layout life cycle, for example to design the initial layout of an existing facility, or to make some specific and local reconfigurations. This dynamic multiobjective model minimizes costs (production, material handling and reconfiguration costs), maximizes adjacency between machines, minimizes unsuitability (to combine characteristics of the machines and of the existing locations), and can allow changes between periods on the product mix or on the machine layout requirements (e.g., required area). The performance of the model was tested with a case study based on a real first-tier supplier of the automotive industry, thus showing the practical potential of the proposed approach.

A novel optimization method for modular facilities layout problem considering flexible processes

With the growth of personalized customer requirements, modular manufacturing system is commonly recognized as the key to response to diverse production requirement in mass customization. However, there is lack of research on the optimization problem for modular facilities layout planning. Thus, the aim of this paper is to develop a methodology for the reconfigurable modular facilities layout problem with alternative process routings and an integrated mathematical model is proposed to improve production flexibility and minimize material handling costs. An improved heuristic algorithm is developed and numerical examples are carried out to demonstrate the effectiveness of the methods.

Mathematical model for dynamic cell formation in fast fashion apparel manufacturing stage

This paper presents a mathematical programming model for dynamic cell formation to minimize changeover-related costs (i.e., machine relocation costs and machine setup cost) and inter-cell material handling cost to cope with the volatile production environments in apparel manufacturing industry. The model is formulated through findings of a comprehensive literature review. Developed model is validated based on data collected from three different factories in apparel industry, manufacturing fast fashion products. A program code is developed using Lingo 16.0 software package to generate optimal cells for developed model and to determine the possible cost-saving percentage when the existing layouts used in three factories are replaced by generated optimal cells. The optimal cells generated by developed mathematical model result in significant cost saving when compared with existing product layouts used in production/assembly department of selected factories in apparel industry. The developed model can be considered as effective in minimizing the considered cost terms in dynamic production environment of fast fashion apparel manufacturing industry. Findings of this paper can be used for further researches on minimizing the changeover-related costs in fast fashion apparel production stage.

Usulan Perbaikan Tata Letak Fasilitas Terhadap Optimalisasi Jarak dan Ongkos Material Handling Dengan Pendekatan Systematic layout planning (SLP) di PT Transplant Indonesia

Abstract – Unplanned layout and inefficient material flow between work units can lead to increased cost. PT Transplan Indonesia's current material flow path is inefficient with material flow distance 115.5 meters and material handling cost that has not been taken into account. This study aims to find out how big the role of facility layout design in cutting the distance of material transfer and pressing the cost of material handling. The method used in this research is Systematic Layout Planning (SLP) approach, which is comparing the distance of material transfer between initial layout with proposed layout. The results of this study indicate that the distance of the material flow path on the production floor with proposed layout changed to 71,7 meters, with material handling cost per meter reduced from Rp. 1,105,954 to Rp. 712,402 or decrease as much as 35%. Based on the results of the research, the layout of the proposal is considered more effective and efficient because it can reduce the distance of material transfer and reduce the cost of material handling on the packing/shipping floor.Keywords: Layout Design; Material handling cost; Systematic Layout Planning (SLP)

An immune system based algorithm for cell formation problem

Technological developments enable the design and manufacturing of products tailored to individual consumers. Cellular Manufacturing Systems (CMS) can be considered as to ease flexibility, to reduce setup time, throughput time, work-in-process inventories, and material handling costs. Cell formation problem (CFP) that is one of the critical CMS design problems is the assignment of parts and machines to specific cells based on their similarity. This study introduces a Clonal Selection Algorithm (CSA) with a novel encoding structure that is efficient to solve real-sized problems. Unlike the methods in literature that define the number of cells as a constant number, this algorithm is significant because it can obtain the optimum number of cell to generate best efficacy value. Proposed CSA is tested by using 67 (35 well-known and 32 less-known) test problems. CSA obtains the same 63 best-known optimal solutions, provides solutions for the 3 of the well-known test problem and a new solution for the largest test problem (50 machine 150 part) that was not possible to be solved by the mixed integer linear programming model due to the high computational complexity. Final CSA grouping results are illustrated with figures to attract attention to the singleton and residual cells.

Multi-objective particle swarm optimization algorithm based on objective space division for the unequal-area facility layout problem

A model of the unequal-area facility layout problem is described.A modified multi-objective particle swarm optimization algorithm is proposed.We apply the heuristic strategy to update layout.The gradient method is applied to execute local search.The objective space division method is used to find the Pbest and Gbest. The facility layout problem (FLP) is the problem of placing facilities in a certain shop floor so that facilities do not overlap each other and are satisfied with some given objectives. Considering practical situations, this study focuses on the multi-objective unequal-area facility layout problem (UA-FLP), where the facilities have unequal-areas and fixed shapes and are placed orthogonally in the continuous shop floor. The objectives of the problem aim to optimize the material handling cost, the total adjacency value and the utilization ratio of the shop floor. The chief difficulties of this version of the FLP lie in the satisfaction of non-overlapping constraint between any two different facilities and the optimization of multiple objectives in the huge solution space. In this paper, we put forward a heuristic configuration mutation operation and subsequent local search based on the gradient method to satisfy the non-overlapping constraint, and the multi-objective particle swarm optimization (MOPSO) algorithm, which has recently proven its high effectiveness and robustness in solving multi-objective problems, to obtain a set of Pareto-optimal solutions of the problem. The novelty of the paper lies in the use of an objective space division method in the MOPSO which governs the neighborhood topology and the local best swarm used to assess the global fitness of a solution and choose the global leader particle. The proposed algorithm is tested on three sets of different UA-FLPs from the literature with the size of the problem up to 62 facilities. The numerical results show that the proposed method is effective in solving the multi-objective UA-FLP.

The cost analysis of material handling in Chinese traditional praying paper production plant

Chinese traditional praying paper industry is an industry which produced Chinese traditional religion praying paper. This kind of industry is rarely examined since it was only in Small and Medium Enterprise (SME’s- form). This industry produced various kinds of Chinese traditional paper products. The purpose of this research is to increase the amount of production, reduce waiting time and moving time, and reduce material handling cost. The research was conducted at prime production activities, consists of: calculate the capacity of the material handler, the frequency of movement, cost of material handling, and total cost of material handling. This displacement condition leads to an ineffective and inefficient production process. The alternative was developed using production judgment and aisle standard. Based on the observation results, it is possible to reduce displacement in the production. Using alternative which by-passed displacement from a rolled paper in the temporary warehouse to cutting and printing workstation, it can reduce material handling cost from 2.26 million rupiahs to 2.00 million rupiahs only for each batch of production. This result leads to increasing of production quantity, reducing waiting and moving time about 10% from the current condition.

Optimization of the material handling costs and the machine reliability in cellular manufacturing system using cuckoo search algorithm

Lean manufacturing is a systematic method to improve productivity and reduce costs for each industrial. One of the tools for lean is the cellular manufacturing that divides the production system into smaller subsystems. The objective is to reduce inventory, setup times, and material handling costs. The manufacturing cell formation problem presents the first issue faced in designing a cellular manufacturing system. In this paper, the presence of alternative process routings and machine reliability in addition to production volume, operation sequence and production time makes the problem more complex but also more realistic and appealing to real-world applications. Most authors solve this kind of problems by mathematical programming approaches that require large amounts of computational efforts. Therefore, a meta-heuristic algorithm, entitled Hybrid cuckoo search for the generalized cell formation problem, is considered in this paper. A set of benchmark problems with various scales is used to further evaluate the performance of the proposed method. Comparison of the results obtained with those obtained by LINGO and by the simulated annealing method reveals the better effectiveness and efficiency of our method.

Re-layout of Material Storage Room at PT. Andalan Fluid System with Allocation Area Diagram Method

The redesign of this layout aims to provide information on improvements to the material storage space (warehouse) at PT. Andalan Fluid System (PT. AFS), can be more effective and efficient both from the outside, material handling costs, and workers. The condition of placement of irregular / unregulated material makes the condition ineffective and dangerous, material handling costs become larger and difficult to measure due to searching time and longer, there is also no clear identity on the material or storage location. The data used, the measurement of the area directly storing the data and looking for supporting data from the area owner, the method used in making the Re-layout is the area allocation diagram (AAD) by first calculating material handling costs (OMH) and making tables from the chart (FTC) and priority scale table (TSP). From the results of the research and analysis of the initial (existing) layout the company requires material handling costs of Rp. 65,431,026,54 with a number of matrices of 580 Pcs, and the weight of 23,457, 57 Kg, while the results obtained from the layout of 1 material handling costs became Rp. 40,242,822.12 -, in the strategic layout 2 the cost of material handling was Rp. 42. 578,302.60-, but in a better and more optimal layout of space, from a better safety factor than the initial conditions.

Genetic Algorithm approach for Machine Cell Formation with Alternative Routings

In cellular manufacturing systems, study and optimization of machine cell formation (CF) problems have long drawn attention of researchers. Optimum CF results in reduction of overall processing time, material handling cost, labor cost, in-process inventories and number of set-ups requirements. Also, it simplifies process plans and improves product quality. Since the modern manufacturing machines in a cell are generally multifunctional, the processing of parts are performed following alternative processing routes. The objective of study is to determine the optimal alternative processing route in order to minimize the total intercellular movements of parts in CF problems. Intercellular movements of parts depend on many factors such as parts volume including batch size and number of batches, sequence of processes and routes of production. In this paper, a genetic algorithm heuristic is presented for the CF problem with multiple process routes, sequence of processes and parts volume. Computational experimentation was performed with five benchmark problems. The results demonstrate that the performance of the proposed approach in terms of total intercellular movements of parts and best route selection are either better or competitive with the well-known existing methods.

Machine Cell Formation with Alternative Routings based on Genetic Algorithm

In automated batch type production systems, machine-part cell formation problems (CFP) have long drawn attention of researchers. The objective of CFP in cellular manufacturing system (CMS) is to identity machine cells and part families in order to minimize the intercellular movements of parts as well as maximize the utilization of machines. Optimum cell formation results reduction in total production times, in-process inventories, material handling cost, labor cost/times, paper works, number of machine set-ups, set-up times. It also simplifies process plans, management and improves product quality, productivity, utilization of resources. Since the modern manufacturing machines are generally multifunctional, so the processing of parts can be performed by number of alternative routes. The objectives of this study are to determine the optimal machine cells with optimal processing route and balanced machine cells (minimum cell load variation). Here a genetic algorithm heuristic approach is presented for six benchmark problems with multiple process routes, sequence of processes and parts volume. Computational outcome show that the proposed heuristic gives better result comparatively with the well-known existing methods in terms of total intercellular movements.

Performance analysis of a FLP problem using AHP-TOPSIS and FAHP-FTOPSIS

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.