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The system of material handling is less systematic becomes a big problem and disrupts the smoothness of the production process that affects the system as a whole. Problems that occur in the company is a workstation that is too dense so that the trajectory of material handling (forklift) becomes narrow, in addition, there are also work stations that are located too far, causing empty space in the production floor area. This long-distance resulted in a great displacement moment that affected the amount of material handling cost. Therefore, it’s important to redesigning the facility layout to reduce material handling cost at the company. The goal of this research is to get an optimal design of facilities layout that provides minimal displacement moment by comparing the initial layout with the proposed layout with Process Layout and Product Layout approach. Process Layout is designed using graph theory while the product layout is designed using the method of Systematic Layout Planning. After that, the layout of the production floor with the product layout approach improves material handling efficiency with the displacement moment of the proposed production floor layout is 36.160 meters per year or 19.4% lower than the actual layout.

Redesigning production floor layout with process layout and product layout approach in an electronic appliance manufacturing company