Factory Layout Design for PT. NISUMA: Enhancing Material Flow and Food Safety Compliance

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(CASE STUDY: PT. NISUMA)

By

JOSSHUA VIRGIANTO 1-1211-071

BACHELOR’S DEGREE in

INDUSTRIAL ENGINEERING

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY EduTown BSD City

Tangerang 15339 Indonesia

Revision after the Thesis Defense on 6^th August 2015

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I hereby declare that this submission is my own work and to the best of my knowledge, it contains neither material previously published or written by another person, nor material which to a substantial extent has been accepted for the award of any other degree or diploma at any educational institution, except where due acknowledgement is made in the thesis.

Josshua Virgianto Student

Approved by:

Dr. Ir. Prianggada Indra Tanaya, MME.

Thesis Advisor

Dr. Ir. Yuki Indrayadi, MME.

Thesis Co-Advisor

Dr. Ir. Gembong Baskoro, M.Sc.

Dean

Date

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ABSTRACT

FACTORY LAYOUT DESIGN FOR A NEW FACTORY TO INCREASE MATERIAL FLOW EFFICIENCY IN ACCORDANCE WITH FOOD SAFETY

REGULATIONS IN A PAPER CUP INDUSTRY (CASE STUDY: PT. NISUMA)

by

Josshua Virgianto

Dr. Ir. Prianggada Indra Tanaya, MME., Advisor Dr. Ir. Yuki Indrayadi, MME., Co-Advisor

SWISS GERMAN UNIVERSITY

The layout design of a factory is crucial in making sure that everything flows smoothly.

By designing a proper layout, the material flow efficiency can be increased. PT. Nilam Sukses Mandiri is one of the paper cup companies in Indonesia. PT. Nilam Sukses Mandiri plans to move their production into a new factory in order to increase their production capacity and fix their material flow problem. This thesis aims to design that new factory and create an efficient flow of materials using Systematic Layout Planning and implementing HACCP Food Safety management. Flow analysis on the current layout is done as a base for the layout design. The additional machines required are calculated to meet the target capacity. Using steps from SLP Methodology, layout alternatives will be generated and modified with food safety procedure. The layout that give the optimum results will be selected as the outcome of this work and will be proposed to PT. Nilam Sukses Mandiri. Discrete Event Simulation software will be used to validate the capacity of the new layout.

Keywords: Systematic Layout Planning, Factory Layout, Hazard Analysis Critical

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DEDICATION

I dedicate this works to my loving family, lecturers and friends for all the support and understanding they have given.

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ACKNOWLEDGEMENTS

I would like to thank God for the blessing through my studies, and the opportunity that He gave me to complete this thesis.

I especially am thankful to my advisor Dr. Ir. Prianggada Indra Tanaya, MME. and my co advisor Dr. Ir. Yuki Indrayadi, MME., for their guidance, patience, constant help and motivation to the completion of this thesis. And to all the lecturers that have helped and guide me through the completion of this thesis.

My study SGU would not be as meaningful if it weren't for the presence of my friends in Industrial Engineering Batch 2011. Thank you for all the memories in our best and worst moments in Indonesia, and in Germany. For the nights we spent awake in campus or other places, to study, for our assignments, and especially for our thesis.

Lastly, my deepest gratitude to my family that had supported me, spiritually and financially, through all the sweet and bitterness of my life, until I am capable of finishing my studies.

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TABLE OF CONTENTS

Page

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 11

LIST OF TABLES ... 13

LIST OF APPENDICES ... 14

CHAPTER 1 – INTRODUCTION ... 15

1.1. Background ... 15

1.2. Thesis Purpose... 15

1.3. Problem Identification ... 16

1.4. Thesis Scope ... 16

1.5. Thesis Limitation... 17

1.6. Significance of Study ... 17

1.7. Thesis Organization... 18

CHAPTER 2 – LITERATURE REVIEW ... 19

2.1. Introduction ... 19

2.2. Improvement in Plant Layout using (SLP) for increased Productivity. (Shewale, et al., 2012) ... 19

2.3. Productivity improvement in plant by using (SLP) - A Case Study of Medium Scale Industry. (Subodh B Patil, 2014) ... 19

2.4. Improvement Plant Layout Based on Systematic Layout Planning (SLP). (W. Wiyaratn, 2013) ... 20

2.5. Redesigning Layout at PT. Inkoasku to Increase Productivity by Using Systematic Layout Planning (SLP). (Kitriastika, 2013) ... 20

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Electronic Fabrication. (Reza, 2014) ... 21

2.7. Analysis and Optimization of Plant Layout using Relative Allocation of Facilities Technique. (John, et al., 2013) ... 21

2.8. Meat Plant HACCP (Control, 2012) ... 22

2.9. Food Safety Approach for Suppliers to the food industry (FSAP, 2012) ... 22

2.10. Optimization of Layout Using Discrete Event Simulation (DES). (Kurkin Ondřej, 2011) ... 23

2.11. Redesign the Layout of a Forging Unit Using Discrete Event Simulation (DES). (Aju Pius Thottungal, 2013) ... 23

2.12. Concluding Remarks ... 24

CHAPTER 3 – RESEARCH METHODOLOGY ... 25

3.2. Factory Layout ... 25

3.3. Systematic Layout Planning (SLP) ... 26

3.4. Hazard Analysis Critical Control Point (Joan K. Loken, 1995) ... 33

3.5. Discrete Event Simulation ... 39

3.6. Simulation ... 39

3.6.1. Tecnomatix Plant Simulation Software ... 41

3.7. Research Methodology ... 42

3.7.1. Preliminary Study ... 44

3.7.2. Data Collection ... 44

3.7.3. Data Analysis ... 44

3.7.4. Evaluation ... 45

3.8. Software Tools ... 45

CHAPTER 4 – RESULTS AND DISCUSSIONS ... 47

4.2. Data Analysis ... 47

4.2.1. Flow Analysis ... 47

4.2.2. Product Identification... 54

4.2.3. Demand Forecast ... 55

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4.2.4. Machine Specification ... 56

4.2.5. Number of machines calculation ... 65

4.2.6. List of area ... 67

4.2.7. Working Time ... 69

4.3. Activity Relationship Analysis ... 70

4.3.1. Activity Relationship Chart ... 70

4.3.2. Activity Relationship Worksheet ... 70

4.3.3. Dimensionless Block Diagram ... 76

4.3.4. Activity Relationship Diagram ... 76

4.4. Good Manufacturing Practice (GMP) & Sanitation Standard Operating Procedure (SSOP) ... 85

4.4.1. Personnel ... 86

4.4.2. Building and Facilities ... 88

4.4.3. Equipment and Utensils ... 90

4.4.4. Raw Materials ... 90

4.4.5. Production ... 91

4.4.6. Packaging ... 91

4.4.7. Storage, Warehousing and Handling ... 91

4.4.8. Traceability ... 91

4.4.9. Waste Management ... 92

4.4.10. Housekeeping program ... 92

4.4.11. Pest Control ... 92

4.4.12. Guest Visit ... 93

4.5. HACCP... 94

4.6. Design Development ... 101

4.6.1. Lead Time Calculation ... 101

4.6.2. Worker Calculation ... 102

4.6.3. Space Requirement ... 103

4.6.4. Drafting the Layout ... 105

4.7. Simulation ... 116

4.7.1. Introduction ... 116

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4.7.4. Parameter ... 120

4.7.5. Model Verification ... 120

4.7.6. Model Validation ... 121

4.7.7. Simulation Result and Result Analysis ... 121

4.8. Implementation Strategy ... 125

CHAPTER 5 – CONCLUSIONS and recommendations ... 127

5.1. Conclusions ... 127

5.2. Recommendations ... 127

GLOSSARY ... 128

REFERENCES ... 129

APPENDIX A ... 131

APPENDIX B ... 134

APPENDIX C ... 142

CURRICULUM VITAE ... 146