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By

Ricky Varian 11407018

BACHELOR’S DEGREE in

INDUSTRIAL ENGINEERING

FACULTY OF ENGINEERING AND INFORMATION TECHNOLOGY

SWISS GERMAN UNIVERSITY The Prominence Tower

Jalan Jalur Sutera Barat No. 15, Alam Sutera Tangerang, Banten 15143 - Indonesia

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STATEMENT BY THE AUTHOR

I hereby declare that this thesis research is of my own work. There contains no writings and/or materials that are published from other sources by another. Nor also materials which has been accepted for awards at any institution, except where due acknowledgement is made in this thesis.

Ricky Varian

__________________________________________________ ____________

Student Date

Approved by:

Ir. Triarti Saraswati, M. Eng

_________________________________________________ ____________

Thesis Advisor Date

Edo Suryo Pratomo, S.T., M. Sc

__________________________________________________ ____________

Thesis Co-Advisor Date

Dr. Irvan Setiadi Kartawiria, S.T., M. Sc

__________________________________________________ ____________

Dean Date

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ABSTRACT

ASSESSMENT AND HOW TO IMPROVE CELLULAR LAYOUT DESIGN AT PT. PANARUB INDUSTRY

by Ricky Varian

Ir. Triarti Saraswati, M. Eng, Advisor Edo Suryo Pratomo, S.T., M. Sc, Co-Advisor

SWISS GERMAN UNIVERSITY

The purpose of this thesis is to assess and analyze the current and the new layout from the customer. The company is ordered to implement a new layout with a set of rules for all production plants. However, there were resistances and uncertainties from the higher organizations that makes the implementation difficult. Hence, identifying the benefits of the new layout and how it differs from current layout is required. Furthermore, this research will also provide recommendations and insights to do the transition for the new layout.

Data such as defect rates and equipment effectiveness are to be taken into consideration.

In addition, the layout’s efficacy of before and after using a grouping method is also calculated. By using clustering method of Rank Order Clustering (ROC) and measuring using Weighted Grouping Efficacy (WGF), a before and after result can be obtained and thus be used as future references. The expected result is that the new layout can prove beneficial to be implemented and its goal achieved.

Keywords: Cellular manufacturing, production layout, Production Flow Analysis, Rank Order Clustering, Weighted Grouping Efficacy, data analysis.

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© Copyright 2018 by Ricky Varian All rights reserved

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DEDICATION

I dedicate this thesis to God the heavenly Father, and to my dear parents, brother, sister, and friends.

With their support and encouragement, helped me in making this work finished.

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ACKNOWLEDGEMENTS

First of all, I would like to express my greatest gratitude to Lord God Almighty for His ever-flowing grace and blessing that helped me in finishing my thesis. And for His wisdom and guidance in the difficult times.

I also want to thank my advisor, Ir. Triarti Saraswati, M.Eng, and co-advisor, Edo Suryo Pratomo, S.T., M. Sc, for their support, ideas, and patience in the process of making this thesis. And not to mention my supervisor at PT. Panarub Industry that has given me the opportunity to do the thesis and also providing support, data, and information.

Also my utmost gratitude for my parents and siblings who always encourage me in doing this work. Thank you for your prayers and understanding in the making of this thesis.

Finally, to all my friends of Industrial Engineering ’14. I am greatly thankful for the times we had together in doing this thesis. For the friendship that we have built during these four years. I believe that we all will have a bright future ahead. Keep believing, keep praying, and good luck.

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TABLE OF CONTENTS

STATEMENT BY THE AUTHOR ... 2

ABSTRACT ... 3

DEDICATION ... 5

ACKNOWLEDGEMENTS ... 6

TABLE OF CONTENTS ... 7

LIST OF FIGURES ... 9

LIST OF TABLES ... 10

CHAPTER 1 - INTRODUCTION ... 11

1.1 Background ... 11

1.2. Research Problems ... 12

1.3. Research Objectives ... 13

1.4. Significance of Study ... 13

1.5 Research Questions ... 13

CHAPTER 2 - LITERATURE REVIEW ... 14

2.1 Cellular Manufacturing ... 14

2.2 Flexible Manufacturing System ... 20

2.3 Quick Changeover ... 23

2.4 Measuring Cellular Manufacturing Performance ... 24

2.5 Overall Equipment Effectiveness ... 26

2.7 Facility Design ... 28

CHAPTER 3 - RESEARCH METHODOLOGY ... 29

3.1. Problem Identification ... 30

3.2. Literature Review ... 30

3.3. Data Sources and Collection ... 31

3.4. Data Processing ... 32

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CHAPTER 4 – RESULTS AND DISCUSSION ... 39

4.1. Company Profile ... 39

4.2. Product Detail ... 40

4.2.1 Swift Run JR [IMP 1 Cell 1] ... 40

4.2.1 Goletto VI FG J [Plant 4 Cell 2] ... 41

4.2.2 Technical Data Comparison ... 41

4.3. Layout Comparison ... 43

4.4. Statistical Analysis ... 45

4.5. Production Flow Analysis ... 49

4.5.1. Rank Order Clustering ... 50

4.5.1. Weighted Grouping Efficacy ... 51

4.6. Overall Equipment Effectiveness ... 53

4.7. Ishikawa Diagram ... 55

4.8. SWOT Analysis and Improvement... 57

CHAPTER 5 – CONCLUSION AND RECOMMENDATION ... 60

5.1. Conclusion ... 60

5.2. Recommendations ... 61

GLOSSARY ... 62

REFERENCES ... 63

APPENDIX A – SPSS DATA ... 66

A.1. Descriptive Statistics ... 66

A.2. Independent t-test... 67

APPENDIX B – RANK ORDER CLUSTERING ... 68

B.1. IMP 1 Cell 1 Sewing ROC (Step 1) ... 68

B.1. IMP 1 Cell 1 Sewing ROC (Step 2) ... 68

B.2. Plant 4 Cell 2 Sewing ROC (Step 1) ... 68

B.3. Plant 4 Cell 2 Sewing ROC (Step 2) ... 69

B.4. Plant 4 Cell 2 Sewing ROC (Step 3) ... 69

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