Efficiency of Material Handling Costs (MHC) through Layout Redesign using CRAFT Method (Case Study: Kopi Jaya Coffee Processor)

Abstract

The rapid development of the industrial sector demands companies to continuously improve their competitiveness and production process efficiency. One strategic approach to achieve this is through the proper and efficient arrangement of production facilities. A well-designed facility layout, especially between departments, plays a crucial role in enhancing overall operational efficiency. This study was conducted at Kedai Kopi Jaya, a coffee processing industry committed to implementing production efficiency to support increased profitability. Observations revealed that the existing facility layout was suboptimal, indicated by frequent repeated material movements and ineffective workspace arrangement. To address this issue, a layout redesign was carried out using the CRAFT (Computerized Relative Allocation of Facilities Technique) method. The results of the CRAFT implementation showed a significant improvement in efficiency, with a reduction in material handling costs (MHC) by 19.56%. These findings demonstrate that a quantitative approach to facility layout redesign can positively impact industrial operational efficiency.