Material handling activities are important to consider in setting the engine layout on the production floor. Poor material flow regulation will have an impact on the distance and material handling costs. Over time, product variations and demand have increasingly demanded that PT SPU expand the production area and add machines that have resulted in the need to improve facility layout design. The CRAFT algorithm looks for optimum design by gradually improving the layout and evaluating the layout by exchanging location of the department to reduce the cost of material transfer. The results of the redesign with the CRAFT algorithm showed a decrease in material handling costs by 18.86%.
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