Relayout And Change Of Packaging Solvent Area In Chemical Company Warehouse In Indonesia

Abstract

The increasing competition between companies has made companies use various ways to gain profit, one of them by reducing operational costs. According to the company, non-added value activities such as picking must be minimized as much as possible. The reduction in non-added value activities will also reduce the company's operational costs. This also happened to PT ABC, a chemical company in Indonesia. It was found that activities that non-added value activities were that operators had to walk quite far to carry out weighing activities and pick up reuse jerry cans which were quite far away. Another problem that arose was that there were several types of products that fell into the slow-moving category but were stored in large packaging, reducing the space for storing reuse jerry cans. To solve this problem, goods were categorized based on the frequency and use of the product over the past few months and a decision was made to change the layout and product packaging so that it could enlarge the operator's movement area when picking. Based on the calculation of profits, savings were obtained from moving time and distance. In addition, the types of products stored were also greater than before.