Simulation Approach to Process Layout Improvenent : A Xase Study of a Plastic Industry

Abstract

The thesis is a part of the production improvement of industry whose layout is the process layout. Its primal aim of this study is to find the acceptable layout by considering the total cost. In this case, the cost is the cost of moving material or WIP or material handling cost. The plastic industry is one of the industries adimiring the use of the process layout. Thus, Rianthai Interplas Co., Ltd. being the one of plastic production company is chosen as a case study . The result of the study will be the guideline of the production improvement of this company. To improve the layout of Rianthai interplas Co., the Traditional Schematic Technique and Flow and Relationship analysis are suggested. The concept of this study is to create the constrints for layout generation. The constraints come from the distance and relationship between stations in factory. In this study, 4 new layout designs are built by following the constraints. As a result of evaluating the new designs, the moving distance of all of them are shorter than the current layout. The 2nd design has the shortest distance and the 4th design is the second. Thus, the 2nd and 4the design are primarily chosen. To compare the productivity of the suggested layouts with the current layout, the simulation method is introduced. ProModel is the simulation software chosen in this case. The result of the simulation is the suggested layouts can improve only one type of order (Order for product A in This study). When comparing between the 2nd and 4th design, it's found there is no difference between them. However, this information is not enough for making decision in the managment point of view. Thus, the costs of facility rearrangement and return on investment period are estimated. As a result, the return on investment period of 4th design is 18.5 month and the period of 2nd design is 25 months but the cost for facility rearrangement of 4th design is more expensive than 2nd design. The result of this experiment was sent to the manaement of company for decision. They think the 4th layout should be the acceptable layout because of the shorter return investment although the investment cost is higher.