This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.
In this study, we will examine and take research on a logistic firm about how they managing their facility layout and understand how layout bring them great success. The logistic firm that we to study name as Eltis Transport Sendirian Berhad. Eltis Transport Sendirian Berhad was established on 28 September 2005, set their vision to become the best logistic company in South East Asia. Generally, this company is doing shipping and delivery services in China and Malaysia. Their biggest customer currently is Old Town White Coffee.
Eltis Sdn. Bhd. playing a role as a providing good services and more reasonable price compare to other companies. They offer their customer cheaper services and offering them better price if repeat purchase.
This company took many operation processes in their daily work, such as the operation process to plan a delivery order from China, the control of data flow between China and Malaysia factory, and how to distribute their delivery order to increase the efficiency to deliver stock to customer. These processes are simple to process and bring many benefits to their company.
During this study, we also realize that Eltis Transport had managed their facility layout to gain better flow on their daily flow. Every layout design was made according to the best fit of their daily work flow. Besides, their company took few important processes to ensure their delivery order to be effective either from China to Malaysia or from their factory to customers. Including how they locate their delivery order, entrance and storage to increase their layout effectiveness. Furthermore, it proves how a facility layout helps a company to increase company operations effectiveness.
2.0 Eltis Transport's Operation Processes & Facility Layout
2.1 Production/ Operation Processes
Table 1: The Production Process of Eltis Transport Sendirian Berhad.
Table 1 above is the production process flow of the Eltis Transport Sendirian Berhad. Eltis Transport Sendirian Berhad is a logistic company whereby providing services by delivering goods for customers. The goods to deliver are normally heavy weight goods or in a large quantity goods. Firstly, The company will receive the customer invoice which written the details of the customer goods that need to be deliver, date of shipping, and the amount of payment that required to settle by customers.
Secondly, Customers is required to settle the amount of payment before the process able to proceed. The price is based on the quantity of the customer goods and the weight of the total goods that require to be delivered. After the payment is settled, the company will come out with a deliver order for customers and the receiver from the worker to receive and sign as a proof that the goods has already deliver safely to the receiver. The few steps are normally the process flow of ordering.
Thirdly, the customer goods will pack up and insert into the cargo together with other cargo and continue with the shipping process. Most of the order will receive are from China and some neighbor country such as Singapore. The shipping will ship from China or other location to Malaysia and drop off in Port Klang. Normally the shipping process will take around 3 weeks to deliver and it needs to depend on condition of other factors. After that, the cargo will be transfer from the Port Klang and bring back to the factory which located in Puchong.
When the cargo/container reaches the factory, the cargo will be placed inside the factory. The capacity of the factory only enables them to place 2 containers at the same time. After the container is placed inside the factory, the workers will extract the cargo from truck and arrange the stock according to the locations. The placing of stocks will be divided in 4 parts, Deliver Stock Area A, B, C, D. Some normal stock will be place in the Delivery Stock Area A,B, and C but as for area D will be place all the heavy stocks and those stock with high amount. Normally stock at area D will be the fastest to be delivering out within 1 to 3 days.
After the stock is ready to be deliver, it will be shift to the trucks according to location. Normally outstation order will be slower around 3 days to 7 days only able to reach the receiver.
In our opinion, the type of process strategy for Eltis Transport Sendirian Berhad using is Product focus strategy. Product focus strategy is only focus on high volume and low variety and in from the visiting of factory, Eltis Transport Sendirian Berhad aims for high volume of stock to deliver which require the customers to have a large quantity of stocks will only accept the order. Besides that, Eltis Transport Sendirian Berhad has a low variety because they just differ from the product delivery location which is delivery stock only differ by location delivered.
The strength of Eltis Transport Sendirian Berhad is that they have a simple and direct operation process. The flow of the process is simple and easy to understand and follow by the workers. This is because the job scope is in routine form. The process will start from customer ordering to shipping until delivered to the receiver.
Next strength for Eltis Transport Sendirian Berhad is that error is easy to be trace. The flow of information in Eltis Transport is as simple as it processing, it could reduces the problem of communication. It also provides an easy way the company and customer to trace back the stock detail. Moreover, their simple process also reduces the chance of mistake happened.
Furthermore, the worker move cargo to delivery stock area could increase their efficiency to differentiate stock. As example, stock to be delivered to Kepong can be easily found after this process.
The drawback of Eltis Transport Sendirian Berhad is that it is time consuming. This is because in the shipping period is taking too long for transfer from one location to another location. Sometimes customer will consider of the consequences and will not choose the service provided by Eltis Transport Sendirian Berhad. Besides that, when arrange stock, it will be quite time-consuming, maybe it helps workers to reduce mistake by arrange those stock will caused them at least a day.
The time to deliver the cargo also considered as one of the drawback for timeliness. Because, those stocks that going to deliver to further locations normally would delay until those near location stocks was delivered.
2.2 Company Facility Layout
Eltis Transport Sendirian Berhad is a logistic company, thus their factory layout would be very important for their daily work flow, including how they distribute their stock and how they manage the flexibility of their truck to and stock arrangement. Below is the facility layout of this company, and the layout information are stated below.Layout.bmp
SCALE: 1cm = 5m
Delivery Stock Location
[A] - Cargo Delivery Location: Perak (Ipoh), Penang, Perlis and etc.
[B] - Cargo Delivery Location: Shah Alam, Klang, Subang, Puchong and etc.
[C] - Cargo Delivery Location: Kedah, Johor, Melaka and etc.
[D] - Cargo Delivery Location: Kepong, Damansara, Sungai Buloh, PJ, Batu Caves and etc (or special case for large amount of delivery stock.)
Entrance  - Just for container truck to enter.
Entrance  - Personnel Entrance
Entrance  -Personnel Entrance and Stock Output Exit
Customer Stock Storage
Customer Stock Storage [A] - Big Size Stock Area
Customer Stock Storage [B] - Average Size Stock Storage Room
Truck's Container  & 
Area to place containers
Facility Layout Explanation
In this facility layout design, Entrance  is design for the trucks to enter and remove containers from truck, while Entrance  is personnel entrance. Truck Container Parking  &  show the place for trucks to place containers. After removing container from truck, workers will move the stock in the container to delivery stock areas. Delivery stock areas usually placed stock that soon to deliver. Deliver stock area are differing by location of delivery, as stated in the information above. Delivery Stock Area [D] is specialized for mass amount stock, while long size stock usually place on Long Size Stock Area. After all stock is distributed, stock will be delivering according to location. Stock will be move to lorry or smaller size truck near Entrance  by using stock lifter. Customer Stock Storage is storage that rent to customer to place their customer.
Facility Layout Analysis
In this assignment, we realize that Eltis Transport set their layout use work-cell layout design for their factory. They organized their stock/cargo in order to focus all product delivery location as groups. Besides, they fit their cargo into suitable ways according the size, volume and location of cargo. We found that there are few advantages and disadvantages to be discussed.
First of all, we found that the office was placed in the best location, because it does not block any of the main operation processes, yet it provided convenience to management to pass deliver order to working. Moreover, this office located near to entrance, thus client can easily contact with company superiors. This shows the how their layout design provides them a better flow of information. This layout design also enables workers to easily distribute their stock from container because it is short distance between delivery stock areas and container. It meets the basic capacity and space requirement as a logistic firm. By, this layout, workers can easily search for cargo by arranging them to delivery stock areas. It will reduce time to find customer cargo that need to be delivered. This layout reduces the time-consumption to move between container parking and cargo areas. Besides, Entrance  and Entrance  are designed as entrance and exit for stock, so it could avoid stock jam. Furthermore, Delivery Stock Area [D] had designed to be larger than other delivery stock areas, to enable worker to place more amount of stock, because Delivery Stock Area [D] usually placed stock for popular location, such as Damansara and Kepong. It also designed to be nearest to the container parking to increase convenience for workers. Next, this facility layout also design a area specialized for long size stock - Long Size Stock Area. This area is designed to avoid long size stock from blocking the path to entrance and exit. Last and most significant advantages would be the flexibility of this layout for delivery stock area, because whenever happens any case that the product of a location increase and caused insufficient capacity, workers can place those stocks in any other delivery stock area for moment. Lastly, their work-cell layout design model had bring them few significant benefits, such as reduce spending on purchasing different equipment to moving cargo to far areas. They also increase the workers self-motivation participative attitude, because the superior can easily value their performance
While after analyze this layout design, we found that this factory does not fully utilized their factory place, because they had wasted few area to become customer storage. It may reduce stock capacity to be place in their factory. Besides, Delivery Stock Area [A] and [B] were designed too near to each other, it may confuse workers. There is a disadvantage on Delivery Stock Area [C] too, it reduces the efficiency of workers because it put slightly far from container parking, it may increase the time and effort of workers to move stock to Delivery Stock Area [C]. Moreover, Entrance  is designed smaller as an exit for stock to move into small truck. It will cause jam if there are few stock lifters moving together. Last but not least, the Entrance  is too small for 2 trucks to enter at the same time, so it had to take turn to enter and put container, it had increase a lot of time to place their containers.
3.1 Improving Resource Management of Large Logistic Facilities
According to Miodrag, Tesch& Clausen (2012), facility layouts have to work with the flow of processes in order to achieve the optimal level and increase the shipment quantities. In this research, the layout is designed as a less than truckload facility layout which consists of 7 unloading gates, 28 loading areas and 9 forklift trucks for transshipment. The time of carrying the goods inside the transshipment hall will be reducing.(Zoran Miodrage, 2012)
3.2 Research on the Optimization Method for Logistics Center Facilities Layout Projects
Li & Zhang (2009) indicated that logistics system layout and planning procedure are the most important factor in the optimization procedure status of logistics center facilities layout projects. The researcher is using Entropy Weight Fuzzy Comprehensive Evaluation Method to select the best facility layout for the company. The method will show which is the best layout is after comparing with other alternatives. The best layout can obtain the better integrated performance, reduce the cost, and shorter the distance of carrying goods.(LI Jinhui, 2009)
3.3 Automated Facilities Layout: Past, Present and Future
Liggett (2000) stated that automated facilities layout is able to solve the problems such as facilities planning problems of stacking and blocking activities, reassign the space in an existing building and also allocate and design of space in a new building. Nowadays, computer aided design system is very common used in designing the layout by providing a graphic interface with concerning the layout criteria. This system can reduce the cost, effective in allocate the space and also able to provide a modern interactive interface. (Liggett, 2000)
3.4 A New Optimization Method for Logistics Center Facilities Layout Projects
The optimization phase of logistics center layout projects has an important status in the logistics system layout and planning which between the project design and project implementation course. In this study, a new optimization frame to logistics centre facilities layout projects was presented which provided decision making to the logistics centre design procedure.
There are four methods for logistics center facilities layout projects optimization which are cost, charge and finance comparison method; logistics and distance plot method; merit and defect comparison method; factor weight method. The constructed evaluation index system in this paper was rational which more wholly reflected the logistics center facilities layout projects.
Based on the logistics center layout projects of NING Tang-gang farming logistics center in Jingsu Province in China, building out and facilities repositioning for this logistics center is necessary for the purpose of economic advance and image improving. It was found that using cross DEA method could have the best optimization project.
The optimization method based on DEA cross-efficiency model can avoid the deficiency in weight confirmation of traditional synthesis evaluation method and also avoid the problem of invalid decision and big errors to make the result more rational and equitable.
According the analysis, the new optimization frame could provide decision making support for government and corporation to make the selected projects more rational and equitable.(LI Jin-hui, 2009)
3.5 A New Optimization Scheme Based Logistics Cost For Plant Facility Layout
The logistic cost is an important factor in production cost which can affect directly by plant facility layout of the enterprise. But the potential of enterprise to increase efficiency and reduce cost during the process of manufacture is few.
System layout planning (SLP) is a method of facility layout to systematically analyze the problem of actual facility layout of a manufacturing company. To make rational design of enterprise's logistics facilities by using the technology of SLP can effectively shorten its production cycle. The technology of SLP is effective when it is used to study logistics activities with systematically view. It results in reducing logistics cost, improving logistics quality and satisfying enterprise's requires.
In this study of the manufacturing enterprise, the metalworking shop can't complete its task on time whereas others are work normally. This is because many kinds of parts need to be processed, techniques are complex and the facility layout is illogical. All these things are waste time and costly. The solution for this problem is optimizing a new facilities layout of the metalworking shop.
Through the facility layout optimization, the metalworking shop could reduce the storage, shorten the delivery time and improve the customer satisfaction. So during the complex processing process, to reduce the product cost by optimize facilities layout pattern inside the enterprise is the important step. Therefore, SLP is an effective method to solve this problem.(Wang Li-fang)
3.6 Layout Planning With a Controlling Structure to Logistics Parks
Logistics Parks (LP) planning would affect the region economic for a long time. The logistics facilities and logistics industry are concentrated in the Logistics Parks which integrates the logistics resources, reduces the pollution, traffic pressure and cut the cost in scale economy for logistics industry.
In the study, there are hundreds of large Logistics Parks in China, but these Logistics Parks run a different result with their expectation. Therefore, a method of layout planning with a controlling structure to Logistics Parks had been proposed based on the Systematic Layout Planning (SLP).
In the planning, some key traffic facilities outside the location are chosen as the controlling point to found the controlling structure. For the correlation analysis, the controlling structure is analyzed together with the inside sub-areas. The controlling structure and inside sub-areas correlation are taken as tabu searches respectively to found a close position scheme. So LP has more relation with the adjacent traffic facilities compared with plants which mean that the main facilities outside LP would influence the inside facilities layout.
The advantage of the method is reflecting the interactive relationship between Logistics Parks and traffic facilities. This method is proved to be effective based on the case for layout planning of Yangzhou North Logistics Park.(Wang Shu-qin, 2008)
3.7 Cascading Flowlines and Layout Modules: Practical Strategies for Machine Duplication in Facility Layouts
In this journal, it shows that using a variety of Hybrid Cellular Layouts (HCLs) which integrate theattributes of the traditional functional, cellular and flowline layouts instead of using the standard model which is the design of the cascading flowline layout that content a novel string-to-graph aggregation and planar graph embedding method that allows machine duplication in the layout.
Among the HCLs list, in the case of Huang and Irani (2003), they used the method of Cellular Layout with Reorientation and Reshaping of Cells. It was generated by a reorientation and reshaping of one or more cells. Instead of remaining the U shape for all the cells, these cells are allowed to have L or S shape which allows more machine types that, otherwise would have been distributed among the cells, to remain co-located in functional groups. Other than that, in Hybrid Flowshop Layout, machines are allocated into layout modules. Each module can perform one or more consecutive operations occurring in the operation sequence of almost every part.
Moreover, the concept of layout modules extends current thinking on input data requirements and methods for facility layout, and supports the need for a new generation of facility layouts beyond the traditional layouts that continue to be taught in major textbooks and implemented throughout industry.
In this journal, each of the HCL has a different degree of grouping of dissimilar machines and similar machines into cells and functional group, respectively. By using this kind of methods, it able to enhance the productivity of the logistic manufacture facility layout. (Huang, Facility Layout, 2006)
3.8 Layout Planning For Facilities with Fixed Shapes and Input and Output Points
This journal focused on the facility layout problem in which each facility has a fixed shape and input and output points. Mixed Integer Programming (MIP) here is to minimize the sum of rectilinear distances weight by flow amounts between input and output points of the facilities. It has solved optimally after fixing some binary variables.
As in the result of computational tests which adapted from some real life general cases, it proved that the suggested algorithm outperformed existing algorithms and gave good solutions in a reasonable time. The suggested algorithm as stated in the journal may be considered useful and practical in that it may be used for design of physical layouts of flexible manufacturing systems and cellular manufacturing systems. Moreover, by allowing input and output points of a facility to be located at any position in the facility, other field like Logistic manufacture can use the model and the two-phase algorithm for the layout design of manufacturing systems in which overhead cranes of gantry robots are used for handling material flows between the facilities. (Kim, 2000)
3.9 Stockyard Layout Planning and Management for the Precast Concrete Products Industry
Stockyard layout is basically contains a large number of products stored in a specific location known as a yard so that determining the location of a specific product will require a complex solution which consumes time and resources. The products are dispatched from the stockyards by using lorry.
On the other hand, to reduce the throughput time to improve the system, an appropriate stockyard layout should be implemented and developed by defining the products locations, fixing and minimize the travel route for transportation of products from production facilities to the yard. Besides that, implementing proper management strategies such as minimizing the diversity of products, defining arrival time for lorry and implementing appropriate communication system can provide sufficient efficiency of the system.
Lastly, a proper layout should improve space utilization, waiting time of transport vehicles, queue length of transport vehicle and transport and loading cost. Besides that, a proper layout can easily trace the location of the product for storage or retrieval purpose thus saving considerable amount of time wasted during loading and unloading of the products.(Dawood, 2001)
3.10 Design of Unidirectional Cyclic Layouts
Circular material handling systems is a system which usually adapt by most of the logistic manufacture. This system connects all workstations by a circuit passing through each workstation exactly once.
As emphasized by Kouvelis et al. (1992) the optimal design of its physical layout is crucial for the performance of a flexible manufacturing system (FMS). The work by Afentakis (1989) is the first attempt for the design of a unidirectional cyclic layout (UCL) in this respect.
The unidirectional cyclic layout problem (UCLP) family is a wonderful potential research area. Similar ideas can be extended to circular layouts with multiple load/unload (LUL) areas used both handling and storage purposes to enhance the efficiency and also at the same time to reduce the response time, to row layouts, and to some special type sequencing and scheduling problems such as the permutation flowshop and the single scheduling problems.(I. K. Altinel, 2005)
4.0 Discussion & Conclusion
In this assignment, we realize the importance of facility layout management to a corporation. By studying the factory of Eltis Transport, we could understand how operation processes and facility layout bring their daily production toward success. Eltis Transport use product focus process strategy as their operation process. By using this strategy, Eltis Transport can arrange their delivery stock by product's location and process all different product together; they could deliver high volume of product toward all locations which could increase their efficiency by reducing traveling fees and time.
Moreover, we also realize that their factory layout is designed is work-cell layout design. We discovered that the layout of their facility provides them a better arrangement and flow to their factory. Next, their layout provides them benefits to reduce the usage of machine and capacity in factory. Their layout also enable worker to speed up their flow of stock in factory, and improves their flow of information by placing the office in the suitable entrance, superiors can easily provide order or information to workers. Besides, their office location enables better interaction between company and clients. Their layout also provided them flexibility for any special causes happened.
Furthermore, according to few of those journals we studied, we found that layout actually helps a company to maintain their capacity, equipment and flow of personnel, which it also links to the improvements on information flow. These journals also explained layout included many different conditions including flexibility and the safety of a facility.
However, we found there are few improvements that Eltis Transport should make, and some strength should be further utilized. First of all, they should increase their transport to deliver stock to different location, because according their strategy, stock that having further delivered locations will be delay until product in near locations were delivered. This had many cause increasing in time costing. We suggest that their increase the quantity of workers and truck in factory to improve the management. Besides, the arrangement for product should be reduces by direct place some of the cargo directly from container to small trucks; it will absolutely reduce the time to arrange and replacement for cargo. By the way, for those cargos that going to place in the delivery stock areas, we suggest that they increase more specific location, such as, Kepong location (independently) it will increase the effectiveness of workers.
Besides, we also realize that they did not fully utilize their facility space, as mentioned in this assignment previously about the customer storage. They should empty one of their storage that provided to customer, in case that their stock suddenly facing insufficient space. Moreover, they should draw a better line to distinguish different location stock, to avoid any confusion to workers. They should also enlarge their Entrance  size to reduce the stock jam situations. The hardest condition to be improved should be the Entrance , because the building seems too small for two container's truck to entrance, we suggest that they could rent temporarily factory if having massive orders situation.
A suggestion from us is the office can be design as a 2-floor office, it will absolute improves the strength of the flow of stock and increase capacity for their company to place their stocks.