WAREHOUSE FACILITY LAYOUT PLAN FOR TRAFFIC SUPPLIES AND

CONSTRUCTION CORPORATION IN SUCAT, PARAÑAQUE CITY

An undergraduate Thesis Presented to the Faculty of the

School of Engineering

St. Anne College Lucena Inc.

In partial fulfillment of the Requirements for the Degree

Bachelor of Science in Industrial Engineering

IVAN MAYNARD N. MEJICA

December 13, 2019

 CHAPTER I

THE PROBLEM AND ITS BACKGROUND

INTRODUCTION

According to Harris, Cyril M. (2006), warehouse is a building for storing

goods. Warehouses are used by manufacturers, importers, exporters,

wholesalers, transport businesses, customs, etc. They are usually large plain

buildings in industrial parks on the outskirts of cities, towns or villages. As

Geoffrey Rickman stated on his book that was published on year 1971, the need

for warehouses developed in societies in which trade reached a critical mass

requiring storage at some point in the exchange process.

IBM company defines the warehouse layout as the physical layout and

related attributes of a warehouse. Facility planning is concerned with the design

layout, and accommodation of people, machines and activities of a system or

enterprise within a physical spatial environment. Facility Planning recognizes that

every decision made in business planning has a direct impact on an

organization’s real estate assets and needs. Facilities are the critical components

of an organization’s strategic facility planning since they are the outcome of

business decision-making processes and have a long-term impact on the support

for the achievement of the organization’s mission and vision. Strategic Facility

Planning (SFP) includes an understanding of the organization’s culture and core

values and an analysis of how existing and new facilities must manifest that

culture and core values within the physical space or support their change. It is

also an in-depth analysis of existing facilities – including location, capability,

utilization and condition, and an achievable and affordable plan that translates

the goals of the business plan into an appropriate facility response.

Since the beginning of the 20th century facilities planning with particular

emphasis on the manufacturing and warehousing aspect has been struggling to

adequately adapt to the constantly-evolving market demands. The basic

objective of layout is to ensure a smooth flow of work, material, and information

through a system. The key to good facility layout and design is the integration of

the needs of people (personnel and customers), materials (raw, finishes, and in

process), and machinery in such a way that they create a single, well-functioning

system.

The layout optimization allows reducing materials handling and storage. In

particular, important aspects are: Distances for Materials movement; Distances

for Equipment movements; Distances for Operator’s movements; Areas of

Workplaces; Areas of Warehouses; Types of Handling Equipment needed; Types

of Storage systems; etc. In order to consider the above aspects, many

techniques are available in the specific literature (Vignanti, 2002). The analyst

can decide to follow different approaches able to reach one or more goals at the

same time.

BACKGROUND OF THE STUDY

Traffic Supplies and Construction Corporation also known as TSCC is

located at Sucat, Parañaque City is the manufacturer of thermoplastic paints,

supplier of traffic safety items, and provider installation and construction services

for related road traffic safety. The company offers five types of services which are
installation of road signage, installation of traffic lights and posts as well as the

traffic study, application of bituminous asphalt rejuvenator, installation of led

street lights and posts and the application of thermoplastic pavement markings.

The company is operational for 8 hours from Monday to Saturday.

On the existing facility design of TSCC, recreational activities like mini golf

course, half basketball court, a rest place, a pantry and a man-made pond for

employees and visitors as well as a place for stay-in employees was being taken

in consideration. One of the most common issues in facility that TSCC is involved

is in its warehouse. They have a standard operating procedure for receiving and

releasing of goods. They have a receiving and releasing dock. They also have a

separate building for thermoplastic raw materials and storage for finished

products. They have a dedicated storage area for items and materials storage. In

the storage room, the company utilizes rack storage for lights, floor stacking for

posts and wires, container vans for powder materials, bins for screws and

cabinets for tools. They also have two forklift trucks using in the operation and

pallets for handling heavy and bulky items.

The material flow in the warehouse starts when the client issued an order

to the purchased manager. The warehouseman is then tasked to check the

availability as matched to the client’s order. After ensuring that the items are

matched, the items are then checked by the warehouseman for correct labelling,

bulky items are checked by batch or by boxes, after checking, the

warehouseman will issue an invoice attached to the items. The warehouseman

will also check the client’s mode of receiving items, either for pick up or for
delivery. During delivery, items are manually loaded to their delivery truck with

transmittal or delivery report attached and then the items are delivered. The

warehouseman will then wait for the clients call for confirmation of the delivery

regarding the quality and quantity of the received items. Damaged items or non-

conforming items are returned to the warehouse for replacement. The company

has a promised compensation of 1% of the item’s price if they were unable to

replace the item.

Despite of being on their 26th year in the industry, the company was not

able to meet the 100% target set by Key Product Indicators (KPIs) of the

company indicating occurrence of variance, costing the company a total of PHP

300, 000 as they reported for negative variance due to the 44,140 pieces of

discrepancy found in the warehouse and system records. The discrepancy

includes mishandling, poor housekeeping, damage on the products they deliver,

returned items, missing items, over issuance, wrong delivered items, incorrect

labelling, and inaccurate record. The company is also experiencing surplus on

their stocks despite of supplying big projects and customers. They have a total of

220,702 pieces of products and items in their warehouse that is equivalent to 50

million pesos of inventory cost as of September 2019.

According to the paper written by William Sudding, to make sure that the

warehouse runs successfully, a company needs a well-designed warehouse

layout. On the existing layout of the warehouse of Traffic Supplies and

Construction Corporation, the products like the Traffic light posts were placed at

the back of the maintenance department building (basketball court), the tools and
screw’s bins and cabinets were placed inside the warehouse office, while the

finish thermoplastic paint products are stored on the production area which

causes congestion in performing certain warehouse operations specifically on

order picking. The existing design of their warehouse as the warehouseman

stated requires him to travel long distances from time to time when he is

checking the inventory. The lack of appropriate facility to in-house the items lead

to the increase number of defective items. Currently, According to the interview

from the warehouse man, he said that he usually has a hard time locating the

items that was purchased earlier so instead, he picks the items that are only

visible on his sight and that is easy to be picked which are usually items that was

delivered later. Due to improper stacking of the materials in the warehouse, the

method FIFO was not properly applied.

These scenarios inspire the researcher to conduct this study in order to

develop a better facility plan applicable for TSCC that will help to avoid mistakes,

delays, disappointments and customer dissatisfaction, and defective material and

items.

This study is a thorough understanding of the organization’s mission,

vision, values and goals and the existing facility layout of Traffic Supplies and

Construction Corporation, it will also use analytical techniques to explore the

range of possible futures and the triggers used to analyze an organization’s

facility needs and develop plans that meet the long-range needs of the

organization.
OBJECTIVES OF THE STUDY

The main objective of this study was to design a better Facility Plan and

layout that will improve the efficiency and effectiveness of the operational and

administrative activities of Traffic Supplies and Construction Corporation in Sucat

Parañaque City.

SPECIFIC OBJECTIVE

1. To analyze the existing facility layout and design of Traffic Supplies and

Construction Corporation in Sucat Parañaque in terms of:

1.1Material Flow and Product Flow

1.2Activities Relationships and Process Flow

1.3Equipment

1.4Storage

1.5Material Handling

2. To identify the problems encountered in the existing facility layout and

design of Traffic Supplies and Construction Corporation in Sucat

Parañaque in terms of:

2.1Material Flow and Product Flow

2.2Activities Relationships and Process Flow

2.3Equipment

2.4Storage

2.5Material Handling

3. To develop an improved facility plan and layout of Traffic Supplies

and Construction Corporation that will help them minimize and/or

 eliminate the problems encountered on the existing facility layout and

design.

4. To determine the benefits of the proposed, improve facility plan and

layout for Traffic Supplies and Construction Corporation.

THEORETICAL FRAMEWORK

FIGURE 1: Warehouse Facility Layout Plan Framework

The Figure 1 above shows the visualization of the warehouse facility

planning and design framework together with an explanation of the steps

and how the steps help facilitate decision-making for a fast-growing

company. The framework is divided into two parts, one focusing on the

purpose and requirements put on the warehouse, and one focusing on the

layout planning. The warehouse facility planning and design framework’s

first part is mainly inspired by the purpose and requirements and the

functional specification. The first part of the framework creates a base for

the second part of the framework. The second part of the warehouse facility

planning and design framework consists of the more physical part of the

layout design and is inspired by the technical specification, development of

layouts and evaluation and assessment as based to the research study of

Gu et al., (2010).

SIGNIFICANCE OF THE STUDY

This study will serve as an analysis of the existing facility plan and

layout of Traffic Supplies and Construction Corporation. It will be beneficial

to the company, because it will help them improve their facility that will

optimize their operations and warehouse layout. Also, this study will be

helpful to their Operations to be effective and efficient through a proper

facility plan and layout.

Likewise, the Warehouseman will benefit from this, as this study will

minimize the travel distance and provide better design of storage and

handling for products that will minimize or eliminate the damaged items and

time of order picking. The improved warehouse layout will help him locate
the right items, at the right place and improve the flow of traffic and

operations within the warehouse.

This study will be beneficial to the Researcher itself for the application

of his knowledge relevant to industrial engineering field in a real work life

setting.

This study will also help Future Researchers who will investigate

similar or related studies by using this as their basis and reference.

SCOPE AND LIMITATIONS

This study is mainly concern in developing Facility Plan Layout of

Traffic Supplies and Construction Corporation in order to maximize the

overall efficiency of both production and warehouse operations that will be

able to provide safety and ease of flow on operations, materials, products

and items as well as the safety of the employees and operators.

The factors that taken into considerations are the Material Safety

Data Sheet or MSDS of each product and item, the number of item and

products to be stored and monitored, the capacity of the existing warehouse

design and its location, the warehouse operations, types of material

handling and the dimensions of the equipment.

The researcher limits the study as part of the policy and

confidentiality of the company, from any related financial information other

than the prices of each product and item in the warehouse and will not be

able to show the other hidden cost entails in the problems encountered. This
study did not also cover the implementation of the proposed layout,

practices, methods and system for further study.

Definition of Terms

Bottleneck Rate is defined as the rate of the resource that requires the longest

time in operations.

Facilities is defined as buildings where people, material, and machines come

together for a stated purpose – typically to make tangible product or to provide a

service.

Idle time is unproductive time on the part of employees or machines caused by

management or as a result of factors beyond their control. Idle time is the time

associated with waiting, or when a piece of machinery is not being used but

could be. It could also be associated with computing, and in that case, refers to

processing time.

Location is the placement of a facility with respect to customers, suppliers and

other facilities with which it interfaces.

Material handling is the movement, protection, storage and control of materials

and products throughout manufacturing, warehousing, distribution, and disposal.

Material Safety Data Sheet is a technical document which provides detailed and

comprehensive information on a controlled product related to health effects of

exposure to the product, hazard evaluation related to the product’s handling,

storage or use, measure to protect workers at risk of exposure, emergency

procedures.
Planning is defined as a decision made for a course of action related in facility

that is/are based on facts and analysis of the current situation.

Receiving is a warehouse operation that involves the transfer of ownership of

goods, which by its nature involves financial responsibility. Ensuring that the

documentation is accurate, correct and smoothly and efficient allows the material

to be made available to the customer as soon as possible.

Thermoplastic Paints also known as Thermoplastic road marking paint, also

called hot melt marking paint, is a kind of powder paint that are applied as road

surface markings.
 CHAPTER II

RELATED LITERATURE AND STUDIES

This chapter provides an overview of previous research on Warehouse

Facility Layout Planning. It also contains summary of studies related to a Facility

Planning.

RELATED LITERATURE

FACILITY PLANNING

According to Garcia and Smith as cited by Khusna Dwijayanti et al.,

(2010) on the research study, Facility planning is concerned with the design,

layout, and accommodation of people, machines and activities of a system or

enterprise within a physical spatial environment. Furthermore, the same study

states that according to Huang facility layout design determines how to arrange,

locate, and distribute the equipment and support services in a manufacturing

facility to achieve minimization of overall production time, maximization of

operational and arrangement flexibility, maximization of turnover of work-in

process (WIP) and maximization of factory output in conformance with production

schedules.

HIERARCHY OF FACILITY PLANNING

Facility planning is a broad area to work. Many activities are carried out in facility

planning; same is classified below:

Plant Location: Location is the placement of a facility with respect to customers,

suppliers, and other facilities with which it interfaces. Decision regarding plant
location is taken by considering various factors. Facility location is generally first

step in facility planning.

Structure: Structure consists of the buildings and utilities (e.g., gas, water,

power, heat, light, air, sewage).

Layout: Layout consist relative placements of all equipment, machinery, and

furnishings within the structure.

Handling System: Handling System consists of the mechanism by which all

interactions required by the layout are satisfied (e.g., materials, personnel,

information, and equipment handling systems).

FACILITY LAYOUT

The Facility Layout Problem (FLP) is relating to location of objects

(departments, workstations, machines, etc.) on a given site and the material flow

between these objects as mentioned by Kovacs and Kot (2017). It was cited by

Tarkesh, Atighehchian, and Nookabadi, (2009) that a facility layout is an

arrangement of everything needed for production of goods or delivery of

services. On the same research, they mentioned that Heragu defined the facility

as an entity that facilitates the performance of any job. It may be a machine tool,

work enter, a manufacturing cell, a machine shop, a department, a warehouse,

etc. Warehouse layouts, due to their influence on total warehousing costs, are of

interest to the theory and practice of warehouse design. While the layout problem

of unit-load storage area of conventional warehouses has quite a long history,

the layout of conventional systems with manual order-picking from multiple aisles

has been the topic of a number of research papers only in the last decade. Those
layouts result in a reduced travel distance needed to store or retrieve a single

pallet, thus improving the efficiency in the storage area. The purpose of layout

design is to find the most effective facility arrangement and minimize the material

handling. It has remained an active research area during recent decades.

According to Tarkesh, Atighehchian, and Nookabadi, (2009), the critical

objective of layout is to minimize the material handling costs. Two basic sets of

constraints in designing a layout are: (1) department space and total floor area

requirements and (2) operation boundaries, that are the departments placed

within the facility should not overlap, and some departments must be isolated or

have a specific position.

FACILITY LAYOUT DESIGN OBJECTIVES

According the Management Study Guide (2016), the main objectives of

the facility layout planning is to minimize the total distance of goods flow, the

material handling cost and the time spent in the manufacturing system. An

efficient and effective facility layout can cover the following objectives:

• to provide optimum space to organize equipment and facilitate movement of

goods and to create a safe and comfortable work environment

• to reduce movement of workers, raw materials, components and

equipment,

• to provide plant safety including the safety as its workers,

• to facilitate an extension or change in the layout to accommodate a new

product line or technology upgradation,

• To increase production capacity of the organization.

The Goals of the layout redesign

• Is to provide free space for the new business,

• Is to provide an optimum arrangement of workstations and movement of

goods on the shop floor,

• Is to reduce movement of raw materials, components, equipment and

workers,

• Is to reduce lead times and increase production capacity,

• Is to create a safe and comfortable work environment.

General types of facility layouts

As written by Korhan O., on his book entitled “Facilities planning and

design”, there are four main types of facility layout which are the following:

1. Fixed Position Layout is used in project production used for manufacturing

of large and individual products e.g., bridge, ships, etc

2. Process Layout is typically used in job shop production used for

manufacturing of a low volume of customized products,

3. Cellular Layout is suitable for producing a wide variety of final products

manufactured in medium volume,

4. Product Layout is used in flow shop production used for manufacturing of

a high volume of standard products. In practice, the most common situation

is the mixture of the above-mentioned layout types.

The common causes of discrepancies

As written in the website of Storeman HQ (2016), though most causes of

discrepancies can either be human error or procedural flaws, the list below will
be more about possible root-causes. However, keep in mind that there are other

causes of discrepancies that may not be listed here, which may depend on the

industry and method used in keeping inventory records.

1. Incorrect data entry during receiving/inbound

2. Misplaced stocks

3. Inadequate handling of damaged and returned stocks

4. Stocks mixing

5. Stocks loss due theft

6. Human error during stock take process

7. Incorrect unit of measurement used

8. Not updating the inventory system

9. Stocks incorrectly labelled

10. Stocks mistaken for similar product

11. Human error during order processing (e.g. picking)

12. Supplier fraud

ACTIVITY RELATIONSHIP DIAGRAM

On paper by Chuck Frey, author of the Mind Mapping Software Blog, an

activity diagram visually presents a series of actions or flow of control in a

system similar to a flowchart or a data flow diagram. Activity diagrams are

often used in business process modelling. They can also describe the steps

in a use case diagram. Activities modelled can be sequential and concurrent.

In both cases an activity diagram will have a beginning (an initial state) and

an end (a final state).

 The activity relationship diagram is also called the affinity analysis diagram

and it shows the relationship of every department, office, or service area with

every other department and area. It helps to organise departments that

needs to be close to each other in relevance of importance.

MATERIAL FLOW

According to the Lean Enterprise Institute (2017), Material Flow is the

movement of physical items through the entire value stream. It is the

transportation of raw materials, pre-fabricates, parts, components, integrated

objects and final products as a flow of entities.

As Mehler Engineering and Services explained the production line setup

(2004), they mentioned that the planning of the material flow organizes and

optimizes the flow of materials within production processes with the goal of

improving productivity. Material flow denotes the “structured and organized

movement of products from point A to point B, over the entire production system

while taking into account the economic efficiency”. More efficient utilization of

space, lower investment costs and further cost savings, e.g. human resources,

are the results. Material flow is a complex process within the production process

and cannot be optimally controlled without planning.

PRODUCT FLOW

According to Folsom, many traditional manufacturing companies use

"Functional Layout" to layout their shop floor. This type of layout has become

common practice since the introduction of mass production. All machines with a

similar function are grouped together in one area and the product is moved from
one operation to the next. Items have to past from one process to the next in

batches. This type of manufacturing layout has many disadvantages:

1. Poor quality because a batch of parts can be defective and not be

discovered until it's moved to the next operation.

2. Large quantities of defective parts can end up being reworked. This

increases lead time and production costs because of the extra

workload and tying up valuable resources.

3. Machines can stand idle for long periods of time waiting for the next job

to arrive.

4. Unbalanced workload at certain workstations creates bottlenecks.

5. Lack of cross training because operators are not usually encouraged to

work outside of their own functional skills i.e. a welder does not

operate a press brake. This limits the flexibly of any manufacturing or

service company.

According to Folsom, when implementing a lean process in the very first

stages of developing a Value Stream Map the product flow or lack of it will

become evident. When the Future State Map is completed it will identify the best

flow for the product family plus, the what, where and how to create and position

manufacturing cells. The transition from functional to cellular layout can occur in

several phases depending upon the complexity of your process requirements.

 As aforementioned by the same author, the above diagrams show clearly

the transition from a functional to cellular layout. In the "before" example the

products moved from one process to the next available process. It sometimes

refers to this type of layout as "spaghetti hell." In the "after" example specific

product families are flowing through a series of operations to reduce waste and

improve quality. Cell layouts can be in several configurations. It really depends

upon the needs as to which type of cellular layout you will use. The optimum

shape for any cellular layout is a 'U". This allows one way in and out of the cell,

the products to flow and it’s easier to balance the workload between the

operators. Also, in a "U" shaped cell it’s easier to adjust the number of people (up

or down) when demand changes.

Optimal Product Flow

According to the Otto Motors a manufacturer of Self Driving Vehicles,

during the production and order fulfilment processes, warehouse managers need

to ensure material flow efficiency to optimize inventory flow. Inefficient processes

or inaccurate systems can lead to delayed deliveries, poor customer service, and

procedures that are not best practices. Every time an item moves, it’s an

opportunity for an error to occur. Optimizing the movement of both raw materials

and assembled products throughout a manufacturing facility or warehouse gets

materials where they need to be faster, and with less chance for damage or loss.
With more efficient and accurate material flow, assisted by better material

handling system, production runs better and customer deliveries are on time.

PROCESS FLOW DIAGRAM

As stated by Toghraei (2014), process flow diagram is a diagram

commonly used in chemical and process engineering to indicate the general flow

of plant processes and equipment. The PFD displays the relationship between

major equipment of a plant facility and does not show minor details such as

piping details and designations. Information that is typically to be found on a PFD

includes the following:

• Equipment (with principal dimensions and a unique name and number)

• Piping (with sizes and specifications)

• Valves (including sizes)

• Vents and drains

• Interfaces to vendor packages

• Instruments (with unique names and numbers)

• Emergency shutdown systems

• Control loops

• Types of process connections

• Insulation

• Materials of construction

• Strainers and traps.

The following information is not usually entered on the PFD:

• Process information (flows, temperatures, and pressures)

 • Distances (PFDs are not to scale)

• Small fittings such as vents and drains.

EQUIPMENT

As written on the book of Material Handling Equipment by Michael G. Kay

(2012), Manufacturing Equipment means all fixtures, equipment (including,

without limitation, technical equipment and computers), and machinery that is

being used or has been used at the Production Facility at any time since the raw

material entered into the Acquisition. Equipment most commonly refers to a set

of tools or other objects commonly used to achieve a particular objective.

Different jobs require different kinds of equipment.

MATERIAL HANDLING

As written on the book of Material Handling Equipment by Michael G. Kay

(2012), Material handling is the movement, protection, storage and control of

materials and products throughout manufacturing, warehousing, distribution,

consumption and disposal. As a process, material handling incorporates a wide

range of manual, semi-automated and automated equipment and systems that

support logistics and make the supply chain work. Their application helps with:

Forecasting, Resource allocation, Production planning, Flow and process

management, Inventory management and control, Customer delivery and After-

sales support and service. A company’s material handling system and processes

are put in place to improve customer service, reduce inventory, shorten delivery

time, and lower overall handling costs in manufacturing, distribution and

transportation.
1. The Unit Load Concept

A unit load is either a single unit of an item, or multiple units so

arranged or restricted that they can be handled as a single unit and

maintain their integrity.

2. Transport equipment

According to Jonathan Lian, (2018) on the book of “Facilities Planning

and Design”, Transport equipment is used to move material from one

location to another (e.g., between workplaces, between a loading dock

and a storage area, etc.), while positioning equipment is used to

manipulate material at a single location.The major subcategories of

transport equipment are conveyors, cranes, and industrial trucks. Material

can also be transported manually using no equipment.

1. Conveyors

Conveyors are used when material is to be moved frequently

between specific points over a fixed path and when there is a sufficient

flow volume to justify the fixed conveyor investment. Different types of

conveyors can be characterized by the type of product being handled:

unit load or bulk load; the conveyor's location: in-floor, on-floor, or

overhead, and whether or not loads can accumulate on the conveyor.

Accumulation allows intermittent movement of each unit of material

transported along the conveyor, while all units move simultaneously on

conveyors without accumulation capability. For example, while both the

roller and flat-belt are unit-load on-floor conveyors, the roller provides
 accumulation capability while the flat-belt does not; similarly, both the

power-and-free and trolley are unit-load overhead conveyors, with the

power-and-free designed to include an extra track in order to provide

the accumulation capability lacking in the trolley conveyor. Examples of

bulk-handling conveyors include the magnetic-belt, troughed-belt,

bucket, and screw conveyors. A sortation conveyor system is used for

merging, identifying, inducting, and separating products to be

conveyed to specific destinations, and typically consists of flat-belt,

roller, and chute conveyor segments together with various moveable

arms and/or pop-up wheels and chains that deflect, push, or pull

products to different destinations.

2. Electric Tugs

An electric tug is a small battery powered and pedestrian operated

machine capable of either pushing or pulling a significantly heavier

load than itself. Traction and load control are achieved through weight

transfer. Weight transfer is the principle of adding balance to the

machine either through hydraulic action or leverage. There are

different types of tugs available alongside the standard electric tug this

includes a pusher tug and a Tow Tug. A pusher Tug is a battery

powered pedestrian machine which is designed through using a

powerful drive motor to push a wheeled load significantly heavier than

itself on either rail's castors, air skates or wheels and contact on the

load is made via a push plate. A tow tug is a weighed machine

 designed specifically for pulling heavy loads significant heaver on rails

wheels, castors or air skates with occasional push movement if

required. Additional features determine where the machine can be

used and in what circumstances. Electric tugs can be used in any

circumstance when assistance is needed to move a load both indoors

and outdoors, primarily in the manufacturing environment. They can

reduce non-value-added time which directly results in the reduction of

PAKT time through the reduced time of moving equipment improving

both safety and efficiency.

3. Cranes

According to Jonathan Lian, (2018), cranes are used to transport

loads over variable (horizontal and vertical) paths within a restricted

area and when there is insufficient (or intermittent) flow volume such

that the use of a conveyor cannot be justified. Cranes provide more

flexibility in movement than conveyors because the loads handled can

be more varied with respect to their shape and weight. Cranes provide

less flexibility in movement than industrial trucks because they only

can operate within a restricted area, though some can operate on a

portable base. Most cranes utilize trolley-and-tracks for horizontal

movement and hoists for vertical movement, although manipulators

can be used if precise positioning of the load is required. The most

common cranes include the jib, bridge, gantry, and stacker cranes.
4. Industrial trucks

Industrial trucks are trucks that are not licensed to travel on public

roads (commercial trucks are licensed to travel on public roads).

Industrial trucks are used to move materials over variable paths and

when there is insufficient (or intermittent) flow volume such that the use

of a conveyor cannot be justified. They provide more flexibility in

movement than conveyors and cranes because there are no

restrictions on the area covered, and they provide vertical movement if

the truck has lifting capabilities. Different types of industrial trucks can

be characterized by whether or not they have forks for handling pallets,

provide powered or require manual lifting and travel capabilities, allow

the operator to ride on the truck or require that the operator walk with

the truck during travel, provide load stacking capability, and whether or

not they can operate in narrow aisles.

Hand trucks (including carts and dollies), the simplest type of

industrial truck, cannot transport or stack pallets, is non-powered, and

requires the operator to walk. A pallet jack, which cannot stack a pallet,

uses front wheels mounted inside the end of forks that extend to the

floor as the pallet is only lifted enough to clear the floor for subsequent

travel. A counterbalanced lift truck (sometimes referred to as a forklift

truck, but other attachments besides forks can be used) can transport

and stack pallets and allows the operator to ride on the truck. The

weight of the vehicle (and operator) behind the front wheels of truck
 counterbalances weight of the load (and weight of vehicle beyond front

wheels); the front wheels act as a fulcrum or pivot point. Narrow-aisle

trucks usually require that the operator stand-up while riding in order to

reduce the truck's turning radius. Reach mechanisms and outrigger

arms that straddle and support a load can be used in addition to the

just the counterbalance of the truck. On a turret truck, the forks rotate

during stacking, eliminating the need for the truck itself to turn in

narrow aisles. An order picker allows the operator to be lifted with the

load to allow for less-than-pallet-load picking. Automated guided

vehicles (AGVs) are industrial trucks that can transport loads without

requiring a human operator.

3. Positioning equipment

According to Jonathan Lian, (2018) on the book of “Facilities Planning

and Design”, Positioning equipment is used to handle material at a single

location. It can be used at a workplace to feed, orient, load/unload, or

otherwise manipulate materials so that are in the correct position for

subsequent handling, machining, transport, or storage. As compared to

manual handling, the use of positioning equipment can raise the

productivity of each worker when the frequency of handling is high,

improve product quality and limit damage to materials and equipment

when the item handled is heavy or awkward to hold and damage is likely

through human error or inattention, and can reduce fatigue and injuries

when the environment is hazardous or inaccessible. In many cases,

 positioning equipment is required for and can be justified by the ergonomic

requirements of a task. Examples of positioning equipment include

lift/tilt/turn tables, hoists, balancers, manipulators, and industrial robots.

Manipulators act as “muscle multipliers” by counterbalancing the weight of

a load so that an operator lifts only a small portion (1%) of the load's

weight, and they fill the gap between hoists and industrial robots: they can

be used for a wider range of positioning tasks than hoists and are more

flexible than industrial robots due to their use of manual control. They can

be powered manually, electrically, or pneumatically, and a manipulator's

end-effectors can be equipped with mechanical grippers, vacuum

grippers, electromechanical grippers, or other tooling.

4. Storage equipment

According to Jonathan Lian, (2018) on the book of “Facilities Planning

and Design”, Storage equipment is used for holding or buffering materials

over a period of time. The design of each type of storage equipment,

along with its use in warehouse design, represents a trade-off between

minimizing handling costs, by making material easily accessible, and

maximizing the utilization of space (or cube). If materials are stacked

directly on the floor, then no storage equipment is required, but, on

average, each different item in storage will have a stack only half full; to

increase cube utilization, storage racks can be used to allow multiple

stacks of different items to occupy the same floor space at different levels.

The use of racks becomes preferable to floor storage as the number of

units per item requiring storage decreases. Similarly, the depth at which
 units of an item are stored affects cube utilization in proportion to the

number of units per item requiring storage.

Pallets can be stored using single-deep and double-deep racks when

the number of units per item is small, while pallet-flow and push-back

racks are used when the units per item are mid-range, and floor-storage or

drive-in racks are used when the number of units per item is large, with

drive-in providing support for pallet loads that cannot be stacked on top of

each other. Individual cartons can either be picked from pallet loads or can

be stored in carton-flow racks, which are designed to allow first-in, first-out

(FIFO) carton access. For individual piece storage, bin shelving, storage

drawers, carousels, and A-frames can be used. An automatic

storage/retrieval system (AS/RS) is an integrated computer-controlled

storage system that combines storage medium, transport mechanism, and

controls with various levels of automation for fast and accurate random

storage of products and materials.

FACTORS IN DETERMINING LAYOUT AND DESIGN

Small business owners need to consider many operational factors when

building or renovating a facility for maximum layout effectiveness. These criteria

include the following:

1. Ease of future expansion or change—Facilities should be designed

so that they can be easily expanded or adjusted to meet changing

production needs. "Although redesigning a facility is a major,

expensive undertaking not to be done lightly, there is always the

possibility that a redesign will be necessary," said Weiss and

 Gershon in their book Production and Operations Management.

"Therefore, any design should be flexible'¦. Flexible manufacturing

systems most often are highly automated facilities having

intermediate-volume production of a variety of products. Their goal

is to minimize changeover or setup times for producing the different

products while still achieving close to assembly line (single-product)

production rates."

2. Flow of movement— the facility design should reflect recognition of

the importance of smooth process flow. In the case of factory

facilities, the editors of How to Run a Small Business state that

"ideally, the plan will show the raw materials entering your plant at

one end and the finished product emerging at the other. The flow

need not be a straight line. Parallel flows, U-shaped patterns, or

even a zigzag that ends up with the finished product back at the

shipping and receiving bays can be functional. However,

backtracking is to be avoided in whatever pattern is chosen. When

parts and materials move against or across the overall flow,

personnel and paperwork become confused, parts become lost,

and the attainment of coordination becomes complicated.

3. Materials handling—Small business owners should make certain

that the facility layout makes it possible to handle materials

(products, equipment, containers, etc.) in an orderly, efficient—and

preferably simple—manner.
 4. Output needs—the facility should be laid out in a way that is

conducive to helping the business meet its production needs.

Space utilization—This aspect of facility design includes everything from making

sure that traffic lanes are wide enough to making certain that inventory storage

warehouses or rooms utilize as much vertical space as possible.

Shipping and receiving—The J. K. Lasser Institute counselled small business

owners to leave space does tend to fill itself up, receiving and shipping rarely get

enough space for the work to be done effectively," it said in How to Run a Small

Business.

Ease of communication and support—Facilities should be laid out so that

communication within various areas of the business and interactions with

vendors and customers can be done in an easy and effective manner. Similarly,

support areas should be stationed in areas that help them to serve operating

areas.

Impact on employee morale and job satisfaction— since countless studies have

indicated that employee morale has a major impact on productivity, Weiss and

Gershon counsel owners and managers to heed this factor when pondering

facility design alternatives: "Some ways layout design can increase morale are

obvious, such as providing for light-colored walls, windows, space. Other ways

are less obvious and not directly related to the production process. Some

examples are including a cafeteria or even a gymnasium in the facility design.

Again, though, there are costs to be traded off. That is, does the increase in

morale due to a cafeteria increase productivity to the extent that the increased

productivity covers the cost of building and staffing the cafeteria."

Promotional value—if the business commonly receives visitors in the form of

customers, vendors, investors, etc., the small business owner may want to make

sure that the facility layout is an attractive one that further burnishes the

company's reputation. Design factors that can influence the degree of

attractiveness of a facility include not only the design of the production area itself,

but the impact that it has on, for instance, ease of fulfilling maintenance/cleaning

tasks.

Safety—the facility layout should enable the business to effectively operate in

accordance with Occupational Safety and Health Administration guidelines and

other legal restrictions. "Facility layout must be considered very carefully because

we do not want to constantly redesign the facility," summarized Weiss and

Gershon. "Some of the goals in designing the facility are to ensure a minimum

amount of materials handling, to avoid bottlenecks, to minimize machine

interference, to ensure high employee morale and safety, and to ensure

flexibility.

Essentially, there are two distinct types of layout. Product layout is synonymous

with assembly line and is oriented toward the products that are being made.

Process layout is oriented around the processes that are used to make the

products. Generally, product layout is applicable for high-volume repetitive

operations, while process layout is applicable for low-volume custom-made

goods.

SYSTEMATIC LAYOUT PLANNING (SLP)

As stated on the research study conducted by the International Facility

Management Association (2009), the SLP method was developed by Muther on

year 1973 to create conceptual block layouts. The method successively adds

complex data categories until:

1. Document the present operation (Deliverable: flowcharts)

2. Define the activities and planning horizon (Deliverable: table)

3. Develop activity relationships (Deliverable: relationship diagram)

4. Develop a square footage requirements spreadsheet (Deliverable:

spreadsheet)

5. Develop block plan layouts (Deliverable: block plan layout)

6. Development an equipment layout (Deliverable: equipment layout)

WAREHOUSING

As cited in the research study of Gu et al. (2010), Warehousing could be

seen from three different angles:

1. Processes: there is a flow when products arrive to the warehouse

and are taken through numbers of steps or activities until they are

shipped out. These activities are called processes.

2. Resources: all tools, equipment and human resources that are

needed to operate in a warehouse system. Example of resources

could be: the storage unit, the storage system, order picker

auxiliaries, a computer system, personnel, and etc.

3. Organizations: all procedures and methods such as planning and

control which are used in a warehouse system in order to control

the flow of process are called organization. An example of this

 could be definition decisions of the process flow at the design

stage.

There are three different types of warehouses: distribution warehouses,

production warehouses, and contract warehouses.

1. Distribution warehouses: a warehouse that collects products from

different suppliers and delivers them to the customers. Sometimes

some assembling process also takes place between these

receiving and delivering

2. Production warehouse: a warehouse which is used for storage of

raw material, work in process products, and/or finished goods for

manufacturing or assembling process. Materials can be stored for a

long or short period of time

3. Contract warehouses: a warehouse that operates on behalf of one

or more customers is called contract warehouse

Based on the type of the warehouse different numbers of steps are

distinguished in warehouse designing process. As stated by Gu et al. (2010) there

are four major activities in a warehouse: receiving, storage, order picking, and

shipping. He also described that warehousing with in both warehouses and

distribution centers has five main activities: receiving, storage, order picking,

accumulation/sorting, and shipping. He separated accumulation and sorting from

order picking step and considered it as a separated step. According to Koster et al.

that above these main activities mentioned before, there are also some other

activities that warehouses maybe involved such as: value added processing or
receiving products and materials from customers and redistribute them to other

customers or back to the original manufacturers. A production warehouse activity

includes:

➢ Receiving includes unloading of products from transport vehicles, some

quantity and quality inspection will be done, and inventory record will be

updated.

➢ Transfer and put away is transferring the incoming goods to the storage

area. In some cases, it is needed to unpacking and repackaging from a full

pallet to standard size of storage bins based on the warehouse storage

standards and then should be moved with forklifts or other carriers to the

storage area and products will be stored in shelves based on storage policies

of the warehouse.

➢ Order picking and selection is the major and most costly activity almost in

every warehouse and it involves the process of picking right amount of right

materials for an order.

➢ Accumulation/ sortation are sorting picked items for each order and it

became more useful and important for orders that have been picked in

batches. Then they should be grouped up on completion of the picked

process and packed and stacked on unit loads. They will be sent for

shipping.

➢ Cross docking activity is when received materials are transferred directly to

the shipping docks.

➢ Shipping is delivering the complete order to the customer.

 After different types of warehouses and different activities that they include,

there is another concept in warehousing which is directly related to the design of

a warehouse and it is warehousing system. “A warehousing system refers to the

combination of equipment and operating policies used in item picking or storage/

retrieval environment.”. Three different types of warehousing systems are

distinguished: Manual warehousing system, automated warehousing system,

automatic warehousing system.

➢ Manual warehousing system: an order picker is sent to the storage area

for picking orders. It is also called picker to product system.

➢ Automated warehousing system: it is also called product to picker system.

In this system a computer control warehousing activity and it is used for

picking small or medium size orders. It is a closed loop and items are held

in bins or drawers rotate around this closed loop. Picker has a fixed

position and chooses the order through computer system and the loop will

rotate and brings the material to the picker. It can be used also for other

activities such as sorting, packaging and labelling.

➢ Automatic warehousing system: is a high-speed picking of small or

medium size items. The difference of automatic warehousing system and

automated one is that in automatic system a robot will be replaced with an

order picker.

Selecting the type of warehousing system is one of the most important

decisions that have to be made in early stage of design phase. Another topic that

is important through designing a warehouse is management decisions which are

in three levels: strategic level decisions, tactical level decisions, and operational

level decisions.

Strategic decisions are long term decisions and determine broad policies and

plans to use the company’s resources in order to support its long-term

competitive strategy. Planning and control decisions are in this level which are

provided by strategic management concerning long term goals in the supply

chain organization and the warehouse design. Strategic decisions face high

uncertainties. Planning decisions are based on historical data and solutions will

be found by high quality average performance. Control decisions are based on

actual data and solutions will be found by high quality performance. The

combination techniques are good for solving planning and control problems in the

strategic level decisions.

The second level is tactical decisions which help to schedule material and

labor efficiently based on strategic decisions that has been taken in previous

level. Planning of warehousing system is in this level of decision making with

concerning of storage assignment policies. In addition, decisions about

sequencing, scheduling and routing, layout design and dimensioning of the

storage system, and assigning orders to pick batches and grouping aisles in to

work zones are in this level.

The third level is operational decisions which are short term decisions and are

taken under the operating constraints and based on strategic and tactical

decisions that are made in two previous steps. Decisions about inventory

management such as types and quantities of storage products and shipment

time are in this category and are result in reducing the inventory level and
improving warehouse operation efficiency. Other decisions that are taken in this

level are: assigning products to storage locations, order picker routing, and

sorting/ accumulation activity. It should be mentioned that all decisions made in

different levels are interrelated to each other and they should be taken based on

previous made decisions (Koster et al., 2007). There are some objectives that

should be considered during warehouses redesign and optimization. The most

important one is minimizing total cost including both investment and operational

cost. Other objectives are: minimizing the average travel distance, the throughput

time of an order, and the overall throughput time at the same time maximizing the

use of space, selecting the best equipment, and the accessibility to all items. All

decisions that are taken about above objectives are at tactical and 25 operational

levels in different times during warehouse design and operation and based on

previous strategic decisions.

STEPS OF WAREHOUSE DESIGNING

Before going through steps of designing a warehouse some important points

should be mentioned (Baker and Cnessa, 2009): first, design of a warehouse is a

high complex activity. Second, different researcher proposed different number of

steps in designing warehouses. Third, all steps are interrelated and repetition

may be needed in some steps. Fourth, identifying an optimum solution may not

be possible since there are different possibilities in each step. There are different

points of view in steps of designing a warehouse, some of them goes through

more details while others have more general steps. An example of each point of

view will be presented in following. According to Hassan (2002) cited by Baker

and Cnessa (2009), the framework of designing a warehouse can be explained in

14 steps as follow:

1. Specifying the type and purpose of the warehouse: the type of the

warehouse should be specified in this step-in order to gives designers

an initial over view of operation levels and requirements.

2. Forecasting and analysis of expected demand: capacity of the

warehouse, repairing information, determining inventory levels,

equipment, and assignment of items to the storages are forecasted in

this step.

3. Establishing operating policies: warehouse operations policies should

be considered in early steps of warehouse designing since they have

high impact on the design of the layout.

4. Determining inventory levels: it is an operational decision and since

has high impacts on warehouse’s size and helps to estimate space

requirements should be determined in early stage of design.

5. Class formation: it will help to reduce time and distance for picking
items.

6. Departmentalization and the general layout: a warehouse should have

several departments in order to run the process flow in the warehouse

and have to be identified in this step based on information of first and

third steps.

7. Storage partition: storage area is the biggest department in any

warehouse and should be partitioned in to picking and reserve areas in

order to facilitate operations and reduce movements.

8. Design of material handling, storage, and sortation systems: this step

is also an important step and should be considered as a part of layout

designing since it is related to aisles, space utilization, storage

assignment, and movement in the warehouse.

9. Design of aisles: this step is determining of number, location,

orientation, length, and width of aisles within the warehouse layout

design based on the equipment that are going to use in the

warehouse.

10. Determining space requirements: estimation of needed space will be

determined in this step, and objectives like cost of land, overhead, and

scarcity of land may affect this step.

11. Number and location of I/O (Input/output) points’ determination: this

step is determination of number and location of I/O points. It is an

important step since it has impacts on storage assignment policy,

throughput, picking time and distance, and congestion.

12. Number and location of docks determination: this step is necessary in

order to reduce delays and congestion, provide routing flexibility, and

more frequent shipping without interference with other departments.

13. Arrangement of storage: arrangement of storage is also an important

step in warehouse designing since it has impact on movement time

and cost, throughput and congestion.

14. Zone formation: picking area can be divided into different zones and

picker just take items from specified zones. The number, size and
 composition of zones should be determined during design of the

warehouse in order to reduce picking time and distance.

However according to Gu et al. (2010) Warehouse design steps can be more

general and be limited to five major steps;

• The overall warehouse structure determination: it is also called as

conceptual design and determines the material flow pattern within the

warehouse, the characteristics of each department, and the

relationships between departments.

• Sizing and dimensioning the warehouse and its departments: it

determines the size and dimension of the warehouse and also the

space allocation among various warehouse departments.

• The detailed layout determination within each department: it is the most

important configuration in designing a warehouse and it includes

decisions about aisle configuration in the retrieval area, pallet block-

stacking pattern in the reserve storage area, and etc.

• Warehouse equipment selection: this step is for identifying the

warehouse equipment types for storage, transportation, order picking,

and sorting as well as appropriate automation level for the warehouse.

• Operational strategies selection: it is used for determining of how the

warehouse will be operated both in storage and order picking.

Operation strategies are those decisions that have global effects on

other design decisions, and therefore have to be considered in the

design phase. Decisions like the choice of different storage methods,

 whether or not to do zone picking, and the choice of types of different

order picking methods. More detail operational policies, are not

considered in design phase (Gu et al., 2010). Design steps could also

be considered from different decision-making levels. A design process

normally should consider the following objectives: concept, data

acquisition, functional and technical specification, selection of means

and equipment, layout, and selection of planning and control policies.

Decisions in each step could be situated at a strategic, tactical or

operational level. Decisions concerning the process, flow and the level

of automation and selection of basic storage systems belong to

strategic level. While the dimensioning of these systems and

determinations of layout are tactical decisions. Decisions in the

operational level are detailed control policies. As mentioned before all

decisions taken in each level are related to other level decisions but

they are different from time point of view. Strategic decisions are long

term, while tactical decisions are medium term and operational

decisions are short term decisions. Obviously, solutions which are

chosen at a higher level provide constraints for lower level design

framework.

According to Baker and Canessa (2009), warehouse design is in three

main areas: determining the requirements, designing the material handling

systems, and developing the layout. Based on these main headlines following

designing Steps will be determined: define system requirements, define and

obtain data, analyze data, establish unit loads to be used, determine operating
procedures and methods, consider equipment types and characteristics,

calculate equipment capacities and quantities, define services and ancillary

operations, prepare possible layout, evaluate and assess, identify the preferred

design. However, they believed that the most important step in warehouse

designing is the layout design and presents five steps methodology for layout

designing:

• Space requirements planning which is determining the required

space for each zone.

• Material flow planning which is the determination of the overall flow

pattern.

• Adjacency planning that uses a warehouse activity relationship chart

in order to form the input for computer-aided facility layout tools.

• Process location which is dividing of areas by low-bay and high-bay

usage.

• Expansion/contraction planning that is Consideration of future

changing of the facility (Baker and Canessa, 2009).

There are some important points that should be considered in designing

warehouses; as mentioned, warehouse design decisions are strongly related to

each other and it is difficult to separate them completely from each other and

define a border between them. Therefore, any classification of warehouse

designing should not be considered as unique, nor does it mean that any of the

decisions should be made independently. In addition, it is important that

operational performance measures be considered in the design phase since it is

strongly affected by the design decisions, and it can be very 28 expensive or

impossible to change the design when the warehouse is actually built(Gu et al.,

2010).It was also cited by Gu et al., that according to Bodner et al., (2001), even

though there are varieties of researches that have been done about how to

design a warehouse which some of them discussed above, practitioners use the

results of these researches really seldom. Rather, they prefer to rely on their

experience and expertise. It has different reasons; the most fundamental one is

the lack of a unifying procedure that integrates conceptual design frameworks

with models for specific design sub-problems, through the application of common

database architecture. Another reason is that, most research results have not

been implemented as computational tools in forms that are amenable to use by

the practitioner.

RELATED STUDIES

According to the study entitled “Facility Layout Redesign for Efficiency

Improvement and Cost Reduction” by Kovacs and Kot (2017), the Facility Layout

Problem (FLP) is relating to location of objects (departments, workstations,

machines, etc.) on a given site and the material flow between these objects. The

goal of their study is to show the reasons, objectives and steps of a layout

redesign process. The minimization of the workflow realized on the shop floor is

an often applied an objective function during the layout redesign. Material flow

efficiency is a commonly used term for the determination of the amount of

workflow, which is the multiplication of material flow data and distance data. In

their study, this mathematical method for workflow calculation is introduced. The

described case study shows how the efficiency and reduced manufacturing cost
of a real manufacturing system can be improved by re-layout design, while

smaller floor space is needed for the production.

On the paper entitled The Effect of Layout Design on Productivity: An

Empirical Study, it presents a comparative study that uses simulation to

investigate the performance of different layout designs with respect to different

levels of model and head count variability. There are three types of layout

designs being examined in this paper: flow line, job shop and cellular layout.

These three layouts are evaluated based on three selected performance

measures which are throughput time, lateness and labour productivity. These

three performance measures are selected because they relate with the overall

layout productivity. The simulation model is built by using the WITNESS

simulation package and the simulation results are tested in the F-test and

Newman-Keuls test. In this study, the radio-cassette player production system

has been used as an empirical study. The results show that the effect of

headcount variability and model variability do create an impact towards the

performance of flow line, job shop and cellular layout.

In the study written by Khusna Dwijayanti , Siti Zawiah Md Dawal ,

Jamasri , and Hideki Aoyama, it was stated that Facility planning is concerned

with the design, layout, and accommodation of people, machines and activities of

a system or enterprise within a physical spatial environment. Facility planning is

very important in a manufacturing process due to their effect in achieving an

efficient product flow. It is estimated that between 20%-50% of the total costs in

manufacturing is related to material handling. This cost can be reduced until 30%

through an effective facility planning. Proper analysis of facility layout design

could improve the performance of production line such as decrease bottleneck

rate, minimize material handling cost, reduces idle time, raise the efficiency and

utilization of labour, equipment and space.

It has been found in the study made by S. N. Waghmare, P. M. Sirsat, C.

N. Sakhale,S. M. Awatade& S. D. Shelare that, analysis of facility design, such

as layout and material handling system is very important in a manufacturing

industry. Proper analysis of existing layout design, could improve the

performance of production lines. It could decrease bottleneck rate, minimize

material handling cost, reduces idle time, raise the efficiency and utilization of

labor, equipment and space.

As mentioned by Julia Komarova, warehousing is an important piece of

the company’s activities and even if the main focus is on production,

warehousing operations should not be neglected. More optimal storage activities

lead to the reduction of facility operating costs and better efficiency by smart

area, equipment, and staff utilization. Now it is expected, that implemented

changes will reduce facility-operating costs at an annual rate of 10-15% and

release of the area up to 20%.

CONCEPTUAL FRAMEWORK

Figure 2 Conceptual Framework

Based from the related literature, the Figure 2 above illustrates the flow of

the study in the Facility Planning in Traffic Supplies and Construction

Corporation. The existing Facility Planning of Traffic Supplies and Construction in

terms of Process/Activities Flow, Material and Product Flow, Storage, Equipment

and Material Handling System has been evaluated through analysis of Facility

Planning and the expected output is to improve the overall efficiency and

effectiveness of the company.

 CHAPTER III

METHODOLOGY

This chapter presents all the procedures that the researcher used in

conducting the study. It describes the research locale, respondents, research

design, research instrument, and data collection.

Research Locale

The research study will be conducted at Traffic Supplies and Construction

Corporation in Sucat Parañaque City. It is located at industrial subdivision.

Respondents of the Study

The respondent of the study was the plant manager who is concerned in

the operation of Traffic Supplies and Construction Corporation, the general

manager and warehouseman who is aware of the existing situation happening in

the Traffic Supplies and Construction Corporation.

Research Design

A descriptive type is used as the research design of this study. In using

this type of research, the researcher was able to analyze the Facility Layout and

Design of Traffic Supplies and Construction. The design gives an expert

judgment of the value of the current condition of the process and activity flow,

material and product flow, storage system, material handling system and

equipment.
Research Instrument

The researcher will conduct an actual observation, unstructured

interviews, voice recording, and taking pictures to gather data. These will be use

to describe the existing Facility Layout and Design of Traffic Supplies and

Construction.

Procedures of Data Collection

1. The researcher prepared all the necessary materials before he conducted

the initial interview. He prepared letter of request and asked permission of

the head manager.

2. The researcher conducted interview and data gathering with regards to the

background and the existing condition of warehouse.

3. Then, he asked advice from his research adviser presenting the

background and the title of the study.

4. After the approval of the researcher adviser, chapter 1 to 3 will be

presented to have the consent of the panelist.

5. After the approval, the researcher will conduct the data gathering.

6. The Researcher will analyze all the gathered data, then he will propose

the solutions based on the gathered data.

7. Lastly, the researcher will finalize the result.