Multi-Criteria for Plant Layout Evaluation Using Analytic Hierarchy Process Combined with Goal Programming Model: A Case Study of an Automotive Part Industry

Abstract

Plant layout has significant impact on the production efficiency, product quality, safety and workers’ morale. Evaluation and decision making processes of alternative layouts with multiple-criteria consideration have become mandatory to organization’s achievement. This research aims to propose a systematic methodology for evaluating plant layout based on multiple criteria by integrating Analytic Hierarchy Process (AHP) with Goal Programming (GP). The research consists of 3 main phases. In phase 1, which is an application of SLP, the SLP is applied to collect product and processes data, analyze material flows and activity relationship for determining a number of alternative plant layouts. In phase 2, AHP is applied to identify factors and their weights to be used as criteria to evaluate alternative layouts. This research classified the criteria into 2 groups as benefit criteria and risk criteria. The criteria weights and the alternative layout weights with respect to criteria are then used as input parameters for Goal Programming model (GP) in phase 3. The GP is applied to select an optimal plant layout by specifying a target for each goal to solve for a preferred solution that minimizes the summation of the deviations for the prescribed set of target values. An application of the proposed methodology is demonstrated by the case study factory producing truck suspension parts.