Acta Universitatis Danubius. Œconomica, Vol 13, No 4 (2017)

Abstract

This paper presents an exhaustive analysis of a pulley factory layout design for operational efficiency and effective production. Focusing exclusively on the pulley factory layout problem in a Thai factory, this study applies Craft algorithm to analyse the layout and arrive at an effective design. The analyses reveal that CRAFT algorithms ease free flow of materials and personnel at the least cost, minimize distance travelled and improve the original layout by twenty percent (32%). For this reason, the new layout design witnesses flexible operations, effective functionality, and meet cost savings objectives. Therefore, it is recommended that operation managers should adopt the Craft algorithm program to overcome material flow obstruction and ineffective operations resulting from ineffective layout designs.