A FACILITY LAYOUT IMPROVEMENT PROPOSAL OF ENTREGO

WAREHOUSE IN S.E. LLENES, MANDAUE CITY, CEBU,

PHILIPPINES

A Thesis

Presented to the

Industrial Engineering Faculty

Of the College of Engineering

University of Cebu Main Campus

Cebu City, Philippines

In

Partial Fulfillment of the

Requirements for the Degree of

BACHELOR OF SCIENCE IN INDUSTRIAL ENGINEERING

By

Abjelina, Jhezeryl P.

Matunog, Cristofer Nino C.

Mercado, Jeffsymel A.

Rodrigo, John Christian

May 2022
 ACKNOWLEDGEMENT

The completion of this research study required a lot of effort and

guidance and was made possible through the encouragement and

assistance of those who have given their time, consultation, and expert

judgement to this study:

Engr. Clofer V. Suson LSSYB, our IE 421 Project Capstone

instructor, for his patience and guidance throughout the completionof this

study; Engr. Liez C.Gonzales, our research study adviers on Facilities

Planning, for her advice and assistance throughout this research endeavor;

Ms. Aubrey Jumawan, the supervisor of Entrego Warehouse, our key

informant whom we interviewed for being helpful and open during our data

gathering and site visit in the Entrego Warehouse.

Our peers and support group, for guiding us and giving consistent

support and motivation to finish this study;

Our parents, for always understanding and providing us financial and

moral support;

Above all, to our Lord Jesus Christ, for His ample blessings and

graces, and constant guidance and protection to our family and us.

THE RESEARCHERS
 DEDICATION

The success of this research study is the sucesse of the people

who have been with us since the start of this endeavor.

We, the proponents, earnestly dedicate this study to our family who

have been our source of inspiration through their unconditional love and

support, may it in terms of financially, or morally, uplifting our spirits through

prayers.

Moreover, we dedicate this research study to our Almighty God, who

is our source of inspiration and strength ever since to move forward and

endure challenges, knowledge to analyze and critically think about our

researcher, and protection from danger especially during face-to-face

meetings of research creation.

Most notably, we dedicate this research to ourselves, the

proponents: Cristofer, Jhezeryl, Jeffsymel, John Christian. Our discretion to

choose among ourselves to group together, where we overcome challenges

and adversities throughout this research study.

During the struggling hours, inconsistent internet connections, and

misunderstandings, we discovered the motivation to strive and keep moving

forward. We made it this far together. Congratulations to all of us!

 TABLE OF CONTENTS

CHAPTER PAGE

I THE PROBLEM AND ITS SCOPE 1

INTRODUCTION 1

Rationale 1

Theoretical Background 4

THE PROBLEM 7

Statement of the Problem 7

Significance of the Study 10

RESEARCH METHODOLOGY 12

Research Method 12

Key Informants 12

Research Environment 13

Research Instrument 15

Data Gathering Procedures 17

Treatment of Data 18

DEFINITION OF TERMS 22

II PRESENTATION, ANALYSIS, AND 25

INTERPRETATION OF DATA

Section 1: Space Requirements 25

OSHA Recommended Industrial Aisle Width 27

Section 2: Activity Relationship 29

Section 3: Space Relationship 30

 Section 4: Internal Information of the Warehouse 31

Receiving 34

Sorting 35

Bagging and Quality Control 36

Dispatch 37

Existing Floor Plan of Entrego Warehouse 38

Section 5: Category and Quantity of Equipment 39

Section 6: Workflow Process of Entrego Warehouse 41

Section 7: Safety Practices Applied in the 44

Warehouse

III PROPOSALS 46

Section 1: Proposed Facility Layout of Entrego 47

Warehouse

Section 2: Comparison between Existing and 50

Proposed Facility Layout of Entrego Warehouse

Section 3: Costs of Materials and Labor for 55

Enhancing Facility Layout

Section 4: Cost-Benefit Analysis 61

Section 5: Gantt Chart on Implementing the 65

Proposal

IV SUMMARY, FINDINGS, CONCLUSIONS, AND 69

RECOMMENDATIONS

Summary 69
 Findings 72

Conclusions 76

Recommendations 77

REFERENCES 78

APPENDICES 82

A. Theoretical Framework 83

B. Key Informants Guide Interview Questions 85

C. Transmittal Letter 88

D. Documentation 90

E. Plagiarism and Grammarly Check 93

F. Curriculum Vitae 95
 LIST OF TABLES

TABLE TITLE PAGE

1 Key Informant Information 12

2 Closeness Rating on Activity and Space Relationship 18

3 Space Requirements of Workstations inside the 25

Warehouse

4 Space Dimensions of Docking Area 26

5 OSHA Recommended for Industrial Aisle Width 26

Walkways

6 OSHA Recommended for Industrial Aisle Width for 27

Pallet Truck

7 Space Requirements for Industrial Aisle Width 27

Walkways of Entrego Warehouse

8 Space Requirements for Industrial Aisle Width for Pallet 28

Truck at Entrego Warehouse

9 Historical Data on Parcels Arrived in the Warehouse 31

10 Average Throughput Time per Volume for Receiving 33

Process

11 Average Throughput Time per Volume for Sorting 34

Process

12 Average Throughput Time per Parcel for Bagging & 34

Quality Control Process

13 Average Throughput Time per Volume for Dispatch 35

14 List of Operational Equipment and their Location 38

15 List of Material Handling Equipment 39

16 Think Safety Checklists OSHA 44

17 Existing and Proposed Space Requirements 50

Comparison

18 Existing and Proposed Aisle Width Walkways 53

Comparison

19 Comparison of Costs on Paint or Floor Tapes for Aisle 54

Markings

20 List of Materials and its costs 56

21 Bill of Materials on Proposed Enhanced Facility Layout 57

22 Manpower Allocation for Enhancing the Facility Layout 58

23 Labor Costs for Installation of Dock Bumpers 59

24 Estimated Costs Saved by the Entrego Company 61

25 Cost-Benefit Analysis 63

26 Gantt Chart Schedule for Implementation of Proposal 65

 LIST OF FIGURES

FIGURE PAGE

NO.

1 Map of the Research Environment 13

2 Image of the Entrego Warehouse 13

3 Research Flow Diagram 15

4 Flowchart Symbols 19

5 Process Chart Symbols based on the ASME Standard 20

6 Activity Relationship Diagram of the Workflow at 28

Entrego Warehouse

7 Space Relationship Diagram of Entrego Warehouse 29

8 Scatter Diagram on the No. of Parcels Arrived and its 32

Throughput Time

9 Existing Floor Plan of Entrego Warehouse 36

10 Symbols used in the Floor Plan 37

11 Flowchart process of the workflow of Entrego 41

Warehouse

12 Flow Diagram of Entire Workflow Process 42

13 Proposed Facility Layout Floor Plan of Entrego 46

Warehouse

14 Proposed Flow Diagram of Entrego Warehouse 48

15 Network Diagram Schedule for Implementation of 66

Proposal
16 Comparison of Costs between Paint and Floor Tape for 72

Floor Aisle Markings in Entrego Warehouse

17 Comparison of the proposed changes of space 73

requirements for the workflow areas in Entrego

Warehouse

18 Comparison of Existing and Proposed Total Area 74

Utilized in Entrego Warehouse

 1

CHAPTER I

THE PROBLEM AND ITS SCOPE

INTRODUCTION

RATIONALE

According to enVista (2022), Optimizing inventory in the warehouse

is one of many challenges along the supply chain, and a primary challenge

of inventory management in distribution centers (DC) is limited space. A

distribution center is technically out of space when it hits about 85 percent

of its occupancy. It is not only in the warehouse storage area; it holds true

for receiving, shipping and all other process areas.

REB Storage Systems International (2021) stated the importance of

material handling improves efficiency by making the logistics system

respond quickly and effectively to plant and customer requirements. For

efficient movement of goods into the warehouse, locating stock, accurately

filling orders, and rapidly preparing orders for shipment to customers.

According to Graphic Products Staff (n.d), Warehouse traffic injuries

involve collisions between a powered vehicle and a pedestrian. A safe site

will separate heavy vehicles from lighter vehicles, and separate pedestrians

from all types of vehicles. The ideal option is to physically prevent powered

vehicles and pedestrians from being in the same area at the same time.

This can be accomplished by using overhead walkways. In most cases,

 2

physical separation is not possible, although there are times when powered

vehicles and pedestrians need to work in the same areas.

According to (Daraei, 2013), the results of their study entitled

“Warehouse Redesign Process: A Case Study at Enics Sweden AB”, the

main reason was redesigning the area of the warehouse based on

observation would now be limited to more than 60% of the current area from

1900 square meters to 740 square meters. The sizing and dimensioning of

each department in the warehouse become important. There are factors

that may be limited in nature as the management wanted to centralize the

warehouse and fed the whole production line from one main warehouse by

combining two warehouses. Based on the redesigning process, seven

steps were suggested. These seven steps are data collection, generation

of different proposals and their evaluations, establishing the best proposal,

sizing and dimensioning of the warehouse layout and its departments,

detailed layout determination within each department, storage assignment

policy, and equipment selection.

A similar study conducted by Karim et al. (2018) entitled “Empirical

Evidence on Failure Factors of Warehouse Productivity in Malaysian

Logistic Service Sector” found out that the problem investigated in their

study is the lack of the productivity performance that is capable to be

competent enough in terms of the country’s “Eleventh Malaysia Plan” as it

is aspiring to be the most preferred logistic gateway in Asia and to be among

the top ten in World Bank’s Logistic Performance Index. The findings
 3

highlighted the top three failure factors indicates as being labor productivity,

warehouse utilization, and inventory space utilization.

There is a market demand for warehouses operated by third-party

providers as to the economic buildup and expansion of Industrial

businesses. The modernization of warehouses because of e-commerce

grows every year and distribution centers, warehouse space, and the ability

to move goods in and out is a very powerful need of the market (Sunstar,

2019).

The circumstances above regarding the facilities planning of the

warehouse involves a lot of factors that would lead to problems arising such

as lower productivity due to material handling, space utilization, and layout

design. This study was conducted to develop a systematic layout plan to

improve the existing layout of the warehouse by understanding the space

requirements, activity relationships, and space relationships.

 4

THEORETICAL BACKGROUND

This research study is anchored on the theory “Systematic Layout

Planning Pattern Theory” by Richard Muther (1961). This theory

presupposes the analysis of the step-by-step facility layout from its raw

material storage to the finished product being dispatched. This method

helps to develop a new plant layout with an enhanced process flow and

effective utilization of space. The freight forwarding setting follows the same

approach from inbound to outbound goods.

The stated theory refers to a combination of qualitative and

quantitative research in which collecting data to achieve the desired result.

The flow of the process involves the company providing the details of the

process flow of their company in an operational setting. Activity

relationships and relationship diagrams use ratings and code for each

definition and reason in between the relationships of each process involved

in the company. Space requirements, space utilization involves recording

the distances in each of the workflows of the process and the location of

material handling equipment.

The stated theory is supported by the “8 Factors Influencing

Industrial Plant Layout” since these are the factors that have a significant

influence on the design of the layout. These are namely, (1) Man Factor, (2)

Material Factor, (3) Machinery Factor, (4) Movement Factor, (5) Waiting

Factor, (6) Service Factor, (7) Building Factor, and (8) Flexibility Factor.
 5

Man Factor

The Entrego Warehouse has Adequate lighting and ventilation, the

restroom is well-functioned, and other furniture is usable. It does not have

cluttered work areas that may result in tripping or slipping hazards. Although

there is a falling hazard in the staging dock area needs to be addressed.

The devices used by the employees are up to date within company

standards. The employees are satisfied and contented based on the quality

of supervision and have ease of communication in the workplace. The

number of workers per shift is 15 on the day-shift and 15 on the graveyard

shift.

Material Factor

The various inputs in Entrego Warehouse are the volume of parcels

arrived in the company and the necessary materials for bagging the parcels.

Machinery Factor

The operating machinery or equipment utilized by Entrego is the

barcode scanner and laptops. Regular maintenance of this equipment is

conducted through corrective maintenance.

Movement Factor

The current movement factor based on their operations does not fully

utilize the whole area in the warehouse. There are limiting factors where a

part of the Entrego Warehouse belongs to another affiliated department and

 6

is not part of the operations. It still needs to fully utilize the spaces available

while conforming to the standards set by OSHA.

Waiting Factor

The parcels that arrived in the warehouse do have a waiting factor

but they do not record inventory since all parcels in a logistic setting are

dispatched at the same date or shipped out right away after several hours.

Service Factor

The services areas are available within the warehouse if an

emergency occurs such as fire extinguisher, lighting, circuit breaker, etc.

Flexibility Factor

The workflow areas in Entrego are flexible since the storage for

volumes of parcels used is pallets which can be easily transported by using

pallet trucks
 7

STATEMENT OF THE PROBLEM

This study aimed to assess the facility layout in Entrego Warehouse

at S.E. Llenes, Mandaue City, Cebu with the end goal of a proposed facility

layout using systematic layout planning theory to enhance the facility layout

of the warehouse.

This study aimed to answer the following questions.

1. How is Entrego Warehouse influenced by its current layout based on the

following factors:

1.1 Space Requirements;

1.1.1 Dimensions of Workstations inside Entrego

Warehouse;

1.1.2 Aisle Width Walkways at Entrego Warehouse;

1.1.2 Aisle Width for Pallet Truck at Entrego

Warehouse;

1.2 Activity Relationship;

1.3 Space Relationship;

1.4 Internal Information of the Warehouse;

1.4.1 Historical Data of the Parcels Arrived in the

Company for the period of April 3, 2022 to April 10,

2022:
 8

1.4.1.1 Time Arrived;

1.4.1.2 No. of Parcels Arrived;

1.4.1.3Time Dispatched;

1.4.2 Average Throughput Time per Volume;

1.4.2.1 Receiving Process;

1.4.2.2 Sorting Process;

1.4.2.3 Bagging and QC Process;

1.4.2.4 Dispatching Process;

1.4.3 Existing Floor Plan of Entrego Warehouse;

1.5 Category and Quantity of Equipment;

1.5.1 Operational;

1.5.2 Handling;

1.6 Workflow Processes of Entrego Warehouse;

1.6.1 Flowchart process of the workflow of Entrego

Warehouse;

1.6.2 Flow Diagram of the workflow of Entrego Warehouse;

1.7 Safety Practices Applied in the Company;

1.7.1 Think Safety Checklists provided by OSHA?

 9

2. Based on the findings of the study, what are the components or factors

to be considered to enhance the facility layout of the Entrego Warehouse in

S.E.Llenes, Mandaue City, Cebu?

 10

SIGNIFICANCE OF THE STUDY

This research study will benefit the following individuals and

institutions:

Entrego Company

The results of the study will provide insights not only to individuals

involved with the workflow process but also to the entire company. The

Entrego Company will be able to visualize the enhancement of the proposed

facility layout toward other aspects of not having a smooth flow.

Manager and Supervisor

The results of the study are also beneficial to the Managers and

Supervisors, with a better facility layout planning, they will be able to think

clearly and give the best option to their employees so that they will be able

to make logical decisions.

Employees

The study will also benefit the employees to have a smooth working

environment which means decreasing throughput time in the workplace if

the proposal of the facility layout is approved.

Customer/ Client

The customer/client will also find the study useful as the facility layout

is better and have their parcel arrive at an earlier date.

 11

The Researchers

The study will also benefit the researchers as the undertaking will

enhance their understanding of the application of facilities planning

improvement. Moreover, the researchers will be able to apply the various

concepts and principles that they learned in the conduct of a research

undertaking.

Future Researchers

Other researchers will also find the study useful as they can use the

findings as a frame of reference if they wish to replicate the research in

another field where facilities planning is viable. The primary and secondary

data produced by this study will provide other researchers with useful

perspectives in the application of facilities planning in the improvement of

facility layout.
 12

RESEARCH METHODOLOGY

RESEARCH METHOD

This study used the mixed research method which comprises

quantitative and qualitative data collection and analysis to answer the

research questions. Unstructured interviews were conducted to obtain the

necessary information for the study and verify the key processes and fill

knowledge gaps that is essential to this study. The researcher used desk

research as the existing data is then summarized to increase the efficacy of

the study.

KEY INFORMANT

The key-informant of this study is the person who works for the

Entrego Freight Forwarding Company Warehouse located in S.E.Llenes,

Mandaue City, Cebu, Philippines. The researchers approached this person

since she has the information and experience in the industry. The table

below shows the information of the key informant.

 13

Table 1

Key Informant Information

Name Ms. Aubrey Jumawan

Position Supervisor

Company Entrego Warehouse

Job Description Responsible for overseeing the arrival, inbound, sorting,

outbound, and dispatching of parcels.

Note. Information was obtained via video conference meeting and site-visit

RESEARCH ENVIRONMENT

The locale of the study is located in S.E.Llenes, Mandaue City, Cebu.

Entrego Warehouse is a freight forwarding company that distributes parcels

to the delivery team from the shipped. It handles parcels in volumes that

distributes it to different hubs in the northern province of Cebu. This study

helps the researchers determine if the suggested theory can be applied in

a logistics setting and aims to improve the existing layout of the company

while following the principles and standards of a proper facility layout.

 14

Figure 1

Map of the Research Environment

Figure 2

Image of the Entrego Warehouse

 15

RESEARCH INSTRUMENT

In this study, the primary source of data was acquired by utilizing

unstructured interviews through video-conference meeting together with the

supervisor. In obtaining information in this research by knowing the

dimension of the warehouse, the list of materials and equipment,

understanding the workflow, activity relationship among workflows, space

requirements, and space relationships. The researchers utilize physical

tools such as tape measure and record notebook to jot down essential

information while doing the site-visit in the warehouse.

 16

RESEARCH FLOW

Figure 3

Research Flow Diagram

Statement of the Data Collection through

START Conceptual Framework
Problem Key Informant

NO

Is the layout proposed cost-
effective and efficient?
Presentation of Data,
Evaluation of Alternative
Analysis, and Treatment of Data
Layouts
Interpretation

YES

Conclusions and
END
Recommendations
 17

DATA GATHERING PROCEDURES

The researchers gathered data through a video conference call via

google meet with the key informant of the study who is the Supervisor at

Entrego Warehouse. The informant provided us with information that is

needed for our study but does not include any financial figures since it is

confidential to the company. On top of that, other variables cannot be

attained since there are unknown data, the researchers visited the site,

using physical instruments to collect the needed information such as the

spaces between workflows, measurements of materials, and equipment

used in the warehouse.

Data collection for unknown variables that necessitates the use of a

physical instrument.

A. Spaces between workflows

The researchers used tape measures to quantify the distance between

workflow activity areas to determine the existing layout design of the

warehouse.

B. Dimensions of Materials and Equipment

The researchers also utilized tape measures to determine the equipment's

dimensions, including its length and width, including the warehouse layout.
 18

TREATMENT OF DATA

This study utilizes the formulas that are essential in the facility

planning in Entrego Warehouse. The formulas are listed below:

A. Area utilized by Equipment, Materials, Storage

Formula:

Area = L* W

Where:

L = Length

W = Width

B. Cycle Time

Formula:

𝐶𝑦𝑐𝑙𝑒 𝑇𝑖𝑚𝑒 =

∑ 𝑜𝑓 𝑎𝑙𝑙 𝑡ℎ𝑟𝑜𝑢𝑔ℎ𝑝𝑢𝑡 𝑡𝑖𝑚𝑒 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑤𝑜𝑟𝑘𝑓𝑙𝑜𝑤 𝑝𝑟𝑜𝑐𝑒𝑠𝑠

C. Sum of all Space Requirements

Formula:

𝑆𝑢𝑚 𝑜𝑓 𝑎𝑙𝑙 𝑆𝑝𝑎𝑐𝑒 𝑅𝑒𝑞𝑢𝑖𝑟𝑒𝑚𝑒𝑛𝑡𝑠 =

∑ 𝑜𝑓 𝑎𝑙𝑙 𝑎𝑟𝑒𝑎𝑠 𝑜𝑓 𝑒𝑎𝑐ℎ 𝑒𝑞𝑢𝑖𝑝𝑚𝑒𝑛𝑡 𝑎𝑛𝑑 𝑤𝑜𝑟𝑘𝑓𝑙𝑜𝑤 𝑝𝑟𝑜𝑐𝑒𝑠𝑠 𝑎𝑟𝑒𝑎

 19

D. Activity and Space Relationship Closeness Rating

Table 2

Closeness Rating on Activity and Space Relationship

CODE Closeness Rating

A Absolutely Necessary

E Very Important

I Important

O Ordinary Closeness

U Unnecessary

X Avoid closeness
 20

E. Flowchart Symbols

Figure 4

Flowchart Symbols

START/END

PROCESS

ARROWS

DOCUMENT

DECISION
 21

F. ASME Standard set of process chart symbols used in flow diagram

Figure 5

Process Chart Symbols based on the ASME Standard

 22

DEFINITION OF TERMS

To better grasp the concepts used in this study, the following terms

were defined based on the study set out.

Bagging and QC Station

This area is for documentation for the sort and bagging the volume

of parcels in their specified area of destination. There are also workers who

would check the validity of the volume of parcels if the area code and other

information in the parcel are correct.

Contract Logistics

This area is designated by the contract made by a private distribution

company that is affiliated with Entrego. They have a separate team to

handle their daily operations.

Cycle Time

It measures the time from the start of the workflow process up until

it finishes.

Dispatch Area

This area is for storing of finished volume of parcels that are sorted,

bagged, and inspected by the team.

 23

Facilities Layout

It is an arrangement of different aspects in a warehouse setting in an

appropriate manner to achieve desired results.

Facilities Planning

It is the development of a strategy for the management of a facility or

a company’s comprehensive portfolio of space that involves its operations.

Material Handling

This area is used to place all material handling materials such as

spare pallet racks and pallet trucks.

Office

This room is for the office of supervisor and manager of the Entrego

Warehouse.

Office Work Area

This work area is for the different workers in the Warehouse that

involves in contacting the prime movers and other important details.

Quality Control

This activity is to ensure that the volume of boxes passed all the

requirements and its specification based on the port code and location

ready for shipment.

 24

Parcels

These are the goods that are being transported to the warehouse in

order to be sorted to its designated area.

Receiving Area

In receiving area, this is where the newly arrived volume of parcels

that are taken from the truck and store them in pallet racks.

Sortation Area

This area is for sorting different volume of parcels arrived. The

workers would sort based on the different area codes assigned on where it

is to be shipped.

Sorting

It is a system that categorizes by its characteristics and classifying

on where they need to be sent.

Stock Room

This area is for used boxes and other miscellaneous items.

Throughput Time

The actual time taken for the volumes of parcel to be processed in

each activity.

Volume

It is a corrugated box used to handle parcels.

 25

CHAPTER II

PRESENTATION, ANALYSIS, AND INTERPRETATION OF DATA

This chapter presents, analyzes, and interprets the data collected to

this research. The data refers to the internal information of the company,

workflow process, and safety practices applied in the company.

Section 1: Space Requirements

Section 1 presents and explains the gathered data of the space

requirements in each workflow area. Variables presented in this section are

the space requirements of workstations inside the warehouse, space

dimensions of the docking area, OSHA recommended aisle width, and

space requirement for walkways and passageways for pallet trucks.

 26

Table 3

Space Requirements of Workstations inside the Warehouse

Dimension
Area (L x W) in
Workflow Area (in meters) sqm.

Length Width

Contract Logistics 5 30 150.00

Receiving Area 7.4 8.4 62.16

Sorting Area 4 10.5 42.00

Bagging Station & QC 6.5 30 195.00

Dispatch Area 15 15 225.00

Office Work Area 2.5 10 25.00

Material Handling 3.5 5 17.50

Stock Room 6 5 30.00

Office 6 6 36.00

Total Area Utilized 782.66

Total Area Unutilized 417.34

Total Area of the Warehouse 1,200

 27

Table 4

Space Dimensions of Docking Area

Truck Length (feet) Dock Width (feet) Apron Depth (feet)

40 12 46

OSHA Recommended Aisle Width

According to Chinn (2020), The Occupational Safety and Health

Association (OSHA) outlines requirements for safe workplaces to protect

employees. The specific aisle requirements in terms of width should be at

least 4 feet for walkways and at least 3 feet wider than the largest material

handling equipment must pass through them.

Table 5

OSHA Recommended for Industrial Aisle Width Walkways

OSHA Recommended Aisle Width

In (ft) In (cm)

4 121.92
 28

Table 6

OSHA Recommended for Industrial Aisle Width for Pallet Truck

OSHA Recommended Width of Pallet Truck Recommended

Aisle Width in (ft) in (cm) Aisle Width for

Passage of Pallet

Truck in (cm)

3 feet wider than the 63 154.44

pallet truck width

Table 7

Space Requirements for Industrial Aisle Width Walkways of Entrego

Warehouse

Workflow Area Actual Aisle

Width in (cm)

Receiving Area aisle between pallets 75

Sorting Area aisle between pallets 90

Bagging and QC Area aisle between pallets 90

Dispatch Area aisle between pallets 170

 29

Table 8

Space Requirements for Industrial Aisle Width for Pallet Truck at Entrego

Warehouse

Workflow Area Actual Aisle

Width in (cm)

Between Receiving Area and Bagging & QC Station 248

Between Sorting Area and Office Area 399

Between Sorting Area and Bagging & QC Station 170

Between Contract Logistics and Bagging & QC Station 218

Section 2: Activity Relationship

This section provides the activity relationship of the workflow process

of Entrego Warehouse.

Figure 6

Activity Relationship Diagram of the Workflow at Entrego Warehouse

 30

Section 3: Space Relationship

In this section, the connected spaces that are identified inside the

Entrego Warehouse were assessed using the space relationship diagram

in this part to establish proximity between two places is necessary or not.

Figure 7

Space Relationship Diagram of Entrego Warehouse

Contract Logistcs

U
Receiving Area U
A U
Sortation Area O U
A E O
Bagging and QC
U A U
Station
E O U O
Dispatch Area O U I U
A U U O

Material Handling U U U
O
U U
I
Stock Room X
U U
Office U
A
Office Work Area
 31

Section 4: Internal Information of the Warehouse

Section 4 presents and explains the gathered data of the internal

information of the company. Variables presented in this section are the

historical data of parcels arrived and dispatched, average throughput time

of each workflow process, and the existing floor plan of Entrego Warehouse.
 32

Table 9

Historical Data on Parcels Arrived in the Warehouse

Date Time Arrived Date Time Dispatched No. of Parcels Cycle Time (mins)

April 3, 2022 9:24 P.M April 4, 2022 3:39 A.M 17,800 375 mins

April 4, 2022 10:47 P.M April 5, 2022 4:21 A.M 12,950 334 mins

April 5, 2022 10:13 P.M April 6, 2022 2:53 A.M 8,320 280 mins

April 6, 2022 8:51 P.M April 7, 2022 2:55 A.M 15,250 364 mins

April 7, 2022 9:06 P.M April 8, 2022 4:28 A.M 24,355 442 mins

April 8, 2022 11:21 P.M April 9, 2022 3:38 A.M 7,670 257 mins

April 9, 2022 9:19 P.M April 10, 2022 4:24 A.M 20,380 425 mins
 33

Table 9 indicates the time that the volume arrives and dispatches, as

well as the number of volumes supplied in a one-week period between April

3, 2022, and April 10, 2022. The proponents' key informant gave this

information. It is indicated that the cycle time is determined by the number

of volumes received. It is based on the average throughput time per volume,

which is detailed in the following section of this chapter.

Figure 8

Scatter Diagram on the No. of Parcels Arrived and its Throughput Time

Based on the scatter diagram shown above, it shows a positive

correlation as the number of parcels arrived increases so as the increase of

throughput time.
 34

Receiving

This workflow process is the receiving of the volume of parcels that

arrived from the truck. These parcels came from the port area and need to

be sorted in different port area codes in the Visayas Region. The number of

workers needed in this process depends on the number of volumes arrived

as it varies on day-to-day basis. Only one truck would arrive in a single day.

Table 10

Average Throughput Time per Volume for Receiving Process

Average Throughput Time/Volume NO. OF WORKERS

(seconds)

10 3

Sorting

This process is where all the workers would sort the different

volumes of parcels by their area and then code. This would take a lot of time

depending on the volume arrived.

 35

Table 11

Average Throughput Time per Parcel for Sorting Process

Average Throughput Time/Parcel NO. OF WORKERS

(seconds)

12 15

Bagging and Quality Control

This process is where the workers will scan the barcode and pack

the parcels onto the boxes to their designated area of destination to be

shipped.

Table 12

Average Throughput Time per Parcel for Bagging & Quality Control Process

Average Cycle Time/Parcel (seconds) NO. OF WORKERS

3.75 6

Dispatch

This process is where the workers would identify the volume of

parcels that would be shipped in order based on the designated area to be

delivered. Only one truck would depart in a single day depending on how

long it would take the overall workflow process of the warehouse.

 36

Table 13

Average Throughput Time per Volume for Dispatch

Average Throughput Time/Volume NO. OF WORKERS

(seconds)

10 3
 37

Figure 9

Existing Floor Plan of Entrego Warehouse

 38

The figure on the previous page shows the entire layout plan of the

Entrego Warehouse. It shows the labels on each of the workflow process.

The units used are in meters.

Figure 10

Symbols used in the Floor Plan

 39

Section 5: Category and Quantity of Equipment

Tables 14 and 15 shows the different categories and its quantity of

each equipment used in Entrego Warehouse Company in their day-to-day

operations. These are categorized as operational and material handling

equipment.

Table 14

List of Operational Equipment and their Location

Particulars No. of Units Location

Bagging and Quality

Laptops 10
Control Station

Bagging and Quality

Tables 10
Control Station

Cage 20 Contract Logistics

Office, Bagging and

Industrial Stand Fan 4
Quality Control Station

Bagging and Quality

Barcode Scanner 5 Control Station, Sortation

Area

Visual Signages 7 Sortation Area

 40

Table 15

List of Material Handling Equipment

Particulars No. of Units Location

Material Handling
Super Pallet (Black) 60
Area

Material Handling
Hydraulic Pallet Truck 4
Area

Spare Cartons - Stock Room

 41

Section 6: Workflow Process of Entrego Warehouse

Section 6 presents the figures of the flow diagram in each workflow

process of the warehouse. These data are obtained through understanding

the fundamental of each process within the work activities and identifying

the process using process chart symbols. This section also shows the

average cycle time per volume and average cycle time per parcel to

determine the overall throughput time of the whole work activities.

 42

Flowchart and Flow Diagram Process in the Warehouse

Figure 11

Flowchart process of the workflow of Entrego Warehouse

START

Worker gets the pallet

truck to transport the
arrived volume of parcels

Worker places the volume

of parcels in the receiving
area and verify invoices
arrived

Worker transports volume

of parcels to sorting area
to sort parcels in their
designated area codes

Worker inputs
WRONG
information of the
INFORMATION?
sorted parcels for
verification

Worker bags the parcel Worker in the Quality Control

with the inputted verifies if the product has the
information with its unique right information on its
designated area code
barcode

Worker transports the volume

of parcels to dispatch area
while having different pallets
CORRECT
in its designated area code INFORMATION?

Worker dispatches the

volume of parcels back to
the truck

END
 43

Figure 12

Flow Diagram of Entire Workflow Process

 44

Section 7: Safety Practices Applied in the Warehouse

This section provides the details on what safety practices were

applied in the company that is aligned by the Occupational Safety and

Health Administration (OSHA) based on their standards for general safety

and material handling safety in warehouse operations. The table on the next

page shows the checklist provided by the OSHA Pocket Guide Worker

Safety Series Warehousing “Think Safety Checklist”.

 45

Table 16

Think Safety Checklists OSHA

GENERAL SAFETY YES OR NO

Exposed or open loading dock doors and other areas NO
that employees could fall 4 feet or more or walk off
should be chained off, roped off, or otherwise blocked.

Floors and aisles are clear of clutter, electrical cords, YES

hoses, spills, and other hazards that could cause
employees to slip, trip, or fall.

Proper work practices are factored into determining the YES

time requirements for an employee to perform a task.

Employees performing physical work have adequate YES

periodic rest breaks to avoid fatigue levels that could
result in greater risk of accidents and reduced quality of
work.

The warehouse is well ventilated YES

The facility has visual signages for labelling. YES

MATERIAL HANDLING SAFETY YES OR NO

There are appropriately marked and sufficiently safe NO
clearances for aisles and at loading docks or
passageways where mechanical handling equipment is
used.

Parcels are stored in tiers that are stacked, blocked, YES

interlocked, and limited in height so that they are stable
and secure to prevent sliding or collapse.

Personnel use proper lifting techniques. YES

 46

CHAPTER III

THE PROPOSALS

Section 1: Proposed Facility Layout of Entrego Warehouse

This section provides the enhanced facility layout of Entrego

Warehouse using the application AutoCAD. This shows the improvement of

the warehouse incorporated with the ratings of activity and space

relationship diagram. It also follows the recommended industrial aisle width

walkways and aisle width for pallet trucks set by OSHA (Occupational

Safety and Health Administration).

 47

Figure 13

Proposed Facility Layout Floor Plan of Entrego Warehouse

 48

As presented in the previous figure 13, the proposed floor plan for

the enhanced facility layout of the warehouse now utilizes the two

warehouse roll-up doors since in the existing layout it was only used for the

employee entrance and their exit. Although their operation does not have

two trucks simultaneously arriving and dispatching at the same time, it is

still best to utilize both roll-up doors of the warehouse. The receiving area

is now on the left side of the warehouse to have a smooth flow of the

process and can proceed to the next process in one direction. All the

workflow process areas from receiving to dispatch follow the aisle width

standard between pallet and passageway of pallet trucks set by OSHA. The

material handling area where all pallet trucks are located is now on the left

side of the warehouse near the receiving area. The new parking area for

employees is now located on the right side outside of the warehouse. This

is to ensure that there is adequate space for the truck to maneuver in

parking to the staging dock. The location for contract logistics, stock room,

and an office area for the supervisor and manager is still fixed since it is

economical not to make any changes in those areas. The contract logistics

is a rented space by the affiliate of Entrego Company but is not part of their

daily operation and works independently. The stock room is comprised of

spare corrugated boxes in case there are damages. The office area is made

from a structure of a container truck and is difficult to transfer from one area

to another since it requires larger handling equipment for it to be moved.

 49

Figure 14

Proposed Flow Diagram of Entrego Warehouse

 50

The figure shown on the previous page shows the flow diagram of

the enhanced facility layout of Entrego Warehouse. It now utilizes two roll-

up doors of the warehouse to achieve a smooth flow of transporting volumes

of parcels. The material handling area is located near the receiving area

which based on the space relationship diagram closeness rating is an

absolute necessity that the two areas are within proximity. The other

associated workflow areas are based on the activity and space relationship

diagram shown in Chapter 2 in which these workflow areas are rated based

on their closeness rating.

Section 2: Comparison between Existing and Proposed Facility

Layout of Entrego Warehouse

This section provides the comparison between the existing and

proposed layout of Entrego Warehouse and what are its notable changes

in terms of its dimension, aisle widths, new location for some workflow

processes.
 51

Table 17

Existing and Proposed Space Requirements Comparison

Workflow Area Existing Area Proposed Area

(In sq.m) (In sq.m)

Contract Logistics 150.00 150.00

Receiving Area 62.16 90.00

Sorting Area 42.00 46.80

Bagging and QC Station 195.00 108.75

Dispatch Area 225.00 145.00

Office Work Area 25.00 40.30

Material Handling 17.50 17.50

Stock Room 30.00 24.00

Office 36.00 36.00

Floor Aisle Markings 0.00 8.24

Total Area Utilized 782.66 666.59

Total Area Unutilized 417.34 533.41

Total Area of the Warehouse 1,200 1,200

The table above shows the comparison between existing and

proposed space requirements comparison. The following workflow area that

changed from existing to the proposed are explained on the next page.
 52

Receiving Area

The Receiving Area increased from 62.16 square meters to 90

square meters as to conform the aisle width set by OSHA.

Sorting Area

The Sorting Area increased from 42 square meters to 46.80 square

meters to also conform the aisle width set by OSHA and to give adequate

space for workers in sorting the parcels.

Bagging and QC Station

The Bagging and QC Station area decreases from 195 square

meters to 108.75 square meters. This is because too much space was taken

in the existing layout and to conform with the aisle width set by OSHA. The

alignment of tables and chairs for the employees are arranged in a way that

they are within proximity to one another for ease of communication

regarding their work.

Dispatch Area

The Dispatch Area decreases from 225 square meters to 145 square

meters. This is because the pallets are far from one another and the

conformance based on aisle width set by OSHA has lesser width compared

to their existing spaces between pallets.

 53

Office Work Area

The Office Work Area is increased from 25 square meters to 40.30

since in our proposed layout it is now relocated beside the office area where

the manager and supervisor reside. Although there is a container van in the

office area, it is important to be within proximity for ease of communication

regarding paper works and reporting to the manager and supervisor. Also,

based on the Space Relationship Diagram, is rated as an “A” which means

“absolutely necessary”.

Stock Room

The stock room is decreased from 30 square meters to 24 square

meters since based on the key informant, they do not have a lot of materials

or equipment being stored in the stock room.

Floor Aisle Markings

In the proposed changes, floor aisle markings are utilized to identify

the workflow area and it sums up to 8.24 square meters.

Total Area Utilized

The total area utilized decreased from 782.66 square meters to

666.59 square meters which implies that the enhanced facility layout has

more adequate space and conforms to the aisle width that is specified by

OSHA.
 54

Table 18

Existing and Proposed Aisle Width Walkways Comparison

Workflow Area Actual Aisle Proposed

Width in (cm) Aisle Width

in (cm)

Receiving Area aisle between pallets 75 125

Sorting Area aisle between pallets 90 125

Bagging & QC Area aisle between 90 125

pallets

Dispatch Area aisle between pallets 170 150

The table shown above is the comparison of existing and proposed

aisle width of the warehouse. It now conforms the aisle width requirements

on walkways mandated by OSHA (Occupational Safety and Health) which

is 121.92 cm or 4 ft.
 55

Section 3: Costs of Materials and Labor for Enhancing Facility

Layout

In this section, it shows the costs incurred for the enhancement of

facility layout of Entrego Warehouse. It provides all information and details

necessary in order to implement the proposed changes.

Table 19

Comparison of Costs on Paint or Floor Tapes for Aisle Markings

Particulars Unit Cost Estimated Total Cost

Quantity

Required

Paint

Boysen Quick Dry Enamel 4L ₱ 518.00 4 ₱ 2072.00

Paint Brush ₱ 79.75 4 ₱ 319.00

TOTAL ₱ 2391.00

Floor Tape

Floor Marking Tape ₱ 170.00 6 ₱ 1020.00

TOTAL ₱ 1020.00

Based on the table of the comparison above between paint or floor

tapes to be used on aisle markings in the facility is that the company can

save a lot by using floor marking tape as an indicator for aisle marking rather

than using paint. Based on the explanation provided by PermaStripe (2014),

 56

using self-adhesive tapes or floor tapes carries more benefits than using

paint. In most cases, with a short cease in production. In some cases,

surface cleaning is required to ensure an efficient bond between adhesive

and surface, which makes this the only reason for downtime, albeit at a

much shorter extent than paint, as depending on the time of year, this could

be literally minutes from cleaning to application. The color of the floor-

making tape would be white since it is used for general purposes such as

bordering workstations or areas for indication.

 57

Table 20

List of Materials and its costs

Image Particulars Unit Cost

Hazard Marker Signs in ₱ 185.00

Staging Dock

White Floor Tape (33 m) ₱ 170.00

Warning Signage (Caution: ₱ 245.00

Watch your Step)

Notice Signage (Keep this ₱ 149.00

Area Clear at all times)

Dock Bumper ₱ 1,000.00

 58

Table 21

Bill of Materials on Proposed Enhanced Facility Layout

Materials Unit Cost No. of Price

Units

Hazard Marker Tape in Staging ₱ 185.00 6 ₱ 1110.00

Dock

White Floor Tape ₱ 170.00 6 ₱ 1908.00

Warning Signage (Caution: ₱ 245.00 2 ₱ 490.00

Watch your Step)

Notice Signage (Keep this Area ₱ 149.00 1 ₱ 149.00

Clear at all times)

Dock Bumper ₱ 1,000 2 ₱ 2,000.00

GRAND TOTAL ₱ 5,657.00

Tables 20 and 21 show the list and costs of materials that are

essential for the enhancement of the facility layout of Entrego Warehouse.

This would be purchased by the person in charge by the management.

 59

Table 22

Manpower Allocation for Enhancing the Facility Layout

Activity/Task No. of Manpower Outsource?

Required

Installation of Floor Tapes 2 NO

Installation of Hazard Markers in 2 NO

Staging Dock

Installation of Signages 1 NO

Re-layout of the Warehouse 5 NO

Installation of Dock Bumpers 2 YES

The table above shows the manpower allocation that is needed for

each activity or task. The task of Installation of Floor Tapes and Hazard

Markers only requires two employees. To save cost, it is advisable to use

the company’s employees to do this task. In the re-layout of the warehouse,

it is estimated that five employees can do the task since they only need to

transfer the pallet racks with the proper measurement of aisle width in

between each pallet rack.

 60

Table 23

Labor Costs for Installation of Dock Bumpers

No. of Labor Cost/Day No. of Working Total Labor Cost

Workers Days

2 ₱ 700.00 1 ₱ 1,400.00

The Entrego Company would inquire and procure manpower for the

installation of dock bumpers in the staging dock area. This would ensure

the safety during maneuvering of the container van in arrival and dispatch

of volumes of parcels. The name of the construction service agency is

KEN'S GENERAL CONSTRUCTION SERVICES which is located at 1

Montebello Road, Brgy Apas Cebu City 6000.

 61

Section 4: Cost-Benefit Analysis

This section provides the total costs incurred in implementing the

proposal and the potential benefits that the Entrego Warehouse would

receive by investing in the proposed changes. This is shown through a Cost-

Benefit Table. A Cost-Benefit Ratio of greater than 1.0 would show a

positive net value to a company and its investors. The table is shown in the

next page.
 62

Table 24

Estimated Costs Saved by the Entrego Company

BENEFITS COST OCCURRENCE TOTAL

SAFETY/PHYSICAL HAZARD INJURIES

FRACTURE ₱ 50,000 10.7 % ₱ 5,350

DISLOCATIONS, SPRAINS ₱ 10,000 12.0% ₱ 1,200

AND STRAINS

SUPERFICIAL INJURIES ₱ 6,000 50.8% ₱ 3,048

AND OPEN WOUNDS

BACK INJURY ₱ 1,000 3.6% ₱ 36

ARM AND SHOULDER ₱ 4,000 17.6 % ₱ 704

INJURY

NECK INJURY ₱10,000 1.1 % ₱ 110

LOWER EXTREMETIES ₱ 15,000 18.7 % ₱ 2,805

CONCUSSION ₱ 5,000 2.7 % ₱ 135

CONTAINER VAN REPAIR

REAR BUMPER REPAIR ₱ 28,000 0.5% ₱ 140

ON CONTAINER VAN

GRAND TOTAL ₱ 13,528.00

Note: Source taken from Philippine Statistics Authority 2018

 63

The table on the previous page shows the estimated cost that the

company can save from expenses such as safety hazard injuries and

vehicle accidents. The occurrence is taken from the Philippines Statistics

Authority Press Release entitled “2017/2018 Integrated Survey on Labor

and Employment (ISLE) – Part 6 Module on Occupational Injuries and

Disease (OID): 2017”. The estimated costs for treatment of injuries are

taken from “Medicalpinas Website”.

 64

Table 25

Cost-Benefit Analysis

TOTAL COSTS INCURRED FOR THE PROPOSED TOTAL ESTIMATED BENEFITS / COSTS COST-BENEFIT

CHANGES SAVED BY THE ENTREGO COMPANY RATIO

₱ 7,057.00 ₱ 13,528.00 1.91

The table above shows the cost benefit analysis between the costs that are going to be incurred by the company

and the estimated benefits or costs saved by implementing the proposal. The cost benefit ratio is at 1.91 which indicates a

positive net value to the company.

 65

Section 5: Gantt Chart on Implementing the Proposal

This section provides the schedule on the implemented proposal for

the enhancement of the facility layout of Entrego Warehouse. It shows the

Gantt Chart and the network schedule diagram of the time that it takes to

implement the proposed changes of enhancement of facility layout in

Entrego Warehouse.
 66

Table 26

Gantt Chart Schedule for Implementation of Proposal

June 06, 2022

June 07, 2022

June 08, 2022

June 09, 2022

June 10, 2022

June 11, 2022

June 12, 2022

June 13, 2022

June 14, 2022

June 15, 2022

June 16, 2022

June 17, 2022

June 18, 2022

June 19, 2022

TASK TASK
TASK DESCRIPTION START DATE FINISH DATE PREDECESSOR
ID DURATION

Meeting with Manager and other

A 1 June 06, 2022 June 07, 2022
Stakeholders
Order the materials needed for
B 1 June 08, 2022 June 09, 2022 A
enhancement of facility layout
Procure all materials required for
C implementation of enhanced facility 5 June 10, 2022 June 15, 2022 B
layout
Inquire and request for manpower on
D 3 June 08, 2022 June 11, 2022 A
installation of dock bumpers
E Installation of Dock Bumpers 1 June 16, 2022 June 17, 2022 D
Moving of workflow areas that was
F 1 June 16, 2022 June 17, 2022 C
proposed
Put floor tapes on hazard markings,
G aisle markings, and signages inside 1 June 16, 2022 June 17, 2022 C
the warehouse
Reviewing all implemented aspects
H 1 June 18, 2022 June 19, 2022 E,G
of the enhanced facility layout
 67

Figure 15

Network Diagram Schedule for Implementation of Proposal

C F

START A H FINISH

D E

NOTE: Activity on nodes is based from the task ID from the Gantt chart schedule of Figure 16
 68

The table and figure on the previous pages show the Gantt Chart and

Network Diagram for the implementation of the enhanced facility layout of

Entrego Warehouse. It is estimated to complete in 14 days from June 06,

2022 to June 19, 2022. The non-critical tasks are for Inquiring about

manpower in installing dock bumpers which can be delayed depending on

the critical path of activities.

 69

CHAPTER IV

SUMMARY, FINDINGS, CONCLUSIONS, RECOMMENDATIONS

SUMMARY

This study aimed to assess the facility layout in Entrego Warehouse

at S.E. Llenes, Mandaue City, Cebu with the end goal of a proposed facility

layout using systematic layout planning theory to enhance the facility layout

of the warehouse.

This study aimed to answer the following questions.

1. How is Entrego Warehouse influenced by its current layout based on the

following factors:

1.1 Space Requirements;

1.1.1 Dimensions of Workstations inside Entrego

Warehouse;

1.1.2 Aisle Width Walkways at Entrego Warehouse;

1.1.2 Aisle Width for Pallet Truck at Entrego

Warehouse;

1.2 Activity Relationship;

1.3 Space Relationship;

1.4 Internal Information of the Warehouse;

 70

1.4.1 Historical Data of the Parcels Arrived in the

Company for the period of April 3, 2022 to April 10,

2022:

1.4.1.1 Time Arrived;

1.4.1.2 No. of Parcels Arrived;

1.4.1.3Time Dispatched;

1.4.2 Average Throughput Time per Volume;

1.4.2.1 Receiving Process;

1.4.2.2 Sorting Process;

1.4.2.3 Bagging and QC Process;

1.4.2.4 Dispatching Process;

1.4.3 Existing Floor Plan of Entrego Warehouse;

1.5 Category and Quantity of Equipment;

1.5.1 Operational;

1.5.2 Handling;

1.6 Workflow Processes of Entrego Warehouse;

1.6.1 Flowchart process of the workflow of Entrego

Warehouse;

1.6.2 Flow Diagram of the workflow of Entrego Warehouse;

 71

1.7 Safety Practices Applied in the Company;

1.7.1 Think Safety Checklists provided by OSHA?

2. Based on the findings of the study, what warehouse facility layout may

be proposed to enhance the facility layout of the Entrego Warehouse in

S.E.Llenes, Mandaue City, Cebu?

 72

FINDINGS

The following are the findings in this study:

Internal Information of the Company

The categories of equipment in the company are indicated as

operational and material handling equipment. The total area of the

warehouse is 1,200 square meters with a utilized area of 782.66 square

meters. The OSHA recommended industrial aisle width walkways and for

pallet trucks are 121.92 cm and 154.44 cm respectively.

Workflow Process of Entrego Warehouse

The following workflow area that needs to be changed to follow the

OSHA requirements are the receiving area, sorting area, bagging & QC

station. The activity and space relationship is labeled based on its closeness

rating. The workflow process of Entrego Warehouse is indicated as

receiving, sorting, bagging & quality control, and dispatching.

Historical Data of the Parcels Arrived in the Company

The historical data provided by the key informant of the proponents

is from the period of April 3, 2022 to April 10, 2022. Based on the data, as

the number of parcels arrived increases so as the increase of throughput

time.
 73

Safety Practices Applied in the Warehouse

The think safety checklist provided by OSHA is indicated as general

and material handling safety. The lacking component of the existing layout

of Entrego Warehouse is that they do not have hazard caution signs or

railings and no floor aisles are marking inside the warehouse that indicates

passageways of employees and pallet trucks.

Comparison of Costs between Paint and Floor Aisle Markings

Figure 16

Comparison of Costs between Paint and Floor Tape for Floor Aisle

Markings in Entrego Warehouse

₱3,000.00

₱2,500.00

₱2,000.00
Cost

₱1,500.00
₱2,391.00
₱1,000.00

₱500.00 ₱1,020.00

₱-
Paint Floor Aisle Marking Tape
Particulars

Based on the figure above, the researchers chose floor aisle marking

tape since in making the floor aisle for each workflow area since it only costs

₱ 1,020.00 compared in utilizing paint which has a higher cost of ₱

2,391.00.
 74

Comparison between Existing and Proposed Floor Plan Space

Requirements

Figure 17

Comparison of the proposed changes of space requirements for the

workflow areas in Entrego Warehouse

250

200
IN SQUARE METERS

150

100

50

0
Receivng Area Sorting Area Bagging and Dispatch Area Office Work Stock Room
QC Station Area
WORKFLOW AREAS

Existing Proposed

In the figure above, it shows the comparison of the existing workflow

areas and the proposed workflow areas.

 75

Figure 18

Comparison of Existing and Proposed Total Area Utilized in Entrego

Warehouse

900
800
700
IN SQUARE METERS

600
500
400 782.66
666.59
300
200
100
0
Existing Proposed
FLOOR PLAN

In the figure above, it shows the comparison between the existing

and proposed total area utilized in Entrego Warehouse as it now has more

adequate space for the employees in their operations.

 76

CONCLUSION

This study analyzed the existing facility layout of Entrego Warehouse

located in S.E Llenes, Mandaue City, Cebu. The anchored Systematic

Layout Planning Pattern Theory (Muther, 1961) shows the activity and

space relationship in the warehouse. Based on the “think safety checklist”

provided by OSHA (Occupational Safety and Health), the staging dock in

the warehouse has no hazard caution signs or railings that prevent a worker

from falling and there are no floor aisles marked in each workflow area. The

proponents came up with a proposal that includes purchasing floor tapes

for aisle markings inside the warehouse, hazard caution markings at the

staging dock, caution, and notice signages, and dock bumpers for the

parking area of the container van that brings in volumes of parcels.

 77

RECOMMENDATIONS

This study is undertaken to enhance the facility layout of Entrego

Warehouse. This enhances the workflow cycle time of the company as well

as the efficient flow of goods throughout the warehouse by utilizing the

Systematic Layout Planning Pattern Theory by Richard Muther. This

proposal would benefit the stakeholders in Entrego Warehouse.

Secondary Recommendations

To further refine this research endeavor, it is vital to consider the

following:

1. Clauses of the Contract between Entrego and the Owner of the

Warehouse – This is important to know what the agreements

between the two parties are to consider in determining other factors

that may be limited in enhancing the layout of the Warehouse.

2. Include another workstation for rejects or errors in encoding the

necessary information in each parcel.

 78

REFERENCES

BOOKS

Stevenson, W. J. (2017). Operations Management (13th ed.). McGraw

Hill.

E-BOOKS

Tompkins, J. (2022). Facilities Planning by James A. Tompkins (Jan 19

2010) (4th ed.) [E-book]. Wiley; 4 edition (2010–01-19).

OSHA. (n.d.). OSHA Pocket Guide Worker Safety Series Warehousing [E-

book]. OSHA.

https://www.osha.gov/sites/default/files/publications/3220_Warehou

se.pdf

ONLINE JOURNALS

Kikolski, M., & Ko, C. H. (2018). Facility layout design – review of current

research directions. Engineering Management in Production and

Services, 10(3), 70–79. https://doi.org/10.2478/emj-2018-0018

Hossain, R. et al. (2014). Increasing Productivity through Facility Layout

Improvement using Systematic Layout Planning Pattern Theory.

Increasing Productivity through Facility Layout Improvement Using

Systematic Layout Planning Pattern Theory, 14(7), 71–75.

https://www.engineeringresearch.org/index.php/GJRE/article/downl

oad/1269/1201#:~:text=Systematic%20layout%20planning%20patt

ern%20(SLP,and%20effective%20utilization%20of%20space.
 79

ONLINE NEWSPAPERS

Katlene, C. (2019, July 22). Warehouse demand stays high, says research

firm. Sunstar.

https://www.sunstar.com.ph/article/1815460/cebu/business/wareho

use-demand-stays-high-says-research-firm

PRESS RELEASE

REPUBLIC OF THE PHILIPPINES: PHILIPPINE STATISTICS

AUTHORITY. (2019, December 31). 2017/2018 INTEGRATED

SURVEY ON LABOR AND EMPLOYMENT (ISLE) - PART 6

MODULE ON OCCUPATIONAL INJURIES AND DISEASES (OID):

2017 [Press release].

https://www.psa.gov.ph/system/files/Press%20Release%20Occupa

tional%20Injuries%20and%20Diseases.pdf

WEBSITE

enVista. (2022, April 26). How to Maximize Warehouse Space Utilization

Without Expansion. https://envistacorp.com/blog/how-to-maximize-

warehouse-space-utilization/

REB storage systems international. (2021, March 1). What Is Material

Handling? by REB Storage Systems.

https://rebstorage.com/articles-white-papers/what-is-material-

handling/
 80

PermaStripe. (2014, August 15). 5S Optimisation & The Difference

Between Painted Aisle Marking & Line Marking Tape. Heskins.

https://www.heskins.com/5s-optimisation-the-difference-between-

painted

Chinn, L. (2020, May 18). OSHA Aisle Requirements. Legal Beagle.

https://legalbeagle.com/6513998-osha-aisle-requirements.html

GRAPHIC PRODUCTS. (n.d.). [Infographic] Floor Marking Placement |

Graphic Products | Graphic Products.

https://www.graphicproducts.com/infographics/floor-marking-

placement/

Graphic Products. (n.d.). Warehouse Traffic Safety | Graphic Products.

https://www.graphicproducts.com/articles/warehouse-traffic-safety/

Chand, S. (2014, April 12). Top 8 Factors Influencing Industrial Plant

Layout. Your Article Library.

https://www.yourarticlelibrary.com/industries/plant-layout/top-8-

factors-influencing-industrial-plant-layout/34608?fbclid=IwAR1hH-

kSz8UjmZ77lt7-cWSCH2XIljGf6FtH9R8QLtzR-BU_eEClqv5LAco

PUBLISHED THESIS/DISSERTATION

Daraei, M. (2013, June). Warehouse Redesign Process: A Case Study at

Enics Sweden AB. Mälardalen University. http://www.diva-

portal.org/smash/record.jsf?pid=diva2%3A632471&dswid=-6694
 81

Karim, N. H. (2018, July). Empirical Evidence on Failure Factors of

Warehouse Productivity in Malaysian Logistic Service Sector.

https://doi.org/10.1016/j.ajsl.2018.06.012
 82

APPENDICES
SECTION
 83

APPENDIX A
THEORETICAL FRAMEWORK
 84

SYSTEMATIC LAYOUT
PLANNING PATTERN THEORY
(RICHARD MUTHER, 1961)

FLOW OF PARCELS ACTIVITY RELATIONSHIPS SPACE REQUIREMENTS SPACE RELATIONSHIPS

ACTIVITY RELATIONSHIPS SPACE RELATIONSHIP

DIAGRAM DIAGRAM

MODIFYING
PRACTICAL LIMITATIONS
CONSIDERATIONS

DEVELOP ENHANCED
FACILITY LAYOUT

EVALUATION
 85

APPENDIX B
KEY INFORMANT GUIDE
INTERVIEW QUESTIONS
 86

1. What are the problems that you encounter on a day-to-day basis in

Entrego Warehouse?

2. What is the size of the warehouse in sq.m?

3. What are the equipment inside warehouse?

4. Usually what is the arrival time of the parcels?

5. What safety practices do you apply?

6. What are the workflow processes?

7. Are the workflow processes is standard set by Entrego Company?

8. How do you categorize equipment?

9. How many pallet trucks do you have?

10. What kind of material handling do you use inside the warehouse?

11. How many trucks do arrive in the company every day?

12. Does the Entrego Company owned the warehouse?

13. Is the warehouse operating 24hours a day?

14. What sorting process of parcels does the Entrego undergo?

15. What kind of parcels arrive in the Entrego Company?

16. What are the areas indicated inside the warehouse?

17. Do you have floor Aisle markings?

18. Do you have hazard caution marking?

19. How long does it take in unloading the parcels?

20. How long does it take arranging the newly arrived parcels?

21. How long does it take the parcels?

22. How long does it take in sorting the parcels?

 87

23. In what category does the company sort the parcels?

24. How long does the bagging process take?

25. What factors do you consider in quality control process of the

parcels?

26. How long does it take does the dispatching take?

27. Do you utilize the two-warehouse roll-up door?

28. Is it under the company’s operation in the contract logistics area of

the warehouse?
 88

APPENDIX C
TRANSMITTAL LETTER
 89

University of Cebu – Main Campus

Sanciangko St., Cebu City, 6000 Cebu

Ms. Aubrey Jumawan

Supervisor
Entrego Warehouse
S.E Llenes, Mandaue City, Cebu
Dear Ms. Aubrey Jumawan,
Good Day, We are a group of 4th year students from University of Cebu – Main
Campus taking up Bachelor of Science in Industrial Engineering and
representative are currently conducting research about facilities planning in our
subject “IE 421 Project Capstone”.
We are requesting to conduct a research through focus group discussion regarding
the facilities of your company. Our main emphasis for this study is about facilities
planning in which we aim to propose an improvement in your facilities.
Should there be any queries and clarifications of this request, please contact us
through our email matunogcnm@gmail.com or through our mobile phone number
0998 100 0083.
Rest assured all information will be treated with utmost confidentiality as it would
be used for academic purposes only. Thank you and God Bless.

Respectfully yours,

John Christian Rodrigo

Group Representative BSIE- 4

Noted by:

Engr. Greg Belongilot

College of Engineering Dean

Engr. Clofer V. Suson

Industrial Engineering Chairperson
 90

APPENDIX D
DOCUMENTATION
 91

The picture above shows the existing of Entrego Warehouse. Only

one group representative was able to visit the Warehouse since the

company is strict when it comes to visitors to abide safety health protocol.

The representative obtained the necessary data that is included in the

research study.
 92

The researchers meet with the key informant of the Entrego

Warehouse Ms. Aubrey Jumawan which is the company’s warehouse

supervisor which dated last April 11, 2022.

 93

APPENDIX E
PLAGIARISM AND
GRAMMARLY CHECK
94
 95

APPENDIX F
CURRICULUM VITAE
 96

CURRICULUM VITAE

CRISTOFER NIÑO C.
MATUNOG

CONTACT EDUCATIONAL BACKGROUND

INFORMATION: COLLEGE:
UNIVERSITY OF CEBU – MAIN CAMPUS (2018-
ADDRESS:
PRESENT)
G. OUANO ST. UMAPAD,
SENIOR HIGH SCHOOL:
MANDAUE CITY, CEBU 6014
UNIVERSITY OF CEBU – LAPU-LAPU &
MOBILE NUMBER:
MANDAUE (2016- 2018)
0998 100 0083
JUNIOR HIGH SCHOOL:
EMAIL:
ST. JOSEPH’S ACADEMY MANDAUE CITY (2012-
matunogcnm@gmail.com
2016)
ELEMENTARY:
CEBU NORMAL UNIVERSITY (2006-2008)
ST. JOSEPH’S ACADEMY MANDAUE CITY (2008-
2012)

PERSONAL SKILLS:
INFORMATION: PROFICIENT IN
ADOBE ILLUSTRATOR
AGE: 22
AUTO-CAD
GENDER: MALE
MICROSOFT OFFICE
CIVIL STATUS: SINGLE
MICROSOFT VISIO
CITIZENSHIP: FILIPINO
BIRTH DATE: 03/31/2000
RELIGION: ROMAN CATHOLIC
 97

CURRICULUM VITAE

JEFFSYMEL A.
MERCADO

CONTACT
INFORMATION:
ADDRESS:
TANKE, TALISAY CITY, CEBU
MOBILE NUMBER: 09335595113
EMAIL: jeffsymel06@gmail.com
EDUCATIONAL BACKGROUND
COLLEGE:
UNIVERSITY OF CEBU – MAIN CAMPUS (2018-
PRESENT)
SENIOR HIGH SCHOOL:
UNIVERSITY OF CEBU – MAIN CAMPUS (2016-
2018)
JUNIOR HIGH SCHOOL:
CANSOJONG NATIONAL HIGH SCHOOL (2012-
2016)
ELEMENTARY:
SAN ROQUE ELEMENTARY SCHOOL (2006-
2012)

PERSONAL
INFORMATION:
AGE: 22
GENDER: MALE
CIVIL STATUS: SINGLE
CITIZENSHIP: FILIPINO
BIRTH DATE: 10/11/1999
RELIGION: ROMAN CATHOLIC
SKILLS:
PROFICIENT IN MICROSOFT OFFICE
COMPUTER SKILLS
CREATIVITY
INTERPERSONAL SKILLS
ADAPTABILITY SKILLS
 98

CURRICULUM VITAE

JOHN CHRISTIAN
RODRIGO

CONTACT
EDUCATIONAL BACKGROUND
INFORMATION: COLLEGE:
ADDRESS: 080 J. DE VEYRA ST. UNIVERSITY OF CEBU-MAIN (2018-PRESENT)
NORTH RECLAMATION AREA, SENIOR HIGH SCHOOL:
CARRETA, CEBU CITY MABOLO NATIONAL HIGHSCHOOL (2016-2018)
MOBILE NUMBER: 09454330314 JUNIOR HIGH SCHOOL:
EMAIL: MABOLO NATIONAL HIGHSCHOOL (2012-2016)
CHANNYWUTTY@GMAIL.COM ELEMENTARY:
ALO ELEMENTARY SCHOOL (2006-2012)

PERSONAL
SKILLS:
INFORMATION:
SINCERE AND HARDWORKING
AGE: 22
KNOWLEDGE IN MS OFFICE (WORD, EXCEL AND
GENDER: MALE
POWERPOINT)
CIVIL STATUS: SINGLE
ENTHUSIASTIC AND EAGER TO LEARN
CITIZENSHIP: FILIPINO
ABILITY TO MEET DEADLINES AND WORK
BIRTH DATE: 12/24/1999
UNDER PRESSURE
RELIGION: ROMAN CATHOLIC
APPROACH PROBLEMS FROM MULTIPLE
PERSPECTIVES
 99

CURRICULUM VITAE

JHEZERYL P. ABJELINA

CONTACT
EDUCATIONAL BACKGROUND
INFORMATION: COLLEGE:
ADDRESS: BASAK, UNIVERSITY OF CEBU-MAIN (2018-PRESENT)
CAIMOTOHAN DECA 5, LAPU- SENIOR HIGH SCHOOL:
LAPU CITY UNIVERSITY OF CEBU – LAPU-LAPU &
MOBILE NUMBER: 09950072791 MANDAUE (2016- 2018)
EMAIL: JUNIOR HIGH SCHOOL:
abjelinajhezeryl@gmail.com MARIGONDON NATIONAL HIGH SCHOOL
(2012 - 2016)
ELEMENTARY:
SUDTONGGAN ELEMENRATY SCHOOL
(2006-2012)

PERSONAL SKILLS:
INFORMATION: KNOWLEDGE IN MS OFFICE (WORD, EXCEL AND
AGE: 22
POWERPOINT)
GENDER: FEMALE
ABILITY TO MEET ADAPT IN CHANGING
CIVIL STATUS: SINGLE
ENVIRONMENTS
CITIZENSHIP: FILIPINO
APPROACH PROBLEMS INr DIFFERENT
BIRTH DATE: 10/10/1999
PERSPECTIVES
RELIGION: ROMAN CATHOLIC