Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management

Dubai, United Arab Emirates (UAE), February 12-14, 2024

Redesigning Facilities Layout of Retail Store Based on

Systematic Layout Planning (SLP) Method at Corpma+

Angelica Octavia Kunardi, Darlene Damayanti Sihite, Gabrielle Margareth Britannia

Sitorus, and Rafalia Maritza
Department of Industrial Engineering
Universitas Indonesia
Depok, 16425, Indonesia
angelica.octavia@ui.ac.id, darlene.damayanti@ui.ac.id, gabrielle.margareth11@ui.ac.id,
rafalia.maritza@ui.ac.id

Ardhy Lazuardy
Assistant Professor
Department of Industrial Engineering
Universitas Indonesia
Depok, 16425, Indonesia
ardhy.lazuardy@ui.ac.id

Abstract

Cooperatives play an important role in local economic activity and community empowerment in Indonesia, acting as
a people's economic movement based on kinship. The effective design and layout of cooperative facilities have a
significant impact on operational efficiency and overall output. Corpma+, a student cooperative at Faculty of
Engineering Universitas Indonesia Faculty of Engineering Universitas Indonesia, is currently ineffective for the
processing flow affected by the layout. The key objective of this research is to investigate the requirement of
restructuring the layout of Corpma+, which is confronting obstacles such as product discovering difficulties,
imprecise workflow, and inefficient space use. The research employs the Systematic Layout Planning (SLP) method
to enhance the facility layout, focusing on the most frequently purchased items, Activity Relationship Chart (ARC)
and Activity Relationship Diagram (ARD) analysis. The results showed the proposed layout is capable of enhancing
the efficiency of sellers in serving customers. It enables them to control the flow of customers and improve the
overall shopping experience for customers.

Keywords
Efficiency, Facility Planning, Retail Layout, Space Usage Optimization, Systematic Layout Planning.

1. Introduction
A cooperative is a business entity consisting of individuals or cooperative legal entities that bases its activities on
cooperative principles as well as being a people's economic movement based on kinship. In Indonesia, cooperatives
significantly influence the local economic activities and community empowerment, improving the welfare of its
members, and providing large employment opportunities. The design and layout of a facility can significantly
influence how efficiently tasks are performed, affecting overall productivity. In a cooperative, facility layout is a
critical component that directly impacts operational efficiency and productivity. An effective layout design should
consider various factors, such as workflow optimization and space utilization.
Prior to redesigning the layout of Corpma+, a student cooperative at Faculty of Engineering Universitas Indonesia
Faculty of Engineering Universitas Indonesia, researchers interviewed the worker. There are several problems that
are often found, such as difficulty to find products, unclear workflow, and inefficient space utilization. Considering
the massive orders that Corpma+ receives everyday, it is very important that Corpma+ is able to utilize every part of
the store properly and carry out a good system of material handling. To get good and reliable results, researchers use
the systematic layout planning (SLP) to redesign the facility layout of Corpma+. Based on observation, most

© IEOM Society International

Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

customers buy three products on average. Most frequently purchased items are tools for architecture student’s
projects, which are cardboard, super glue, and polyfoam. Seeing this phenomena, researchers also focused on
making an Activity Relationship Chart (ARC) and an Activity Relationship Diagram (ARD).

1.1 Objectives
Based on the highlighted difficulties, this study intends to improve the configuration of Corpma+'s facility by
focusing on elevating customer experience and streamlining service operations. An in-depth evaluation of the
current layout will be conducted to detect any inefficiencies in material handling, customer flow, and workstation
use. To ensure the efficient movement of materials, the recommended improvement will apply the Systematic
Layout Planning (SLP) method. In addition, positioning equipment will be integrated to improve handling and
processing. The primary goal is to optimize the arrangement for a more fluid process flow.

2. Literature Review
2.1 Facility Layout
Facility Layout is an activity to analyze, concept, design, and realize the system for goods producing or services to
optimize the relationship of officers, workers, materials flow, information flow, and a needed procedure to obtain
effective and efficient effort (Apple, 1977, 3). In general, the overall objective of the facilities design is to get the
inputs (material, supplies, etc) into, through and out of each facility in the shortest time practicable, at acceptable
cost. Therefore, the scoop of facility layout is not only for manufacturing problems, also it has been applied to
office, transportation, warehousing, packaging, and so on, and those fields corresponding to input, process, and
output (Wahyukaton & Affifah, 2018, 1).

2.2 Systematic Layout Planning (SLP)

The restructuring of the layout is done in order to optimize the work process, always ensuring the security of the
flow of materials, people and information (Monks 1987). Systematic Layout Planning (SLP) is a method used to
organize and optimize the layout of a manufacturing facility. The objective of SLP is to enhance the facility's
efficiency and productivity by reducing waste, enhancing the flow, and minimizing the distance that materials and
products must traverse.
SLP is divided into four different phases. The first phase is to establish the location to be planned and to determine
space available and surrounding environment. Next step is to plan the arrangement of activity-areas and define the
specific main aisles. After that, the process enters the phase of planning the arrangement of specific machinery and
appliances and ensuring that everythings is ready to install. The last phase is preparing drawings and specifications,
training workers, and installing equipment.

2.3 Activity Relationship Chart (ARC)

The concept of the Activity Relationship Chart (ARC) is to create significant relationships between different
activities in an office or manufacturing context. The method of planning is based on a qualitative assessment of the
degree of activity linkage. Because it depends on factors unique to each department or facility, the evaluation is
frequently subjective. (Murther R., 1973)
Table 1. Closeness Rating of ARC
No. Department

A Absolutely necessary

E Especially important

I Important

O Ordinary closeness

U Unimportant

X Undesirable

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

2.4 Activity Relationship Diagram(ARD)

ARC can further describe the relationship between facilities by using ARD (Puji et al., 2023, 546). The Activity
Relationship Diagram (ARD) is a diagram that illustrates the relationships between activities
(departments/machines) based on the priority level of proximity, with the aim of achieving minimum handling costs
(Panjaitan, 2020, 31). The diagram also forms the foundation for planning the connections between the patterns of
goods flow and the allocation of service activities linked to transaction activities (Mulyawaty, 2016, 53).
Furthermore, the ARD serves as the basis for our consideration in creating a new layout, with the expectation that it
will enhance the efficiency level for sellers.

3. Methods
The research was done at Corpma+, a student cooperative at Faculty of Engineering Universitas Indonesia Faculty
of Engineering Universitas Indonesia. The research is expected to be completed within two months, carried out from
the end of October to the beginning of December 2023. The research process begins with a combination of field
studies and literature review, followed by problem identification. There are three steps involved to reconstruct the
layout of KOPMA: analysis of the current layout, design of the layout using Systematic Layout Planning (SLP)
principles, and the evaluation of alternative layouts. The objectives of this research are established based on
identified problems, and the research scope is defined. Then, the next stage is data collection, including facility area,
size and quantity of storage cabinets and shelves, quantity of customers, types and quantity of products sold, and
cycle time for each operation. The collected data is then processed, taking into consideration both distance and time
factors during the operation process. The improved facility layout design aims to minimize waste and make the
workflow more efficient. Lastly, concluding the research involves summarizing findings and offering suggestions
based on the insights gained.

4. Data Collection

4.1 Initial Layout

The initial facility layout of Corpma+ can be seen in Figure 1 and Figure 2.

Figure 1. Current 2D layout of Corpma+

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

Figure 2. Current 3D layout of Corpma+

4.2 Operation Process Chart (OPC)

The Operation Process Chart (OPC) is a tool used to map or illustrate the operation and inspection procedures that
occur in a product's production process flow from start to finish or semi-finish. The OPC of Corpma+ (Figure 3)
showed the process of payment in cashier. First, the cashier receives a customer's request to search for specific
items. Subsequently the cashier searches for the items then shows the items that were requested by the customer. If
the customer agrees, the cashier inputs items, prices, and quantities. Following that, the total price is calculated. The
payment is then processed. Finally, the cashier packed the things and handed them over to the customer.

Figure 3. Operation Process Chart (OPC) Employee Activity

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

4.3 Route Sheet

Route Sheet determines the steps and specifies the order in which these steps are taken and the time required for
each operation (Apple, 1977, 265). So that the company can streamline their production process, avoid delays, and
eliminate wasteful practices. Below are steps the employee should done to process the purchasing activity in
KOPMA (Table 2).

Table 2. Employee route sheet

Operation Operation Equipment Type Takt Time Avg. Cycle Pcs/ Hr Hr/500
Description (sec/pcs) Time (sec) pcs

O-1 The cashier receives the 7 514.2 0.972

customer’s request for a
specific item

O-2 The cashier show the 2 65 55.38 9.029

items requested by the
customer

O-3 Input items, prices, and 5 720 0.694

quantities 234

O-4 Calculate the total price Calculator 10 360 1.389

O-5 Process the payment 54 66.67 7.499

O-6 Pack the items Plastic Bag 34 105.88 4.722

O-7 Handing over the items 5 720 0.694

to the buyer
*Allowance = 30%
The standard time needed for the employee to process the purchase of two products is 180 seconds or 3 minutes.
Considering fatigue and delay allowance of 30%, a takt time of 234 seconds is obtained.

4.4 Floor Area

Based on data collected on the work area of Corpma+, researchers obtained data on the area of the work area of 49.1
m2 . The following is the floor area data of each process based on the initial layout of Corpma+ as follows (Table 3).

Table 3. Dimension of Corpma+ Work Area

Dimensions
Work Area Total Area (m2)
Length (m) Width (m)

Front Area 1 3.55 5.40 19.17

Side Area 1 3.85 2.12 8.16

Aisle 1 1.35 1.83 2.47

Back Area/ Staff Room 1 2.50 3.70 9.25

Inventory 1 3.85 1.25 4.81

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

Container 7 0.7 0.40 1.96

Display Case 3 1.50 0.45 2.04

Shelf 3 1.50 0.40 1.80

Total Area 49.66

4.5 Material Flow

This illustration represents the material flow of three frequently purchased materials, specifically cardboard
(represented by yellow dot), superglue (represented by blue dot), and polyfoam (shown by red dot). The cardboard is
retrieved from K5, cut in the cutting zone, and then carried to the queue region near R2. The superglue from R1 is
brought to the queuing area. The material flow for the red one is transferred directly from R2 to the queuing area
where the customers are positioned (Figure 4).

Figure 4. Material Flow

5. Results and Discussion

5.1 Activity Relationship Chart
The Activity Relationship Chart (ARC) displayed on the workshop floor visually represents the close connections
among current facilities. These connections are defined by the level of relationship and the associated reasons
(Figure 5 and Table 5).

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

Figure 5. Activity Relationship Chart of Proposed Layout

Table 4. Closeness rating analysis of the result

No. Department Closeness rating code

Dept
A E I O U X

1 Student Architecture Tool 4 3 2,5 7,8,14,15 6,9,10,11, -

12,13

2 General Stationery 8 5,9,10,11 12 3,4 6,7,13 -

,14,15

3 Large paper equipment 1 4 1,5,7 - 2,14,15 6,8,9,10,1 -

1,12,13

4 Large paper equipment 2 1,3 5 7,14,15 2 6,8,9,10,1 -

1,12,13

5 Student Architecture Tools 14,15 2,3,4,7 1,9,10,11 8,12 6,13 -

6 Stocks 12,13 - - - 1,2,3,4,5, -

7,8,9,10,1
1,14,15

7 Merchandise - 3,5 4,14,15 1 2,6,8,9,10 -

,11,12,13

8 A4 Paper 2,10,11 9 14,15 1,5,12 3,4,6,7,13 -

9 Plastic Roll 10,11,12 2,8, 5,15 - 1,3,4,6,7 -

13,14

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

10 Paper Roll 8,9,11 2,12 5,14,15 13 1,3,4,6,7 -

11 Sponge 8,9,10 2 5 12,14,15 1,3,4,6,7, -

13

12 1-meter cardboard 6,9,13 10,14 2,15 5,8,11 1,3,4,7 -

13 Sterofoam 6,12 9 - 10,14 1,2,3,4,5, -

7,8,11,15

14 Merchandise 5,15 2,9,12 4,7,8,10 1,3,11,13 6 -

15 Balsa 5,14 2 4,7,8,9,1 1,3,11 6,13 -

0,12

Table 5. Additional Reasons

Code Reason

1 Same type of appliances

2 Same handling method

3 Complementary products

4 Fragileness of the product

5 Supplementary products

6 Easier access

7 Often bought together

5.2 Activity Relationship Diagram (ARD)

Activity Relationship Diagram (ARD), also referred to as an affinity analysis diagram, illustrates the relationship
between various activities or departments. It addresses the crucial question of the importance of proximity between
these entities, utilizing closeness codes to signify the significance of each relationship (Matthew P. Stephens 2013).
ARD employs a rating system ("A, E, I, O, U, and X") derived from the Activity Relationship Chart (ARC). This
analysis becomes foundational and would be the basis in determining the layout recommendations. The activity
relationship diagram of proposed layout is depicted in Figure 6.

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

Figure 6. Activity Relationship Diagram of Proposed Layout

5.3 Proposed Improvements

Figure 7. 2D Layout Design of Proposed Improvement

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

Figure 8. 3D Layout Design of Proposed Improvement

Considering the ARD results, we propose a free flow layout depicted in Figure 7 and Figure 8 to optimize the work
process in terms of workload and motion-movement efficiency. Here are the changes that we made to achieve that
goals: (1) Reduce the distance between racks or shelves with high relationship, (2) Optimize the space usage by
combining the space of the same kind of products, (3) Implement free flow layout to increase product visibility by
the customers (Hagtvedt & Chandukala, 2023).

Table 6. Area information for layout after improvement

Dimensions
Work Area Total Area (m2)
Length (m) Width (m)

Front Area 1 3.55 5.40 19.17

Side Area 1 3.85 2.12 8.16

Aisle 1 1.35 1.83 2.47

Back Area/ Staff Room 1 2.50 3.70 9.25

Inventory 1 3.85 1.25 4.81

Container 4 0.7 0.40 1.12

Display Case 3 1.50 0.45 2.03

Shelf 2 1.50 0.40 1.20

Total Area 48.21

After applying improvements, the racks or shelves that contain the same kind of product are combined to optimize
the space usage and increase the employee motion-movement efficiency. In the end, we reduce the number of the
racks or shelves by 4 or an area optimization of 3% (Table 6).

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

To compare the distance that workers need to cover when serving customers during purchases, we analyze the
distance between the most frequently purchased items at Corpma+, namely glue, cardboard, and polyfoam (Table 7).

Table 7. Description of most often bought products

Number Appliance Rack

1 Glue Student Architecture Tools

2 Polyfoam General stationery

3 Cardboard 1-meter Cardboard Area

Table 8. Comparison of distance relationship between existing layout and after improvement
Existing Layout After Improvement Layout
Series of Optimization (movement
combination reduction)
Flow Distance Total Flow Distance Total

1-2 2,7 m 1-2 2,7 m

1-2-3 9,4 m 8,7 m 8.00%
2-3 6,7 m 2-3 6m

1-3 8,2 m 1-3 7m

1-3-2 14,9 m 13 m 13.00%
3-2 6,7 m 3-2 6m

2-1 2,7 m 2-1 2,7 m

2-1-3 10,9 m 9,7 m 11.00%
1-3 8,2 m 1-3 7m

2-3 6,7 m 2-3 6m

2-3-1 14,9 m 13 m 13.00%
3-1 8,2 m 3-1 7m

3-1 8,2 m 3-1 7m

3-1-2 10,9 m 9,7 m 11.00%
1-2 2,7 m 1-2 2,7 m

3-2 6,7 m 3-2 6m

3-2-1 9,4 m 8,7 m 8.00%
2-1 2,7 m 2-1 2,7 m

When utilizing the layout we propose, employees can minimize movements by up to 13% (maximum) and enhance
their mobility in serving customers. With an effective layout, workers can move freely and address common issues
such as irregular queues and inefficient space utilization.

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Proceedings of the 14th Annual International Conference on Industrial Engineering and Operations Management
Dubai, United Arab Emirates (UAE), February 12-14, 2024

Figure 9. Proposed Polifoam Rack Design Based On REBA Assessment

The result of Rapid Entire Body Assessment (REBA) with the score of 9 points indicates that the activity of
reaching for the polyfoam or other type of papers at the top racks is a high risk activity moreover due to its repeated
needs. Therefore, we proposed a new rack design with smaller gap and lower height to improve the REBA score and
optimize the space usage of the rack (Figure 9).

6. Conclusion
After a series of analysis and calculation, research results on applying systematic layout planning methods obtained
alternative proposed layouts that can be applied to optimize increase production effectiveness the area utilization
existing layout from 49 m2 to 45 m2 or area optimization as a 3% and decrease movement distance that workers
need to cover by 13%. This, undoubtedly, can enhance the efficiency of workers in their tasks. This can also assist
workers in managing the flow of customers, especially during peak hours, thereby improving the comfort of buyers
when making purchases at Corpma+.

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Biography
Angelica Octavia Kunardi is a third-year undergraduate Industrial Engineering student at Universitas Indonesia.
Currently active as a Deputy Head of Treasury of Industrial Engineering of Ikatan Mahasiswa Teknik Industri
(IMTI) FTUI and Laboratory Assistant of Statistics and Quality Laboratory. Her research interests are mostly related
to project management, data science, information system, and machine learning.

Darlene Damayanti is a third-year undergraduate Industrial Engineering student at Universitas Indonesia. Currently
active as a Business Development Intern at a Japanese Company and also Head of Internal Division of Management
Information System and Decision Making Laboratory UI. Her research interests are mostly related to product
management, information system, design thinking, and business development.

Gabrielle Margareth Britannia Sitorus is a third-year undergraduate Industrial Engineering student at Universitas
Indonesia. In addition to her academic obligations, she is currently active in ShARE Universitas Indonesia as Project
Management and Outreach Associate and Ikatan Mahasiswa Teknik Industri (IMTI) FTUI as Expert Staff of
Academic and Profession. Her research interests are mainly in business development, data science, economics, and
project management.

Rafalia Maritza is a third-year undergraduate Industrial Engineering student at Universitas Indonesia. Currently
active as a K3LL teaching assistant of the Faculty of Engineering. Her research interests are mostly related to quality
systems, human capital management, industrial system design and information systems.

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