A facility layout can be defined as an arrangement of the equipment area in the
industry or organization of the factory. The main objective of this project was to
improve the existing layout in SMEs using DELMIA QUEST simulation. In this
project, new layouts are proposed to reduce the waiting time in a production
line and increase the productivity. This study focused on packaging production
line of a coffee manufacturing company located in Tasek Gelugor Pulau
Pinang. The problems identified in this production line are limited working
space, some processes overlap and are stuck due to high demands of the
products. This results in high lead time. The existing layout was studied and
simulated to improve certain parameters such as labour, machines, and shape
of the layout. The workstations were repositioned in the proposed layout before
undergoing simulation process using DELMIA QUEST software. From the
simulation results, the significant improvement was determined and the best
layout was chosen in terms of machines utilization and total output. Based on
this, a new layout is proposed to increase the productivity capacity and to meet
customers’ demands. Simulation data of the proposed layout showed its
productivity had increased to approximately 41.5%.