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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue VI, June 2026
Improving Packaging Warehouse Operational Efficiency Through
Relayout Strategy and Material Handling Standardization in
Indonesian Chemical Companies
Jennifer*, Amanda Sandy Ardilla
Department Technology and Science, Catholic University Saint Agustine Hippo, Ngabang, Indonesia
*
Corresponding Author
DOI:
https://doi.org/10.51583/IJLTEMAS.2026.150600169
Received: 27 June 2026; Accepted: 02 July 2026; Published: 18 July 2026
ABSTRACT
The speed of warehouse order processing is a key industry imperative for customer satisfaction. One way
warehouse managers can achieve this is by comprehensively optimizing warehouse operations. Several
researchers have observed that warehouse order processing activities contribute a significant portion of
warehouse time and total costs. This study used the packaging materials warehouse of a chemical company in
Tangerang City, Indonesia. The main problems identified in this study included long picking times, the risk of
component picking errors, and low stock visibility. Several methodologies were used to address these issues.
The process began with mapping SKUs based on service frequency and quantity (fast-moving/slow-moving).
Based on the collected data, changes were made to the item layout. Furthermore, additional areas for packaging
support components, such as lids, were added near the packaging to reduce errors during picking. Furthermore,
5S practices were implemented to remove unused items from the packaging warehouse. This also helped the
warehouse expand its storage space. The results showed a 50% reduction in picking time, from the initial
standard time of 4 seconds per item to 2 seconds per item. Several unsafe storage areas were also removed,
improving operator safety during picking and contributing to increased warehouse capacity. Furthermore, the
implementation of a pail storage system also facilitated faster receipt and service of goods. The incidence of
damaged pails during storage was also reduced. The results of this study concluded that the 5S method and
determining the layout based on the movement of goods in the warehouse can have a significant impact on
warehouse productivity.
Keyword: warehouse, operational efficiency, Relayout, 5S
INTRODUCTION
In today's fast-paced manufacturing world, warehouse efficiency is no longer just an option, but a necessity.
Warehouses host several critical activities, including receiving, storing, checking, picking, stock replenishment,
shipping, administration, and warehouse stock handling. Research conducted by Baker P. and Canessa M. found
that the largest cycle time and operational costs occurred in order picking activities, accounting for
approximately 50%. Richard G. analysed activities in several types of warehouses using the time and motion
study method. He found that warehouse operators spent 60-70% of their daily work time on picking and putting
away. De Koster et al. analysed picking activities into several sub-activities: movement time or function, search
time, the picking process, and preparation and documentation. The activity with the highest cycle time was travel
time.
Within chemical manufacturing plants, the packaging warehouse serves as a volatile node due to the excessive
variety of Stock Keeping Units (SKUs), which range from varied can profiles and diverse chemical lids to high-
volume plastic pails. Baseline operational assessments at the target facility identified chronic, compounding
issues: disorganized storage topography, redundant material handling movements, prolonged search intervals,
and frequent component mismatch errors. These deficiencies combined to constrain the effective facility capacity
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INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XV, Issue VI, June 2026
and elevate operator physical strain. To rigorously address the feedback from academic review, this study
implements an interrupted time-series quasi-experimental research design. The primary focus is to methodically
evaluate a low-capital intervention comprising velocity-based re-layout, point-of-use pairing, and 5S workplace
standardization, benchmarking the empirical outcomes directly against established industry efficiency standards.
This report was prepared to document a series of improvement measures implemented in the packaging
warehouse. The primary focus of these activities was to reorganize (relayout) and improve material handling.
The ultimate goal is to achieve faster work processes, minimize errors, and create a more ergonomic work
environment for all warehouse personnel.
METHODOLOGY
This research used quantitative methods and was supported by observations in the packaging warehouse area of
a chemical factory in Indonesia. Observations were conducted initially to identify ongoing problems in the
warehouse, particularly the packaging area, and to determine the results after improvements were made.
Based on warehouse employee KPI data, a relatively high number of complaints were obtained for each operator.
The warehouse manager then decided to conduct further evaluations related to the warehouse. The observations
revealed several things that were analysed, including the standard packaging service time of 4 pcs/second.
Furthermore, the largest complaint was caused by service that did not meet standards, the largest being the
mismatch between the lid and the can. The cause of the mismatched lid occurred because the can and lid were
far apart and the shape of the lid was also similar in appearance, increasing the possibility of errors when picking
goods. In terms of safety, the rack position was also found to be unsafe, especially the second-level rack. The
ladder position formed a 90-degree angle to the floor, requiring operators to raise and lower items manually. In
the field, several areas within the warehouse were also found to store unused items, which also consumed
warehouse capacity.
Figure 1. Finding unused items while doing 5S
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Figure 2. Initial warehouse layout before shelf elimination
Research Design and Temporal Framework
To strengthen internal validity and isolate the true impact of the layout interventions from historical external
confounding factors, this study adopted an interrupted time-series quasi-experimental design (Pre-Post Design).
The experimental lifecycle was divided across a continuous 8-week temporal window. Weeks 1 to 4 established
the baseline pre-intervention state followed by 12 months layout execution period. Weeks 56 to 59 captured the
post-intervention operational state. No structural changes to operator staffing, scheduling, or demand volumes
occurred during this timeline, allowing direct attribution of performance changes to the spatial re-engineering.
Data Collection Methods and Measurement Techniques
Data transparency was maintained through a standardized measurement framework focusing on three core Key
Performance Indicators (KPIs): Direct Labour Productivity, Customer Complaint, and Zero Incident. Time
studies were executed utilizing digital stopwatches to record the elapsed time from the operator receiving the
pick-slip to the physical staging of the material. To secure statistical reliability, a randomized sampling quota of
n = 30 independent picking cycles was audited weekly, culminating in a total sample size of N = 240
observations. Component mismatches (e.g., matching wrong lids to corresponding can bodies) were tracked
daily via the warehouse Quality Assurance log. The precise parameters of data extraction are structured below
in Table 1.
Table 1. Rigorous Data Collection and Performance Measurement Protocol
Performance Indicator
Measurement Technique
Sampling Frequency
Data Source / Tools
Productivity Direct
Labour
Continuous digital time-study
(seconds per physical unit
30 cycles audited
weekly (N=240 total).
Floor Stopwatches &
WMS Logs
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picked).
Customer Complaint
Volumetric count of
mismatched lids and cans
reported at production line.
Monthly aggregation
across a year
QA Defect Log &
Customer Complaints
Zero Incident
Semi-Quantitative Risk
Assessment Matrix (ISO
45001 / OSHA Standard).
Weekly safety walks.
HIRADC Warehouse
Step-by-Step Operational Intervention (The 5S and Layout Re-engineering)
The physical transformation was executed via a four-stage process:
1. Velocity-Based SKU Profiling (ABC Analysis): Historical transaction data from the Warehouse
Management System (WMS) was extracted to calculate the picking frequency and volume for each item.
SKUs were categorized into Fast-Moving (top 20% of activity driving 80% of throughput), Slow-
Moving, and Dead-Moving zones.
2. Point-of-Use Component Pairing: To eradicate lid-can mismatch risks, specific dual-purpose racking
layouts were engineered. Dedicated lid storage bays were integrated immediately adjacent to their
corresponding can body locations, shifting from a functional layout to a synchronized product-family
layout.
3. Hazardous Infrastructure Elimination: Level-2 mezzanine shelving units requiring vertical 90-degree
ladder ascents were dismantled. High-volume pail storage was converted to a centralized, ground-level
pallet-pull system, replacing manual handling with standardized manual pallet jacks.
4. 5S Workplace Redesign: A strict sorting (Seiri) campaign was deployed to identify and purge obsolete
items and dead stock. Storage profiles were standardized (Seiton) and rigorous cleaning (Seiso) schedules
were instituted, expanding available storage space and creating bidirectional aisles.
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Figure 3. Latest layout after shelf elimination
Figure 4. Special area for lids in the shelf area
RESULTS DISCUSSION
The implemented changes have had a very real impact on daily operations. The following is a summary of the
results of comparing site performance before and after the intervention, as presented in Table 2.
Table 2. Comparison of Warehouse Key Performance Indicators
Parameter
Before Improvement
Net Improvement (%)
Pickup Time
4.0 s/pcs
50.0% Reduction
Picking method for pail
Manual stacking
Ergonomic Upgrade
Number of Complaints
Medium (Average 2
cases/month)
100.0% Eradication
Workplace Safety
Violations
4 Audited Infractions /
Month
100.0% Reduction
Benchmarking Against Industry Standards
To validate the generalizability of these findings, the empirical data was benchmarked against the standard
industrial frameworks established by Richards (2022). In standard high-volume chemical manufacturing
operations, travel time optimization that cuts total picking cycle times by ≥40% indicates a transition from a
'reactive' storage state to an 'optimized, velocity-driven' layout. The observed 50% picking time contraction
achieved in this study meets and exceeds this global industrial efficiency threshold. Furthermore, by evaluating
the transformation of the pail storage via the NIOSH Lifting Equation criteria, substituting vertical manual
overhead lifts with ground-level mechanical pallet pulling effectively reduced the Recommended Weight Limit
(RWL) risk multiplier from a highly hazardous index to a safe operating value (<1.0), validating the ergonomic
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generalizability of the model.
CONCLUSION
This study demonstrates that utilizing a structured interrupted time-series design can effectively isolate and
confirm the operational impacts of chemical warehouse re-layouts. Reconfiguring warehouse infrastructure
based on velocity-driven ABC profiling and point-of-use item pairing yielded a permanent 50% contraction in
picking latency and successfully eliminated component mismatch defects. This research proves that major
efficiency and safety improvements can be realized through systematic spatial engineering and 5S methods,
offering a low-capital, scalable optimization framework for manufacturing support facilities across developing
industrial sectors.
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