The cost analysis of material handling in Chinese traditional praying paper production plant

Chinese traditional praying paper industry is an industry which produced Chinese traditional religion praying paper. This kind of industry is rarely examined since it was only in Small and Medium Enterprise (SME's- form). This industry produced various kinds of Chinese traditional paper products. The purpose of this research is to increase the amount of production, reduce waiting time and moving time, and reduce material handling cost. The research was conducted at prime production activities, consists of: calculate the capacity of the material handler, the frequency of movement, cost of material handling, and total cost of material handling. This displacement condition leads to an ineffective and inefficient production process. The alternative was developed using production judgment and aisle standard. Based on the observation results, it is possible to reduce displacement in the production. Using alternative which by-passed displacement from a rolled paper in the temporary warehouse to cutting and printing workstation, it can reduce material handling cost from 2.26 million rupiahs to 2.00 million rupiahs only for each batch of production. This result leads to increasing of production quantity, reducing waiting and moving time about 10% from the current condition.