Proposed Factory Area Location Alternative Selection Based on Multiple Criteria Decision Making Using Analytical Hierarchy Process Method (Case Studi PT. SKI)

Abstract

PT. SKI is a manufacturing company engaged in the production of hair and skin
beauty products such as hair masks, shampoos, conditioners and others. Demand
for beauty products that are increasing every day requires companies to produce
more than inventory. One solution is to expand the production area in an increase
large-scale production processes. However, the current production area which
cannot optimally support this due to the absence of vacant land or expansion of
the area that can be carried out. Based on the results of interviews with the head
of the production section, the plan to move locations in several alternative places
is the right solution for the company. In the specific task studied, the need for
this location transfer will be related to multiple decision making taken by the
company. One technique to identify these problems is using the Analytical
Hierarchy Process or AHP method where this method is a simplification of
complex problems that are not structured, strategic, and dynamic into their parts,
and organize in a hierarchy. The level of importance of each criterion that
supports decision support is relatively compared to other criteria by considering
various considerations and then synthesizing to determine criteria that have high
priority and play a role in influencing the results of the system. Based on the
results, it is found that there are several criteria which plays an important role in
the selection of factory location alternatives obtained in the mathematical
equation. The first criterion namely Investment and Operations has a value of
around 55.84% indicating that the first best alternative location in the sub criteria
is land price, land area, expansion and employee salaries (UMR). Continued
around 58.47% in the second general criteria, namely facilities with sub criteria
of water, electricity, transportation and service which showed the best selection
was in the first location alternative and 73.51% in the criteria for ease of
licensing and transportation access at the first alternative location. By comparing
the three data multiplication matrices and assessment criteria, it was found that
a large comparison of the three general criteria had a total of 60.91% of the first
alternatives being the priority of PT. SKI to choose the location of the new
factory area, which is located in Padurenan, Gunung Sindur, Bogor, West Java.