EFFICIENCY AND EFFECTIVENESS OF PLANT LAYOUT FOR TIMBER MANAGEMENT COMPANIES IN ANTICIPATING THE GLOBAL ECONOMIC RECESSION IN LUMAJANG REGENCY

Abstract

Lumajang Regency is one of the largest sengon or albizia wood producing areas in East Java Province. Of the 179,000 hectares (ha) area of Lumajang Regency, around 33 percent is state forest, then 32.6 percent is recorded as community forest. From the percentage of community forest area or the equivalent of approximately 50,000 ha, most of it has also been planted with sengon wood. Lumajang already has around 120 wood processing industries, and some industries have even penetrated the export market. This industry is also encouraged to become a supplier of muebel in the local area. Because sengon wood can also be the main substitute for natural wood such as teak to be processed into furniture products. The global recession conditions that hit the world have an impact or influence on market demand from abroad. Automatically, the export performance of wood industry companies to several countries will also be disrupted or it could be said that demand will fall. This impact also affects the workforce in wood management industrial companies. Of the many companies in Lumajang district, wood management companies are the biggest contributors to overcoming government problems, especially unemployment. This research aims to analyze the layout efficiency of wood management companies as a contributor to optimizing production capacity in anticipating a global economic recession. The next thing we have to do is implement this research by adapting theory and practice. The benefit of this research is that the company gets information and knowledge about how the company plans optimal factory layouts to develop production processes to be effective and efficient to increase production capacity. The next benefit is helping company management in making policies related to layout to formulate company strategy.