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PAGE PAGE 2 SLP ANALYSIS Lan Xiuju (Institute of Industrial Engineering, Zhejiang University of Technology) Abstract: This paper uses the method of SLP to systematically analyze one enterprises existing facility layout situation and presents an optimization scheme to reach the goal of reducing logistics cost. Key words: SLP; Value Engineering; Optimization layout; Logistics 1 Introduction Because of the fierce compel situation enterprises are facing, how to reduce cost effectively, quicken technology improvement, strengthen the ability of competition. 2 The Method of SLP and Production Logistics Optimization Facility layout, on the basis of the functions the system should fulfill is to systematically design all facilities, personnel and investment in the system. Its key content 15 the design of the factory, shops, and facilities and so on. Its goal is to make the logistics route rational, that is, to enhance the whole production systems profit by changing or modulating the production logistics. 2.1 The logistics analysis of the metalworking shop Metalworking shop is the processing center of this enterprise. Processing techniques are various with the different types of parts. There are 34 types of parts need to be processed perennial. The first step of design is the detailed analysis of processing techniques of the parts. Take the back moulding board for example (showed in Table l). 2.2 Draw location interrelated figure of all work units In metalworking shop, the transfer of the size of the logistics amount is the most important thing to consider, that is, effects of other things can be ignored，So we make propinquity table (Table 6) only according to the work units logistics interrelated table(Table 5), without taking the non-logistics Interrelated table into account. 3 Conclusions So for the manufacturing, during the complex pressing process, the first step to reduce the product cost is to optimize facilities layout pattern inside the enterprise. SLP is undoubte